In a sweeping strategic pronouncement that emphasizes the magnitude of Vedanta Group’s ambition, Chairman Anil Agarwal has stated that every one of the four businesses being spun out through Vedanta’s current demerger can become a $100 billion company. The news was released in the form of a shareholder letter posted via a stock exchange filing on March 17, 2025, and has evoked significant interest throughout financial markets and policy communities alike.

The demerger, aimed at restructuring one of India’s largest conglomerates, arrives when demand for key minerals, transition metals, and clean energy infrastructure is rising at an increasingly fast rate worldwide. Agarwal says Vedanta is well-positioned to take advantage of this with its diversified portfolio of assets and operations.

A Strategic Rejig to Unlock Value
The demerger, as proposed, aims to reshuffle Vedanta’s sprawling conglomerate into four distinct listed entities, each with its own vertical focus. These will comprise:

Aluminum
Oil & Gas
Power
Steel and Semiconductors
This organizational changeover is intended to enable each business to concentrate on sector-related opportunities, operate in a more agile fashion, and attract investment best suited to its industry vertical.

Under the statement, the demermer will also increase transparency, enhance capital allocation, and assist in unlocking greater standalone valuations for the standalone businesses. Investors and analysts view it as a long-term positive in accordance with worldwide best practices whereby conglomerates have increasingly chosen to simplify to fuel shareholder value.

“Each Company Can Be $100 Billion in Size”
In the letter to shareholders, Anil Agarwal set out a bold growth vision:

“I see that all four of the newly demerged companies have the potential to become a $100 billion company. If you consider where we are going as a global economy and the demand for such products, these companies and their products are the need of the hour.”

This positivity is supported by strong tailwinds globally across the natural resources and clean energy sector. The boom in demand for electric cars, renewable energy solutions, and digital infrastructure has resulted in an unprecedented level of demand for metals such as aluminum, copper, zinc, lithium, and silicon—all of which form the core of Vedanta’s business.

Riding the Wave of Critical Mineral Demand
Agarwal stressed that demand for critical minerals and transition metals is expanding at double-digit levels, powered by the energy transition, decarbonization efforts, and enhanced infrastructure spending around the world.

This international macroeconomic situation puts Vedanta in a favorable position, particularly in light of India’s own ambitions under the Make in India and Atmanirbhar Bharat initiatives. While India develops its manufacturing infrastructure and works to become a world hub for green technology, raw material and power demand will rise multifold.

Vedanta’s combined value chain, existing platform, and long-term approach can enable each of the demerged units to address global as well as local demand, while growing profitability and jobs.

Economic Contribution and Potential Employment
Agarwal set out Vedanta’s existing Indian economy contribution at almost 1.4% of India’s GDP, rendering it one of the largest private sector contributors.

The demerger will additionally trigger economic action by:

Facilitating new downstream industries
Creating employment at scale
Fostering regional development through increased manufacturing and energy infrastructure
The chairman added that India requires “many more Vedantas” to unlock the full potential of the natural resources industry, and that Vedanta’s turnaround could be a model for similar industrial restructuring initiatives.

Global Expansion and Semiconductor Play
One of the most important parts of Vedanta’s future strategy is its foray into semiconductors, which is one of the most geopolitically charged and strategically significant industries in the world. As there are persistent disruptions in international semiconductor supply chains and India’s government providing incentives for local chip production, Vedanta wants to be a significant player in India’s semiconductor value chain.

The demerger will enable the semiconductor business to explore standalone capital raising, joint ventures, and technology partnerships, yet still be part of the overall industrial ecosystem of Vedanta.

Vedanta is also likely to push on with international expansion into sectors such as mining, energy, and metals, seeking partnerships and acquisitions that fit into its growth story.

Looking Ahead: A New Era for Vedanta
For investors and shareholders, the demerger is a new dawn. In making each of its verticals standalone, Vedanta is harmonizing its operational architecture with international capital market expectations.

In the larger context of India’s emergence as a $10 trillion economy, firms such as Vedanta will be in the vanguard of enabling infrastructure, manufacturing, and energy change