Anil Agarwal-led Vedanta on Tuesday said it has completed a review of the restructuring and concluded that the current structure is optimal and in line with the existing scale and diverse lines of businesses.
Therefore, the company will not undertake any corporate restructuring including demerger or spin off and will continue with its existing structure.
In addition, the company has announced a capital allocation policy which is in line with consistent, disciplined and balanced allocation of capital with long-term balance sheet management.
Vedanta in November last year decided that the company should review the corporate structure and evaluate the full range of options and options to unlock value and ease the corporate structure.
The capital allocation outlay in three broad streams will be under capital expenditure, dividend policy and inorganic growth.
The capex includes both growth and continuing capital expenditure and the actual amount of this outlay will be in existing lines of operations, with a focus on volume growth, cost reduction, ESG and value added products, which command higher margins.
In addition, sustainable capital expenditure will be tracked on a per tonne basis and managed through an annual operating planning exercise.
Vedanta said, at least 30% of the company’s after-tax (before extraordinary items) (excluding HZL’s profits) will be distributed as dividend.
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