Vedanta not to prune $2-bn capex target for FY23: CEO Sunil Duggal

Oil-to-metals conglomerate Vedanta Ltd on Wednesday said that it will not prune its USD 2 billion capex target for the current financial year despite falling metal prices.

Vedanta has planned a total investment of around USD 2 billion in its zinc, oil and gas, and aluminium businesses in FY23.

"We are going ahead (with the capex target for the current fiscal). We cannot stop the project in between and these are all the brownfield projects where the returns are very good and this will make our operation more effective, more productive, more efficient," Vedanta's Chief Executive Officer Sunil Duggal said.

 

Duggal told reporters here on the sidelines of the second day of the conference on the Indian minerals and metals industry organised by NMDC and FICCI.

The metal prices, Duggal said, have come down on account of various geopolitical events.

Asked whether the metal prices will shoot up in the coming days, he replied, "If the fundamentals are strong than naturally the prices are going to go up."

Addressing shareholders at the Vedanta's 57th annual general meeting, company's Chairman Anil Agarwal had said that Vedanta had planned a capital expenditure of around USD 3 billion over the next two years for growth and vertical integration. Of this, USD 2 billion would be earmarked for 2022-23.

When asked whether Vedanta will take part in the open offer of its arm Hindustan Zinc, Duggal said, "As per the law we will act. As per the law we cannot acquire more than five per cent of the stake and 25 per cent of the stake sale at any point of time."

Vedanta Ltd is targeting to become a USD 100-billion (around Rs 8 lakh crore)company in another eight years from the present USD 18 billion (around Rs 1.3 lakh crore).

The company is set for an aggressive growth plan and is looking at building capacities across businesses, according to a presentation made during the annual general meeting.

The company is making an entry into the strategic area of manufacturing semiconductor fab and display fab.

Vedanta has already entered into a pact with Foxconn, one of the world's leading electronics manufacturers, to set up an integrated semiconductor manufacturing plant in India.

Vedanta Limited, a subsidiary of Vedanta Resources Ltd, is one of the world's leading oil and gas and metals company with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.