This Is the Beginning Of Creating Silicon Valley In India: Anil Agarwal

Vedanta has signed an MoU with Foxconn, one of the world's largest electronics manufacturers, to set up an integrated semiconductor manufacturing facility in India

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With an eye on creating a Silicon Valley in India, Vedanta has signed an MoU with Foxconn, one of the world's largest electronics manufacturers, to set up an integrated semiconductor manufacturing facility in India. "This will produce value for the world and I truly hope this is only the beginning of the creation of a Silicon Valley in India," said Anil Agarwal, chairman, Vedanta Resources Ltd, during the 57th annual general meeting (AGM) of the company.

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"We are making a foray into the strategic area of manufacturing semiconductor fab and display fab. Not only are semiconductors in short supply globally, but India is also 100 per cent import dependent. The domestic consumption of semiconductors is expected to cross $80 billion by 2026 and may touch $110 billion by 2030," he added.

For Vedanta, FY22 has been the best year as the company clocked record revenue of INR 131,192 crore and EBIDTA of INR 45,319 crore, which was up 66 per cent year-on-year and contributed more than INR 54,000 crore to the government exchequer.

"Our strong cash flows put the company in a great position for growth. The company in FY22 has been the highest dividend paying company in India with a pay-out of INR 45 per share. Our board has already announced interim dividends of INR 51 per equity share for the financial year 2023 amounting to INR 18,960 crore."

The company doesn't believe in resting on achievements. It is looking to build capacities across businesses with planned new investments and for FY23, it has pegged around $ 2 billion capex investment in zinc, oil and gas, and aluminum. With the acquisition of Nicomet, the heavyweight now becomes the sole producer of Nickel in India, a metal in high demand for electric vehicles and batteries.

The chairman is confident about India becoming a developed country by the time it reaches its 100th birthday in 2047. Vedanta has invested around $35 billion in India over the years and contributed more than INR 2.65 lakh crore to the national exchequer in the past seven years.