Biography of Anil Agarwal: Founder & Chairman of Vedanta Resources Ltd. -Businessman
Metal King of India
Anil Agarwal: From Patna to "Metal King"
Early Life
Anil Agarwal, also known as the "metal king," was
born into a Marwadi family in Patna, Bihar, India, around 1953 or 1954. His
father, Dwarka Prasad Agarwal, ran a small business that dealt with aluminum
conductors. Anil Agarwal attended Miller High School in Patna but decided
against pursuing higher education at a university. Instead, at the age of 19,
he chose to join his father's business in making aluminum conductors.
Career Beginnings
In pursuit of greater opportunities, Anil Agarwal left Patna
and moved to Mumbai (then Bombay). This decision marked the beginning of his
journey towards becoming a significant figure in the metal industry.
Early Ventures in Scrap Metal Trading
In the mid-1970s, Anil Agarwal embarked on his
entrepreneurial journey by trading scrap metal sourced from cable companies
across various states, which he sold in Mumbai. This initial venture laid the
foundation for his future endeavors in the metals industry.
Diversification and Industrial Expansion
By 1976, Agarwal expanded his business portfolio by
acquiring Shamsher Sterling Corporation, known for manufacturing enameled
copper products. Over the next decade, he successfully managed both his scrap
metal trade and Shamsher Sterling, gaining valuable insights into the metals
market.
Founding Sterlite Industries and Strategic Shift
In 1986, Anil Agarwal founded Sterlite Industries to
manufacture jelly-filled cables. Recognizing the instability in profitability
due to fluctuating raw material prices like copper and aluminum, Agarwal
strategically decided to venture into metal manufacturing to control input costs
directly.
Pioneering Moves in the Metals Industry
In 1993, Sterlite Industries achieved a milestone by
establishing India’s first private sector copper smelter and refinery, marking
a significant achievement in Agarwal’s career. This move set the stage for
further expansions and integrations within the metals sector.
Acquisition and Turnaround of Madras Aluminium
In 1995, Sterlite Industries under Anil Agarwal’s leadership
acquired Madras Aluminium, a company that had been inactive for four years and
was under BIFR's control. This acquisition demonstrated Agarwal’s strategic
vision for backward integration and revitalization of dormant industrial
assets.
Strategic Acquisitions: BALCO and HZL
Capitalizing on India’s disinvestment program, Anil Agarwal
made strategic acquisitions in the early 2000s, acquiring a majority stake in
Bharat Aluminium Company (BALCO) in 2001 and Hindustan Zinc Limited (HZL) in
2002. These acquisitions transformed formerly inefficient state-run firms into
profitable entities under his leadership.
Global Expansion and Corporate Restructuring
In 2003, Anil Agarwal and his team established Vedanta
Resources Plc in London to access international capital markets. This move not
only facilitated global expansion but also positioned Vedanta as the parent
company of the group through extensive corporate restructuring and listing on the
London Stock Exchange in December 2003.
Expansion and Acquisitions
In 2004, Vedanta Resources Plc launched a global bond
offering and acquired Konkola Copper Mines in Zambia, Africa. Three years
later, in 2007, they gained a controlling stake in Sesa Goa Limited, India's
top iron ore producer. By 2010, Vedanta had added South African zinc assets
from Anglo American across Namibia, Ireland, and South Africa. The following
year, they acquired a major stake in Cairn India, a prominent private oil
producer in India. In 2012, Vedanta Group consolidated further by merging Sesa
Goa and Sterlite Industries.
Corporate Overview
Headquartered in London, Vedanta Resources is a diverse
conglomerate in natural resources, spanning zinc, lead, silver, copper, iron
ore, aluminum, power generation, and oil and gas. While it operates globally,
the majority of its assets are concentrated in India. The company's founder,
Agarwal, resides in London.
Strategic Investments and Wealth
In October 2017, Agarwal's Volcan Holdings Plc acquired a
significant 19% stake in Anglo American, becoming its largest shareholder. As
of 2020, Agarwal's net worth was estimated at £8.5 billion according to The
Sunday Times Rich List.
Future Ventures
Looking ahead, Forbes reported plans in 2022 for Vedanta and
Foxconn to invest approximately $20 billion jointly. Their aim is to construct
semiconductor and display plants in Gujarat, India, with Vedanta holding a 60%
stake in the venture.
Investments in Indian States
Anil Agarwal's Vedanta group has been actively investing in
various Indian states. In Odisha, the company had initially invested ₹80,000
crore, followed by an additional ₹25,000 crore for expanding its aluminium,
ferrochrome, and mining businesses. Vedanta's operations now contribute nearly
4% to Odisha's GDP. In Gujarat, a substantial investment of ₹1.54 lakh crore
was made in 2022 in collaboration with Foxconn for setting up a new
semiconductor plant.
Controversy and Criticism
Vedanta has faced significant controversy and criticism over
its operations in several regions. In 2004, the Indian Supreme Court committee
found Vedanta responsible for dumping arsenic-bearing slag near its factory in
Tamil Nadu, causing severe environmental pollution and health issues for the
nearby population. A similar charge arose in Odisha in 2005, where Vedanta was
accused of forcibly displacing over a hundred indigenous families to make way
for its mining activities, using intimidation tactics. These actions prompted
condemnation from British commerce agencies, and the Church of England divested
its investments in protest.
In Zambia, Vedanta was accused of dumping hazardous waste
from its copper mine into the Kafue River, resulting in widespread illness and
environmental damage. A lawsuit filed by 2,000 residents highlighted these
issues, leading to legal scrutiny and allegations of corporate
irresponsibility. Additionally, concerns were raised in Zambia regarding
Vedanta's compliance with government fees, leading to an official audit in
2014. The company has also faced legal battles from former mine workers seeking
proper severance and disability pay.
Renewed Protests Against Sterlite Industries
In March and April 2018, protests resurged against Sterlite
Industries' plans to establish a second smelting complex and demands to shut
down its existing Thoothukudi (Tuticorin) smelting plants. The protests were
fueled by concerns over environmental violations linked to the company's
operations.
Biography of Anil Agarwal: Founder & Chairman of Vedanta Resources Ltd./Metal King/Businessman/Entrepreneur/Investor/Metals and mining/Success story
The Thoothukudi Massacre
On May 22, 2018, the situation escalated dramatically when
protests turned violent, resulting in a tragic incident where 13 people lost
their lives and several others were injured. The violence erupted following a
police shooting, prompting authorities to impose Section 144 to restore order
and control the unrest.
Investigation and Findings
Subsequent investigations into the Thoothukudi violence by
the Justice Aruna Jagadeesan Commission did not yield specific evidence linking
Sterlite Industries, contrary to claims made by activist groups. Similarly,
allegations made by the government and individuals such as actor Rajinikanth
regarding the involvement of any specific outfit were not substantiated by the
commission's findings. The incident raised significant public and legal
scrutiny over the events that transpired on that fateful day.
Anil Agarwal's Philanthropic Journey
Establishing the Vedanta Foundation
In 1992, Anil Agarwal founded the Vedanta Foundation to
serve as a platform for the philanthropic activities of Vedanta Resources
Limited and its group companies. This foundation became instrumental in funding
various initiatives aimed at enhancing healthcare, education, and
infrastructure development. Through partnerships with governmental and
non-governmental organizations, these efforts have positively impacted the
lives of more than 4.1 million people.
Inspired by Legacy
Anil Agarwal drew inspiration from philanthropic giants like
Andrew Carnegie, David Rockefeller, and Bill Gates. He admired their dedication
to using their wealth for public welfare. Agarwal's philanthropic ventures
focus on child welfare, women's empowerment, and education, echoing his deep
commitment to social causes.
Recognition and Commitment
Anil Agarwal's philanthropic efforts have garnered
significant recognition. In 2014, he ranked second on the Hurun India
Philanthropy List for his personal donation of Rs. 1,796 crore (approximately
$360 million). He has pledged to donate 75% of his family's wealth to
charitable causes, following the example set by Bill Gates. This commitment
underscores his long-term dedication to making a substantial social impact.
Nand Ghar Initiative
In partnership with India's Ministry for Women and Child
Development, the Vedanta group launched the "Nand Ghar" initiative in
2015. Designed as modern childcare centers, these facilities aim to improve
early childhood development across India. By 2022, nearly 3,700 "Nand
Ghars" have been established across 13 states, demonstrating the initiative's
widespread impact.
Looking Ahead
In 2021, the Anil Agarwal Foundation announced a pledge of
Rs 5000 crore over five years for social impact programs. These programs target
nutrition, women and child development, healthcare, animal welfare, and
grassroots-level sports. Additionally, in the same year, Anil Agarwal and his
daughter Priya Agarwal joined the Giving Pledge, committing to donate a
significant portion of their wealth to philanthropic causes. This
forward-looking approach ensures that Anil Agarwal's legacy continues to enrich
communities and transform lives for generations to come.
Restructuring and Corporate Consolidation
Following its listing, Vedanta Resources Plc underwent a
process of internal restructuring, emerging as the parent company overseeing
all other businesses within Agarwal's portfolio. This restructuring facilitated
better operational alignment and governance across the group's diverse
interests in metals, mining, and energy sectors.
Financial Standing and Market Value
As of recent reports, Anil Agarwal boasts a personal net
worth of $2.01 billion, according to Forbes. Meanwhile, Vedanta Ltd, a key
subsidiary under Vedanta Resources, is valued at approximately $12.49 billion.
These figures underscore Agarwal's success in building substantial corporate
entities and his significant impact on the global business landscape.
Anil Agarwal's Impact in Industry and Recognition
Industry Influence
Anil Agarwal has made significant strides in the global
natural resources sector, notably through Vedanta Resources Limited. He
transformed Sterlite Industries from a small cable manufacturer into a leading
producer of copper, aluminum, and zinc products. His strategic acquisitions and
adept management have solidified his position as a key player in India's mining
and metals industry, contributing substantially to its growth.
Business Acumen
Anil Agarwal's entrepreneurial journey includes acquiring
and successfully managing numerous companies within the mining and metals
sector. These ventures have not only expanded his business portfolio but also
bolstered India's industrial capabilities, further establishing his reputation
as one of the wealthiest individuals in the country.
Awards and Recognition
Anil Agarwal's contributions have been widely recognized
with prestigious awards and accolades. These include The Economic Times
Business Leader Award in 2012, the Mining Journal Lifetime Achievement Award in
2009, and the Ernst & Young Entrepreneur of the Year Award in 2008. His
entrepreneurial prowess was further acknowledged with The Asian Awards
Entrepreneur of the Year in 2016 and The One Globe Forum (OGF) Award in 2018.
Dr. Thomas Cangan Leadership Award in 2013, Asian Achievers Awards Lifetime
Achievement Award in 2019, Asian Business Philanthropy Award in 2021, and CIF
Global Indian Award in 2022 from Toronto, Canada.
1953 or 1954: Anil Agarwal is born into a Marwadi family in
Patna, Bihar, India.
Mid-1970s: Starts trading scrap metal sourced from cable
companies in various states, laying the foundation for his entrepreneurial
career.
1976: Acquires Shamsher Sterling Corporation, known for
manufacturing enameled copper products, marking his diversification into
industrial sectors.
1986: Founding of Sterlite Industries to manufacture
jelly-filled cables, representing a strategic shift into metal manufacturing.
1993: Establishes India’s first private sector copper
smelter and refinery under Sterlite Industries, a milestone in the metals
industry.
1995: Acquires Madras Aluminium, marking a turnaround of the
dormant company and emphasizing backward integration.
2001: Acquires a majority stake in Bharat Aluminium Company
(BALCO) as part of India’s disinvestment program.
2002: Acquires Hindustan Zinc Limited (HZL), transforming
formerly inefficient state-run firms into profitable entities.
2003: Establishes Vedanta Resources Plc in London,
facilitating global expansion and corporate restructuring.
2004: Launches a global bond offering and acquires Konkola
Copper Mines in Zambia, Africa.
2007: Gains a controlling stake in Sesa Goa Limited, India’s
top iron ore producer.
2010: Acquires South African zinc assets from Anglo American
across Namibia, Ireland, and South Africa.
2011: Acquires a major stake in Cairn India, a prominent
private oil producer.
2012: Merges Sesa Goa and Sterlite Industries to consolidate
the Vedanta Group.
2017: Volcan Holdings Plc, owned by Anil Agarwal, acquires a
significant 19% stake in Anglo American.
2020: Anil Agarwal’s net worth is estimated at £8.5 billion
according to The Sunday Times Rich List.
2022: Announces plans with Foxconn to invest approximately
$20 billion in semiconductor and display plants in Gujarat, India.
This timeline captures the major milestones in Anil
Agarwal’s entrepreneurial journey, from his early ventures in scrap metal
trading to establishing Vedanta Resources Plc and expanding globally across the
metals, mining, and energy sectors.
