Adani Group and Abu Dhabi’s investment company International Holding Company (IHC) together are planning to build a big aluminum plant by investing 11.5 billion dollars i.e. more than Rs 1 lakh crore in the next few years. This can increase India’s total capacity by about 50 percent. This will be Adani’s second metal venture. Before this, his copper smelter in Gujarat was started last year. The move reflects the Power and Ports Group’s strategy to secure commodity supplies for its growing infrastructure empire.
The ET report quoted sources as saying that Adani and IHC will jointly invest through debt (debt) and equity to build an aluminum smelter with an annual capacity of more than 2 million tonnes in Odisha. He did not give information about the division of investment between the two partners. This will be the largest ever foreign investment in India’s metal and mineral sector. This facility will be an integrated unit which will include both smelting and refining.
India is the second largest producer
This aluminum project will also include a captive power plant, while Odisha’s Dhamra Port, located on the Bay of Bengal coast, is likely to be used for logistics. This port is owned by group company Adani Ports and Special Economic Zone. After China, India is the second largest aluminum producing country in the world, whose total production in the financial year 2025 was 4.2 million tonnes. This year, the country consumed 5.5 million tonnes, while per capita consumption was 3.4-3.9 kg, which is much lower than the global average of 8-12 kg. India is also the third largest consumer of aluminium.
India’s vision document on metal
According to India’s vision document for the metal, consumption is expected to increase to 8.5 million tonnes by FY 2030, 18 million tonnes by FY 2040 and 28 million tonnes by FY 2047. The document says that if India takes the right steps, it is possible to aim to achieve 10 percent market share by financial year 2047. To meet this total demand, India’s capacity will have to be increased by 37 MTPA by FY 2047. At present India’s share in the global aluminum market is 3.8 percent.
Government’s emphasis on manufacturing
The government is emphasizing on manufacturing, which is expected to increase demand. In view of this, metal manufacturing companies like Hindalco Industries and Vedanta Aluminum are also increasing their capacity so that domestic needs can be met and dependence on imports can be reduced. Last year, it was reported that global natural resources company Rio Tinto was considering launching an integrated clean energy-powered aluminum project in collaboration with AMG Metals & Materials. AMG Metals & Materials is backed by the founders of Greenco Group.
IHC invests in many sectors in India
One of the world’s largest investment firms, IHC is backed by the royal family of Abu Dhabi and chaired by Sheikh Tahoun bin Zayed Al Nahyan. Under the emirate’s sovereign wealth fund, IHC is operating in sectors such as real estate, healthcare and technology. In India, it has focused on energy, infrastructure and real estate. Its investments in the country include an investment of $1 billion for a controlling stake in Samman Capital (formerly Indiabulls Housing Finance) through its subsidiary Avenir Investment RSC. Investment in Odisha Aluminum Venture will further strengthen the business relationship between Adani and IHC. IHC had first invested $2 billion in three listed companies of Adani Group in 2022 — Adani Enterprises, Adani Green Energy and Adani Energy Solutions.
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