India’s Adani Group has partnered with the Abu Dhabi-based International Holding Company (IHC) to undertake a significant aluminium project in Odisha, India. This collaboration, marked by an initial agreement to invest $11.5 billion, aims to establish Odisha’s largest aluminium complex and one of the country’s substantial foreign direct investments in the metallurgy sector. The development will be managed through a 50:50 joint venture between Adani Enterprises Limited (AEL) and International Resources Holding (IRH), an IHC company operating via 2PointZero. This ambitious project will feature an integrated greenfield site that includes a four-million-metric-tonnes-per-year alumina refinery and a two-million-metric-tonnes-per-year aluminium smelter, alongside a 4,000-megawatt captive power plant and a downstream manufacturing park with a capacity of one million metric tonnes annually.
The venture will be executed in two phases, with approximately $6.9 billion allocated for the first phase and $4.6 billion for the second, as the partners collaborate with the Odisha government on essential tasks such as land acquisition, regulatory approvals, and infrastructure development. The project is anticipated to generate around 53,500 jobs during its construction and operational phases, while also catalyzing indirect employment across various sectors including logistics, engineering, and maintenance. The downstream manufacturing park is designed to appeal to businesses involved in transportation, construction, power, packaging, renewable energy, and advanced engineering. The initiative is poised to bolster India’s aluminium manufacturing ecosystem and contribute to sustained industrial growth.
IHC’s investment strategy focuses on expanding its global footprint in industries that are poised to influence the future economy, with this project fitting seamlessly into that vision. The company, which is enhancing its presence in mining, energy, infrastructure, and technology sectors, continues to develop an integrated minerals business through IRH, concentrating on resources vital for the global energy transition. Earlier this year, IHC strengthened its alliance with Adani Group through ePointZero’s collaboration with Adani Green Energy to develop renewable energy projects across India.
The aluminium project aligns with India’s objectives to ramp up domestic aluminium production, with demand expected to reach 8.5 million tonnes by the 2030 financial year. Odisha, home to some of India’s largest bauxite reserves and a major contributor to the nation’s aluminium output, has emerged as a prime location for large-scale investments in this sector. The establishment of this facility is expected to enhance India’s manufacturing capabilities, fortify supply chains, and solidify the country’s standing as a significant player in the global aluminium industry.