NEW DELHI: Vedanta Ltd, led by Anil Agarwal, is set to invest Rs 13,226 crore to expand its aluminium production capacity to 3.1 million tonnes per annum (MTPA) by FY28, sources said. Currently, the company’s capacity stands at 2.4 MTPA.
Aluminium is central to Vedanta’s growth strategy, with the expansion aimed at making it the largest contributor to the group’s target of $8–10 billion EBITDA by FY28, according to a recent exchange filing. The company plans to increase capacity to 2.75 MTPA by FY26 and further to 3.1 MTPA by FY28.
BALCO, in which Vedanta holds a majority stake, is also poised to join the one-million-tonne production capacity club, sources added.
Vedanta has focused on cost optimisation, reducing aluminium production costs by nearly 24% (around $641 per tonne) over the past 11 quarters. This has been achieved through backward integration in alumina with the Lanjigarh Refinery expansion and coal mines. Its fully captive operations, uncommon globally, provide resilience amid geopolitical uncertainties and enable low-cost manufacturing.
Aluminium demand in India is expected to rise sharply, driven by projected high GDP growth and government initiatives such as Make in India, 100% rural electrification, Housing for All, and Smart Cities, which will boost consumption.
“Aluminium is increasingly the backbone of the energy transition. With scale and integration, Vedanta is well-positioned to meet India’s demand while remaining competitive internationally,” said an industry expert.
