Vedanta Resources announced to introduce major changes in its corporate structure on Tuesday. It has created three verticals to simplify the business process and eliminate cross holdings among group businesses. The three newly formed verticals are copper and zinc-lead, aluminum and energy, and iron ore.

This scheme is approved by the boards of Vedanta and group companies. It would be effective from April 1, 2009 as per the guidelines of Sterlite and Madras Aluminum Company (Malco). Vedanta will transfer its 79.4 percent equity interest in Konkola Copper Mines (KCM) in Zambia to Sterlite while the aluminum and energy businesses of sterlite would be demerged to Madras Aluminum Company (Malco).

Vedanta will hold 73 percent in Sterlite, 85 percent in VAL and 51 percent in Sesa Goa on the completion of the restructuring process. Vedanta Aluminium (VAL) and Sterlite Aluminium (Aluminium and Energy) would be among top five companies of the world to produce largest amount of aluminum. The power capacity of the companies would touch 5,370 MW mark by 2012. The current power capacity is 2,190 MW.

The increase in power capacity is expected to draw an investment of around Rs. 12,000 crore. The company has planned to invest $26 billion, $9 billionof which has already been invested. The chairman of Vedanta, Anil Agarwal said that the restructuring process will transform the business process and increase its efficiency.?