Latest news with #AnilAgarwal
The Star
2 days ago
- Business
- The Star
India's iron ore imports to trend higher, but it's no China
Boosting demand: An employee works at a steel production line of the Jindal Stainless facility in Hisar, Haryana, India. The country's steel-making capacity is currently about 200 million tonnes per annum. — Reuters THE rise of India's steel sector is touted as a boost for iron ore miners seeking to find new markets as China's output eases, but the reality is likely to fall short of the hype. India's steel-making capacity is currently about 200 million tonnes per annum and the South Asian nation has ambitious plans to reach 300 million by 2030. Working on the assumption that these plans come close to being realised, how does that alter the dynamics in the global seaborne iron ore market? In order to get to an answer, it's important to work out how much of the demand for iron ore from the new steel mills can be met by India's own mines. India is the fourth-largest iron ore miner and its production hit a record 289 million tonnes in the fiscal year from April 2024 to March 2025, according to preliminary government data. This was up from the previous fiscal year's 277 million tonnes, but is also well short of what would be required to supply a 300 million tonnes per annum steel-making sector. Depending on the grade of iron ore used, it takes about 1.6 tonnes to make one tonne of steel using the blast furnace and basic oxygen furnace process, the most common method in both India and top steel producer China. Is it possible that India's domestic iron ore output could rise to around 460 million tonnes by 2030, and if it could, is it also possible that the infrastructure required to transport ore to steel mills can be put in place? Vedanta Group chairman Anil Agarwal told the Business Standard last month that India has the potential to overtake China and Brazil to become the second-largest iron ore miner after Australia. Vedanta owns Sesa Goa Iron Ore, one of India's major producers, and while Agarwal is correct in pointing to India's large reserves, it's unlikely that such a large increase in iron ore output in a relatively short period of time is possible. The Indian Steel Association expects that there will be a shortage of iron ore of more than 100 million tonnes in coming years, meaning imports will have to increase. India is currently a net exporter of iron ore, usually shipping lower-grade ores to China while importing higher-grade material to blend with domestic ore. India's exports for the first five months of 2025 were 13.67 million tonnes, of which 11.11 million went to China, according to data compiled by commodity analysts Kpler. Exports have been trending lower as more ore is used by domestic steel plants, with the monthly average of 2.73 million tonnes for the first five months of 2025 down from the average of 3.13 million for 2024 and 3.7 million for 2023. Imports have also been trending higher, with arrivals of 4.57 million tonnes in the first five months of 2025, according to Kpler. This puts India on track to more than double imports this year from the 6.72 million tonnes in 2024 and the 6.67 million in 2023. But even if imports do rise to around 10 million tonnes this year, it's a long way to get to 100 million tonnes by 2030. Much will depend on how quickly India builds up steel capacity and how domestic iron ore miners respond. India has about 20 million tonnes of steel capacity currently under construction and a further 155 million planned, according to data compiled by the Global Energy Monitor. The under-construction plants will likely boost demand for iron ore imports, but the volumes are likely to be modest, at least for this year and next. What is likely is a continuation of current trends, with India's exports of low-grade iron ore trending lower and its imports of higher-grade ore moving higher over time. — Reuters Clyde Russell is a columnist for Reuters. The views expressed here are the writer's own.
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Business Standard
2 days ago
- Business
- Business Standard
Vedanta to raise upto ₹5,000 crore via unsecured bond issue for refinancing
Vedanta, the Indian mining and metals company owned by billionaire Anil Agarwal, plans to raise upto ₹5,000 crore ($585 million) through unsecured bonds to refinance existing debt and support capital expenditure. The proposed issuance offers investors three structures. The first tranche is ₹2,250 crore with a ₹750 crore greenshoe option, maturing in December 2027. A second option totals ₹1,000 crore with a ₹75 crore greenshoe and a three-year tenor, while the third comprises ₹850 crore, maturing in two years, a company spokesperson said. The fundraising comes as Vedanta undergoes a major restructuring, spinning off its businesses into five independent, pure-play entities. The group has outlined a $4 billion investment plan over the next three years, with $1.5 billion already deployed in 2024–25 (FY25). The proceeds of the latest fundraise will help address near-term maturities and enhance financial flexibility. As of March 2025, Vedanta's net debt stood at ₹53,251 crore, down over ₹3,000 crore from the previous year, driven by operational cash flows, a qualified institutional placement, and proceeds from a stake sale in its zinc unit. The company maintained an average debt maturity of over three years. Vedanta's London-based parent, Vedanta Resources, has reduced its debt to $5 billion in FY25 — the lowest in a decade — helped by strong dividend payouts from the Indian unit. Shares of Vedanta closed flat at ₹434 in Mumbai on Tuesday, valuing the company at ₹1.69 trillion. Promoter group Vedanta Resources holds a 56.3 per cent stake.
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Business Standard
3 days ago
- Business
- Business Standard
Vedanta to raise ₹5,000 crore via unsecured bond issue for refinancing
Vedanta, the Indian mining and metals company owned by billionaire Anil Agarwal, plans to raise ₹5,000 crore ($585 million) through unsecured bonds to refinance existing debt and support capital expenditure. The proposed issuance offers investors three structures. The first tranche is ₹2,250 crore with a ₹750 crore greenshoe option, maturing in December 2027. A second option totals ₹1,000 crore with a ₹75 crore greenshoe and a three-year tenor, while the third comprises ₹850 crore, maturing in two years, a company spokesperson said. The fundraising comes as Vedanta undergoes a major restructuring, spinning off its businesses into five independent, pure-play entities. The group has outlined a $4 billion investment plan over the next three years, with $1.5 billion already deployed in 2024–25 (FY25). The proceeds of the latest fundraise will help address near-term maturities and enhance financial flexibility. As of March 2025, Vedanta's net debt stood at ₹53,251 crore, down over ₹3,000 crore from the previous year, driven by operational cash flows, a qualified institutional placement, and proceeds from a stake sale in its zinc unit. The company maintained an average debt maturity of over three years. Vedanta's London-based parent, Vedanta Resources, has reduced its debt to $5 billion in FY25 — the lowest in a decade — helped by strong dividend payouts from the Indian unit. Shares of Vedanta closed flat at ₹434 in Mumbai on Tuesday, valuing the company at ₹1.69 trillion. Promoter group Vedanta Resources holds a 56.3 per cent stake.
Reuters
3 days ago
- Business
- Reuters
India's iron ore imports to trend higher, but it's no China: Russell
LAUNCESTON, Australia, June 3 (Reuters) - The rise of India's steel sector is touted as a boost for iron ore miners seeking to find new markets as China's output eases, but the reality is likely to fall short of the hype. India's steel-making capacity is currently about 200 million metric tons per annum and the South Asian nation has ambitious plans to reach 300 million by 2030. Working on the assumption that these plans come close to being realised, how does that alter the dynamics in the global seaborne iron ore market? In order to get to an answer, it's important to work out how much of the demand for iron ore from the new steel mills can be met by India's own mines. India is the fourth-largest iron ore miner and its production hit a record 289 million tons in the fiscal year from April 2024 to March 2025, according to preliminary government data. This was up from the previous fiscal year's 277 million tons, but is also well short of what would be required to supply a 300 million tons per annum steel-making sector. Depending on the grade of iron ore used, it takes about 1.6 tons to make one ton of steel using the blast furnace/basic oxygen furnace process, the most common method in both India and top steel producer China. Is it possible that India's domestic iron ore output could rise to around 460 million tons by 2030, and if it could, is it also possible that the infrastructure required to transport ore to steel mills can be put in place? Vedanta Group Chairman Anil Agarwal told the Business Standard last month that India has the potential to overtake China and Brazil to become the second-largest iron ore miner after Australia. Vedanta owns Sesa Goa Iron Ore, one of India's major producers, and while Agarwal is correct in pointing to India's large reserves, it's unlikely that such a large increase in iron ore output in a relatively short period of time is possible. The Indian Steel Association expects that there will be a shortage of iron ore of more than 100 million tons in coming years, meaning imports will have to increase. India is currently a net exporter of iron ore, usually shipping lower-grade ores to China while importing higher-grade material to blend with domestic ore. India's exports for the first five months of 2025 were 13.67 million tons, of which 11.11 million went to China, according to data compiled by commodity analysts Kpler. Exports have been trending lower as more ore is used by domestic steel plants, with the monthly average of 2.73 million tons for the first five months of 2025 down from the average of 3.13 million for 2024 and 3.70 million for 2023. Imports have also been trending higher, with arrivals of 4.57 million tons in the first five months of 2025, according to Kpler. This puts India on track to more than double imports this year from the 6.72 million tons in 2024 and the 6.67 million in 2023. But even if imports do rise to around 10 million tons this year, it's a long way to get to 100 million tons by 2030. Much will depend on how quickly India builds up steel capacity and how domestic iron ore miners respond. India has about 20 million tons of steel capacity currently under construction and a further 155 million planned, according to data compiled by the Global Energy Monitor. The under-construction plants will likely boost demand for iron ore imports, but the volumes are likely to be modest, at least for this year and next. What is likely is a continuation of current trends, with India's exports of low-grade iron ore trending lower and its imports of higher-grade ore moving higher over time. The views expressed here are those of the author, a columnist for Reuters.
Mint
29-05-2025
- Business
- Mint
Vedanta demerger: NCLAT stays NCLT order rejecting business split; stock sees relief rally
Vedanta demerger: In a major relief for Anil Agarwal's Vedanta Limited, the National Company Law Appellate Tribunal (NCLAT) has granted an interim stay on an earlier order passed by the National Company Law Tribunal (NCLT) rejecting the mining major's demerger scheme. Following the announcement by the company, Vedanta share price witnessed a relief rally, rising over 1% from its day's low in an otherwise weak market. Vedanta stock jumped to the day's high of ₹ 450.90, a rise of 1.32% from the day's low of ₹ 445. As of 1 pm, the mining company's stock was 0.94% higher at ₹ 450.85. The NCLT had dismissed a demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) at an initial stage in a setback for the five-way spinoff of its parent Vedanta. NCLT's Mumbai bench had ruled that TSPL's proposed demerger scheme lacked necessary disclosures, mainly about its debt obligations. The decision came after China-based SEPCO Electric Power Construction Corporation raised objections to the demerger, saying that the power unit had deliberately excluded their outstanding debt of ₹ 1,251 crore from the list of creditors. The NCLT order said, 'This has been done deliberately to defeat SEPCO's rights.' Meanwhile, NCLAT in its order on May 27, 2025, noted that TSPL had signed a contract with SEPCO to build a power plant, for which some parts of the work, like modifying the ESP (Electrostatic Precipitator) and performance testing, were still pending. On May 15, 2020, it was agreed that SEPCO would be paid only after completing the pending tasks. However, SEPCO did not finish the work. After which, TSPL terminated the contract in February 2024 and removed it as a creditor from its accounts. "The impugned order failed to note this change and held that material facts have not been disclosed, violating Section 230(2)(a) of the Companies Act, 2013," NCLAT said in its order. NCLAT has fixed the date for a detailed hearing on August 4, 2025. '… in the meanwhile, the impugned order, so far as it only relates to rejection of the scheme is hereby stayed till the next date of hearing upon the appellant giving a Bank Guarantee to the tune of ₹ 1,245 crores to protect the interest of the Respondent herein, within two weeks from today,' NCLAT order stated.
