Vedanta Aluminium Sets its Sights on Production Costs of $600-1,000 per ton, New Name Officially Chosen
Chennai, April 3 (IANS) – Anil Agarwal’s Vedanta Ltd demerger into six companies has been approved by the bourses, while talks with lenders about debt division are ongoing. The aluminium business unit has revealed the name of the company and is working on reducing production costs.
Vedanta Aluminium CEO John Slaven shared in an interview that the demerger process is expected to be finalized by the end of 2024 or Q3 of FY25. The company housing the aluminium business will be named Vedanta Aluminium Metal Ltd, with Vedanta Resources retaining majority ownership even after the demerger.
With a focus on cutting down metal production costs to $600-$1,000 per ton, Vedanta Aluminium has shown progress from $2,653/ton to $1,550/ton in the near term. Strategies include operational efficiency, raw material consumption improvements, and increasing output from captive power plants.
Plans for expansion include increasing aluminium production to 2.8 MTPA by FY26, alumina production to 5 MTPA by 2QFY25, and exploring a bauxite mine. The demand for aluminium is expected to rise as the world shifts towards a zero-carbon future, with a positive outlook on price trends.
In India, the demand for aluminium is increasing due to infrastructure projects and sectors like packaging, leading to a positive outlook for metal demand. Vedanta Aluminium’s online platform, Metal Bazaar, has received a positive response from customers, streamlining the ordering process and enhancing customer experience.
As the global economy recovers and demand for metals increases, the future looks promising for Vedanta Aluminium as they strive to enhance production efficiency and meet the growing demand for aluminium products.
