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The history of mining dates back to around as early as the 1800s. It is considered one of the oldest industrial activities. In India, the mining industry is one of the core industries contributing to a massive part of the country's economy.
Mining, as we know, is vital not only for society, but it is equally important for education, science, national defence, and technology. It is more than just digging underground for coal and metals. Furthermore, it is a business that also necessitates extensive financial knowledge.
Vedanta Group, founded 44 years ago, is an Indian multinational mining company that has built its reputation as one of the world's leading natural resources companies. It was initially known as Sterlite industries, which was founded by Dwarka Prasad Agarwal. The company was later taken over by his son Anil Agarwal, who founded its parent organisation, Vedanta Resources Limited. Vedanta Group, otherwise known as Vedanta Limited is a mining company with primary operations in aluminium, iron ore, and gold.
This article gives brief information on the Vedanta Limited's successful journey. Learn about its founder, business model, revenue, shareholding pattern, acquisitions, key products, and subsidiaries.
Vedanta Group - Company Highlights
- Headquarters-Mumbai, India
- Sector-Mining, Oil and Gas, Electric Utility
- Founder-Anil Agarwal
- Revenue-$16.08 billion (FY22)
- Parent Organisation-Vedanta Resources Limited
Vedanta Group - About
Vedanta is a world-class natural resource conglomerate with operations in India, South Africa, Liberia, and Namibia. The company has a diversified portfolio in Oil & Gas, Zinc, Lead, Silver, Aluminium, Iron Ore, Steel, Copper, Ferro Alloys, Power, Glass Display, Optical Fibre, and Semiconductors. It is the world's largest producer of zinc, lead, and silver, as well as aluminium, iron ore, oil and gas, and ferrochrome.
Vedanta Group is known for its structurally low-cost and diverse assets that help them to deliver world-class mines and metals. The company has positioned itself as the world's largest aluminium producer and also the first Indian company to manufacture low-carbon aluminium metal. Although the company was founded in Goa and Karnataka, it has gradually expanded its operations in recent times to Odisha, Rajasthan, Chhattisgarh, Tamil Nadu, Punjab, Andhra Pradesh, and Gujarat. Vedanta Group has the following subsidiaries:
- Bharat Aluminium Company (BALCO)
- Lanjigarh Alumina Refinery
- Electrosteel Ltd (ESL)
- Sterlite Copper
- Hindustan Zinc
- Talwandi Sabo Power Limited
- Sesa Goa Iron Ore
- Cairn India
- Black Mountain Mining
- Skorpion Zinc
Vedanta Group - Vedanta Resources Limited
- Vedanta Resources Limited is the parent organisation of Vedanta Limited (formerly Sesa Goa / Sterlite) or Vedanta Group. It is a diversified Indian mining company headquartered in London, England. It is India's largest mining and non-ferrous metals company, with operations in Australia and Zambia.
- The company, which employs more than 20,000 people, is primarily owned by Anil Agarwal's family through Volcan Investments, a holding vehicle company owning 61.7% of the company.
Vedanta Group - Industry Details
- Everyone is aware of how mining plays a significant impact in the development of the country's economy. Natural resources like minerals are essential in the evolution of most industries. This industry holds vast potential for improving GDP growth, foreign exchange, and other infrastructural expansions. According to some reports, it is seen that the global mining industry grew from $1,825.21 billion in 2021 to $1,990.9 billion in 2022 at a CAGR of 9.1%.
- The Government of India has also launched many initiatives to boost the mining industry of the country. Furthermore, the government intends to sell assets in the mining sector worth Rs. 28,727 crores ($3.68 billion) over the fiscal years 2022-25.
Vedanta Group - Founder and Team
Vedanta Group is founded by Anil Agarwal. As of now, Anil Agarwal is the Non-Executive Chairman of Vedanta Limited.
- With 40 years of entrepreneurial and mining experience, Anil Agarwal has shaped Vedanta into a gigantic multinational company. He holds a 100% stake in Vedanta Resources through Volcan Investments, a holding vehicle company. Born and brought up in a Marwadi family, Anil Agarwal joined his father's aluminium conductors business instead of attending university. The breakthrough of his career began in the 1970s when he began trading in scrap metal from different cable companies and sold them in Mumbai. In 2003, Anil Agarwal and his team established Vedanta Resources Plc in London to gain access to international capital markets.
- Anil Agarwal's Vedanta group has made several investments in various Indian states. Vedanta accounts for nearly 4% of Odisha's GDP. Recently, Anil Agarwal achieved the CIF Global Indian Award 2022 in Toronto, Canada. Besides this, he has won awards like The Economic Times, Business Leader Award (2012), Mining Journal Lifetime Achievement Award (2009), and many more.
- Anil Agarwal lives in London with his wife, Kiran Agarwal, and two children. His family has a net worth of $2.5 billion.
- Sunil Duggal is the Whole-time Director and CEO of Vedanta Limited. He has over 30 years of experience in leading various performance teams. A graduate in Electrical Engineering from Thapar Institute of Engineering and Technology, Patiala, Sunil Duggal has also participated in many leadership development and management programmes across major institutions.
- Sunil Duggal is also the Vice-Chairman of the International Zinc Association, President of the Indian Lead Zinc Development Association, Chairman of the FIMI Non-Ferrous Metals Committee, and Co-chair of the FICCI Non-Ferrous Metals Committee 2017.
Vedanta Group - Startup Story
- It all started when Vedanta known as Sterlite Industries began in the 1980s. Sterlite Industries was initiated by D.P. Agarwal who purchased mining concessions in various Indian states. With this business, he also ran a small aluminium conductor business in Patna.
- Anil Agarwal decided to go to Mumbai to help with his father's business at the age of 19. After going through a lot of analysis and experiments, Anil finally came up with his own business, Vedanta Resources. As a true entrepreneur, Anil Agarwal did business that gained a lot of profits and went into the widespread expansion of his business by making notable acquisitions. He established Sterilite Communications in Aurangabad in 1993 and built a plant to produce aluminium sheets and foils as well as another plant to produce optical fibre.
- As the saying goes, when it comes to luck, you make your own. These words inspired Anil Agarwal when he moved to London. Things changed for him and his company when he got Vedanta Resources Plc listed on the London Stock Exchange (LSE) and raised $876 million through an Initial Public Offering in 2003. Anil's company was not only the first Indian company to be listed on the London Stock Exchange, but it was also the first Indian business group to have global mining and metal production within a decade of starting its manufacturing work.
Vedanta Group - Mission and Vision
- The mission of Vedanta Group is, "To create a leading global natural resources company"
- Through research, discovery, acquisition, sustainable development, and utilisation of diverse natural resources, Vedanta Group aims to create long-term value for all of its stakeholders. The company also abides by world-class governance, safety, sustainability, and social responsibility standards.
Vedanta Group - Name, Tagline, Logo
- Vedanta Group's tagline speaks for itself as it says, "Transforming for Good".
- Vedanta was previously known as Sterlite Industries. The company's name 'Vedanta' is derived from ancient scriptures of India, known as Vedas, which depict the philosophical aspects of life. Vedanta means 'ultimate knowledge' that an individual gains about his or her innate self.
- The Vedanta logo is made up of a symbol and the company name that are inextricably linked. As seen, the symbol is circular, representing the global nature of Vedanta as a corporate organisation while also representing the earth, the source of its product and business existence.
Vedanta Group - Business & Revenue Model
- Vedanta Group can be said to have a diversified business model as it has widespread business activities in the mining of iron ore, gold, and aluminium mines throughout India in states like Odisha, Goa, Karnataka, and Rajasthan. Vedanta Group earns its revenue mainly through producing zinc, lead, silver, aluminium, and power. Moreover, Vedanta is regarded as the key leader in zinc, silver, lead, aluminium, and power.
- Vedanta Limited has the following business operations in producing some of the best products;
- Zinc, Lead, and Silver - Vedanta Group runs the Zinc, lead, and silver business through its subsidiary Hindustan Zinc Limited (HZL). It operates the Zinc India business. By volume, HZL is one of the world's largest integrated zinc-lead producers.
- Oil and Gas - Cairn India (a subsidiary of Vedanta Group) accounts for more than 25% of the country's crude oil output and is India's largest private-sector crude oil producer.
- Copper - In Tuticorin, a district in Tamil Nadu, Vedanta Limited operates the largest copper smelter. This accounts for nearly half of Vedanta Limited's profits.
- Aluminium - In February 2001, the Government of India approved the sale of its 51% stake in Bharat Aluminium Company (BALCO) to then Sterlite Industries, which is now Vedanta Limited for Rs.551.5 crores in a major dis-investment deal. BALCO has a 345 ktpa smelter capacity and can produce ingots, wire rods, billets, busbars, and rolled products. In the Indian state of Chhattisgarh, BALCO operates mines, refineries, smelters, and captive power plants. In addition, this company has a 1.75MTPA aluminium manufacturing unit in Jharsuguda, Odisha.
- Iron Ore - Vedanta Group carries out its iron ore mining activities in the Indian States of Goa and Karnataka. Through its subsidiary, Sesa Sterlite, it is the largest private-sector exporter of iron ore in India.
- Power - Sesa Sterlite, the subsidiary of Vedanta, is considered one of India's leading power producers. The company also has a commercial power generation business that currently operates the 2,400 MW Jharsuguda Power Plant in Odisha, the 270 MW BALCO power plant in Chhattisgarh, the 100 MW MALCO power plant in Tamil Nadu, and the 274 MW HZL wind power plants in India.
- Pig Iron - The company is also engaged in manufacturing steel or steel mills, mainly in the Western and Southern parts of India.
- Metallurgical Coke - The group through its subsidiary Sesa Group consumes nearly 65% of total production for pig iron production.
Vedanta's CSR and Sustainable Activities
- To launch Project Nandghar across the country, Vedanta Group has formed a first-of-its-kind, Public-Private Partnership (PPP) with the Ministry of Women and Child Development, Government of India. The goal of this project is to modernise and build the Anganwadi infrastructure in India. Furthermore, Vedanta focuses on women empowerment through its CSR initiatives in order to supplement inclusive economic growth in India.
- Through its CSR foundation, the company has contributed around Rs 300 crores, which benefited more than 40 million people.
Vedanta Group - Shareholders
- Since June 2018, Vedanta Group has been owned 50% by the promoters Finsider International and Twinstar Holding, both of which are owned by 12 members of the Agarwal family. The rest 50% is held by the general public. The promoters own 51% of the company through "Westglobe limited" under "Twinstar holdings" which owns 37%, and "Finsider International" owns about 11%.
- The remaining balance of 49% is owned by mutual funds such as ICICI Prudential, foreign portfolio investors (17%), Corporate bodies (7%), LIC India (6%), Citibank New York (4%), individual retail shareholders (5%) and Citibank NYADR (4%).
Vedanta Group - Controversies and Challenges Faced
- When there are good times, there are also bad times. It happened so when SEBI found Vedanta (then Sterlite Industries), BPL, and Videocon guilty in 2001 of conspiring with broker Harshad Mehta and 17 other brokers (10 from the BSE and 7 from the NSE) to corner shares and rig share prices. As a result, Sterlite industries were banned for almost two from accessing capital markets. Eventually, after all this incident, Vedanta Resources, the parent company of Vedanta Limited, was listed on the London Stock Exchange.
Vedanta Group - Acquisitions
- To date, Vedanta Group has made only one acquisition. On July 7, 2022, Vedanta Ltd acquired Athena Chhattisgarh Power for INR 564 crore. Athena is a company that plans to build and operate a domestic coal-fired thermal power plant and is headquartered in Raipur, Chhattisgarh, India.
Vedanta Group - Advertisements and Social Media Campaigns
- To promote the concept of AtmanirbharBharat, Vedanta launched a campaign known as #AtmanirbharBharatKeLiye and #AtmanirbharHumHaiVedanta in 2021 that shows a video of a teacher along with a group of children singing the essence of sustainable India. Later on, an employee of Vedanta joins them in the quest to emphasize the company's vision of sustainability and how it is empowering India's growth and prosperity through its mining sector.
Vedanta Group - Awards and Achievements
Vedanta Group has achieved some of the following awards:
- Vedanta Aluminium received the prestigious recognition of "Indian Affairs India's Most Valuable Aluminum Producing Company of the Year 2018
- Vedanta Sesa Goa Iron Ore Karnataka Unit has won 46 awards at the Mines Safety Association Karnataka Zone -3.
- Vedanta Group has achieved Bronze at the Public Relations and Corporate Communications Awards 2019
- Vedanta Group was recognised as the Most Sustainable Company in the Mining Industry 2021
- Vedanta Group has achieved the Zee Hindustan Award for its remarkable contributions in the promotion of sporting activities at Zawar mines
- Vedanta Group has been recognised as a 'Great Place to Work'
- Vedanta Group gets listed in The Dow Jones Sustainability World Index, one of the world's prestigious environmental, social, and governance (ESG) indices.
Vedanta Group - Competitors
Some of the major competitors of Vedanta Group are:
- Tata Steel
- JSW Steel
- Coal India
- Jindal Steel
- NMDC Limited
- Lloyds Metals
Vedanta Group - Future Plans
- By the end of 2030, Vedanta Group aims to decarbonize all of its light motor vehicles (LMVs). Besides this, Vedanta Group is aggressively setting up major changes in its renewable energy operations.
- KKR, a private equity investment firm, has announced plans to invest in a new renewable energy platform in India. It is reported that KKR will invest $400 million in Serentica Renewable, a renewable energy company promoted by the Vedanta Group. As per sources, Vedanta Group intends to build 5 gigatonnes of renewable energy capacity over the next few years.
What is Vedanta Group?
- Vedanta Group is an Indian multinational mining company that has built its reputation as one of the world's leading natural resources companies.
When was Vedanta Group founded?
- Vedanta Limited or Vedanta Group was founded in 1979.
Who is the founder of Vedanta Group?
- Vedanta Group is founded by Anil Agarwal. As of now, Anil Agarwal is the Non-Executive Chairman of Vedanta Limited.
Who are the competitors of Vedanta Group?
Some of the major competitors of Vedanta Group are:
- Tata Steel
- JSW Steel
- Coal India
- Jindal Steel
- NMDC Limited
- Lloyds Metals