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Transcript of Vedanta Resources plc

VEDANTA RESOURCESBY:Abhay pratap singh BBA(4)-A BB2011005 TO: Rajeev Singh Bhandari sir

VEDANTA RESOURCES PLC Type- Public Limited Company Traded As-LSE: VED Industry- Metals & Mining Founded- 1976, Bombay, India Founder(s)- Anil Agarwal Headquarters- London,U.K Area served- Worldwide Key people- Anil Aagarwal(Ex-Chairman) Navin Agarwal(Dy Ex-Chairman) M. S. Mehta(Chief Executive) Employees- 32,179(2012)

-Vedanta Resources plc is a globally diversified natural resources(metal and mining) group with revenues in excess of US$ 14 billion. -It is the first Indian manufacturing company to be listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

GEOGRAPHICAL LOCATIONS:Australia India Liberia Namibia South Africa United Kingdom Zambia


India Aluminium, Copper, Zinc, Iron Ore, Power Australia - Copper Zambia - Copper Namibia - Zinc South Africa - Zinc Liberia Iron Ore Ireland - Zinc

BALCO MALCO Sterlite Sterlite energy KCM CMT HZL Lisheen Skorpion Vedanta Aluminium Sesa goa Vedanta Foundation Cairn India


1979- Anil Agarwal acquires,through a family firm, Shamsher Sterling Corporation. 1986- Sterlite Cables Limited, acquires the shamsher sterling corporation business and changes its name to Sterlite Industries(INDIA) ltd. 1988- Sterlite Industries(INDIA) ltd. makes an IPO of it shares & convertible debentures. 1999- establishes a continous copper Rod plant.


1993- comissions a plant for the manufacture of aluminium sheets & foils. In this yr. sterlite communications establishes a plant for the manufacture of optical fibre in aurangabad, maharashtra. 1995- acquires a 80% interest in MALCO. 1997- commisions first privately developed copper smelter in india at tuticorin in tamilnadu. 1999- acquires copper mines of tasmania pvt. Ltd. 1999- acquires thalanga CU mines pvt. Ltd.

2000- MALCO acquires 38.8% interest in India Folis ltd. 2000- telecommunications cables and optical fibres business is demerged into a new co., Sterlite Optical technologies ltd. 2001- acquires a 51.1% interest in BALCO from the govt. of India. 2002- acquires a 26% interest in hindustan zinc ltd., from the govt. of India & a further 20% interest through an open mmarket offer. 2003- acquires a further 18% interest in HZL following exercise of a call option granted by the govt of India.

2003- becomes the first Indian co. to list on LSE. 2004-Announces $500m global bond offering. This yr. VR also acquired 51% stake in konkola CU mines in Zambia. 2005- expansion of tuticorin smelter to 300,000 tpa and comissioned new 170,000 tpa zinc smelter at chanderiya and the associated 154 Mw power plant. Also completes the expansion of rampura agucha mine. 2006- comissioned the new 50,000 tpa ausmeltTML lead smelter at Chanderiya.

2006- issues US$ 725m convertible bonds. 2006- Completes the BALCO expansion projects comprising 250,000 tpa of aluminium smelter with associated 540 Mw captive power plant. 2006- Acquires sterlite gold. 2007- sterlite successfully completes its $2bn ADS issue in the US and lists on the NYSE. 2007- vedanta acquires a 51% controlling stake in SESA Goa ltd., Indias largest producer-exporter of Iron ore.

2008- sterlite enters into agreement to buy certain operating assets of US based CU producer assarco LLC. 2008- vedanta successfully completes $1.25bn bond issue. 2011- govt approves vedantas $9.6bn deal to take over Cairn India.

strategic goal is to create a world class metals and mining co. and to generate strong financial returns.strategy is based on the following four key pillars:


continuing focus on asset optimisation and reducing the cost of production. Increasing capacities through greenfield and brownfield projects. Consolidating corporate structure and increasing direct ownership of underlying businesses to derive additional synergies as an integrated group. Seeking further growth and acquisition opportunities where they can leverage their transactional, project execution and operational

skill and experience.



Sterlite Industries (India) Ltd. Vedanta has 58.0% share in Sterlite Industries India Ltd. (Sterlite), Indias largest diversified metals and mining company. Sterlite is listed on the Bombay and New York Stock Exchanges and the National Stock Exchange of India. Its primary businesses are: Copper, Zinc, Lead, Silver, Aluminium and Power. Sterlite has custom copper-smelting operations in Southern India with a capacity of 400ktpa of copper cathodes and a copper rod plant at Silvassa. Konkola Copper Mines. Vedanta own 79.4% of KCMs share capital and have management control of the company. KCMs other shareholder is ZCCM Investment Holdings Plc. The Government of Zambia has a controlling stake in ZCCM Investment Holdings Plc. Mine Project is expected to ramp-up ore production and integrated copper capacity to 400+ktpa of copper post completion of the Bottom Shaft Loading project.

Copper Mines of Tasmania Pty Ltd. Sterlite owns 100% of theMount Lyell copper mine in Tasmania, Australia, which supplies approximately 8% of Sterlite Indias copper concentrate requirements.

ZINC BUSINESSthe State of Rajasthan. HZLs equity shares are listed and traded on the NSE and BSE. Sterlite owns 64.9% of the share capital in HZL and has management control. Sterlite has a call option to acquire the Government of Indias remaining ownership interest. Zinc International. Sterlite Industries owns the Skorpion mine in Namibia (100%), Lisheen mine in Ireland (100%) and 74% of Black Mountain Mining in South Africa, which includes the Black Mountain mine and Gamsberg project. These assets were acquired from Anglo Americans Zinc business during FY 201011.

Hindustan Zinc Limited. HZL is headquartered in Udaipur in

ALUMINIUM BUSINESSBharat Aluminium Company Ltd. Sterlite owns 51.0% of BALCO, a leading Indian aluminium producer with operations in the state of Chhattisgarh. BALCO currently has 245ktpa smelting capacity, 810MW power generation facilities and capabilities to produce ingots and other value-added products. BALCO has a 325ktpa smelter project, a 1,200MW power plant project, and rights to a coal block of 211.0mt for captive usage. Vedanta Aluminium Ltd. Vedanta owns 70.5% of the share capital of VAL, with Sterlite owning the remaining 29.5%, resulting in an effective stake of 87.5%. VAL is based in Eastern India and operates a 1mtpa alumina refinery at Lanjigarh. At Jharsuguda, VAL operates a 500ktpa aluminium smelter and an associated 1,215MW captive power plant. VAL also has a 1.25mtpa aluminium smelter project at Jharsuguda.

IRON ORE BUSINESSSesa Goa Ltd. Sesa Goa is Indias largest private sector producer-exporter of iron ore, with mining and processing facilities located in the states of Goa and Karnataka. As of 31 March 2011, Sesa Goa has proved and probable reserves of an estimated 306mt of iron ore. Sesa Goa also manufactures pig iron and metallurgical coke. Vedanta owns 55.1% of Sesa Goa, which is listed on the Bombay and National stock exchanges of India. Sesa Goa owns 100% of Sesa Resources Ltd. (formerly known as VS Dempo), an iron ore mining and processing company based at Goa.


Sterlite Energy Ltd. Sterlite Energy is 100% owned by Sterlite Industries and has two major power plant projects for power generation the 2,400MW power plant at Jharsuguda, Orissa of which two units were operational at the end of FY 201011, and the 2,640MW power plant at Talwandi Sabo, in Punjab. Madras Aluminium Company (MALCO). MALCO is a power generation company with a 100MW power plant located in Southern India and is 94.8% owned by Vedanta.Hindustan Zinc Limited. Hindustan Zinc has 273MW of wind power generational capacity, making it one of the largest providers of wind power in India.

CONSOLIDATED INCOME STATEMENT(US$ million except as stated) Note

31 March2012 31 March 2011

Year ended

Year ended

Continuing operations Revenue Cost of sales Gross prot Other operating income Distribution costs Administrative expenses Special items Operating prot Share in consolidated prot of associate Investment revenue Finance costs Other gains and losses (net) Prot before taxation Tax expense Prot for the year


14,005.3 (10,442.0) 3,563.3 85.1 (569.0) (461.5) (230.2) 2,387.7 92.2 525.4 (945.7) (314.2) 1,745.4 (516.7) 1,228.7

11,427.2 (8,107.0) 3,320.2 73.9 (319.6) (376.7) (163.5) 2,534.3 431.6 (534.7) 252.1 2,683.3 (649.5) 2,033.8

5 9 36 6 7 8 12

Balance sheet

GROUP REVENUE(In US$ millions, except as stated)

201112 3,206.8 2,316.1 890.7 1,690.9 5,915.0 4,205.2 1,709.8 1,873.5 458.3 882.5 (21.7) 14,005.3

201011 2,378.4 2,159.5 218.9 1,979.5 5,253.2 3,428.2 1,825.0 1,779.6 124.0 (87.5) 11,427.2

% change 34.8% 7.3% (14.6)% 12.6% 22.7% (6.3)% 5.3% 22.6%

Zinc India International1 Iron Ore Copper India/Australia Zambia Aluminium Power Oil & Gas2 Eliminations Revenue 1 Acquired in FY 201011. 2 Acquired in FY 201112.

Vedanta revenue by geography H1 Fy2012



13%10% 18%




HIGHLIGHTSRevenue FY 2012 US$14BN +23%


FY 2012


+13%+5% +8%

Total Dividend FY 2012

Free Cash Flow FY 2012 US$2.5BN

-EDUCATION- vedanta univ, units -EMPLOYMENT -rozgaar avsar -WOMEN EMPOWERMENT -CHILD WELFARE khushi


-Various Competitions

*Sterlite is the leading custom copper smelter inIndia based on production volume in fiscal 2008,had a 42.6% primary market share by sales volume in India