Anil Aggarwal: Bihar’s investor increased property 70 times in 22 years

A desi saying is quite prevalent in India- Ghar Jogi Jogia, outside Jogi provedOn the lines of this saying whenever we talk about big investors, first of all Warren Buffett Let’s take the name of It is also right, because Buffett, called ‘Oracle of Omaha’, started investing from about $ 120 at the age of 11, and today his total assets are about $ 115 billion. This work is not easy. Similarly, India’s Warren Buffett is called Rakesh Jhunjhunwala Also started investment from only 5000 rupees and made assets of billions. But today the person whose story we are telling you, what he has done in the investment world is not common. But, since he is a desi man, he has a relationship with Bihar, Litti-Chokha is his favorite food, talks very simple, then people do not pay their names as they are entitled to as much as they are. Lack of information about them can also be a reason for this. Today we are talking about Lala from Bihar Anil Aggarwal of.

Anil Aggarwal invested only Rs 1,000 crore in a company called Hindustan Zinc about 22 years ago. With that investment, Agarwal has received a total of Rs 71,000 crore by selling dividends and shares. Meaning, his money increased by 70 times in just 22 years. This performance is better than Warren Buffett’s company Berkshire Hathway. Anil Aggarwal is the founder of Vedanta Company. After getting out of a small town, such businessmen have become such that even big management schools can learn from them. Recently, he once again proved that if you are invested in a good company with focus and patience, then its fruit gets sweet.

Recently, Vedanta has raised 3,000 crore by selling 66.7 million shares of Hindustan Zinc at a price of 449. This was the company’s 1.6% stake. Earlier, Vedanta had 63.42 percent stake. Vedanta has received a return of about 24 per cent every year on her investment in Hindustan Zinc, while at the same time Nifty 50 has given only 15 per cent CAGR. Vedanta bought these stocks at Rs 39 per share, and after the stock split, their cost came close to just Rs 3 per share.

Economics Times wrote to Vinod Jhaveri, an independent analyst,- This deal was very beneficial for Vedanta. This gave the company a cash, which can work on its expansion plans, and the new investors got a chance to participate in a strong metal company.

Comparison with Warren Buffett

Comparison, the company of Warren Buffett gave 20 percent return at the same time, while S&P 500 only 10 percent. Buffet’s focus has always been on improving underworth companies and improving them. Anil Aggarwal’s method is also similar. They buy cheap companies, do backward integration to reduce their costs, and then help them grow.

While private equity companies are happy with small profits, Anil Aggarwal’s target is always big- giving 30 per cent annual returns. He took the risk with his own money, kept a big thinking and got the company listed on the London Stock Exchange, which improved international investors and governance.

Anil Aggarwal began in the 1980s from Sterlite Industries, which used to make jelly-filled cables. Later he started copper production, as he was the main material to make cable. In 1995, he bought a loss -making Madras aluminum, and in 2001, he bought 51 percent of Balco’s stake by participating in the disinvestment program of the Government of India.

In 2002, he bought a 26 percent stake in Hindustan Zinc. Then in 2003 created Vedanta Resources. In 2007, he also bought Sesa Goa, which was the largest iron and mining company in India at that time. In 2012, this company was merged with sterlite.

Today Hindustan Zinc is the world’s largest zinc producer, and all this was possible with the foresight of Anil Aggarwal. Vedanta had bid Rs 40.5 per share in 2002 and later bought more shares at Rs 35 per share. In November 2003, through an option, he took 18.92 percent and took stake and the total stake was 64.92 percent.

In August 2024, Vedanta again offered an offer to sell 3.17 per cent for Rs 6,500 crore, but later bought some from the stock market and the stake was then increased by 63.42 per cent.

Since 2003, Vedanta has received around Rs 68,000 crore dividend from Hindustan Zinc. Also, by selling shares worth Rs 3,000 crore, the total income has increased to Rs 71,000 crore. Even today Vedanta has a part of a value of Rs 11,600 crore.

Anil Aggarwal started his business career at the age of 19 with scrap trading. At the age of 22, he bought a company named Shamsher Sterling for Rs 16 lakh. In this, he borrowed from friends, family and banks. It is from here that he came to know about the real challenges of the manufacturing industry, such as working capital managing, giving salary, and struggling with the ups and downs of the price of raw materials.

These difficulties strengthened them. He ran his business on the strength of meditation, confidence and patience. Then in the 1980s, he stepped into cable business and also made the country’s first copper smelter. As Vedanta’s business increased, his debt also increased. Today the company has a total loan of Rs 75,000 crore. The company is using the dividend from Hindustan Zinc to reduce this debt.

Although dividend is getting good, but experts are advising to be cautious. Economics Times quoted an investor named Nikhil Gangil as saying that all the shares of Vedanta’s promoter are mortgaged and the number of retail investors in a year has increased from 9 lakh to 20 lakhs- which is a matter of concern for risk and governance.

Today, Anil Aggarwal’s focus is on improving Vedanta’s capital efficiency. Warren Buffett once wrote, “Debt works to eliminate the wealth slowly.” Vedanta’s debut-to-equity ratio is 1.81, while Buffett’s company only 0.91. That is, Vedanta will now have to work towards reducing his debt.

Buffett usually invests in consumer business, where the demand remains stable. At the same time, Anil Aggarwal has made his company in the Commodity sector, where there is more fluctuations. But now he has admitted that it is necessary to bring the debt under control. Further success will depend on how well they manage the liabilities.