How Vedanta's Anil Agarwal cobbled up Rs 16 lakh to acquire his first company

Last month, Vedanta Resources Chairperson Anil Agarwal reflected on his experience of arriving in Mumbai for the first time.

Anil Agarwal, founder and chairman of Vedanta Resources, had last week recalled his early years in Mumbai and described the experience of owning his first home in the financial capital. On Monday, he narrated how he bought a company for the first time.

He had tweeted last week that he had heard of a cable company that was on the brink of bankruptcy and “started dreaming about acquiring that company”. The company was Shamsher Sterling Cable Company.

Anil Agarwal, who had no prior experience in buying companies, regularly would go to the receiver's office to gather more information.

“I found out that I needed to pay Rs. 16 lakh as down payment which I did not have. I spent many sleepless nights thinking about how I would gather such a large sum of money,” he said a fresh thread of tweets on Monday.

...gather more information. I found out that I needed to pay 16 lakh as down payment which I did not have. I spent many sleepless nights thinking about how I would gather such a large sum of money...(2/6)

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— Anil Agarwal (@AnilAgarwal_Ved) March 21, 2022

He said two individuals – a lawyer at a law firm and a Syndicate Bank manager - assisted him in research, auction, and court approvals.

“When you move forward, new doors open and you meet new people who come to help you. I discovered that when you try, really try to reach your dreams, then the universe works in mysterious ways to make it happen.”

When you move forward, new doors open and you meet new people who come to help you. I discovered that when you try, really try to reach your dreams, then the universe works in mysterious ways to make it happen…(4/6) — Anil Agarwal (@AnilAgarwal_Ved) March 21, 2022

The industrialist eventually managed to raise the Rs. 16 lakh he needed to acquire the company through loans, from his own funds, his relatives and from a metal broker.

“As I signed the papers to officially buy the company in May 1976, I was teary-eyed and could not stop smiling. It was the happiest day of my life. But I had no idea that this was the turning point of a rollercoaster journey ahead,” he said.

...I was teary-eyed and could not stop smiling. It was the happiest day of my life. But I had no idea that this was the turning point of a rollercoaster journey ahead…(6/6)

To be continued. — Anil Agarwal (@AnilAgarwal_Ved) March 21, 2022

Agarwal has, of late, been documenting on Twitter, his journey from humble beginnings in Bihar to Mumbai, the city of dreams, where he went to build his globally-diversified company.

In February, he had tweeted about how he set out to pursue his dreams in Mumbai carrying just bedclothes and a tiffin box.

Agarwal’s Vedanta, a global natural resources company, has presence in India, Africa, Ireland and Australia. More than 65,000 employee and contractors work with the London-headquartered company.

Read: ‘Tiffin box, dreams in my eyes’: Vedanta chairman Anil Agarwal’s journey from Bihar to Mumbai

In January, Vedanta had announced its plans to invest in Saudi Arabia’s mineral sector. “The company is in discussions to identify investment opportunities in Saudi Arabia, which aims to transform itself into a mineral hub in the Middle East,” read a statement from the company.