Reliance Industries is exploring an aluminium foray, bidding on the Karlapat bauxite block in Odisha. The move could set up a direct clash with Adani, which just committed $11.5 billion to the sector.
Mukesh Ambani's Reliance Industries Ltd. is evaluating a move into aluminium, a sector Gautam Adani's Adani Enterprises Ltd. entered with an $11.5 billion investment just weeks ago. The move is part of Reliance's exploration of metals production to improve the commercial viability of its planned coal gasification business, four people familiar with the matter told Mint.
"They are considering an entry into metals production to utilize the fuel generated from coal gasification to improve its commercial viability," said the first of the four persons.
While the plans are still exploratory, Reliance participated in the recent auction of the Karlapat bauxite block in Odisha, the second person said. Bauxite is the ore refined into aluminium. Reliance plans to set up a coal gasification project in Andhra Pradesh, having won two coal blocks through an auction at Recherla and Chintalpudi in the state. The proposed entry could link the company's coal resources and gasification plans with metals production, the people said, requesting anonymity.
Reliance did not respond to Mint's queries. The Economic Times reported on 20 August that the conglomerate has proposed an investment of ₹2.73 trillion over 30 years to develop India's first integrated underground coal gasification complex in Andhra Pradesh.
In June, Adani Enterprises announced plans to invest about $11.5 billion to develop a 2 million tonnes per annum (MTPA) aluminium project in Odisha in partnership with UAE's International Holding Company (IHC), setting up competition with established players such as Vedanta Aluminium and Hindalco. If Reliance proceeds, it would be the fourth large conglomerate to enter the sector.
Ambani and Adani have largely operated in separate orbits, avoiding competition in each other's core turfs. Reliance's oil refinery business helped build its telecom and retail empire. Adani dominates infrastructure, including airports, ports, and power generation. The country's wealthiest businessmen are scaling up investments in renewables and data centres. Reliance's potential entry into aluminium would mark the third segment where the two groups could compete more directly.
India's aluminium sector is entering a strong structural growth phase, driven by infrastructure, electrification, renewable energy, EVs and manufacturing. Industry projections indicate domestic consumption could rise from nearly 6 million tonnes (mt) in FY26 to 8.5mt by FY30 and 28mt by FY47, according to BigMint, a commodities market intelligence firm.
"Even after accounting for around 4.5mtpa of announced expansions by FY30, total capacity would reach only around 10.9mtpa. Against a requirement of around 12.3mtpa by FY30, including domestic consumption and export requirements, this leaves a capacity gap of around 1.4-1.5mt. This creates significant room for new investments and explains the growing interest from large conglomerates," said Jayprakash Sahu, general manager-non ferrous, BigMint.
Spread across more than 3,100 hectares, Karlapat contains over 200 million tonnes of bauxite and was the largest reserve on offer in the current auction, according to BigMint. Vedanta Aluminium's Balco emerged as the preferred bidder for the block, offering a record auction premium of 175%.
India's primary aluminium industry remains concentrated among Vedanta, Hindalco and state-owned National Aluminium Co. Ltd (Nalco), leaving room for new entrants as demand rises sharply, Sahu said. "The opportunity is also not limited to primary metal. India has considerable headroom in downstream and value-added aluminium, including high-performance alloys, battery foils, automotive applications, conductors and solar components," he said.
India is already the world's second-largest aluminium producer after China, with output exceeding 4.2mt in 2025, according to BigMint. About 70-75% of the country's production comprises primary aluminium, which involves refining bauxite into alumina and subsequently smelting it into metal. Vedanta Aluminium is India's largest producer with annual capacity of about 2.5mt, followed by Hindalco at 1.4mt and Nalco at 0.5mt.
"Therefore, new players with integrated access to bauxite, alumina, power, logistics and downstream manufacturing can potentially build competitive positions across the value chain," Sahu said.
India is not facing an immediate shortage of primary aluminium. The industry is operating at nearly 100% capacity utilisation, producing around 4.2mt annually. "This indicates that while current supply is adequate, there is very limited spare capacity to absorb further demand growth. With domestic consumption projected to rise sharply, timely capacity additions will be critical to ensure adequate supply," Sahu said.
The potential move would mark another step in Reliance's broader diversification beyond its traditional oil-to-chemicals business, as the conglomerate expands into energy, mining and other natural-resource-intensive businesses. For more on metals and mining markets, see our commodities analysis.
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