Adani Enterprises, IHC Group Partner for USD 11.5 Bn Aluminium Project
Adani Enterprises Limited (AEL) and IHC Group have signed a Memorandum of Understanding (MoU) with the Government of Odisha to develop an integrated greenfield aluminium project in the state. The project will be developed through a 50:50 joint venture between the two companies with a total investment of approximately USD 11.5 billion (around Rs. 1.08 lakh crore).
IHC Group is one of the world’s most valuable investment firms, headquartered in Abu Dhabi. As per Adani Enterprises’ release, this investment is expected to be Odisha’s largest Foreign Direct Investment (FDI) and India’s largest FDI in the metallurgy sector.
Adani Enterprises’ Aluminium Project to be Developed in Two Phases
The upcoming aluminium project in Odisha will be executed in two phases. Out of the total investment, around Rs. 66,000 crore will be invested in Phase I, while the remaining Rs. 44,000 crore will be invested in Phase II.
The overall project will comprise a 4 Million Metric Tonnes Per Annum (MMTPA) alumina refinery, a 2 MMTPA aluminium smelter, a 4,000 MW captive power plant, and a 1 MMTPA downstream manufacturing park.
In the aluminium industry, downstream manufacturing refers to the conversion of semi-finished aluminium products, such as ingots, sheets, and billets, into finished, value-added products for use across various industries and by end consumers.
During the construction phase, the project is expected to generate around 35,000 jobs. Once operational, mining, alumina refining, aluminium production and downstream manufacturing activities are expected to support an additional 18,500 jobs.
Adani’s Project to Drive Downstream Aluminium Production in Odisha
According to Adani Enterprises, the investment will strengthen Odisha’s aluminium manufacturing ecosystem. The state currently has seven major operational facilities, comprising four primary aluminium smelters and three alumina refineries.
The upcoming downstream manufacturing park of Adani Enterprises is expected to attract industries catering to sectors such as transportation, construction, power, packaging, renewable energy, and advanced engineering. It is also expected to support the growth of Micro, Small and Medium Enterprises (MSMEs) across the state.
Commenting on the partnership, Mr. Karan Adani, Managing Director of Adani Ports and Special Economic Zone (APSEZ), said, “The proposed JV between Adani Group and IHC Group will further strengthen our robust partnership. Together with the Government of Odisha, we will build an integrated aluminium ecosystem that creates jobs, expands value-added manufacturing and strengthens India’s industrial competitiveness”.
About Adani Enterprises Limited: Adani Enterprises Limited, founded in 1993, is an Indian multinational publicly listed holding company and a part of Adani Group. The company is headquartered in Ahmedabad and is primarily involved in mining and trading of coal and iron ore.
