Strategic Priorities

Strategic PrioritiesPositioning Vedanta for stable and sustainable growth

OUR STRATEGY

S1 Championing world-class ESG performance

We are driving ESG excellence by prioritising the principles of zero harm, zero discharge and zero waste. Guided by our ‘Transforming for Good’ vision, we are actively leading transformative initiatives in communities, the planet and the workplace. With these focal points, we strive to create positive value for stakeholders while minimising our environmental footprint.

S2 Augment Reserves & Resources (R&R) base responsibly

We are strategically expanding our R&R base through disciplined exploration programmes. Our teams prioritise safe and responsible discovery of mineral and oil deposits, replenishing resources for future growth ambitions.

S3 Delivering on growth opportunities

Our large and well-diversified asset portfolio, characterised by low cost and long life, presents attractive expansion opportunities. Focussed on organic/inorganic growth, we undertake brownfield expansion projects based on return criteria, ensuring long-term value creation for all stakeholders.

S4 Optimise capital allocation and maintain a strong balance sheet

We focus on generating strong business cashflows and investing in profitable high IRR projects. Our commitment extends to stringent capital discipline and proactive liability management for a resilient balance sheet. All investments, organic or acquisitions, undergo extensive evaluation supported by our capital allocation framework, driving shareholder returns.

S5 Operational excellence and cost leadership

We are committed to all-round operational excellence, optimising production through asset debottlenecking and leveraging cutting-edge technology solutions. Our efforts are focussed on enhancing profitability by optimising our cost and improving realisations through strategic marketing.

Championing world-class ESG performance

Operating responsibly is central to our long-term success. Guided by our “Transforming for Good” vision – focussed on communities, the planet, and the workplace – we embed ESG across all aspects of our business. We strive to deliver measurable impact for stakeholders while advancing towards zero harm, zero discharge, and zero waste.

FY 2024-25 Updates

Total Nand Ghars in FY 2024‑25: 8,045
Youth Benefited from employment-based skill training: 6,878 individuals
GHG emissions increased by 1.4% Y-o-Y
Water positivity ratio: 0.63x
HVLT waste utilisation: 96%
Fatalities reported: 7
LTIFR: 0.52
TRIFR: 1.32
Women employees: 22%
Women in leadership positions: 10%
Trees planted- 2.9 million
Water Recycling - 35%
Fly Ash Utilization - 114%
Legacy Waste - 9.5 million tonnes

ESG Pillars

Transforming communities

Aim 1: Keep community welfare as the guiding principle for our business decisions
Aim 2: Empower 2.5 million individuals with enhanced skillsets
Aim 3: Uplift 100 million women and children via social welfare interventions

Transforming the Planet

Aim 4: Net Zero Carbon by 2050 or sooner
Aim 5: Achieving net water positivity by 2030
Aim 6: Enhance our business model by incorporating innovative green practices

Transforming the Workplace

Aim 7: Prioritise the safety and health of our workforce
Aim 8: Promote gender parity, diversity, and inclusivity
Aim 9: Align with global standards of corporate governance

Objectives for FY 2029-30

Total Number of Nand Ghars: 29,000
Enhance skillsets of: 2.5 million families
Positively impact: 10 million women and children through programmes in education, healthcare, nutrition
Reduction in absolute GHG emission (vs FY 2020-21 Baseline): 25%

Round-the-Clock Renewable Energy in operations: 2.5 GW
Investment in energy transition: US$ 5 billion
Water positivity ratio: 1x
Legacy waste: 23 million metric tonnes

To plant 7 million trees as a part of the World Economic Forum’s ‘1 trillion trees campaign
Habitat restoration: 2,500 hectares
Zero fatalities
LTIFR: 0.37
Zero governance issues

KPIs measured to track progress

Total Number of Nand Ghars
Skillset imparted to families
Impact of CSR programmes in education, healthcare, nutrition
Absolute GHG emissions
RE power in operations

Metals and Mining GHG intensity
Annual waste utilisation
Water positivity ratio
Habitat restoration
Fatalities
LTIFR

% of women employees
% of women in leadership roles
Zero governance-related issues
Annual disclosures

Capitals impacted

UNSDGs linked

Material matters linked

Related risks

Augment Reserves & Resources (R&R) base responsibly

We adopt a focussed and responsible exploration strategy to expand our Reserves and Resources base. Through disciplined execution and targeted programmes, we aim to ensure long-term resource security and support sustained growth.

FY 2024-25 Updates

Zinc India

Total Ore Reserves stood at 189.1 million tonnes at the end of FY 2024-25, up from 175.1 million tonnes in FY 2023-24) reflecting a strong focus on resource-to-reserve conversion. This is net of FY 2024-25 production depletion of 16.33 million tonnes
Exclusive Mineral Resource totalled 264.1 million tonnes in FY 2024-25
Combined R&R were estimated to be 453.2 million tonnes, containing 29.6 million tonnes of zinc-lead metal and 808.4 million ounces of silver
Overall mine life continues to be more than 25 years

Oil and Gas

Gross proved and probable reserves and resources increased to 1,430 mmboe
First Oil discovery in North‑East region, Rudra 1 (EUR of ~ 6 mmboe)
Secured 7 blocks in OALP-IX round, focussing on West Coast of India
ASP injection commenced in Mangala, Rajasthan to enhance recovery from the field
International Rig locked in for drilling exploration wells in the second quarter of FY 2024-25.
Evaluating Deepwater drilling opportunities to explore block prospects in the next fiscal year

Zinc International

Combined mineral resources and ore reserves estimated at 670 million tonnes, containing 35.9 million tonnes of metal

Iron Ore

Current R&R for IOK stands at 63.5 million tonnes, IOG at 53.2 million tonnes and IOO at 95.9 million tonnes.

Objectives FY 2025-26

Zinc India

Target generation and drill testing across our mines
Exploration plan to enhance the mineral resource by 10 million tonnes
Acquiring new potential areas through auction
Ore reserves upgradation for sustained mine production for next 10 years
Use of AI and ML algorithms to analyse HZL geological, geochemical, and geophysical data leads to quicker new target identification and evaluation

Oil and Gas

Establish potential of Rudra discovery
Exploration and appraisal drilling across the portfolio in Rajasthan, Cambay, Northeast and Offshore blocks to add resources
Establish potential of the unconventional Oil & Gas in the portfolio
The resource base comprising Tight Oil, Satellite Fields, presents monetisation potential and opportunities to enhance oil recovery

Zinc International

Execution of 15 km of drilling across greenfield and brownfield projects in RSA and Namibia
No addition is expected in this year but upgradation of 15 million tonnes of ore (1 million tonne metal)

Iron Ore

Conduct PFS for expansion of Bicholim Mine (IOG); exploration to follow based on findings to augment R&R
Augment R&R at IOG – Cudnem through drilling and exploration; upside of 3.5 million tonnes
Augment R&R at IOK Mine

Objectives FY 2026-27

Zinc India

Securing new tenements for R&R growth
Target generation through the application of AI & ML along with advanced geophysics
Enhancement of the mineral resource by 40 million tonnes ore with contained metal of 2.0 million tonnes and upgrade ore reserves to 42 million tonnes, which will lead to total R&R of 500+ million tonnes with ~35 million tonnes metal

Zinc International

Execution of 52 km of drilling across greenfield and brownfield projects in RSA and Namibia
Upgradation of 20 million tonnes of ore

Iron Ore

R&R augmentation at Janthakal via drilling and exploration; upside potential of 6.5 million tonnes

Objectives FY 2029-30

Zinc India

Retain existing mining leases in HZL portfolio while acquiring new potential areas through auction
Attain R&R metal of ~40 million tonnes in HZL portfolio

Oil and Gas

Establish diversified R&R portfolio to support the vision of contributing to India’s 50% of domestic O&G production

Zinc International

Completion of drilling programmes and studies at Big Syncline
Completion of studies on East/East Ext and Gamsberg South for execution

KPIs measured to track progress

Total R&R in Zinc India and Zinc International

Total 2P+2C Reserves & Resources in O&G

Capitals impacted

UNSDGs linked

Material matters linked

Related risks

Delivering on growth opportunities

We are advancing scalable growth through brownfield development across our diversified, long-life asset portfolio. All opportunities are assessed against strict return criteria to drive value creation and long-term stakeholder benefit.

FY 2024-25 Updates

Zinc India

Total mine development 98.2 km in FY 2024-25
Zawar Mines has achieved highest ever MIC of 210 kt in FY 2024-25
Highest-ever mined and refined metal production 1,095 kt and 1,052 kt in FY 2024-25 respectively
Silver production of 687 tonnes in FY 2024-25
Placed order for infrastructure development at Bamnia Kalan Mine and excavation work for portal construction is in progress
Improved ventilation at Sindesar Khurd from 1,350 to 1,950 m³/sec, and commenced a new portal at Zawarmala to enhance production up to 2 MTPA
Conceptual designing and detailed engineering studies ongoing for 2x growth including Zinc, Lead & Silver and tailings recycling
Launched Asia’s first low carbon green zinc, EcoZen, which boasts a carbon footprint of less than 1 tCO₂e per tonne of zinc produced, about 75% lower than the global average

Achieved highest-ever annual VAP sale of 179 kt, with increased share of value-added products to 22% from 20% in FY 2023-24

Aluminium

Commissioned 100 KTPA RP line at BALCO and 120 KTPA alloys line at Jharsugda
Total VAP capacity now 1.7 MTPA (+ 25% Y-o-Y)

Iron Ore

Ductile Iron Pipe Project awarded in December 2023 to boost margins and realisation at VAB via product diversification
Dry Beneficiation Plant at IOK – ramp-up underway
1.2 MTPA Debottlenecking – ramp-up in progress; completion by March 2025

Oil and Gas

Production ramped up from Jaya discovery in OALP Cambay region
Infill drilling in Mangala, Aishwariya, Tight Oil (ABH) and Tight Gas (RDG), to augment reserves and mitigate natural decline
Drilled six exploration wells across regions in OALP blocks and Rajasthan

Zinc International

Gamsberg Phase 2 is 68.5% completed as on 31 March 2025, with all engineering and FIM material delivered; construction is in progress to complete the project by FY 2025-26
Black Mountain Iron Ore Project’s reached 86% completion by 31 March 2025, with commercial and legal process underway for finalisation
Feasibility study in progress at Gergarub, with both environmental clearance and mining licence already secured

Objectives FY 2025-26

Zinc India

Ramping-up of underground mines towards their design capacity of 1.2 MTPA
Commissioned a 160 KTPA Roaster plant at Debari in May 2025, enhancing the metal volume
Commission the 510 KTPA fertiliser plant in Chanderiya
Complete 21 KTPA debottlenecking at Chanderiya Lead-Zinc Smelter and Dariba Zinc Smelters
Commission a lead-silver recovery plant which uses an innovative hot acid leaching technology for additional recovery of 27 TPA of silver and 6 ktpa of lead
With supporting MIC flow, smelters are geared to touch 1,100 +/- 10 kt
Full ramp-up of the alloy plant to produce value-added products at its capacity of 30 KTPA

Iron Ore

Commission Wet Beneficiation Plant at IOK
Develop dedicated transport corridor at IOG
Commission Ductile Iron Pipe Plant

Aluminium

Ramp up Lanjigarh Train 2 and BALCO 435 KTPA new smelter project
Expand VAP at Jharsuguda to 1.6 MTPA and BALCO to 1.1 MTPA
Commission Kurloi North and Ghogharpalli coal blocks
Begin initial output from Sijimali Bauxite block

Oil and Gas

Drill infill wells across the onshore and offshore producing blocks for incremental volumes

Commence execution of Alkaline Surfactant Polymer (ASP) project at Mangala through cluster approach to deliver incremental volume
Monetisation of discoveries from OALP, DSF and PSC block
Establish secondary methods of oil recovery in offshore fields

Zinc International

Commissioning of Gamsberg Phase 2 project; doubling mining and concentrator capacity to 8 MTPA. Expanding Gamsberg MIC capacity to 475 KTPA (+200 KTPA)
Black Mountain Iron Ore project aims to recover iron ore (magnetite) from the BMM tailings, targeting >68% Fe grade, with-first production is expected in H2 FY 2025-26x
Finalise Gergarub Feasibility study to enable investment decision

Objectives FY 2026-27

Zinc India

Ramp-up of underground mines to reach 1.25 MTPA capacity
Study on alternate access to the portal at RAM
Ramp-up of smelting capacity to 1.2 MTPA

Aluminium

Ramp up Lanjigarh to 5 MTPA, initiate debottlenecking to 6 MTPA
Scale BALCO smelting to 1 MTPA, total aluminium capacity to 3 MTPA
Achieve full VAP capacity of 2.8 MTPA
Maximise output from all operating mines

Zinc International

Full ramp-up of Gamsberg Phase 2 project in FY 2026-27
Gamsberg underground mining operations detail engineering and start up, with a plan to increase throughput
Gergarub mining and concentrator plant planned to start in FY 2026-27 and be in production by FY 2026-27, delivering MIC of estimated 70 ktpa

Iron Ore

Focus on expanding downstream product portfolio

Objectives FY 2029-30

Zinc India

Ramp-up of underground mines to reach 1.25 MTPA capacity
Pursuing new mining leases alongside advocacy for opening additional mining sites
Scaling the silver production to a target capacity of 1,500 tonnes
Commission India’s first tailings reprocessing plant of 10 MTPA processing capacity to recover metal from legacy tailings without mining

Iron Ore

Build integrated downstream and specialised steel capacity >2 MTPA

Aluminium

Being a fully vertically integrated aluminium supply chain – mine to metal
Operating Sijimali Bauxite mine at 12 MTPA, Lanjigarh at 6 MTPA
3+ MTPA hot metal capacity
100% value-added product portfolio focussed at Indian market
All coal blocks at 100% permitted capacity for captive power

Oil and Gas

Full field scale ASP project execution across MBA fields in Rajasthan block to monetise reserves.

Continuation of monetisation opportunities across asset portfolio (supported by organic and inorganic strategies)

Zinc International

Construction undergoing at Iron Ore Phase 2 for an additional plant to treat 2 MTPA of current tailings storage facility with opportunity to construct a pig iron plant
Gamsberg Smelter planned to treat all zinc concentrate from current operation at Gamsberg smelter, with first-phase production of 300 KTPA targeted for FY 2029-30

KPIs measured to track progress

Volume
Revenue
ROCE
FCF post-capex
Growth capex

Capitals impacted

UNSDGs linked

Material matters linked

Related risks

Optimise capital allocation and maintain a strong balance sheet

We maintain a disciplined capital allocation approach to preserve financial strength and maximise shareholder value. By prioritising high-IRR investments, enhancing cashflows, and actively managing liabilities, we ensure a robust balance sheet that supports sustainable, long-term growth.

FY 2024-25 Updates

Free cash flow (FCF) at: ₹ 14,850 crore
Net debt: ₹ 53,251 crore
Net Debt/EBITDA: 1.2x on a consolidated basis
Dividend worth: ₹ 43.5/share declared by VEDL

Objectives for FY 2029-30

Generate healthy free cash flow from our operations
Disciplined CAPEX across projects to generate healthy ROCE
Improve credit ratings
Reduce working capital

KPIs tracked

FCF post-capex
Net Debt/EBITDA (Consolidated basis)
EPS (before exceptional items)
Interest cover ratio
Dividend

Capitals impacted

UNSDGs linked

Material matters linked

Related risks

Operational excellence and cost leadership

We are committed to operational excellence through asset optimisation, digital integration, and rigorous cost control. Our focus remains on enhancing throughput, lowering unit costs, and improving realisations through agile, market-driven strategies.

FY 2024-25 Updates

Zinc India

Achieved ore production of 16.33 Mt, record mined metal output of 1,095 kt, refined zinc‑lead production of 1,052 kt, and silver production of 687 tonnes
Achieved the 4-year lower cost of US$ 1,052 per tonne
Improved smelter recovery through various initiatives like fumer plant, hot acid leaching plant, etc.
Sourced ~13% of overall power requirement from renewable energy under a 530 MW round-the-clock RE agreement
40% reduction in cost of generation of power by improving efficiency and percentage of Indian coal in the blend

Iron Ore

Merchant Iron Ore Production of 6.2 MTPA
12 million WMT Saleable ore production

Aluminium

Achieved record Aluminium production of 2,421 kt
Reached all-time high domestic sales of 1,150 kt
2.0 million tonnes Alumina produced at Lanjigarh
Aluminium CoP increased by 2% Y-o-Y

Oil and Gas

Average gross operated production of 103 kboepd for FY 2024-25, down 19% Y-o-Y, owing to natural field decline
ASP injection commenced in Mangala, Rajasthan to enhance recovery from the field
28 infill wells drilled across all assets

Zinc International

Achieved BMM production of 44 kt in FY 2024-25 with declining grades at Deeps impacting production
Gamsberg production was 133 kt in FY 2024-25 with lower volumes attributed to waste stripping backlog, ore availability issues, and equipment availability and breakdowns
Skorpion remained under care and maintenance following geotechnical instabilities in the open pit

Objectives FY 2025-26

Zinc India

Maintain cost of production between US$ 1,025 - US$ 1,050 per tonne through efficient ore hauling, higher volume and grades and higher productivity through ongoing efforts in automation and digitalisation
Sourcing of renewable power for 35% of overall power requirement; increase in Indian coal consumption in blend to >40% for power production
Achieve mined metal production of 1,125 (+\- 10) kt and refined metal production of 1,100 (+\- 10) with silver production of 700-710 tonnes

Aluminium

3.1 million tonnes of record alumina production targeted
2,575-2,600 kt Aluminium production targeted

Significant COP reduction through improved operations and sourcing
Enhanced raw material security (bauxite and coal) via captive ramp‑up
Reduced power purchases with better efficiency in captive thermal plants
Higher rail share in domestic material transport

Oil and Gas

Increase production from existing assets using leading-edge technologies, large-scale AIML (artificial intelligence and machine learning) enabled base
Operations and Maintenance (O&M) model in partnership with best-in-class partners
Continue to operate at a low cost-base and generate free cash flow post-capex

Zinc International

Gamsberg production expected to be higher at 201 kt in FY 2025-26 due to increased ore availability
BMM production for FY 2025-26 is expected to be at 64 kt with significant improvement in ore mining

Iron Ore

Bicholim Mine capacity expansion to 3.6 MTPA
Cudnem Mines startup
DIP Plant commissioning with full safety compliance
IOK Mine capacity expansion to 7.2 MTPA

Objectives FY 2026-27

Zinc India

Achieve design cost of production of US$ 1,000 per tonne through renewable energy usage, efficient ore hauling, higher volume and grades, and higher productivity through ongoing efforts in automation and digitalisation
Sourcing of renewable power for 55% of overall power requirement

Iron Ore

Janthakal Mines startup
Commission 4 MTPA Wet Beneficiation Plant to enhance margins on low Fe ore

Aluminium

Further hot metal COP reduction via increased captive alumina and coal usage
Rail logistics expansion for coal and bulk commodities to reduce cost
Continued focus on quality, reliability, digitalisation, and innovation
Ramp-up of VAP production, including launch of new alloy offerings to grow domestic market share and premium realisation

Zinc International

Expected ~400 kt MIC production in FY 2026-27 from South African operations, with significant ramp up at the Gamsberg Phase 2 concentrator plant

Objectives FY 2029-30

Zinc India

Maintain cost of production at below US$ 1,000 per tonne through efficient ore hauling, higher volume and grades and higher productivity through ongoing efforts in automation and digitalisation
Sourcing of renewable power for minimum 70% of overall power requirement
Elimination of waste generation by gainful utilisation and recycling
Deploying innovation and technology to uphold benchmark operation

Iron Ore

Build integrated downstream and specialised steel capacity >2 MTPA

Aluminium

Achieve full integration:
- 3+ MTPA Aluminium
- 6 MTPA Alumina
- 100% VAP coverage
- Complete bauxite & coal security (captive + linkage)
Attain First Decile position on global aluminium cost curve

Oil and Gas

Leverage win-win partnership models for operations through global technology leaders to achieve best-in-class operational efficiencies
Continue to operate at a low cost-base and generate free cash flow post-capex

Zinc International

500+ KTPA production from South Africa at a low cost of production

KPIs measured to track progress

EBITDA
Adj. EBITDA margin
FCF post-capex
ROCE