Vedanta Seeks Global Partner for $20 Billion Expansion Amid Demerger Delay

Anil Agarwal-led Vedanta is reportedly looking for a global partner for its $20 billion expansion plan. The group's chairman first announced the four-year plan in May last year.

The zinc-to-power conglomerate plans expansion projects across its businesses, with earmarked investments in metals, mining, and hydrocarbons, reported Reuters, citing a tender document.

Vedanta reportedly plans to invest $2-2.5 billion to expand Hindustan Zinc’s production and $5 billion to boost Cairn India’s oil output fivefold. Its power unit aims to double capacity to 10 GW and expand into nuclear and power distribution. In February, Vedanta sought partners to develop 5 GW of nuclear power for captive use in India.

Investment Plan Amid Demerger Delay

The massive investment plans come as the company undergoes a demerger to split into four entities—Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel. However, the process has faced delays.

On March 28, the company announced it had extended the demerger deadline from March 31, 2025, to September 30, 2025.

This follows a ruling by the Mumbai bench of the National Company Law Tribunal (NCLT), which rejected the demerger scheme of one of its subsidiaries, Talwandi Sabo Power Ltd (TSPL), earlier in March. The court cited inadequate disclosure in the restructuring plan.

The NCLT’s order came after a challenge from Chinese engineering and construction company SEPCO Electric Power Construction Corporation (SEPCO), which claimed TSPL owed it Rs 1,251 crore—a debt that was not disclosed in the demerger scheme.

New Investment to Focus on Tech

In an interview with PTI last year, Anil Agarwal said Vedanta's $20 billion investment would focus on technology, electronics, and glass, alongside its existing businesses.

He highlighted the importance of semiconductors and glass—key materials for smartphone and laptop screens—stressing their future significance. The company has land in Gujarat for a semiconductor plant and is seeking a strong partner for the project.

Vedanta Semiconductors Private Limited (VSPL), a wholly owned subsidiary of Vedanta Limited, plans to establish a 40nm CMOS-based semiconductor fab with a monthly capacity of 40,000 wafers. Once mass production of 40nm is achieved, the company will transition to 28nm chip manufacturing for applications in mobiles, consumer electronics, automotive, and network equipment.

Vedanta Displays Limited (VDL), another subsidiary, aims to set up an integrated display and module fab, leveraging its overseas unit Avanstrate Inc. Initially, it will focus on Gen 8.6 A-Si IPS fabs with a capacity of 60,000 sheets and 10 million modules per month for TVs, IT, automotive, and smartphones. In phase 2, production will scale up to 240,000 sheets and 40 million modules monthly.