Metals and mining giant Vedanta will spend around USD 300-400 million in recently acquired Electrosteel Steels to expand its capacity to 2.5 million tonnes per annum (mtpa), a top company official said.
This investment will be part of the company's overall USD 8-billion (about Rs 56,000 crore) capex plan over the next three years, according to Vedanta chairman Navin Agarwal.
"Electrosteel Steels is currently processing at a full capacity of 1.5 mtpa, and we will soon start work to expand capacity to 2.5 mtpa at a very nominal capex of USD 300-400 million," Agarwal told reporters on the sideline of the firm's annual general meeting (AGM) today.
In March, Vedanta acquired assets of Electrosteel Steels, which marked its entry into steelmaking in India.
"Our acquisition of Electrosteel has lot to do with the integration of our iron ore business," said Agarwal.
Replying to a query on the firm's troubled copper smelter at Tuticorin in Tamil Nadu, Agarwal said, "At this time our endeavour is to restart the copper smelter and discussion of expanding will happen afterwards."
Replying to a query on inorganic growth, Agarwal said, "We have nothing on the plate on the acquisition side, but if good opportunity comes, which is synergic to our business, we will look at it."