Joint venture marks India’s largest-ever foreign investment in the metals sector, promising over 53,000 jobs
Abu Dhabi-based International Holding Company has agreed to invest $11.5 billion in a major aluminium project in the eastern Indian state of Odisha, teaming up with India’s Adani Group in what is being described as the country’s largest foreign investment in the metals sector so far, a state official said on Thursday, in what would be the country’s largest foreign investment in the metals sector.
Meeting Rising Demand
The move comes at a time when India is looking to expand domestic aluminium production to meet growing demand from infrastructure, power, transport and renewable energy sectors, while cutting down on imports of value-added metal products. This push follows earlier government efforts to strengthen the sector: last year, the federal government laid out plans to increase aluminium output, projecting that domestic demand would climb to 8.5 million metric tons by fiscal year 2030.
Deal Structure
According to the memorandum of understanding signed by both parties, IHC and Adani Group will each own an equal 50% stake in the venture, which will include a refinery, a smelter, a captive power plant and a downstream aluminium manufacturing park — together forming the state’s largest aluminium complex. Once fully operational, the facility is planned to produce 4 million tons of alumina annually, alongside 2 million tons of aluminium capacity and 1 million tons of downstream aluminium products each year.
Odisha’s Strategic Role
The choice of Odisha is no coincidence, given that the state holds some of India’s largest bauxite reserves, the raw material used to make aluminium, and already contributes 54% of the nation’s total aluminium output. Officials estimate the project will generate 53,500 jobs in total — 35,000 during the construction phase and another 18,500 once the plant becomes operational.
Adani’s Expanding Footprint
While Adani Group does not currently run an aluminium manufacturing facility, it has previously announced plans for alumina refining and aluminium projects in Odisha, and its flagship company already operates a $1.2 billion copper smelter in Gujarat — the largest single-site plant of its kind in the world.
