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Adani-IHC Joint Venture to Build Indias Largest Aluminium Complex in Odisha
Adani Enterprises and Abu Dhabi‑based International Holding Company (IHC) are setting the stage for India’s biggest aluminium factory, pledging roughly ₹1.1 lakh crore (US$11.5 billion) to a 50:50 partnership that will bring a fully integrated complex to Odisha.
The venture, announced on 2 July 2026, will house a 4‑million‑tonne‑per‑annum alumina refinery, a 2‑million‑tonne‑per‑annum smelter, a 4,000‑MW captive power plant and a downstream manufacturing park with a 1‑million‑tonne capacity. The project is slated to boost domestic aluminium output by nearly 50 %, taking India from 4.2 million tonnes in FY25 to an estimated 6.2 million tonnes once the smelter is online.
India’s aluminium landscape has long been dominated by Hindalco and Vedanta, which together produce about 90 % of the country’s output. Yet the nation remains a net importer, a gap the new plant aims to narrow. The refinery will sit in Rayagada district, close to the state’s rich bauxite deposits, while the smelter will be built in Sundargarh district. Bauxite will be sourced from Ballada, Kutrumali and Sasubohumali mines, the latter operated by Odisha Mining Corporation. Odisha already hosts major alumina and aluminium producers and holds more than half of India’s bauxite reserves.
Adani Enterprises said the project will take 12 months to secure approvals and an additional 3–4 years to set up the first phase. A 400‑MW green‑energy component will be added, and the venture will tap the group’s existing power generation, transmission and renewable assets to meet the smelter’s high electricity demand.
“Even with such large capacities being there, large players being there, we still import aluminium, which is a sign that there is more demand and there is going to be enough room for everybody to be in this market,” Karan Adani, director of Adani Enterprises, said after the memorandum of understanding was signed. The comment reflects the view that the aluminium market is expanding faster than domestic supply.
The JV will also leverage Dhamra Port, owned by Adani Ports and Special Economic Zone, to handle cargo movements. Officials involved in planning the project noted that producing one million tonnes of aluminium annually requires moving roughly eight million tonnes of raw materials and intermediate products, underscoring the need for dedicated rail and conveyor infrastructure.
Industry analysts say the smelter will not immediately pressure Hindalco or Vedanta. Expected to become operational about five years after the joint venture is formed, the new plant will enter the market when incumbents are likely to have expanded their own capacities. Nevertheless, the entry of a third large integrated producer will alter the competitive structure of the sector, potentially influencing procurement practices, downstream investments and technology adoption.
The investment aligns with India’s aluminium vision, which projects domestic consumption rising from 5.5 million tonnes in FY25 to 8.5 million tonnes by FY30, and potentially reaching 18 million tonnes by FY40 and 28 million tonnes by FY47. The vision also sets a target of a 10 % share of the global aluminium market by FY47, requiring domestic capacity to grow to roughly 37 million tonnes.
Adani’s move into aluminium follows a pattern of entering sectors tied to infrastructure growth. The group entered cement in 2022, copper in 2023, and now aluminium, a metal that is central to power transmission, renewable energy infrastructure, construction and transportation.
The project is one of the largest foreign‑direct‑investment deals in India’s metals sector and is expected to create about 53,500 jobs. It is also part of a broader strategy to build commodity platforms that support the group’s existing businesses.
While the venture is unlikely to displace the incumbents in the short term, it will deepen India’s aluminium ecosystem, attract fresh capital and strengthen the country’s position in global metals supply chains.
The joint venture is currently in the approval phase. Investors are monitoring the project’s progress, as it could influence the outlook for India’s aluminium industry and the broader infrastructure sector.
The venture, announced on 2 July 2026, will house a 4‑million‑tonne‑per‑annum alumina refinery, a 2‑million‑tonne‑per‑annum smelter, a 4,000‑MW captive power plant and a downstream manufacturing park with a 1‑million‑tonne capacity. The project is slated to boost domestic aluminium output by nearly 50 %, taking India from 4.2 million tonnes in FY25 to an estimated 6.2 million tonnes once the smelter is online.
India’s aluminium landscape has long been dominated by Hindalco and Vedanta, which together produce about 90 % of the country’s output. Yet the nation remains a net importer, a gap the new plant aims to narrow. The refinery will sit in Rayagada district, close to the state’s rich bauxite deposits, while the smelter will be built in Sundargarh district. Bauxite will be sourced from Ballada, Kutrumali and Sasubohumali mines, the latter operated by Odisha Mining Corporation. Odisha already hosts major alumina and aluminium producers and holds more than half of India’s bauxite reserves.
Adani Enterprises said the project will take 12 months to secure approvals and an additional 3–4 years to set up the first phase. A 400‑MW green‑energy component will be added, and the venture will tap the group’s existing power generation, transmission and renewable assets to meet the smelter’s high electricity demand.
“Even with such large capacities being there, large players being there, we still import aluminium, which is a sign that there is more demand and there is going to be enough room for everybody to be in this market,” Karan Adani, director of Adani Enterprises, said after the memorandum of understanding was signed. The comment reflects the view that the aluminium market is expanding faster than domestic supply.
The JV will also leverage Dhamra Port, owned by Adani Ports and Special Economic Zone, to handle cargo movements. Officials involved in planning the project noted that producing one million tonnes of aluminium annually requires moving roughly eight million tonnes of raw materials and intermediate products, underscoring the need for dedicated rail and conveyor infrastructure.
Industry analysts say the smelter will not immediately pressure Hindalco or Vedanta. Expected to become operational about five years after the joint venture is formed, the new plant will enter the market when incumbents are likely to have expanded their own capacities. Nevertheless, the entry of a third large integrated producer will alter the competitive structure of the sector, potentially influencing procurement practices, downstream investments and technology adoption.
The investment aligns with India’s aluminium vision, which projects domestic consumption rising from 5.5 million tonnes in FY25 to 8.5 million tonnes by FY30, and potentially reaching 18 million tonnes by FY40 and 28 million tonnes by FY47. The vision also sets a target of a 10 % share of the global aluminium market by FY47, requiring domestic capacity to grow to roughly 37 million tonnes.
Adani’s move into aluminium follows a pattern of entering sectors tied to infrastructure growth. The group entered cement in 2022, copper in 2023, and now aluminium, a metal that is central to power transmission, renewable energy infrastructure, construction and transportation.
The project is one of the largest foreign‑direct‑investment deals in India’s metals sector and is expected to create about 53,500 jobs. It is also part of a broader strategy to build commodity platforms that support the group’s existing businesses.
While the venture is unlikely to displace the incumbents in the short term, it will deepen India’s aluminium ecosystem, attract fresh capital and strengthen the country’s position in global metals supply chains.
The joint venture is currently in the approval phase. Investors are monitoring the project’s progress, as it could influence the outlook for India’s aluminium industry and the broader infrastructure sector.
