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

MoU sets up a 50:50 partnership in Odisha

Adani Enterprises Ltd (AEL) and International Resources Holding (IRH), a subsidiary of Abu Dhabi-based International Holding Company (IHC), have signed a Memorandum of Understanding on Thursday, July 2, 2026, to build an integrated aluminium project in Odisha. The proposed venture is structured as a 50:50 joint venture. The total proposed investment is $11.5 billion, which the parties estimate at about ₹1.08 lakh crore. A state official described it as the largest foreign investment in India’s metals sector. The plan positions the Adani Group for direct competition with established aluminium players such as the Aditya Birla Group and the Vedanta Group.

What will be built: refinery, smelter, power and downstream park

The proposed complex is designed to cover the aluminium value chain from refining to downstream manufacturing. It includes a 4 million tonnes per annum (MTPA) alumina refinery and a 2 MTPA aluminium smelter. Power requirements will be met through a 4,000 megawatt (MW) captive power plant, according to the details shared around the MoU. The plan also includes a downstream manufacturing park with 1 MTPA capacity for aluminium products, supported by “necessary infrastructure.” One of the reports also mentions development of 400 MW of green energy capacity alongside the captive setup.

Phased execution and investment split

The project will be executed in two phases. Phase I is estimated at around ₹66,000 crore, while Phase II is estimated at around ₹44,000 crore. Together, the two phases add up to roughly ₹1.10 lakh crore, in line with the stated overall investment size of about ₹1.08 lakh crore. The phased structure indicates a step-by-step rollout rather than a single large buildout. The MoU outlines intent, and the next steps depend on site finalisation, approvals, and execution planning.

Timeline: approvals in 18 months, output in 4.5 to 5 years

The project site is expected to be finalised and regulatory approvals secured over the next 18 months. After that, the project is expected to take about 4.5 to 5 years to produce its first batch of aluminium, according to Karan Adani. Karan Adani is the managing director of Adani Ports and Special Economic Zone (APSEZ) and a director at Adani Cement, as per the report. The timeline matters for investors because it frames when meaningful capital spending and then output could show up. It also sets expectations that this is a long-gestation manufacturing investment.

How the project will be funded

Karan Adani said the $11.5 billion investment would be financed through 70% debt and 30% equity. He also said Adani’s share of the equity component will be funded through Adani Enterprises’ internal accruals. The debt-and-equity mix highlights that the project is intended to be largely debt-funded. At the same time, the statement on internal accruals clarifies the source of Adani’s equity commitment without detailing external fundraising.

Raw material strategy: OMC linkage and mine bidding

Bauxite sourcing is central for any alumina and aluminium project. The proposed venture plans to procure bauxite from state-owned Odisha Mining Corporation Ltd (OMC) under a long-term linkage agreement, which is described as a key provision of the pact with the Odisha government. The company will also evaluate bidding for upcoming bauxite mines to secure long-term supplies. Odisha’s importance in bauxite is highlighted in one of the reports, which notes the state has around 60% of India’s bauxite reserves. This local availability, combined with infrastructure, is part of the strategic case for the location.

Jobs and local economic impact outlined at the signing

The project is expected to create 53,500 jobs, according to a state official cited in the Reuters report. This includes 35,000 jobs during construction and 18,500 jobs once operations begin. The numbers provide a clear measure of the project’s scale beyond production capacity. Large industrial projects in metals typically have extended construction cycles, and the job split reflects this. The state is positioning the project as a major industrial anchor, with potential spillovers to contractors and ancillary services.

Why aluminium demand context matters for India

India consumes about 5.5 million tonnes of aluminium a year, while just over 4 million tonnes is produced locally, according to the report. This gap implies reliance on imports for the balance. The proposed 2 MTPA smelter capacity is being framed as a step that can help reduce import dependence. Aluminium is described as a lightweight metal increasingly used in electric vehicles and the batteries that power them. The demand narrative is important because it links the investment to a domestic consumption trend rather than export-only logic.

What happens next with the Odisha government

Following the MoU signing, AEL and IRH are expected to work with the Government of Odisha to move to the next stage. This includes land acquisition, obtaining regulatory approvals, and planning for infrastructure development. These steps will determine how quickly the project can shift from an MoU to a binding execution plan. The 18-month window for site finalisation and approvals sets the near-term milestone for progress updates.

Key facts at a glance

Market impact and competitive positioning

The MoU signals a major new capacity plan that would put the Adani Group into the aluminium chain alongside established domestic producers. The proposed integrated structure, spanning alumina, smelting, and downstream, suggests an attempt to build scale across multiple stages rather than a single unit. For India’s metals sector, the size and the foreign partner role are notable, with a state official calling it the largest foreign investment in the sector. The project also reflects the strategic importance of Odisha, combining mineral availability through OMC linkages and a policy push for large industrial complexes. Any market impact for listed entities will depend on subsequent milestones such as approvals, land acquisition, financing closure, and detailed project timelines.

Conclusion

Adani Enterprises and IHC, through IRH, have set out a $11.5 billion plan for an integrated aluminium complex in Odisha through a 50:50 joint venture. The proposal includes a 4 MTPA alumina refinery, 2 MTPA smelter, 4,000 MW captive power, and a 1 MTPA downstream park, executed in two phases. Over the next 18 months, the focus will be on finalising the site, acquiring land, and securing approvals, before the longer construction cycle begins. The first aluminium output is targeted in about 4.5 to 5 years, based on the timeline shared at the signing.