Adani-IHC Odisha aluminium project: $11.5bn JV in 2026

A new large aluminium bet in Odisha

Adani Group is preparing to enter aluminium manufacturing through a planned $11.5 billion joint venture with Abu Dhabi-based International Holding Company (IHC). The proposed project in Odisha is positioned as a direct competitive move against Aditya Birla Group and Vedanta Group, two of India’s most established aluminium players. The venture is structured as an equal partnership, and the companies have already signed an agreement with the Odisha government to take the plan forward.

The proposed plant is expected to strengthen domestic supply for a metal increasingly used in electric vehicles and batteries. India consumes about 5.5 million tonnes of aluminium annually, while a little over 4 million tonnes is produced locally. That gap implies continued dependence on imports, and the proposed capacity would be aimed at narrowing it.

MoU signed with Odisha government

A Memorandum of Understanding (MoU) was signed on Wednesday between Adani Enterprises Ltd (the Adani Group’s flagship), IHC, and the Government of Odisha to set up an integrated aluminium project in the state. Reuters cited a state official describing it as the country’s largest foreign investment in the metals sector.

Following the MoU, Adani Enterprises Ltd (AEL) and International Resources Holding (IRH), a subsidiary of IHC, are expected to work with the state government on land acquisition, regulatory approvals, and infrastructure planning. The project site is yet to be finalised.

What the integrated complex will include

The aluminium plan is described as a full value-chain buildout. The JV is expected to comprise an alumina refinery, an aluminium smelter, a captive power plant, and a downstream aluminium manufacturing park.

As per the disclosed plan, the project’s key capacities include 4 million tons per annum of alumina, 2 million tonnes per annum (MTPA) of aluminium smelting capacity, and 1 MTPA of downstream aluminium facilities. The captive power plant is planned at 4,000 megawatts (MW), supported by associated infrastructure.

Investment size, structure, and phase-wise spend

The total investment is estimated at $11.5 billion, also cited as approximately ₹1.08 lakh crore. The project is planned in two phases, with an estimated investment of around ₹66,000 crore in Phase I and ₹44,000 crore in Phase II.

Karan Adani said the $11.5 billion investment would be financed through 70% debt and 30% equity infusion. He added that Adani’s share of the equity component will be funded through Adani Enterprises’ internal accruals.

Timeline: approvals first, production later

The stated execution timeline stretches across multiple years. The site finalisation and regulatory approvals are expected to take place over the next 18 months.

Production is not expected immediately after approvals. According to Karan Adani, the project will take about 4.5 to 5 years to start producing its first batch of aluminium.

Raw material sourcing: OMC linkage and mine bidding option

Bauxite supply is central to any aluminium project, and the JV’s Odisha pact includes a long-term sourcing arrangement. The Adani-IHC venture plans to procure bauxite from state-owned Odisha Mining Corp. Ltd (OMC) under a long-term linkage agreement.

In addition, the company will evaluate bidding for upcoming bauxite mines to secure long-term raw material supplies. These provisions directly address feedstock continuity, which is a key constraint for large-scale aluminium and alumina operations.

Jobs and local economic footprint

The project is expected to create 53,500 jobs, according to the state official cited by Reuters. The breakdown shared at the MoU signing ceremony was 35,000 jobs during construction and 18,500 jobs once operations begin.

Because the plan includes multiple components across refining, smelting, power, and downstream manufacturing, the employment estimate reflects both construction intensity and ongoing operational requirements.

Competition: Aditya Birla and Vedanta in the frame

The aluminium entry would be the third business where Adani competes with Aditya Birla Group, after cement and copper. The article notes that Aditya Birla Group remains the market leader in those segments, while Adani is the second-largest player.

It also marks the first major business where Adani and Vedanta compete directly. The competitive context is sharpened by the scale of the proposed complex and its integrated design, which is typical of large incumbents in non-ferrous metals.

Existing metals footprint and the broader strategy

Adani Group does not currently operate an aluminium manufacturing facility. However, the group has announced plans for alumina refining and aluminium projects in Odisha earlier as well.

Adani Enterprises operates a $1.2 billion copper smelter in Gujarat, described as the world’s largest single-site plant of its kind. This existing presence in non-ferrous metals provides a backdrop for the aluminium plan, especially as both aluminium and copper are key industrial inputs.

Key facts at a glance

Conclusion

The Adani-IHC MoU in Odisha outlines a large, integrated aluminium complex with defined capacities across alumina, smelting, downstream products, and captive power. The project’s next steps are focused on land acquisition, site finalisation, and regulatory approvals over the next 18 months. With first production guided at 4.5 to 5 years, investors and industry watchers will track approvals progress, bauxite linkage execution with OMC, and the final project phasing as it moves from MoU to execution.