Ambani’s Reliance eyes aluminium as Adani bets $11.5b on Odisha project

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Mukesh Ambani owned Reliance Industries Limited (RIL) is evaluating an entry into India’s aluminium industry, potentially placing Mukesh Ambani’s conglomerate in competition with Gautam Adani’s Adani Enterprises as both groups expand into metals, bauxite and natural resources.

The proposal remains at an exploratory stage, associated with Reliance’s plans for coal gasification, with the company considering metals production as a way to improve the commercial viability of the business. Reliance also showed interest in Odisha’s Karlapat bauxite block by purchasing its tender documents.

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Reliance explores link between coal gasification and aluminium

Reliance’s potential aluminium entry forms part of its broader exploration of metals production. The company is planning a coal gasification project in Andhra Pradesh and has secured two coal blocks at Recherla and Chintalpudi.

The proposed model, though still exploratory, could connect its coal resources and gasification operations with metals production. The company has also shown interest in Odisha’s Karlapat bauxite block, an important raw material source for aluminium production.

Reliance has proposed an investment of INR 2.73 trillion (USD 28.53 billion) over 30 years for an integrated underground coal gasification complex in Andhra Pradesh.

Adani’s USD 11.5 billion aluminium project raises the stakes

Reliance’s move comes soon after Adani Enterprises announced plans to invest about USD 11.5 billion in a 2 million tonnes per annum (MTPA) aluminium project in Odisha, in partnership with UAE-based International Holding Company (IHC).

If Reliance moves ahead, it would add another major industrial group to India’s aluminium sector, which is currently led by Vedanta Aluminium, Hindalco Industries and state-owned National Aluminium Company Ltd (NALCO).

The possible entry also marks a new area of competition between Ambani and Adani. The two groups have traditionally focused on different core businesses, although their interests have increasingly begun to overlap across areas including renewables and data centres.

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Rising aluminium demand leaves room for new capacity

India’s aluminium industry is entering a period of strong expected demand growth, supported by infrastructure, electrification, renewable energy, electric vehicles and manufacturing.

According to BigMint, domestic aluminium consumption could increase from nearly 6 million tonnes in FY26 to 8.5 million tonnes by FY30 and 28 million tonnes by FY47.

At the same time, announced capacity additions may not fully cover future requirements.

“Even after accounting for around 4.5 MTPA of announced expansions by FY30, total capacity would reach only around 10.9 MTPA. Against a requirement of around 12.3 MTPA by FY30, including domestic consumption and export requirements, this leaves a capacity gap of around 1.4-1.5 million tonnes,” noted Jayprakash Sahu, General Manager of the non-ferrous segment, BigMint.

This leaves scope for new investments, linking it with the growing interest of “large conglomerates.”

Karlapat highlights race for bauxite resources

Reliance’s interest in aluminium also brings attention to its participation in the Karlapat bauxite auction.

The block covers over 3,100 hectares and contains over 200 million tonnes of bauxite. Reliance was among the companies that purchased tender documents for the asset, paying INR 500,000 (USD 52247.25) for the documents.

The participation did not translate into ownership. Vedanta Group’s Bharat Aluminium Company Ltd (BALCO) eventually secured Karlapat after bidding reached a record 175 per cent premium.

The eventual outcome, however, does not translate directly into a Reliance aluminium project. The company’s broader aluminium plans remain exploratory.

Downstream aluminium could offer another growth avenue

India is already the world’s second-largest aluminium producer after China, with output exceeding 4.2 million tonnes in 2025.

Around 70-75 per cent of domestic aluminium production consists of primary aluminium, covering the conversion of bauxite into alumina and subsequent smelting into metal.

Current annual capacities are approximately 2.5 million tonnes for Vedanta Aluminium, 1.4 million tonnes for Hindalco and 0.5 million tonnes for NALCO.

In this context, primary aluminium is not the only option. In downstream and value-added aluminium, such as high-performance alloys, battery foils, automotive applications, conductors, and solar components, India has significant room for allocation.

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Adequate supply, but with limited spare capacity

At present, India is not facing a shortage of primary aluminium, but with an output around 4.2 MTPA, the industry is operating at close to full capacity.

Therefore, although the current supply is sufficient, there is very little spare capacity to meet future demand surge. To guarantee sufficient primary aluminium supply, timely capacity ramp-ups would be essential.

Mukesh Ambani-led Reliance Industries’ interest in bauxite and aluminium production, alongside Adani’s large-scale Odisha project, mirrors this attitude, highlighting the growing strategic importance of aluminium in India’s industrial expansion.