The Indian multinational conglomerate, headquartered in Ahmedabad, Gujrat, Adani Group, led by billionaire businessman Gautam Adani is all set to invade into the business of establishing up an aluminium smelter and alumina refinery.
On 18th December 2021, the flagship company of Adani Group, Adani Enterprises declared that it has engulfed a wholly-owned subsidiary Mundra Aluminium Limited on 17th December 2021.
However, the company notified during an exchange filing that Mundra Aluminium, which is yet to begin its business operations, has authorised and paid-up share capital of INR 100,000.
The filing further revealed: "Mundra Aluminium Limited is incorporated with the object to venture into the business of setting up alumina refinery and an aluminium smelter.”
“Mundra Aluminium is incorporated in India and registered with the Registrar of Companies in Gujarat at Ahmedabad.”
Gautam Adani chaired Adani Group has been equipping to invade new sectors for some time now. In June 2021, Adani Enterprises incorporated a wholly-owned subsidiary, Adani Cement Industries Ltd, to carry out business as manufacturer, producer and processor of all types of cement.
However, Industry experts suspect that by creating a subsidiary, Adani Enterprise could be drawing up the ground to partake in the bidding process for privatising state-owned National Aluminium Company Ltd. (NALCO), which is anticipated to be considered soon by the Cabinet.
The Economic and Financial Analysis firm ING Think commented: “Aluminium could be a standout metal next year.”
In a recent report, Warren Patterson, ING Think’s Head of Commodities Strategy wrote: “The aluminium market is moving into a structural deficit, given the lack of investment in smelting capacity. While we will see some smelters bringing back capacity throughout 2022, it will not be enough to alleviate the tightness in the market.”
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