The Adani Group has outlined the strategic rationale behind its entry into the aluminium sector, with Karan Adani, Managing Director of Adani Ports & Special Economic Zone (APSEZ) and Adani Cement, citing the group’s low-cost energy capabilities and India’s growing aluminium demand as the key drivers behind the move.
Speaking about the company’s expansion plans, Karan Adani said aluminium production is an energy-intensive business, giving the Adani Group a significant competitive advantage due to its position as one of the country’s lowest-cost energy producers. He noted that leveraging affordable energy will enable the group to operate competitively in the aluminium industry.
The second major factor behind the investment, he said, is the expected surge in aluminium demand as India accelerates industrialisation, manufacturing growth and digital infrastructure development. According to Adani, the increasing use of aluminium across sectors presents a long-term opportunity that aligns with India’s economic growth trajectory.
The group’s entry comes despite an already established domestic market led by companies such as NALCO, Hindalco Industries and Vedanta. However, Karan Adani pointed out that India continues to import aluminium despite the existing production capacity, indicating a supply gap that leaves room for additional producers.
He emphasised that the Adani Group is not entering the market to compete directly with existing players but rather to help bridge the gap between domestic demand and production. He added that if aluminium is produced competitively, India has the potential to emerge as a net exporter of the metal in the future.
The aluminium venture will be developed through a joint venture between Adani Enterprises and UAE-based International Holding Company (IHC). The proposed project involves a total investment of $11.5 billion (approximately ₹1.08 lakh crore), with both partners contributing 50% of the equity investment.
According to Karan Adani, the consortium expects to secure all regulatory approvals, including land allocation, within the next 12 to 18 months. Construction of the first phase, comprising the alumina refinery and aluminium smelter, is expected to take three to three-and-a-half years, with the project likely to become operational within 4.5 to 5 years.
He added that the project will be financed through a combination of internal accruals from Adani Enterprises and approximately 70% debt financing, reflecting the group’s long-term commitment to expanding its presence in India’s industrial and manufacturing sectors.
The investment marks one of the largest proposed projects in India’s aluminium industry and is expected to strengthen domestic manufacturing capacity while supporting the country’s ambitions to become a global manufacturing and export hub.
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