Adani Group, Abu Dhabi's International Holding Company to invest $11.5 billion in Odisha for mega aluminium plant

Adani Group and Abu Dhabi-based International Holding Company (IHC) are planning to invest around $11.5 billion over the next few years to build a mega aluminium plant in Odisha.

According to the reports, once completed, the plant will have the potential to increase India’s aluminium output by at least 50% by producing 2 million tonnes annually.

Reports say both parties intend to invest funds through debt and equity to build the large-scale aluminium smelter.

Once completed, this will be Adani Group’s second metal venture after its first copper plant in Gujarat, which started operations last year.

This would be the largest foreign investment in India’s metals and minerals sector. However, there is no information available on the investment split between the parties.

The proposed facility is expected to be an integrated smelting and refining complex with a captive power plant. Logistics support is likely to be provided through Dhamra Port in Odisha on the Bay of Bengal, which is owned by Adani Ports and Special Economic Zone.

India is the world's second-largest aluminium producer after China, with output of 4.2 million tonnes in FY25. Domestic consumption stood at 5.5 million tonnes during the year, while per capita consumption was estimated at 3.4-3.9 kg, well below the global average of 8-12 kg. India is also the world's third-largest aluminium consumer.

India’s aluminium consumption to increase rapidly

India's long-term vision document projects aluminium consumption to increase to 8.5 million tonnes by FY30, 18 million tonnes by FY40, and 28 million tonnes by FY47. To achieve a 10% share of the global aluminium market by FY47, the country would need to expand its production capacity to around 37 million tonnes annually. At present, India accounts for 3.8% of the global aluminium market.

IHC ranks among the world's largest investment companies and is backed by Abu Dhabi's ruling family. The firm is chaired by Sheikh Tahnoon bin Zayed Al Nahyan and has a diversified global portfolio spanning sectors such as real estate, healthcare, and technology.

Adani Group is one of India's largest diversified conglomerates, with businesses spanning infrastructure, energy, logistics, transport, airports, ports, mining, cement, metals, and data centres. Founded by Gautam Adani in 1988, the group has expanded rapidly over the past three decades and plays a significant role in India's infrastructure and industrial development. Its flagship company, Adani Enterprises Ltd, serves as the group's incubator for new businesses, while other listed entities operate across sectors including ports, power generation and transmission, renewable energy, natural gas distribution, airports, and cement.