Vedanta To Invest Rs 132 Billion To Boost Aluminium Capacity
ECONOMY & POLICY

Vedanta To Invest Rs 132 Billion To Boost Aluminium Capacity

Anil Agarwal-led Vedanta Ltd plans to invest Rs 132 billion to expand its aluminium production capacity to 3.1 million tonnes per annum (MTPA) by FY28, up from the current 2.4 MTPA, according to industry sources.
Anchoring aluminium at the core of its growth strategy, Vedanta aims to ramp up capacity in phases — first reaching 2.75 MTPA by FY26, and achieving 3.1 MTPA by FY28. The investment will be spread over the next few years, underscoring the company’s confidence in aluminium’s role in India’s industrial future.
Aluminium, the world’s second most consumed metal after steel, is gaining prominence in electric mobility, renewable energy, urban infrastructure, and aerospace. Vedanta, which holds over 50 per cent of India’s aluminium market share, expects the segment to remain its largest earnings contributor, supporting its target of USD 8–10 billion EBITDA at the group level by FY28, according to a recent stock exchange filing.
Sources added that BALCO, Vedanta’s subsidiary, is also on track to join the one-million-tonne production club.
The company has reduced its aluminium production cost by nearly 24 per cent, or USD 641 per tonne, over the past 11 quarters. This improvement has been driven by backward integration through the Lanjigarh Refinery expansion and captive coal mines, enhancing cost efficiency and operational resilience.
Vedanta’s aluminium operations are fully captive, an uncommon global practice that allows the company to maintain low-cost manufacturing and withstand geopolitical volatility.
Industry experts note that aluminium demand in India is poised for sharp growth, fuelled by government initiatives such as ‘Make in India’, ‘100 per cent rural electrification’, ‘Housing for All’, and ‘Smart Cities’.
“Aluminium is increasingly becoming the backbone of the energy transition. With its scale and integration, Vedanta is well-positioned to meet India’s domestic demand while remaining globally competitive,” said an industry expert.

Anil Agarwal-led Vedanta Ltd plans to invest Rs 132 billion to expand its aluminium production capacity to 3.1 million tonnes per annum (MTPA) by FY28, up from the current 2.4 MTPA, according to industry sources.Anchoring aluminium at the core of its growth strategy, Vedanta aims to ramp up capacity in phases — first reaching 2.75 MTPA by FY26, and achieving 3.1 MTPA by FY28. The investment will be spread over the next few years, underscoring the company’s confidence in aluminium’s role in India’s industrial future.Aluminium, the world’s second most consumed metal after steel, is gaining prominence in electric mobility, renewable energy, urban infrastructure, and aerospace. Vedanta, which holds over 50 per cent of India’s aluminium market share, expects the segment to remain its largest earnings contributor, supporting its target of USD 8–10 billion EBITDA at the group level by FY28, according to a recent stock exchange filing.Sources added that BALCO, Vedanta’s subsidiary, is also on track to join the one-million-tonne production club.The company has reduced its aluminium production cost by nearly 24 per cent, or USD 641 per tonne, over the past 11 quarters. This improvement has been driven by backward integration through the Lanjigarh Refinery expansion and captive coal mines, enhancing cost efficiency and operational resilience.Vedanta’s aluminium operations are fully captive, an uncommon global practice that allows the company to maintain low-cost manufacturing and withstand geopolitical volatility.Industry experts note that aluminium demand in India is poised for sharp growth, fuelled by government initiatives such as ‘Make in India’, ‘100 per cent rural electrification’, ‘Housing for All’, and ‘Smart Cities’.“Aluminium is increasingly becoming the backbone of the energy transition. With its scale and integration, Vedanta is well-positioned to meet India’s domestic demand while remaining globally competitive,” said an industry expert. 

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