India: Adani, IHC sign MoU for INR 1 lakh crore integrated aluminium project in Odisha

• Project marks largest FDI in India's metal sector, to lift aluminium capacity by 50%
  
  
• Facility to comprise 4 mnt/y alumina refinery, a 2 mnt/y primary aluminium smelter
  
  

Adani Enterprises has signed a Memorandum of Understanding (MoU) with the Odisha government to develop a greenfield integrated aluminium project worth INR 1.08 lakh crore in partnership with Abu Dhabi-based International Holding Company (IHC). The proposed investment is expected to become India's largest integrated aluminium investment as well as the largest foreign direct investment (FDI) in the country's metals sector.

The project is expected to significantly strengthen India's aluminium manufacturing ecosystem and support the country's growing demand for primary and value-added aluminium products.

Integrated aluminium value chain planned

The proposed project will establish a fully integrated aluminium complex comprising a 4 million tonnes (mnt) per year alumina refinery, a 2 mnt/year primary aluminium smelter, and a 1 mnt/year downstream aluminium park.

The downstream park is expected to manufacture value-added aluminium products, supporting sectors such as automotive, construction, electrical equipment, renewable energy and packaging.

The integrated facility will be supported by around 4,000 MW of captive power capacity, including 400 MW of renewable energy, ensuring reliable electricity supply for the energy-intensive aluminium operations.

Could raise India's aluminium capacity by nearly 50%

According to earlier reports, the proposed aluminium complex could increase India's primary aluminium production capacity by nearly 50% once fully operational, making it one of the largest aluminium manufacturing facilities globally.

The investment comes at a time when India's aluminium demand continues to rise, driven by infrastructure development, renewable energy, electric vehicles, transmission networks and urbanisation.

Industry estimates project India's aluminium consumption to reach around 8 mnt by 2030, compared with the current demand of around 6.2-6.3 mnt, creating the need for additional domestic production capacity.

Odisha strengthens its position as aluminium hub

Highlighting Odisha's strategic importance, Adani Enterprises Managing Director Karan Adani said the state's abundant mineral reserves provide a strong foundation for integrated manufacturing ecosystems spanning metals, energy, cement and downstream industries.

He added that the project is designed to integrate the entire aluminium value chain within a single industrial ecosystem, from alumina refining and primary aluminium production to downstream manufacturing.

Odisha already hosts some of India's largest bauxite reserves and aluminium manufacturing facilities, making it a preferred destination for large-scale aluminium investments.

Employment and economic impact

Besides enhancing domestic aluminium production, the project is expected to generate more than 50,000 direct and indirect employment opportunities, providing a significant boost to Odisha's industrial development.

The investment also aligns with Adani Group's strategy of expanding its presence across the metals value chain following the commissioning of its copper smelter in Gujarat.

Once operational, the integrated aluminium project is expected to strengthen India's supply security, reduce dependence on imported value-added aluminium products and reinforce the country's position as a major global aluminium producer while attracting substantial foreign investment into the domestic metals sector.