The Adani Group, in collaboration with Abu Dhabi-based International Holding Company (IHC), is reportedly set to invest $11.5 billion over the next several years to construct a major aluminium plant in Odisha, India. This significant venture, funded through a mix of debt and equity, aims to establish an aluminium smelter with an annual production capacity exceeding 2 million tonnes.
Boosting India's Aluminium Capacity
This ambitious project could substantially increase India’s total aluminium capacity by nearly 50%, marking Adani’s second major foray into the metals sector following the launch of its copper smelter in Gujarat last year. The new facility is envisioned as an integrated unit, combining smelting and refining operations, and will include a captive power plant to support its energy needs. Logistics for the plant are expected to be managed through the Dhamra port in Odisha, which is owned by Adani Ports and Special Economic Zone.
India's Growing Aluminium Market
India currently stands as the world's second-largest aluminium producer after China, with a production of 4.2 million tonnes in FY25. It is also the third-largest consumer globally, with domestic consumption reaching 5.5 million tonnes in the same period. Despite this, India's per capita aluminium consumption, at 3.4-3.9 kg, remains below the global average of 8-12 kg.
Projections indicate a significant increase in demand, with India's vision document forecasting consumption to rise to 8.5 million tonnes by FY30, 18 million tonnes by FY40, and 28 million tonnes by FY47. To achieve a targeted 10% share of the global aluminium market by FY47, India would need to scale its capacity to 37 million tonnes per annum.
IHC's Strategic Investment
International Holding Company (IHC), one of the world's largest investment firms, is backed by Abu Dhabi's ruling family and chaired by Sheikh Tahnoon bin Zayed Al Nahyan. IHC holds diverse global interests spanning real estate, healthcare, and technology, making this investment a strategic move into India's burgeoning metals and minerals sector.