Adani, IHC plan to forge $11.5 billion aluminium unit

Mumbai: Adani Group and Abu Dhabi-based investment conglomerate International Holding Company (IHC) plan to jointly invest $11.5 billion over the next few years to build a mega aluminium plant that could catapult India's total capacity by nearly 50%, said people familiar with the matter. This would be the second metals venture for Adani after its copper smelter in Gujarat that began operations last year, reflecting the power and ports group's strategy to secure commodity supplies for its expanding infrastructure empire.

Adani and IHC will collectively make the investment through debt and equity towards building an aluminium smelter in Odisha with an annual capacity of more than 2 million tonnes, said the people cited above. They didn't disclose the investment split between the two partners.

Adani didn't respond to an email seeking details about the investment.


This would be the largest-ever foreign investment in India's metals and minerals space.

The facility will be an integrated unit combining smelting and refining.

India second-largest producer

The aluminium project will include a captive power plant, while Dhamra port in Odisha, on the shore of Bay of Bengal, is likely to be used for logistics. The port is owned by group company Adani Ports and Special Economic Zone. India is the world’s second-largest producer of aluminium after China, with total production of 4.2 million tonnes in FY25. It consumed 5.5 million tonnes during the year, while per capita consumption was at 3.4- 3.9 kg, significantly below the global average of 8-12 kg.

India is also the third-largest consumer of aluminium. Consumption is expected to rise to 8.5 million tonnes by FY30, and further to 18 million tonnes by FY40, and 28 million tonnes by FY47, according to India’s vision document for the metal.

“If India plays its hand well, it is not beyond the realm of possibility to aim to get a 10% market share by FY47,” the document said. “To address this overall demand, India’s capacity should scale up to 37 MTPA by FY47.” India currently has a 3.8% global market share in aluminium.

Anticipating the demand surge due to the government’s strong focus on manufacturing, metals producers such as Hindalco Industries and Vedanta Aluminium are also expanding capacities to meet growing domestic needs and reduce import dependence. Last year, global natural resources major Rio Tinto was said to be looking to set up an integrated clean energy-powered aluminium project in partnership with AMG Metals and Materials, backed by Greenko Group founders.

One of the world’s biggest investment firms, IHC is backed by Abu Dhabi's ruling family and chaired by Sheikh Tahnoon bin Zayed Al Nahyan. As part of the emirate’s sovereign wealth fund initiatives, IHC is involved in real estate, healthcare and technology. In India, it has focused on energy, infrastructure, and real estate. Investments in the country include a $1 billion investment for a controlling stake in Sammaan Capital, formerly Indiabulls Housing Finance, through its affiliate Avenir Investment RSC.

The investment in the Odisha aluminium venture will further strengthen business ties between the Adanis and IHC, which first injected $2 billion in 2022 across three listed companies — Adani Enterprises, Adani Green Energy, and Adani Energy Solutions.