In regulatory filing, Vedanta said that its board has approved the acquisition of 100% of Vedanta Foxconn Semiconductors (VFSPL) and Vedanta Displays (VDL), wholly owned subsidiaries of Twin Star Technologies (TSTL) via share transfer at face value.

TSTL is a wholly owned subsidiary of Volcan Investments, the ultimate holding company of Vedanta

This acquisition represents a large growth opportunity for India where the semiconductor market stood at $24 billion in 2022 and is estimated to reach $80 billion by 2026. The display panel market is estimated to be worth $7 billion and is expected to grow to $15 billion by 2025. Currently, India imports 100% of these requirements. Vedanta twin ventures will provide added momentum to the Government's goal of Atmanirbharta in electronics.

The acquisition is expected to be completed by Q2 FY24.

Vedanta will leverage its expertise in large-scale manufacturing and operational excellence and partner with the best global companies to drive the two businesses. Made in India semiconductors and display glass will facilitate affordable electronics - smartphones, laptops, televisions, and electric vehicles for all India, the company stated.

Anil Agarwal, Chairman of Vedanta, said, “Vedanta is committed to making India self-reliant in electronics. This is the beginning of the creation of a Silicon Valley in India, a cutting edge and world class electronics ecosystem.”

The company added that it has an existing presence in the LCD glass substrate business through its subsidiary Avanstrate Inc. which is a pioneering top global manufacturer of LCD glass substrates. Vedanta is therefore in a strong position to leverage the experience and expertise in its glass business to its new presence in the Display ecosystem in Japan, Korea and Taiwan.

A memorandum of understanding (MoU) has also been signed by the respective SPVs in September 2022 with the Government of Gujarat, to set up the semiconductor and display fabs, in Dholera, Gujarat.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading oil & gas and metals company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa and Namibia.

The company reported 67.56% decline in consolidated net profit of Rs 1,881 crore on 5.38% fall in revenue from operations to Rs 37,225 crore in Q4 FY23 over Q4 FY22.

Shares of Vedanta added 0.23% to end at Rs 280.60 on the BSE.