Vedanta Group GROWTH PROSPECTS and EXPANSION

The rapidly growing Indian economy and the concomitant increase in aluminium demand across a wide spectrum of industries bode well for VAL’s growth prospects. The policy focus on power and automobile sectors, which are key consumers of aluminium products, is expected to drive expansion. There is a sizeable demand of aluminium cables and conductor manufacturing units, which supply their end products for power transmission and distribution. With the emergence of upcoming power projects in India, demand is anticipated to grow at least by 10 to 12%.

VAL’s products have been well-received in overseas markets. During 2008-09, 60% of the total production was exported with major global clientele based in South Asian countries, Middle East and Singapore. On the other hand, distribution and consumption in the domestic market stood at 40 percent. Envisaging a capacity expansion in the manufacturing capacity and broader global reach, export in 2009-10 has been pegged at 80 percent while sale in domestic market has been limited to 20 percent; 80 percent of domestic sale is executed by entering into long term contracts with customers. The registration with London Metal Exchange (LME) is expected to boost footprint in the international market further. This would also provide VAL with the global exposure which is central to its expansion plans.