Vedanta investing Rs70,000 crore for expansion in India
03 March 2009
The Anil Agarwal-led Vedanta Group will invest Rs70,000 crore in India by 2011-12, as it bids to emerge the world's fifth largest metals and mining group, newspaper reports said.
Vedanta Group, based in the UK, plans to invest Rs50,000 crore in the aluminium sector and Rs20,000 crore in other areas like copper, iron ore and zinc by 2011-12.
The company said it has invested about 50 per cent of the proposed capex and has tied up fund for the rest. The company said it has cash surplus of Rs30,000 crore and funding will be no problem.
Vedanta Group recently announced a buyout plan for minority shareholders of Madras Aluminium Company Limited (MALCO) as part of its plans to augment annual aluminium production capacity.
Vedanta currently owns 80 per cent of MALCO. The offer to acquire up to 22,500,000 fully paid equity shares of MALCO, representing 20 per cent of the outstanding issued share capital, is being made by way of a reverse book build process. Vedanta intends to acquire shares at a price not exceeding Rs105.00 per equity share.
Besides, the company is also enhancing iron ore output from group firm Sesa Goa to 25 million tonnes a year from 10 million tonnes now.