Each of 4 demerged Vedanta entities can be $100 bn firm: Chairman
The Vedanta Group’s Chairman, Anil Agarwal, has made a bold statement about the company’s demergers. Speaking at an event, Agarwal said that each of the four demerged entities has the potential to grow into a $100-billion company. This statement comes as Vedanta is on the verge of concluding its demerger process, which is expected to be completed by the end of the first quarter of FY26.
Agarwal’s statement is a testament to his confidence in the demerged entities and their ability to succeed independently. The demerger process is aimed at unlocking the true potential of each entity, allowing them to focus on their respective businesses and growth strategies.
The demergers will see Vedanta Ltd being split into four separate entities, each focused on a specific business segment. These entities will include:
- Hindustan Zinc: This entity will be focused on the mining and production of zinc, lead, and silver.
- Bharat Petroleum Corporation Ltd (BPCL): This entity will be focused on the refining and marketing of petroleum products.
- Cairn India: This entity will be focused on the exploration and production of oil and gas.
- Sterlite Technologies: This entity will be focused on the manufacturing and supply of copper wire and cable.
Each of these entities has a strong presence in their respective markets and has the potential to grow significantly in the future. Agarwal’s statement is a recognition of this potential and his confidence in the ability of each entity to succeed independently.
Agarwal also drew a comparison between Vedanta and a Banyan tree, saying that trees growing under its shade often find it difficult to grow. He believes that the demerger will allow each entity to break free from the constraints of being part of a larger organization and focus on their own growth and development.
The demerger process is expected to be completed by the end of the first quarter of FY26, and Agarwal’s statement is likely to boost investor confidence in the demerged entities. The potential for each entity to grow into a $100-billion company is significant, and the demerger is expected to unlock significant value for shareholders.
In conclusion, Anil Agarwal’s statement about the potential of each demerged Vedanta entity to grow into a $100-billion company is a testament to his confidence in the company’s future. The demerger process is expected to be completed soon, and investors are likely to be excited about the potential for each entity to succeed independently. As the demerger process unfolds, it will be interesting to see how each entity performs and whether they are able to live up to Agarwal’s expectations.
