In collaboration with London-based investment company Centricus, Vedanta Group Founder and Chairman Anil Agarwal plans to invest $10 billion in Indian companies being divested by the government. They said in a joint statement on Thursday that they planned to invest in entities with major turnaround and potential for growth.
“The launch comes at a promising time for the Indian economy and will support the government’s efforts to achieve its disinvestment targets,” the statement said, adding the strategy will allow businesses to benefit from Agarwal’s experience and history of partnering with operating businesses and creating value.
India is going to be the fastest-growing major economy in the next decade. Its dynamism is based on a private sector of world-class entrepreneurship, and I believe that this dynamism can be harnessed to unlock the public sector’s incredible transformation. “We believe that this strategy can and will play a crucial role in the on-going industrialization of the country,” the statement quoted Agarwal.
Although Centricus’ relationship is with Agarwal, it is not clear whether it will be through companies in the Vedanta Community. A spokesperson for Vedanta did not comment on the issue. According to the release, Agarwal aims to help former government-owned enterprises drive their transformation into private-sector companies with competent management.
Recently, Vedanta expressed a tentative interest in buying the government’s stake in Bharat Petroleum Corp (BPCL). This is not the first time Agarwal has been outspoken about taking an interest in state-owned organizations.
In the past, a majority stake in government-owned companies such as Hindustan Zinc and Bharat Aluminium Company was taken up by the Vedanta Group. Agarwal had pitched for the privatization of state-owned Hindustan Copper earlier this year, arguing that the country’s only copper producer needed a different dimension to growth as it had good properties.
Agarwal praised NITI Aayog’s initiative in October. “He said in a tweet: “Commend @NITIAayog for spearheading the debate on Hindustan Copper disinvestment. With keen interest, the world is looking at this disinvestment.
Dalin Ariburnu, the co-founder of Centricus, said The size of India implies that its transformation should lead to significant new sources of capital for newly independent Indian companies that will support their growth.” Together with Anil Agarwal and in collaboration with management teams, we are excited to work to increase the competitiveness of India’s leading companies.
