The Adani Group, a conglomerate based in India, has partnered with Abu Dhabi’s International Holding Company (IHC) to make a significant investment in the state of Odisha. Together, they plan to inject $11.5 billion into a vast aluminium project that will be executed through a 50:50 joint venture between Adani Enterprises Limited and International Resources Holding, a subsidiary of IHC operating under 2PointZero. This venture is set to establish what will become the largest aluminium complex in Odisha and is poised to be one of the most substantial foreign direct investments in India’s metallurgy sector.
The ambitious project will be developed in two phases and is expected to feature an integrated greenfield setup that includes a four-million-metric-tonnes-per-year alumina refinery and a two-million-metric-tonnes-per-year aluminium smelter. Additionally, it will house a 4,000-megawatt captive power plant and a downstream manufacturing park with a capacity of one million metric tonnes annually. The first phase is projected to require $6.9 billion, with the second phase set at $4.6 billion. The collaboration will now engage with the state government of Odisha to secure land, regulatory approvals, and necessary infrastructure.
With an anticipated creation of 53,500 jobs during construction and operational phases, the project is expected to significantly boost employment. It will also foster economic activity in sectors such as logistics, engineering, and maintenance. The downstream manufacturing park aims to draw companies involved in producing components for various industries including transportation, construction, power, packaging, renewable energy, and advanced engineering. The initiative is seen as a means to fortify India’s aluminium manufacturing capabilities and support sustained industrial growth.
IHC’s involvement in this venture aligns with its strategy of expanding its global footprint in industries that are anticipated to influence the future economy. The company has been actively enhancing its presence in sectors like mining, energy, infrastructure, and technology. International Resources Holding is focused on building a minerals business crucial for global energy transition. Earlier this year, another IHC entity, ePointZero, collaborated with Adani Green Energy to advance renewable energy projects in India, further cementing the relationship between the two groups.
This project also aligns with India’s national objective of increasing domestic aluminium production, as the demand is forecasted to reach 8.5 million tonnes by the 2030 financial year. Odisha, with its substantial bauxite reserves and as a major contributor to India’s aluminium production, is a strategic choice for such a large-scale investment. The new facility is expected to enhance India’s manufacturing capacity, fortify supply chains, and solidify the country’s stature as a significant player in the global aluminium market.