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Partnership will provide low-interest working capital through BALCO and Vedanta Metal Bazaar, empowering India’s downstream metal industry

Vedanta Aluminium, India’s largest aluminium producer, has signed a Memorandum of Understanding (MoU) with the Central Bank of India to offer collateral-free customer financing through its unit, BALCO. The initiative will enable original equipment manufacturers (OEMs), including Micro, Small, and Medium Enterprises (MSMEs), to access loans with minimal documentation and at highly competitive interest rates, providing a significant boost to India’s downstream metal industry.

Over 60% of Vedanta Aluminium’s downstream customers are MSMEs. To enhance accessibility and customer experience, the financing program will be integrated directly into the Vedanta Metal Bazaar, the company’s e-superstore for aluminium products, ensuring quick disbursement, digital coordination, automated lien marking, and real-time invoice tracking.

This collaboration strengthens Vedanta Aluminium’s existing financing ecosystem enabled through Vedanta Metal Bazaar, which already connects customers with leading banks and NBFCs. Currently, more than 100 customers are availing financing options from four partner banks via the platform, which is growing at 30% year-on-year. The addition of Central Bank of India, with its wide national footprint, is set to further democratize access to working capital across India.

The MoU outlines a comprehensive customer financing framework allowing OEMs and MSMEs to avail loans without or with minimal collateral. Financing limits range from ₹10 lakh to ₹10 crore per customer, with the potential for higher limits based on business turnover, customer vintage, and BALCO’s recommendation. Customers will benefit from one of the lowest interest rates in the industry, with a standard repayment period of 90 days and a 15-day grace window. The program’s seamless integration with Vedanta Metal Bazaar ensures a fully digital, streamlined experience powered by API-based services.

Commenting on the partnership, Rajiv Kumar, CEO of Vedanta Aluminium, said, “Our partnership with Central Bank of India marks a pivotal step in strengthening the aluminium value chain by making working capital more accessible and affordable for MSMEs who form the backbone of India’s manufacturing and industrial ecosystem. By enabling greater financial liquidity, we are not only empowering our customers to scale efficiently but also accelerating the development of a robust downstream sector. With more than 60% of our downstream clientele comprising MSMEs, this initiative will unlock new avenues for business expansion and competitiveness. It aligns with our vision of building a self-reliant, competitive, and future-ready aluminium industry that contributes meaningfully to India’s economic growth, employment generation, and global manufacturing leadership.”

This digital-first approach reflects Vedanta’s commitment to building a transparent, scalable, and inclusive financing ecosystem for India’s growing downstream manufacturing sector.

Vedanta Metal Bazaar is an innovative e-superstore for primary aluminium that has transformed the way aluminium is bought and sold in India. At present, the superstore offers over 750-plus product variants, encompassing the extensive range of offerings from the stable of Vedanta Aluminium. It also features AI-based price discovery, offering customers unmatched value even in the face of fluctuating commodity prices.

Vedanta Metal Bazaar can be accessed directly via the following portal link: https://browse.vedantametalbazaar.moglix.com/catalog/aluminium. It is also available as a mobile app, ‘Vedanta Metal Bazaar’, which is downloadable through the Google Play Store and Apple App Store. Products on offer include ingots, billets, primary foundry alloy (PFA), wire rods, rolled products, flip coils, hot metal and Restora (India’s first low-carbon aluminium). In addition, the superstore also offers customized solutions tailored to the needs of the company’s wide customer base.

Vedanta Aluminium, a business of Vedanta Limited, is India's largest producer of aluminium, manufacturing more than half of India's aluminium i.e., 2.42 million tonnes in FY25. It is a leader in value-added aluminium products that find critical applications in core industries. Vedanta Aluminium ranks 2nd in the S&P Global Corporate Sustainability Assessment 2024 world rankings for the aluminium industry, a reflection of its leading sustainable development practices. With its world-class aluminium smelters, alumina refinery and power plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the 'Metal of the Future' for a greener tomorrow.