Vedanta share price with gains of more than 4.5% scaled 52-week highs in the morning trades on Thursday. The stock has gain more than 10% in last 5 trading sessions.
Vedanta Aluminum, a key aluminum manufacturer in India, post market hours on Wednesday had announced expansion of its Alumina capacities. Vedanta in its release highlighted that the expansion is a significant step in its continuous growth strategy to rank among the top three worldwide producers with a 3 million tonne per annum (MTPA) capacity for aluminum production.
Alumina capacity expansion to improve profitability
As Vedanta announced the successful commissioning of the new 1.5 MTPA (million tonne per annum ) expansion at its top-notch alumina refinery in Lanjigarh, Odisha, this 1.5 MTPA expansion, part of its new 3 MTPA facility, will help in increasing the Lanjigarh refinery’s total nameplate capacity from the current 2 MTPA to 5 MTPA.
The Alumina capacity expansion is an important step by Vedanta in the direction of achieving complete vertical integration. The same will help Vedanta see improved profitability. Vedanta had produced 2.37 million tonnes Aluminium in FY24, which it highlighted was more than half of India’s aluminium.
John Slaven, CEO, Vedanta Aluminium, in a statement also said that “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.”
Positive cues from China, rising LME Aluminium prices
The sentiments for Alumnium manufacturers already remain upbeat. Some positive cues from China are leading to expectations of uptick in demand from worlds largest consumer of commodities. The Aluminium prices on the London Metal exchange also have seen some improvement. From less than $2200 a tonne a month back, the Aluminium spot prices on the LME have crosses $2300 a tonne as they trade close to $2338 a tonne.
Vedanta considering fund raising
Vedanta proposes to hold a meeting of its duly constituted Committee of Directors on Thursday, April 04, 2024 to discuss the proposal for the issuance of Non-Convertible Debentures on a private placement basis.
Vedanta in its statement highlighted that meeting is part of its regular financing and refinancing that is carried out in the ordinary course of business.
Vedanta also said that the aforementioned release is in accordance with the resolution that the Board of Directors adopted on March 21, 2024, during its meeting.