Building an institution for 500 years: Anil Agarwal on Vedanta’s inclusive vision at HTLS 2024

Vedanta Group founder Anil Agarwal on Saturday said his daughter Priya Agarwal Hebbar could be a successor to his personal wealth, but they are looking at an institution which will be more inclusive and be there for 500 years.

Speaking at the Hindustan Times Leadership Summit 2024, Agarwal said “I am sure she will take it forward but the institution is going to be run by the people for the people.” “She can be a successor of my personal wealth, but we are creating an institution which will be there for 500 years.”

"She has her own mind, and that’s really nice,” he said

Hebbar, who is the chairperson of Vedanta subsidiary Hindustan Zinc Ltd and non-executive director of Vedanta Ltd, said she has a few changes in mind for the business her father has built.

“Vedanta has to stand for equal opportunities for all,” she said. “We were the first company in India to get women underground and the first women rescue team at Hindustan Zinc.” She also wants to ramp up support for the LGBTQ+ community.

The Vedanta Group founder also said the mining giant is looking to expand its presence in the metals and mining sector with plans to ramp up production across key commodities.

The group aims to produce 3 million tonnes of zinc, increase aluminium output by another 3 million tonnes, and become one of the world’s largest producers of copper and silver. The group is also looking to produce 500,000 barrels of oil, but Agarwal did not give a timeline.

The company is also looking forward to playing a crucial role in the global energy transition. “We have committed that three of our biggest companies, Hindustan Zinc Ltd, Cairn Oil and Gas, and Zinc International, will be running on 100% renewable energy within the next 7-10 years,” said Hebbar.

“Energy transition can only happen with a focused approach on critical minerals and energy transition metals,” Hebbar said. “It’s absolutely crucial that we should do as much of this domestically. We have only explored 20% of our natural resources.”

HZL was ranked number one in the 2023 S&P Global Corporate Sustainability Assessment (CSA) for the metals and mining sector, while Vedanta Ltd. secured the third position.

On the semiconductor front, entering the industry does not seem to be Vedanta's stronghold, but the mining giant’s founder said it can be done with the support of the government and the people.

“If everyone is with me and I am still working, because this is not my core strength, I can definitely deliver,” said the Vedanta founder, appreciating the other companies in the market like Tata and Adani for their semiconductor move.

Vedanta was among the early movers who decided to make semiconductors in India. The company was going to set up a semiconductor plant in Gujarat in a joint venture with Hon Hai Precision Industry Co. Ltd (Foxconn), but the Taiwanese major walked out of the deal in 2023.

Subsequently, Agarwal’s competitors picked up pace in the sector. The Adani Group is eyeing a $3 billion investment in the next two to three years to set up semiconductor manufacturing, Mint reported earlier. The Tata Group also aims to begin commercial production from India's first semiconductor fabrication unit by 2026.

Despite several setbacks, including the closure of Vedanta's copper smelting plant in Thoothukudi, Tamil Nadu, and challenges in the semiconductor sector, the group remains committed to its long-term vision. 

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The Vedanta founder also said he is looking to set up a ‘meaningful business’ in Bihar, but is waiting for the right time.

All the minerals are available in Bihar. “It's only a question of time. There’s a strong government, 30 crore people. Industry and tourism will come.”