Adani Group and Abu Dhabi-based International Holding Company (IHC) are reportedly planning to invest approximately US$11.5 billion to establish a large-scale integrated aluminium production complex in Odisha, in what is expected to become the largest foreign investment in India’s metals and minerals sector.
According to reports, the proposed project will have an annual production capacity of 2 million tonnes of aluminium, increasing India’s current aluminium output by nearly 50% once fully operational. The investment is expected to be financed through a combination of debt and equity, although the exact investment split between Adani Group and IHC has not been disclosed.
The proposed facility will comprise an integrated alumina refinery and aluminium smelter, supported by a captive power plant to ensure reliable energy supply. Logistics for raw material imports and finished product exports are expected to be facilitated through Dhamra Port in Odisha, operated by Adani Ports and Special Economic Zone (APSEZ) on the Bay of Bengal.
The project would mark Adani Group’s second major metals venture, following the commissioning of its copper manufacturing plant in Gujarat last year, further strengthening the conglomerate’s presence in India’s industrial and manufacturing sector.
Strengthening India’s Aluminium Ambitions
India is currently the world’s second-largest aluminium producer after China, with production reaching 4.2 million tonnes in FY2024-25. Domestic consumption stood at 5.5 million tonnes during the same period, making India the third-largest aluminium consumer globally. However, per capita aluminium consumption remains relatively low at 3.4–3.9 kg, compared with the global average of 8–12 kg, highlighting significant growth potential.
The Government of India’s long-term vision projects aluminium demand to rise sharply to 8.5 million tonnes by FY2030, 18 million tonnes by FY2040, and 28 million tonnes by FY2047. Achieving the country’s target of securing a 10% share of the global aluminium market by FY2047 would require expanding annual production capacity to around 37 million tonnes, compared with India’s current global market share of approximately 3.8%.
Strategic Partnership
International Holding Company (IHC), one of the world’s largest investment firms backed by Abu Dhabi’s ruling family and chaired by Sheikh Tahnoon bin Zayed Al Nahyan, has investments across real estate, healthcare, technology, and industrial sectors worldwide.
Adani Group, founded by Gautam Adani in 1988, has grown into one of India’s largest infrastructure conglomerates with businesses spanning ports, logistics, airports, energy, mining, cement, metals, data centres, and transportation. The proposed Odisha aluminium project aligns with the group’s strategy to expand its footprint in strategically important industrial sectors while supporting India’s long-term manufacturing and infrastructure growth.
