Adani-IHC Odisha aluminium JV: ₹1.08 tn plan in 2026

Deal signed with Odisha government

Adani Enterprises Ltd (AEL) and Abu Dhabi-based International Resources Holding (IRH), a unit of International Holding Company (IHC), signed a pact with the Odisha government to set up an integrated aluminium project in the state. The proposed investment is $11.5 billion, which the reports peg at about ₹1.08 trillion. Another estimate in the coverage put the proposal at around ₹1.10 lakh crore. The agreement was signed between Odisha’s industrial promotion agency, IPICOL, and a newly formed joint venture. Officials and company statements described it as the state’s largest foreign direct investment (FDI) proposal and India’s largest FDI in mining and metallurgy.

A 50:50 joint venture between AEL and IRH

The project will be executed through a 50:50 joint venture between AEL and IRH. IHC had emerged as a key backer of the Adani Group after the Hindenburg-induced market turmoil in 2023, and this project deepens the relationship. Syed Basar Shueb, chief executive of IHC, said the partnership reflects IHC’s strategy and a shared ambition to build a world-class integrated aluminium project that creates lasting economic value. The joint venture structure is intended to combine local execution capability with overseas capital and resources experience. Adani, led by Gautam Adani, does not currently operate an aluminium manufacturing facility, though it has announced plans for alumina refining and aluminium projects in Odisha.

What the aluminium complex will include

The proposed greenfield complex is designed to cover the full aluminium value chain within Odisha, from raw material sourcing to finished products. The configuration includes a 4 million tonnes per annum (mtpa) alumina refinery, a 2 mtpa aluminium smelter, and a 1 mtpa downstream aluminium manufacturing facility or park. Power needs will be met through a 4,000 megawatt (MW) captive power plant, including 400 MW of renewable energy. The scale makes it one of India’s largest aluminium hubs, and one report also described it as among the world’s largest aluminium manufacturing complexes. The aim, as stated in the coverage, is to strengthen Odisha’s role in the global aluminium supply chain and support India’s push toward value-added aluminium manufacturing.

Location, land requirement, and sourcing plan

The alumina refinery is planned for Rayagada district, positioned closer to the bauxite mines intended to supply raw materials to the joint venture. The aluminium smelter will be set up in Sundargarh district. Total land requirement across the two locations is expected to be around 7,300 acres. Of this, about 3,200 acres is earmarked for the refinery and about 4,100 acres for the smelter. Officials said the next stage of work would include land acquisition, statutory approvals, and infrastructure planning.

Investment phasing and state oversight

The investment will be executed in two phases. Around ₹66,000 crore is earmarked for the first phase and another ₹42,000 crore for the second, as per the reports. Odisha’s Mohan Majhi government described the investment as a milestone for the state’s industrialisation and a step toward value-added manufacturing. To fast-track implementation, the government announced the formation of a special task force headed by the Chief Secretary. The task force is expected to review progress every 15 days.

Jobs and local economic linkage

The project is expected to generate around 53,500 jobs, according to the reports. This includes about 35,000 jobs during the construction phase and another 18,500 in mining, refining, smelting, and downstream manufacturing operations after commissioning. Beyond direct employment, officials indicated the project could create thousands of indirect jobs across logistics, transport, engineering services, fabrication, maintenance, and ancillary industries. The reports also said the investment is expected to provide a boost to micro, small and medium enterprises (MSMEs) through supporting services and supply chains. The stated intent is to increase value addition and industrial output within the state by integrating mining, refining, and manufacturing locally.

Adani Enterprises’ QIP and recent capital raising

On the same day, Adani Enterprises launched a $1 billion qualified institutional placement (QIP). The QIP was launched at an indicative price of ₹2,883 per share, representing a 9.3% discount to AEL’s closing price of ₹3,118 on the NSE on Thursday, as cited in the report. The issue is expected to result in equity dilution of 2.6% on a post-issue basis. The fundraising follows AEL’s $1.8 billion rights issue in December 2025, described as the company’s largest capital raise since the 2023 turmoil.

Competition in India’s aluminium sector

The IHC-Adani venture is expected to compete with established aluminium businesses in India. The reports specifically named Kumar Mangalam Birla-led Hindalco and Anil Agarwal’s Vedanta as key competitors. While Adani does not yet have an operating aluminium manufacturing facility, the group has developed industrial capabilities in adjacent metals segments. The coverage noted that Adani’s flagship firm Adani Enterprises operates a $1.2 billion copper smelter in Gujarat, described as the world’s largest single-site plant of its kind.

Key project facts at a glance

Market impact and why the deal matters

For Odisha, the size and integrated nature of the project tie directly to the state’s positioning as India’s metals capital, as referenced in the coverage. The project’s proposed capacities, power plan, and downstream manufacturing park point to a cluster-style buildout rather than a single asset. For Adani Enterprises, the development runs alongside active capital raising, with the $1 billion QIP priced at a discount and a stated 2.6% post-issue dilution. The reports also framed the project as a landmark FDI proposal in mining and metallurgy, linking it to broader industrial policy objectives around value addition and manufacturing jobs.

Timeline of key announcements and figures

Conclusion

Adani Enterprises and IHC’s IRH have set out a large, two-phase plan to build an integrated aluminium complex in Odisha, spanning alumina refining, aluminium smelting, downstream manufacturing, and captive power. The proposal includes clear milestones that will determine pace, including land acquisition, statutory approvals, and infrastructure planning. The Odisha government has also put in place a special task force with 15-day reviews to monitor progress. Separately, AEL’s QIP and recent rights issue underline that fundraising remains part of the group’s broader execution plan as the Odisha project moves to the next stage.