VEDANTA RESOURCES
Good evening ladies and gentlemen, it's my great pleasure to host this evening in your good company at this beautiful venue - the Victoria and Albert museum.
I am filled with sentiment - it is 10 years since we listed Vedanta on the London Stock Exchange. Ten years ago we realised that London was the natural market for resource companies. Friends, as I stand here today, I recall our journey together since we witnessed the opening bell at the LSE.
London is one of the world's top financial centres. The UK-India relationship is founded on a broad range of mutual interests and Vedanta is committed to an even stronger partnership with the UK.
India is a country of 1.3 billion people - the largest democracy of the world. India is rich in human and natural resources with currently only one tenth of the consumption of China. Since listing the company in the UK, our shares have out-performed the index. Our market capitalisation has increased over two and a half times.
India has a new government under the dynamic leadership of our Prime Minister Narendra Modi. We are confident of his commitment to enhance growth and attract large foreign investment in the country. I believe that Vedanta and the world will benefit from his vision. The government of India has called for one trillion dollars in infrastructure spending in airports, ports, railways, highways, 100 new 'smart' cities, and also a vision to make India a new manufacturing hub.
India is blessed with abundant natural resources. Vedanta is India's premier diversified natural resources company, and it is the only combined private sector producer of Oil & Gas, Iron Ore, Aluminium, Copper, Zinc, Lead and Silver. India has an import bill of
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500 billion dollars, comprising mostly of these varied natural resources. Prime Minister
Modi has invited global majors to invest and develop these natural resources.
Our group has 4 listed companies under the umbrella of Vedanta Resources with a combined market cap of 40 billion dollars. Three of these companies are listed in India, namely Sesa Sterlite, Cairn India and Hindustan Zinc. Vedanta is principally a holding company for the group and Sesa Sterlite is the operating company which has all the businesses. Sesa Sterlite is also listed on the New York Stock Exchange and provides a unique investment opportunity to gain exposure to India's high potential natural resources sector. We also have a significant presence in 4 African countries. Although we have a global presence, India remains Vedanta's prime focus.
I recall that it was 10 years ago Brian Gilbertson, the first chairman of Vedanta, suggested that we take a cycling trip together. I am not a man of cycling, nevertheless I enjoy a challenge. We cycled the 60 miles from London to Oxford. It was hard but I believe Brian was impressed by my determination. Perhaps this inspired him to accept my offer and to join Vedanta. Thank you Brian for your contribution to Vedanta.
Vedanta has grown through 9 acquisitions in the last 15 years and increased capacity multi-fold at these acquired companies. Four years ago, I developed an interest in combining Cairn India with Vedanta. We spoke to several bankers. In the end I met Bill Gammell in Edinburgh to discuss the opportunity of working together. I was impressed by Bill's office with the back-drop of Edinburgh Castle. We completed the deal on the basis of a hand-shake. We soon became close friends. So I must say a big thank you to Bill. As you may know, India imports 80% of its hydrocarbon requirement despite having substantial reserve potential.
I am delighted that we have Tom Albanese on board as our group CEO, leading our operations and growth both in India and globally. He shares our vision and we look forward to another decade of success.
I am also delighted that Mike Yeager, formerly the CEO of BHP Billiton global petroleum business, has joined Cairn India.
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I'd like to thank my young, highly-energised and hard-working Vedanta team - I am amazed at what we have achieved over the past ten years and their contribution is immense. Together we have created a value-based and empowered organisation that is well-positioned for the next 10 years. I'd also like to acknowledge all my fellow directors on our company boards for their sound guidance and contribution.
Friends, a few years ago, I went to see the Dalai Lama at Dharamshala as I wanted to learn the art of meditation. The Dalai Lama would not teach me meditation and instead he gave me some advice:
Number 1 - look after your health, your body is a temple
Number 2 - family, they have their own Karma, educate your family and support them to stand on their own feet
Number 3 - your profession, know what you are good at, develop your skills, be the best at what you do
And Number 4 - you can't retain anything beyond your need. This is a challenge to put into practice but I am working hard towards this. I have spoken to my family and we all agree that 75% of our wealth be put in a charitable trust to benefit the society. What we earn must be returned for the greater-good of society.
Life is not only about wealth. This summer I met Bill Gates and his wife Melinda, and I was inspired by their humility. I met Bill in Seattle to understand his motivation and commitment to giving back to society. His encouragement further strengthened my desire to work on my own journey - to work towards improving the lives of underprivileged women and children, and to create a world-class multi-disciplined university in India focusing on the liberal arts, political science, research, alternative medicine and technologies.
This year Vedanta has enhanced the lives of 4.1 million people across the world by our community development projects.
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I'd like to acknowledge and thank His Excellency Ranjan Mathai, the High Commissioner of India, and Chris Gibson Smith, Chairman, London stock Exchange for being here tonight as our very special guests of honour. I would also like to thank the dignitaries and distinguished guests here with us this evening for their continuing support.
I thank my wife Kiran, my family and my friends. I believe that with the blessing of our parents and determination, success can always be achieved.
My grateful thanks to my colleagues at Vedanta, and special thanks to our bankers, J P Morgan and Morgan Stanley who have stood by me and are my co-hosts this evening, and have worked tirelessly to make this magical event possible.
Thank you all for joining me this evening for this special anniversary celebration. Please enjoy the vegetarian cuisine and tonight's entertainment by soul music legend Lionel Richie.
Vedanta Resources plc ("Vedanta") is a London listed, one of the world's largest diversified natural resources company. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil and gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please
visit: http://www.vedantaresources.com/www.vedantaresources.com
For further information, please contact:Communications
Roma Balwani RLM Finsbury President, Gordon Simpson Group Communications, Sustainability & CSR Tel: +44 20 7251 3801
Tel: +91 22 6646 1000
gc@vedanta.co.in
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