Anil Agarwal, the feisty entrepreneur who founded Vedanta in the 1970s as a scrap trading business and built it into a mines-and-minerals conglomerate by buying sick companies and turning them around, told ET in April that he wants to leave behind a legacy rivalling that of the Tatas, with a sprawling conglomerate run by professionals.
«As far as my credibility is concerned, 99% people think I am the best,» he said. «But the 1% people who matter, take a little time (to trust my credibility),» he said.
«I dream that in the time to come, this company will be like another Tata Sons — several companies will run, grow and more professional people will run the company. Everybody should have a win-win situation.»
That was the time when strong debt concerns had started to swirl around Agarwal's business.
«We are very, very comfortable,» the 69-year-old billionaire had told ET, drawing attention to the company's track record. «In the last 25 years, we have not defaulted even once.
There has been disproportionate talk about our debt,» he said.
Four months later, and a few days ago, Moody's Investors Services downgraded Vedanta Resources to take cognizance of the increased risk around the company's upcoming debt repayments, while maintaining its negative outlook.
The rating agency also warned of a further downgrade if the company is unable to make progress on funding arrangements.
Vedanta debt quagmire
Concerns over bonds worth $3.2 billion maturing in 2024 and 2025 are at the centre of Vedanta's crisis as it has been struggling to raise funds. Debt obligations at Vedanta Resources include a $1 billion bond due in January, $950 million bonds due in August, and $1.2 billion maturing in March 2025, apart from other loan