Business

Vedanta plans to invest over Rs 56,000 cr in 3 yrs

Mumbai, Aug 25 (Agencies) | Publish Date: 8/25/2018 12:26:01 PM IST

Vedanta Limited on Friday said it plans to spend up to $400 million (Rs 2,800 crore) on expansion of Electrosteel’s capacity to 2.5 million tonnes, as well as increase expenditure on technology and digital innovation to about Rs 3,500 crore. 

The announcements are part of a larger spending proposal of $8 billion (Rs 56,028 crore) that the natural resources major plans to implement across businesses over the next three years to boost their size by at least 50%. 

“Most of the $8 billion expenditure will be funded through internal accruals, so there is no plan at this point of time for our debt to go up,” Vedanta Ltd chairman Navin Agarwal said on the sidelines of the company’s annual general meeting. 

“We have a comfortable level of internal free cash flow to fund expansion that will grow our size at least by 50%.” Vedanta’s free cash flow stood at Rs 7,900 crore at the end of the last fiscal year, as the company brought down its gross debt by Rs 8,500 crore. 

However, acquisition of Electrosteel and adjustment of working capital had increased its net debt to Rs 29, 910 at the end of the first quarter. 

It has cash and liquid investments of close to Rs 35,251 crore. Even though the company is grappling with the closure of its 400,000-tonne copper smelting plant in Tuticorin, the chairman said the company is in a “sweet spot”. 

 

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