 "We'll look at deleveraging Sesa Sterlite: Tom Albanese")
Tom Albanese, who recently took charge as chief executive of mining giant Vedanta Resources, tells Aditi Divekar the company would raise capacity use to cut debt at its arms. Edited excerpts:
What are your priorities for shoring up the performance of Vedanta Resources?
We have a strong business in Hindustan Zinc and Cairn India but our aluminium and iron ore businesses are operating at lower than capacity. My first and second priorities are the ramp-up of the aluminium smelter and start of mining in Goa, within the ambit of the Supreme Court's orders. My third priority would be optimising the aluminium supply chain by looking at our own captive bauxite source in a manner consistent with global best practices on environment and community engagement, to improve aluminium business prospects.
We already have operations in Ireland, Zambia, Namibia, South Africa and Australia. Certainly, we will look for more opportunities. Our first priority is to focus on the investment we have made already in India and elsewhere.
Sesa Sterlite has a huge consolidated debt. How do you plan to reduce it?
The consolidated net debt of Sesa Sterlite as on March 31 was Rs 29,769 crore, down from Rs 33,962 crore in the December quarter. We will look at deleveraging the business but as our existing businesses operate at better capacity utilisation rates, we will see more and more cash flow coming in, which will help us reduce debt.
You've said the focus would be on operational excellence, cost management and sustainability to drive long-term value for stakeholders. How do you plan to attain this goal?
The focus is to have better and assured supply chain of coal and bauxite for the aluminium operations. We have to start operations of iron ore in Goa. Our focus will also be to continue the success in Cairn and Hindustan Zinc.
What are your priorities for shoring up the performance of Vedanta Resources?
We have a strong business in Hindustan Zinc and Cairn India but our aluminium and iron ore businesses are operating at lower than capacity. My first and second priorities are the ramp-up of the aluminium smelter and start of mining in Goa, within the ambit of the Supreme Court's orders. My third priority would be optimising the aluminium supply chain by looking at our own captive bauxite source in a manner consistent with global best practices on environment and community engagement, to improve aluminium business prospects.
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Vedanta, billed a global mining company, is largely India-centric. How do you plan to change this?
We already have operations in Ireland, Zambia, Namibia, South Africa and Australia. Certainly, we will look for more opportunities. Our first priority is to focus on the investment we have made already in India and elsewhere.
Sesa Sterlite has a huge consolidated debt. How do you plan to reduce it?
The consolidated net debt of Sesa Sterlite as on March 31 was Rs 29,769 crore, down from Rs 33,962 crore in the December quarter. We will look at deleveraging the business but as our existing businesses operate at better capacity utilisation rates, we will see more and more cash flow coming in, which will help us reduce debt.
You've said the focus would be on operational excellence, cost management and sustainability to drive long-term value for stakeholders. How do you plan to attain this goal?
The focus is to have better and assured supply chain of coal and bauxite for the aluminium operations. We have to start operations of iron ore in Goa. Our focus will also be to continue the success in Cairn and Hindustan Zinc.