Vedanta is in debt from head to toe, Anil Aggarwal will now have to sell his business.

Vedanta Limited, one of the largest companies in the mining sector, is burdened with heavy debt. Therefore, now the group will have to sell its entire business. Read this news...

Industrialist Anil Aggarwal's Vedanta Group is currently burdened with heavy debt. If we understand in common man's language, Vedanta Group is drowned in debt from head to toe. In such a situation, the group is now forced to sell some of its businesses. During a recent interview, Anil Aggarwal said that Vedanta will completely sell its steel business by next year.

Not only this, Vedanta Group is also planning to demerger its different businesses. So that the value of different businesses can be unlocked. The group is going to run these companies as 'independent companies', so that one does not impact the other.

Steel business will be sold by March 2024

In an interview given to a news channel, he said that the assets related to the steel business will be sold in the current financial year (by March 2024). Vedanta Group has started valuation and review of its steel, iron ore and related businesses from June itself.

Apart from this, Vedanta Group is going to demerger many businesses. The company said that soon separate companies will be formed named Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Metals, Vedanta Base Metals and Vedanta Limited.

Regarding this demerger, Anil Aggarwal says that all these businesses have their own market, demand and supply. In such a situation, separation of all these will help in unlocking their value, yet all of them will come under a large umbrella of 'natural resources'. Separating them will help in bringing modern technology and increasing productivity.

Vedanta is struggling with heavy debt burden

Vedanta Resources, the parent company of Vedanta Limited, is burdened with heavy debt. Besides, it is facing a lot of struggle in raising funds from the market. Along with this, the credit rating agency has also dropped its debt rating. Anil Aggarwal tried to reduce the debt burden through Hindustan Zinc, a unit of Vedanta Limited, but the Government of India has 30 percent stake in this company and hence it could not do so.

At the same time, Hindustan Zinc itself is working on a plan to separate its zinc, lead, silver and recycling business. The major problem of Vedanta Group is the maturity of its corporate bonds and their payment. By the end of 2025, Vedanta Group has to make bond maturity payment of $ 3.2 billion (about Rs 26,620 crore).