Adani and Abu Dhabi's IHC sign MoU for $11.5b aluminium complex in Odisha

India's aluminium sector is poised for major expansion, as the Adani Group and Abu Dhabi-based International Holding Company (IHC) have signed a memorandum of understanding (MoU) to jointly develop an integrated aluminium complex in Odisha with an estimated investment of USD 11.5 billion.

Both partners will hold equal 50 per cent stakes in the project, which is expected to become the largest foreign investment in India's metals sector. It will include an alumina refinery, aluminium smelter, captive power plant and a downstream aluminium manufacturing park.

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The investment comes at the prime time when India is gearing up to solidify its domestic aluminium production base to meet rising demand from sectors like infrastructure power transport and renewable energy sectors while reducing import dependence.

As of FY2024-25, against a domestic consumption of approximately 5.5 million tonnes, India produced around 4.2 million tonnes of aluminium, indicating the wide demand-supply gap.

India's long-term aluminium vision targets 37 million tonnes per annum (MTPA) of production capacity by FY2047, with the country aiming to secure a 10 per cent share of the global aluminium market.

The planned integrated complex will consist of a 4 MTPA of alumina refining capacity, 2 MTPA of primary aluminium production, and 1 MTPA of downstream aluminium manufacturing capacity, making it Odisha's largest aluminium project.

Odisha, accounting for about 54 per cent of India's aluminium production owing to its abundant bauxite reserves, is expected to further consolidate its position as the country's aluminium hub through the investment. 

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Officials present at the MoU signing ceremony noted that the project is also expected to generate around 53,500 jobs, including 35,000 during construction and another 18,500 permanent positions after commissioning.

For the Adani Group, the development marks its second major entry into the metals business following the commissioning of its copper smelter in Gujarat. Logistics for the aluminium complex are expected to be supported by Adani Ports' Dhamra Port in Odisha.

The project also solidifies the Adani-IHC partnership after IHC’s investment of USD 2 billion across Adani Enterprises, Adani Green Energy and Adani Energy Solutions in 2022.

It reflected in the comment of Karan Adani, Managing Director, Adani Ports and Special Economic Zone (APSEZ) and Director, Adani Cement, who stated, "The proposed JV between Adani Group and IHC Group will further strengthen our robust partnership. Together with the Government of Odisha, we will build an integrated aluminium ecosystem that creates jobs, expands value-added manufacturing and strengthens India's industrial competitiveness.”