- Vedanta cuts aluminium production cost by nearly 24%
- Lanjigarh refinery, captive coal support low-cost manufacturing
Vedanta Ltd., led by Anil Agarwal, plans to invest INR 13,226 crore to expand its aluminium production capacity from the current 2.4 million tonnes per annum (mnt/year) to 3.1 mnt/year by FY’28, with an interim target of 2.75 mnt/year by FY’26. Aluminium forms the core of Vedanta’s growth strategy, reinforcing its position as India’s leading producer with over 50% domestic market share.
The company aims to make aluminium the largest contributor to its group-level EBITDA target of $8-10 billion by FY’28, according to a recent exchange filing. Aluminium, the world’s second-most consumed metal after steel, is increasingly vital for sectors such as electric mobility, renewable energy, urban infrastructure, and aerospace.
BALCO, a Vedanta majority-owned subsidiary, is also set to join the one-million-tonne production club, marking another milestone in the company’s expansion journey. Over the past 11 quarters, Vedanta has reduced aluminium production costs by nearly 24% ($641/t), supported by backward integration through its Lanjigarh refinery and captive coal mines.
The company’s fully captive operations, rare by global standards, provide resilience in volatile geopolitical conditions while ensuring low-cost, efficient manufacturing.
Rising domestic aluminium demand, fueled by India’s projected GDP growth and government initiatives like Make in India, 100% rural electrification, housing for all, and Smart Cities, is expected to further support Vedanta’s expansion.
An industry expert noted, “Aluminium is increasingly the backbone of the energy transition. With scale and integration, Vedanta can meet India’s demand while remaining globally competitive.”
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