Growth Stategy of Vedanta Resources

8/8/2019 Growth Stategy of Vedanta Resources

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Deepaka Kumar Dash

JK PS Institute of Management and Technology, Gurgaon

Email id [email protected]


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Introduction To Vedanta Group

Industry - Mining and Resources

Started- 1976, Bombay, India

Headquarters - London, United Kingdom

Key people-

Anil Agarwal (Executive chairman)

Navin Agarwal (Deputy Executive chairman)

M. S. Mehta (CEO)

Products- Copper, aluminium, zinc, lead,gold, iron ore, pig iron

Revenue- $7.9 billion (2010)

Net income -$1.5 billion (2010)


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CopperCopper business is comprised of operations in India, Zambia and

Australia.

Total Production $3,812 million in fiscal 2010.

Konkola Copper Mines:- It is a copper mining and smelting company in Zambia.

KCM currently produces 2 million tons of copper ore per year.

Vedanta own 79.4% of KCMs share capital and have management control of the

company. (Zambia) in 2004.


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Copper Mines of Tasmania Pty Ltd.:-

CMT is headquartered in Queenstown, Tasmania(Australia).

Sterlite owns 100.0% of CMT .

First started in 1896, it was re opened by Copper Mines of Tasmania in 1995. Acquired by

Sterlite Industries in 1999.

CMT has reserves of 12.4 MT and produces 100,000 tonnes of copper

India- The Tuticorin plant is the company's only copper smelter. It also has a refinery and two

copper rod plants at Silvassa in western India.


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Zinc

11 million tonnes of zinc is produced annually worldwide.

Hindustan Zinc Limited: Turnover: Rs. 8560 Cr

It was established in 1966, from the former Indian Metal Corporation, as an undertaking of thepublic sector. In 2002, the Indian government disinvested its stake .

HZL is headquartered in Udaipur in the State of Rajasthan

Sterlite owns 64.9% of the share capital in HZL.

HZLs zinc production increased from 284,000 tonnes in fiscal 2006 to 578,000 tonnes in fiscal2010, representing a CAGR of 19.4%.

Special high grade and high grade zinc are available in standard ingots of 25 kgs and Jumbo

ingots of 1,000 kgs each.. Prime Western is also available in the standard ingots form of 25 kgs.


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Anglo American Zinc comprises the Skorpion mine in Namibia, the Lisheen mine in Irelandand a 74% interest in Black Mountain Mining in South Africa

Anglo American Zinc produced 350,000 tonnes of contained zinc in 2009, generating gross

revenues of $717 million

Anglo American plc has sold its zinc business to Indias Vedanta Resources plc, for US$1.34

billion on may 2010.


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BALCO - Korba Aluminium Smelter


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AluminiumBharat Aluminium Company Ltd.: Bharat Aluminium Company Limited (BALCO) was

incorporated on 27th November, 1965 . Public company.

BALCO is headquartered at Korba in the State of Chhattisgarh.

Sterlite owns 51.0% of the share capital of BALCO (2001) .

The Alumina plant has 200,000 tones per annum (TPA) capacity based on Hungarian

Technology and Aluminium smelter of 100,000 TPA capacity .

Vedanta Aluminium Ltd.:Vedanta Aluminium is headquartered in Lanjigarh, State of Orissa.

Vedanta owns 70.5% of the share capital ofVedanta Aluminium and Sterlite owns the

remaining 29.5% share capital ofVedanta Aluminium.

The company, which has operations in Orissa, has a $7.8-billion (Rs 36,000 crore) investment

plan that includes expanding its refining capacity at Lanjigarh to 5 million tonnes (mt) from thecurrent 1 mt. And, expansion of the smelting capacity at Jharsuguda to 1.75 mt from the

current 0.25 mt.


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Madras Aluminium Company Ltd.:MALCO is headquartered in Mettur(Tamil Nadu), India. Vedanta own 80% stake of this company.


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Iron ore

Sesa Goa Limited:

Turnover : US$ 963.66 million

Sesa Goa is headquartered in Panaji, India, and its equity shares are listed and tradedon the NSE and BSE. Vedanta owns 51% of Sesa Goa by paying $981 million from

Mitsui & Co., Japan in 2007.

In 2010, revenue of iron ore business is $1,221.7 million.

In fiscal 2010, Sesa Goa produced approximately 21.4 million tonnes of iron ore.

SONSHI MINE IN GOA CHITRADURGA MINE IN KARNATAKA


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Msumi Lijima (left), Chief Executive Officer, Mitsui, Anil Agarwal (centre),Chairman,

Vedanta Resources, and S. D. Kulkarni, Chairman, Sesa Goa,


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Commercial power generation business-

Sterlite Energy is headquartered in Mumbai. Sterlite owns 100.0% of Sterlite Energy and has

management control of the company.

Power generation business comprises of the sale of power from 100MW plant at MALCO, 270

MW plant at BALCO - I and 123 MW wind power plant at HZL.

Sterlite is going to set up a 2,400 MW (600 MW*4) coal based commercial power plant at

Jharsuguda, Orissa. The first unit of 600 MW is expected to be commissioned by Q1FY2011 with

the remaining three units to be progressively commissioned by end FY2011.

Vedanta Group, has invested about Rs. 10,500 Crore for this project(IPP- Indipendent PowerPlant).


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Vedanta UniversityVedanta University is a proposed, private, multi-disciplinary, co-educational university

started by Anil Agarwal ofVedanta Resources corporation .(2006)

Estimated investment of more than 15,000 crores

Students- 100,000 (projected)

Location Konark-Puri Road, Orissa,Campus- 6,000 acres

Website- www.vedanta.edu.in


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Thank You

This presentation may have incorrect data, If some one found mistake then inform me.

This is only for study purpose, and I am not responsible for misuse of this ppt and Data areTaken from different websites which may not be highly reliable .

Growth Stategy of Vedanta Resources

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