Charges of environmental damage and human rights violations are forcing Vedanta group to change. Founder Anil Agarwal has to ensure the changes are more than cosmetic
There is a conspiracy theory making rounds in the southern seaside town of Tuticorin, where metals company Sterlite Industries set up its copper smelter 13 years ago, after being driven out of Ratnagiri, Maharashtra, on environmental grounds. Some people claim that Sterlite lets out gallons of effluents into the sea, but not directly. They say it has linked up its drainage pipes to those of another well-known company in the area, which eventually pours the effluents into the sea.
The most incredible thing about Agarwal is that he prospers in conditions where others wither. Wherever a plant or a mine, universally declared unviable, came up for a sale at throwaway price, Agarwal would be there to buy. And months later, the plant would begin to thrive in his hands leaving industry peers incredulous. Illustration: Malay Karmakar
Another gap that Vedanta is trying to fill is corporate social responsibility (CSR). For long, CSR was largely neglected in the group. A former senior executive who worked at the group’s aluminium plant in Korba, Chhattisgarh, says, “In his talks, the chairman came across as a person who was interested in corporate social responsibility. But one wonders if others below him cared equally. Otherwise, how do you explain that the least performing executives were shunted to CSR positions?” Illustration: Malay Karmakar
(This story appears in the 30 April, 2010 issue of Forbes India. To visit our Archives, click here.)