Adani And IHC To Build $11.5 Billion Aluminium Plant In Odisha; India's Capacity To Jump 50%

Adani Group and Abu Dhabi's International Holding Company (IHC) are in advanced stages of planning a joint $11.5 billion investment to construct a large-scale integrated aluminium facility in Odisha.

If executed, the project would add more than 2 million tonnes per annum of smelting capacity, lifting India's total aluminium production capacity by nearly 50%. It would also mark the largest foreign investment ever made in India's metals and minerals sector.

Both partners will finance the project through a mix of debt and equity, but the exact ratio is not disclosed. The facility will consist of smelting and refining integrated with a captive power plant and will be served by Dhamra port in Odisha, owned by Adani Ports and Special Economic Zone, because of its location on the Bay of Bengal coast.

A Structural Import Gap Creates The Opportunity

India’s aluminium sector is at an interesting inflection point. The country is the world's second-largest producer after China, with output of 4.2 million tonnes in FY25, yet it consumed 5.5 million tonnes that year, pointing to a structural import dependence. Per capita consumption at 3.4 to 3.9 kg remains well below the global average of 8 to 12 kg.

Demand is expected to climb steeply, reaching 8.5 million tonnes by FY30, 18 million tonnes by FY40 and 28 million tonnes by FY47 according to India's vision document for the metal. To meet that trajectory, domestic capacity will need to scale up significantly. The Adani-IHC project directly addresses that gap.

Other producers, including Hindalco and Vedanta Aluminium, are also expanding, but the Adani-IHC plant would represent a step change in scale.

IHC Deepens Its India Commitment

For Adani, this is the second venture into metals after its copper smelter in Gujarat, which began operations last year. The aluminium plant fits into the group's broader strategy of securing commodity supplies for its expanding infrastructure operations.

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IHC is one of the world's largest investment firms, backed by Abu Dhabi's ruling family. It has a prior investment history with Adani, having committed $2 billion across three listed Adani companies in 2022. In India more broadly, IHC has been active in energy, infrastructure and real estate.