Adani Group and Abu Dhabi-based investment firm International Holding Company (IHC) plan to jointly invest $11.5 billion over the next few years to build an aluminium plant in India, according to a report by the Economic Times. The project could raise India's total aluminium capacity by nearly 50%.
This will be Adani Group's second metals venture, after its copper smelter in Gujarat, which began operations last year.
Adani and IHC will make the investment jointly through a mix of debt and equity to build an aluminium smelter in Odisha, with an annual capacity of more than 2 million tonnes, the report said. The split of investment between the two partners has not been disclosed.
1 June 2026
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The report noted that this would be the largest foreign investment in India's metals and minerals sector to date. The facility will be an integrated unit, combining smelting and refining. It will also include a captive power plant. Dhamra port in Odisha, located on the Bay of Bengal, is likely to be used for logistics. The port is owned by Adani Ports and Special Economic Zone.
India's Aluminium Demand and Capacity
India is currently the world's second-largest producer of aluminium after China, with total production of 4.2 million tonnes in FY25. The country consumed 5.5 million tonnes of aluminium during the same year. Per capita consumption stood at 3.4 to 3.9 kg, well below the global average of 8 to 12 kg. India is also the world's third-largest consumer of aluminium.
According to India's vision document for the metal, consumption is projected to rise to 8.5 million tonnes by FY30, 18 million tonnes by FY40, and 28 million tonnes by FY47. The document suggests that it isn;t impossible for India to aim to get a 10% market share by FY47, if it "plays its hand well". It added that India's capacity should scale up to 37 million tonnes per annum by FY47 to meet this demand. India currently holds a 3.8% share of the global aluminium market.
Other producers such as Hindalco Industries and Vedanta Aluminium are also expanding their capacities, anticipating rising demand driven by the government's focus on manufacturing and aiming to reduce import dependence.
Last year, global mining major Rio Tinto was reported to be exploring a clean energy-powered aluminium project in partnership with AMG Metals and Materials, a company backed by the founders of Greenko Group.
IHC and Its India Investments
IHC is one of the world's largest investment firms. It is backed by Abu Dhabi's ruling family and chaired by Sheikh Tahnoon bin Zayed Al Nahyan. As part of the emirate's sovereign wealth initiatives, IHC has interests in real estate, healthcare and technology globally. In India, its focus has been on energy, infrastructure and real estate.
IHC's India investments include a $1 billion deal for a controlling stake in Sammaan Capital, formerly known as Indiabulls Housing Finance, made through its affiliate Avenir Investment RSC.
The proposed Odisha aluminium venture will add to the existing business ties between the Adani Group and IHC. IHC first invested $2 billion in the group in 2022, across three listed Adani companies, Adani Enterprises, Adani Green Energy and Adani Energy Solutions.
