Davos WEF 2022 | Anil Agarwal Says PSUs Can Fetch Four Times Value When Privatised

Billionaire Anil Agarwal said privatisation of state-owned companies can fetch "four times" more value from current levels, as reports suggested that the government has cleared sale of its remaining stake in Hindustan Zinc Ltd.

Agarwal-controlled Vedanta Ltd., which owns 64.9% stake in Hindustan Zinc, can take up further stake of "only 5%", Agarwal, chairman at the company, told BQ Prime's Menaka Doshi in an interview on the sidelines of World Economic Forum 2022 at Davos.

Vedanta, however, will evaluate before taking the decision to acquire further stake, Agarwal said. The government intended to exit Hindustan Zinc earlier but couldn't due to "some hurdles", he said.

Vedanta plans to invest $20 billion in the next four-five years with a majority of that in the natural resources business.

The mining company will invest 70% of the $20 billion in the natural resources business and the balance will be used to manufacture semiconductors and display glass, Agarwal said.

The company, in February, entered into partnership with Taiwan-based Foxconn to set up semiconductor manufacturing facility in the country.

Agarwal said the oil-to-metal conglomerate is evaluating "three, four states" where the facility can be set up and will finalise within the next "45 days". He said the facility will commence production in the next two years.

Agarwal said $2 billion will be invested in the first phase of the project.

He pegged revenue and profit estimates for Vedanta at $30 billion and $10 billion for FY23.

Watch the full interview here:

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