The company’s proposed demerger is targeted for completion by March 2026 and will result in five independently listed companies. The base metals business will be housed in Vedanta Limited, while Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron and Malco Energy will be the other four entities, focused on separate segments of the company’s businesses.
Mar 29, 2026
Vedanta Chairman Anil Agarwal said in an interview with the news agency that the company’s proposed demerger is targeted for completion by March 2026 and will result in five independently listed companies. The National Company Law Tribunal (NCLT) approved the Vedanta demerger plan, which will split Vedanta into five separate listed entities.
The Chairman said that each company is capable of growing independently to the scale of the current parent company After the demerger, the base metals business will be housed in Vedanta Limited, while Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron and Malco Energy will be the other four entities, focused on separate segments of the company’s businesses.
Mr. Agarwal explains that the demerger was chosen over asset sales or alternative restructuring to unlock the full growth potential of each business, including zinc, aluminium, oil and gas, power, and iron ore and steel, amid strong and rising demand, particularly in India. ‘‘I have a vision that each company will be as big as Vedanta in terms of revenue. Effectively, we are creating five more Vedantas, which will make shareholders the happiest.”
He said the demerger process is likely to be completed in the next 3-4 months. Shareholders of Vedanta will get one equity share of every demerged entity for every one share they currently hold in the company.
On the debt front, he said that INR 48,000 crore debt will be allocated to the demerged entities based on their respective cash flows. He further stated that liabilities will not be divided equally, but rather based on the cash flow strength of each entity.
Each company will have an independent board and professional management, and promoters will hold around 50 per cent stake without involvement in day-to-day operations. Mr. Agarwal added that aggressive capital expenditure and regular dividend payouts will continue post-demerger.
Commenting on the company’s structure, he said all resulting companies will be pure-play businesses. Oil and gas will remain a standalone hydrocarbon company, iron ore and power will be single-product entities, while metals businesses may explore further vertical opportunities over time.
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Outlining the company’s growth plans, he said that Vedanta aims to scale zinc production, positioning itself among the world’s largest producers. Silver is targeted to rise sharply to 3,000 tonnes from the current 700 tonnes to meet India’s domestic demand, while lead production is also expected to increase significantly. In aluminium, Vedanta plans to double capacity from the current 3 million tonnes, supported by captive mines and renewable energy-linked greenfield projects. The company is also setting up a large DAP fertiliser plant in Rajasthan. The iron ore and steel business will focus on producing green steel, leveraging access to gas and renewable power, with a proposed capacity of 10–15 million tonnes. The power business targets 20,000 MW capacity in India.
Mr. Agarwal concludes by saying that the company does not foresee major hurdles, given the approvals already received, although timelines will depend on procedural requirements.
