Vedanta's share price, with gains of more than 4.5%, scaled a 52-week high in the morning trades on Thursday. The stock has gained more than 10% in the last five trading sessions.
Vedanta Aluminum, a key aluminium manufacturer in India, announced the expansion of its alumina capacities after market hours on Wednesday. In its release, Vedanta highlighted that the expansion is a significant step in its continuous growth strategy to rank among the top three worldwide producers with a capacity of 3 million tonnes per annum (MTPA) for aluminium production.
Vedanta announced the successful commissioning of a new 1.5 MTPA expansion at its top-notch alumina refinery in Lanjigarh, Odisha. This expansion, part of its new 3 MTPA facility, will help increase the Lanjigarh refinery's total nameplate capacity from the current 2 MTPA to 5 MTPA.
The expansion of alumina capacity is an important step by Vedanta towards achieving complete vertical integration. This development will help Vedanta see improved profitability. In FY24, Vedanta produced 2.37 million tonnes of aluminium, which it highlighted was more than half of India’s aluminium.
John Slaven, CEO of Vedanta Aluminium, in a statement, said, “We are delighted to commission the expanded capacity, which strengthens our raw material security and reduces costs for our Jharsuguda and BALCO aluminium smelters. It is a significant step towards 100% vertical integration and strongly positions us for sustainable growth within the global aluminium market.”
The sentiments for aluminium manufacturers are already upbeat. Some positive cues from China are leading to expectations of an uptick in demand from the world's largest consumer of commodities. The aluminium prices on the London Metal Exchange (LME) have also seen some improvement. From less than $2,200 a tonne a month back, the aluminium spot prices on the LME have crossed $2,300 a tonne, trading close to $2,338 a tonne.
Vedanta has proposed to hold a meeting of its duly constituted Committee of Directors on Thursday, April 4, 2024, to discuss the proposal for the issuance of Non-Convertible Debentures on a private placement basis.
Vedanta, in its statement, highlighted that the meeting is part of its regular financing and refinancing carried out in the ordinary course of business.
Vedanta also said that the aforementioned announcement is in accordance with the resolution adopted by the Board of Directors during its meeting on March 21, 2024.
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