In a significant move for the aluminium industry, India’s Adani Group has partnered with the Abu Dhabi-based International Holding Company (IHC) to embark on a substantial $11.5 billion investment in Odisha, eastern India. This ambitious project is set to materialize as a 50:50 joint venture between Adani Enterprises Limited (AEL) and International Resources Holding (IRH), a subsidiary of IHC operating via 2PointZero. Upon completion, this development is poised to become Odisha’s largest aluminium complex and a major foreign direct investment in India’s metallurgy sector.
The proposed greenfield project will feature a comprehensive setup, including a four-million-metric-tonnes-per-year alumina refinery and a two-million-metric-tonnes-per-year aluminium smelter. Additionally, it will host a 4,000-megawatt captive power plant and a downstream manufacturing park with a production capacity of one million metric tonnes annually. The project will unfold in two phases, with an initial investment of approximately $6.9 billion followed by a $4.6 billion second phase. Collaboration with the Odisha government will be crucial in managing land acquisition, securing regulatory approvals, and advancing infrastructure development.
In terms of employment, the investment is expected to generate about 53,500 jobs during both construction and operational phases. It will also create substantial indirect employment opportunities in sectors such as logistics, engineering, and maintenance. The downstream manufacturing park is designed to attract businesses focused on producing components for industries like transportation, construction, power, packaging, renewable energy, and advanced engineering. The collaborators are confident that this venture will bolster India’s aluminium manufacturing landscape, contributing to sustained industrial growth.
IHC’s investment strategy emphasizes global expansion in sectors anticipated to drive future economic developments. The company has been actively enhancing its presence across mining, energy, infrastructure, and technology. Meanwhile, IRH is committed to building an integrated minerals business centered on resources vital for the global energy transition. This latest venture follows a previous collaboration earlier this year, where another IHC entity, ePointZero, partnered with Adani Green Energy to develop renewable energy projects across India, further solidifying the business relationship between the two groups.
The undertaking aligns with India’s objective to amplify domestic aluminium production, particularly as demand is forecasted to hit 8.5 million tonnes by the 2030 financial year. Odisha, known for its rich bauxite reserves and significant contribution to India’s aluminium output, stands as a strategic hub for large-scale investments in the sector. With the establishment of this facility, India’s manufacturing capacity is expected to grow, supply chains will be reinforced, and the nation’s standing in the global aluminium industry will be strengthened.