After making a major entry into India's copper industry, the Adani Group is now preparing to expand into aluminium manufacturing. The conglomerate has partnered with Abu Dhabi-based International Holding Company (IHC) to establish a massive $11.5 billion aluminium smelter project in Odisha, a move that could significantly reshape India's metals sector and intensify competition with Vedanta, the country's largest aluminium producer.
Adani-IHC to Invest $11.5 Billion in Odisha Aluminium Project
According to reports, the Adani Group and International Holding Company (IHC) will jointly invest around $11.5 billion through a combination of equity and debt to build an integrated aluminium manufacturing facility in Odisha.
The proposed plant will have an annual production capacity of more than 2 million tonnes, increasing India's aluminium production capacity by nearly 50% once operational.
Adani Expands Beyond Copper into Aluminium
The aluminium project marks Adani Group's second major venture into the metals sector after launching its copper smelter in Gujarat last year. The latest expansion reflects the group's long-term strategy of strengthening raw material supply for its rapidly growing infrastructure, renewable energy and manufacturing businesses.
Largest Foreign Investment in India's Metals Sector
The Odisha project is expected to become the largest foreign investment in India's metals and minerals industry.
The integrated facility will include:
Aluminium refinery
Aluminium smelter
Captive power plant
Logistics support through Dhamra Port
The project is likely to utilize Dhamra Port, operated by Adani Ports and Special Economic Zone, for importing raw materials and exporting finished products.
Face-Off with Vedanta?
The new investment is expected to increase competition with Vedanta Aluminium, currently India's largest aluminium producer led by billionaire Anil Agarwal.
As Adani expands aggressively into base metals after copper, industry experts believe India's aluminium market could witness heightened competition in production, pricing and exports over the coming years.
India's Aluminium Demand Continues to Rise
India is currently the world's second-largest aluminium producer, behind China.
Key industry figures include:
Annual production: 4.2 million tonnes (FY2025)
Domestic consumption: 5.5 million tonnes
Per capita consumption: 3.4–3.9 kg, well below the global average of 8–12 kg
According to the government's vision for the metals sector:
Demand could reach 8.5 million tonnes by FY2030
Around 18 million tonnes by FY2040
Nearly 28 million tonnes by FY2047
The rising demand is expected to be driven by infrastructure, electric vehicles, renewable energy, construction and manufacturing.
Royal Family-Backed IHC Strengthens India Presence
International Holding Company (IHC), one of the UAE's largest investment firms, is backed by Abu Dhabi's royal family and chaired by Sheikh Tahnoon bin Zayed Al Nahyan.
The investment giant has interests across:
Infrastructure
Energy
Healthcare
Technology
Real estate
In India, IHC has previously invested in Sammaan Capital and strengthened its relationship with the Adani Group through a $2 billion investment in Adani Enterprises, Adani Green Energy and Adani Energy Solutions in 2022.
What This Means for India's Metals Industry
The proposed aluminium project represents one of the biggest industrial investments in recent years and highlights growing global confidence in India's manufacturing sector. If completed as planned, the Adani-IHC venture could significantly boost domestic aluminium production, reduce import dependence, generate employment and position India as a stronger global supplier of aluminium products while creating fresh competition for Vedanta.
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