New Delhi, 01/02/2025: Vedanta is no longer looking to sell its steel business and is instead focusing on expanding production and acquiring important mineral resources, a senior company executive said.
The company plans to increase its steel production from 1.5 million tonnes to 10 million tonnes and is also considering buying iron ore and copper mines to support its operations, said Arun Misra, Executive Director.
In June 2023, Vedanta started reviewing its businesses and considered selling some of them. However, Misra now says selling is no longer a priority. “At that time, it was part of our strategy, but now we would rather grow than sell,” he said.
Initially, the company planned to sell its steel assets by March 2024, but Chairman Anil Agarwal later said they would only sell if they got the “right price.” Now, Vedanta is focused on growing its business instead of selling it.
One key part of this expansion is the company’s steel plant in Jharkhand, which has the potential to produce 10 million tonnes of steel each year. Misra called the location “strategic” and said, “If someone offers a good price, we can talk, but right now, our goal is growth.”
Vedanta aims to double the plant’s production to 3 million tonnes next year and later increase it to 10 million tonnes. “Once we reach 3 million tonnes, we’ll see what comes next,” Misra said.
Vedanta bought Electrosteel Steels in 2018 through an insolvency process and now owns 95.5% of the company. Between April and December 2024, Electrosteel produced 981,000 tonnes of steel, which was 3% less than the previous year. However, profits improved, with earnings per tonne rising from $28 to $46.
Outside of steel, Vedanta is also trying to secure copper supplies by bidding for mines in India. This is important for its Tamil Nadu smelter, which has been shut for years due to environmental issues.
