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Adani and IHC's $11.5 Billion Aluminium Bet on India
The $11.5 billion smelter could cut India's aluminium import bill by a third. Environmental approvals and financing remain ahead.
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Adani Group and Abu Dhabi's International Holding Company are spending $11.5 billion to build an aluminium smelter and captive power plant in India. The project, announced Thursday, targets the country's growing demand for the metal. India imports about 2.5 million tonnes of aluminium a year, roughly 40% of its consumption. A smelter of this size could replace a significant portion of that, depending on final capacity. The $11.5 billion price tag points to a plant in the 1.5-2 million tonne range, based on industry benchmarks.
IHC invested roughly $2 billion in Adani stocks in 2023, after a short-seller report wiped out more than $100 billion in market value. That injection helped stabilise the group. The aluminium project is the first major greenfield investment the two have undertaken together. IHC brings capital and a sovereign-wealth fund seal of approval. Adani brings land and regulatory connections. The project is located in Odisha, which has bauxite reserves and a deep-water port.