India’s resource company Vedanta Limited, a subsidiary of Vedanta Resources Limited, has announced that it plans to demerge its business units into independent companies in order to increase value and attract new investments.
Accordingly, the company will be divided into Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited.
In this way, Vedanta Limited aims to simplify corporate structure, to switch to sector-oriented independent businesses, and to attract global investors to unlock the businesses’ potential and true value.
“By demerging our business units, we believe that will unlock value and potential for faster growth in each vertical. While they all come under the larger umbrella of natural resources, each has its own market, demand and supply trends, and potential to deploy technology to raise productivity,” Anil Agarwal, chairman of Vedanta, stated.
Additionally, the new companies will still be committed to achieving net-zero carbon emissions by 2050 and will aim to invest $5 billion over the next 10 years to accelerate these efforts.