HTLS 2024: Thoothukudi is my smallest failure, says Vedanta’s Anil Agarwal on shuttered copper plant

Vedanta Group founder Anil Agarwal on Saturday said the closure of their copper smelting plant in Thoothukudi, Tamil Nadu, was his “smallest failure” among the hundreds of setbacks he has faced while growing his business. 

“…it is my smallest failure. I have had hundreds,” Anil Agarwal, founder of Vedanta Group said at the Hindustan Times Leadership Summit 2024. “That’s what I tell entrepreneurs, the more failures you have, the more success you will get.”

Vedanta’s copper plant in Thoothukudi accounted for over a third of India’s copper production before it was shut down in May 2018, on Tamil Nadu government’s orders, due to environmental concerns. 

Last month, the Supreme Court dismissed a review petition filed by Vedanta to reopen the plant. The company was also fined ₹71.16 crore in August this year for unauthorised dumping of fly ash in Odisha by the Odisha State Pollution Control Board. 

Despite shortcomings, the company is looking forward to playing a crucial role in the global energy transition. 

“We have committed that three of our biggest companies Hindustan Zinc Ltd, Cairn Oil and Gas and Zinc International will be running on 100% renewable energy within the next 7-10 years,” said Priya Agarwal Hebbar, chairperson of HZL and non-executive director of Vedanta Ltd. 

“Energy transition can only happen with a focused approach on critical minerals and energy transition metals,” Hebbar said. “It’s absolutely crucial that we should do as much of this domestically. We have only explored 20% of our natural resources.”

HZL was ranked number one in the 2023 S&P Global Corporate Sustainability Assessment (CSA) for the metals and mining sector, while Vedanta Ltd. secured the third position. 

Also Read: Scale and long-term vision must for the survival of a biz, says KM Birla at HTLS 2024

Expansion plans 

Agarwal is now aiming to produce 3 million tonnes of zinc and become the largest producer of copper and silver in the world. The company is also planning to add another 3 million tonnes of aluminium production, for which the work has already begun, the founder said. He is also looking to produce 500,000 barrels of oil and gas, but did not give a timeline. 

The founder also said that he is looking to set up a ‘meaningful business’ in Bihar, but is waiting for the right time. 

All the minerals are available in Bihar. “It’s only a question of time. There’s a strong government, 30 crore people. Industry and tourism will come.”

“Bihar is papa’s heart and soul. That is where everything started for him,” Hebbar said. “He will definitely do something very very soon.”

On the semiconductor front, a move into the industry does not seem to be Vedanta’s stronghold but the mining giant’s founder said it can be done with the support of the government and the people. 

“If everyone is with me and I am still working, because this is not my core strength, I can definitely deliver,” said the Vedanta founder, appreciating the other companies in the market like Tata and Adani for their semiconductor move. 

“But if you ask me are we aggressively working towards that, I am not,” said Agarwal at the summit. 

Vedanta was among the early movers who decided to make semiconductors in India. The company was going to set up a semiconductor plant in Gujarat in a joint venture with Hon Hai Precision Industry Co. Ltd (Foxconn), but the Taiwanese major walked out of the deal in 2023.

Subsequently, Agarwal’s competitors picked up pace in the sector. The Adani Group is eyeing a $3 billion investment in the next two to three years to set up semiconductor manufacturing, Mint reported earlier. The Tata Group also aims to begin commercial production from India’s first semiconductor fabrication unit by 2026. 

Also Read: ‘India’s risk-taking capacity…’: At HTLS Summit, PM Modi lauds India’s booming Start-up ecosystem, Rupay cards’ success

Succession plans 

About passing the torch to his daughter, Agarwal said he can see the courage, honesty and value she is bringing to the organisation. 

“I am sure she will take it forward but the institution is going to be run by the people for the people,” he said. “She (Priya) can be a successor of my personal wealth but we are creating an institution which will be there for 500 years.”

She grew up abroad but finally moved to India to give back to society. “She (Priya) is a difficult girl – she never wanted to join the business or marry,” Agarwal said. “Now I am very happy that she is married. She has her own mind, and that’s really nice.”

Hebbar said she has a few changes in mind for the business her father has built. 

“Vedanta has to stand for equal opportunities for all,” she said. “We were the first company in India to get women underground and the first women rescue team at Hindustan Zinc.” She wants to ramp up support for the LGBTQ+ community.