Anil Agarwal confidently welcomes Adani, Reliance Into Aluminium as Vedanta targets 10Mt

India’s aluminium industry may be on the cusp of a more competitive era. With the Adani Group and Reliance Industries exploring opportunities across the aluminium value chain, established producers could soon face stronger competition on capacity, efficiency, costs and raw material access.

Vedanta Chairman Anil Agarwal, however, appears to see the potential disruption as an opportunity rather than a threat.

“We welcome competition. Competition makes you more efficient,” Agarwal said.

His comments come as Adani Enterprises, alongside UAE-based International Resources Holding, advances plans for an USD 11.5 billion integrated aluminium project in Odisha, while Reliance Industries has shown interest in the state’s bauxite resources.

Showcase your brand, aluminium recycling initiatives and sustainability vision in our upcoming magazine: Sustainability & Recycling: Aluminium’s Commitment 2026.

Adani’s USD 11.5 billion aluminium push

Adani Enterprises and International Resources Holding have unveiled plans for an integrated aluminium project in Odisha spanning three major operations — a 4 million tonne alumina refinery, a 2 million tonne aluminium smelter and a 1 million tonne downstream manufacturing park.

If executed, the project would give the group a presence across several stages of the aluminium value chain, from alumina refining and primary aluminium production to downstream manufacturing.

Reliance Industries, meanwhile, has purchased tender documents for the Karlapat bauxite block in Odisha, hinting about its interest in the state's upstream mineral resources.

Vedanta isn’t slowing down — 6 million tonnes first, 10 million tonnes next

The arrival of potential new competitors is not prompting Vedanta to hit the brakes. Agarwal said the company remains firmly committed to its expansion roadmap.

“We have our plan. We are increasing our capacity,” he said.

Vedanta is targeting around 6 million tonnes of aluminium capacity within the next three years, with a longer-term ambition of reaching 10 million tonnes.

For Agarwal, however, capacity alone will not determine who succeeds in an increasingly crowded market. Efficiency will be critical.

Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

“Whoever is efficient will survive,” he said.

He also pointed to the possibility of greater consolidation in the sector as competition intensifies, including potential mergers and acquisitions.

Could competition redraw India’s aluminium map?

India’s primary aluminium industry is currently led by Vedanta, Hindalco Industries and National Aluminium Company (NALCO). Together, the major producers account for around 90% of domestic aluminium production capacity, according to the latest industry assessment cited in the report.

The potential entry of Adani and Reliance could therefore add a new competitive layer to an industry already operating at significant scale.

Agarwal said a more competitive environment could eventually drive consolidation, as companies respond to changing market dynamics and seek greater scale or efficiency.

Vedanta puts USD 25 billion behind its broader expansion

Vedanta’s aluminium ambitions are only one part of a much larger investment strategy.

The group plans to invest USD 25 billion over the next three to five years across businesses including aluminium, oil and gas, zinc, steel and power.

“We are investing USD 25 billion in the next three to five years,” Agarwal said.

The investment is expected to be funded through internal accruals, debt and asset recycling, while Vedanta is targeting zero net debt at the parent-company level within three years.

The group is also pursuing aggressive growth targets across its other businesses. Oil and gas production is targeted at around 500,000 barrels per day within three years, with approximately $4 billion earmarked for the business.

Zinc production is targeted at around 2 million tonnes within two years, while silver output is expected to reach 1,500 tonnes.

Power generation capacity could also jump from around 4,000 MW to 12,000 MW, with the group examining opportunities in nuclear power.

Looking for unwrought aluminium business opportunities? Explore potential leads of primary aluminium on AL Biz.

Critical minerals move higher up the agenda

Vedanta is also widening its focus beyond traditional metals, with critical minerals emerging as another area of interest across exploration, mining and recycling.

“We are looking at all the critical metals,” Agarwal said.

However, the pace of development will vary from project to project.

“Some projects can happen in one year, some will take three to five years,” he said.

Agarwal also stressed the importance of exploration in strengthening India’s domestic mineral resource base and reducing dependence on imports. He said a stronger ecosystem of smaller exploration companies and startups could help identify mineral deposits that could subsequently be developed by larger mining companies.

Semiconductor ambitions take a back seat

Vedanta has previously explored opportunities in semiconductor manufacturing, but Agarwal said the group currently has no plans to pursue that business.

“For now we are not pursuing any semiconductor ambition,” he said.

For now, the group's focus remains firmly on scaling its existing businesses, including aluminium, energy, zinc, steel, power and critical minerals.

*Information credit: Financial Express