Indian metal and mining companies are coming up as “a bright spot” at a time when the international market is struggling with stagnant commodity volumes due to global macroeconomic and geopolitical risks
Metals industry is becoming a new battleground for giants like the Adani Group, Aditya Birla Group, and JSW Group to cement their dominance. Recently, Sajjan Jindal-led JSW Group has expanded its portfolio and made its debut in the non-ferrous metals segment with Rs 2,600 crore investment on January 27. The company has planned to operationalise two copper mines in Jharkhand that it has acquired from government-owned Hindustan Copper Ltd. (HCL) and build a copper concentrator plant.
“The increasing demand for copper in sectors such as electric (EVs), renewable energy infrastructure, construction, electronics, telecommunications and healthcare presents a significant opportunity,” said Parth Jindal of JSW Group, according to a company’s statement. The move will also help India bring down its import dependence for copper concentrate, he added.
Gautam Adani-led Adani Group is eyeing to tap into the metals business with around $5 billion in investment, the Mint reported, citing sources. The port-to-power conglomerate has decided to diversify its portfolio and explore mining, refining and production of four key metals, including copper, iron, steel and aluminium. The Adani Group’s foray into the metals segment will seek to benefit its other key businesses like renewable energy, transmission, logistics, ports and infrastructure.
While some giants are making their debut, others are making huge investments to solidify their position and retain market leadership. One of the oldest metal manufacturing company in India, Aditya Birla Group’s Hindalco Industries announced an investment worth $10 billion for projects, including the expansion of an aluminium and copper smelter, a new alumina refinery in Rayagada and the Bay Minnette expansion in Novelis. Novelis is a subsidiary of Hindalco Industries. The company, with its bold moves across different metals segments is eyeing to play a key role in India’s green transition, said Birla Group chairman KM Birla.
“Our expansion across expansions across the India business and Novelis, will entail investments of $10 billion...Hindalco is committed to pioneering the green transition in India while enabling India’s growth aspirations,” said KM Birla at the company’s AGM.
Mining conglomerate Vedanta Group announced its plan to set up an aluminium refinery and smelter project in Odisha with an investment of Rs 1 lakh crore on January 28.
“We will establish the aluminium refinery of 6 million tonnes per annum capacity and aluminium smelter of 30 lakh tone capacity in Rayagada district,” said Vedanta Group chairman Anil Agarwal, according to a PTI report.
Additionally, to strengthen its hold in the metals sector, the group last year announced an investment worth $20 billion to be made in the upcoming four years.
The race to capture the metals market comes at a time when the Indian metal sector size is projected to grow at 9.8% CAGR from $5.08 billion in 2023 to $9.75 billion by 2030, according to the Fortune Business Insights report. The report has highlighted increased use of metals by the automotive and construction industries as a driver for the estimated growth.
Another report by Jefferies mentioned that the Indian metal and mining companies are coming up as “a bright spot” at a time when the international market is struggling with stagnant commodity volumes due to global macroeconomic and geopolitical risks, according to ANI.
Moreover, major growth projections in the transportation sector have increased the growth opportunities for the non-ferrous sector. According to a research firm, Market Research Future, India’s non-ferrous market is likely to witness growth from $ 188.5 billion in 2023 to $ 264.0 billion by 2032. India Brand Equity Foundation (IBEF) report has suggested that the country is expected to account for 40 % of the total rail activity by 2050.
The government has recently launched the second round of the production-linked incentive scheme to boost specialty steel manufacturing. The union steel and heavy industries minister, H D Kumaraswamy, said the scheme will help the industry to invest and strengthen Brand India, reduce imports, and position India as a global steel powerhouse, stated the ministry in a press release on January 6.