Vedanta, led by Anil Agarwal, plans to invest Rs 132.26 billion to increase its aluminium production capacity from 2.4 MTPA to 3.1 MTPA by FY28, sources said. The expansion is a key part of Vedanta’s growth strategy, positioning aluminium at the centre of the company’s roadmap.

The aluminium capacity is expected to reach 2.75 MTPA by FY26 before scaling to 3.1 MTPA by FY28. BALCO, in which Vedanta holds a majority stake, is also set to join the one million tonne production club.

Aluminium, the world’s second-most consumed metal after steel, is critical for electric mobility, renewable energy, urban infrastructure, and aerospace. Vedanta, holding over 50 per cent of the domestic aluminium market, aims to make aluminium the largest contributor to its $8–10 billion group EBITDA target by FY28, as per a recent exchange filing.

The company has focused on cost optimisation, reducing aluminium production costs by nearly 24 per cent (USD 641 per tonne) over the past 11 quarters, aided by backward integration with the Lanjigarh Refinery and captive coal mines. This fully integrated model ensures resilient and low-cost production, even in volatile geopolitical conditions.

Rising aluminium demand in India is expected to be driven by projected high GDP growth and government initiatives such as Make in India, 100 per cent rural electrification, Housing for All, and Smart Cities, which will boost domestic consumption.

News source: Business Standard