Vedanta - Vertical Expansions To Drive Cost Efficiency, Margins: Systematix

Systematix Report

We return positive from our visit to Vedanta Ltd. aluminium smelter in Jharsuguda, Odisha. The Jharsuguda aluminium plant was Vedanta first greenfield project that commenced operations in 2005. It is now the largest singlelocation aluminium smelter globally, with a capacity of 1.8 million tonnes per annum.

Vedanta is also India’s largest aluminium producer that operates at a total capacity of 2.3 mtpa (including BALCO operations). With several debottlenecking and growth projects underway, the company expects to touch 2.8 mtpa and 3.1 mtpa capacity in the short and medium term, respectively.

The company achieved 104% capacity utilization having produced 2.37 million tonnes of aluminium in FY24 (+3.5% YoY). Vedanta aluminium product portfolio (primary foundry alloys, billets, wire rods, and rolled products) commands a sizeable share in the domestic and export markets; the company is the largest wire rod producer (ex-China) in the world.

The segment contributed 26% to the conglomerate’s FY24 Ebitda, second highest after Hindustan Zinc (37% share).

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