IHC, Adani to build $11.5bn aluminium hub in Odisha

Abu Dhabi-based investment company International Holding Company (IHC) and India's Adani Group have

Abu Dhabi-based investment company International Holding Company (IHC) and India’s Adani Group have announced plans to jointly invest $11.5 billion in a large integrated aluminium project in the eastern Indian state of Odisha.

The project is expected to become the largest foreign investment ever made in India’s metals sector and one of the country’s biggest industrial ventures in recent years.

The investment comes as India seeks to expand domestic aluminium production to meet rapidly growing demand from infrastructure, transportation, energy and renewable power industries.

Under the agreement signed between the two companies, IHC and Adani Group will each hold a 50 percent stake in the joint venture.

The proposed industrial complex will include an alumina refinery, an aluminium smelter, a captive power plant and a downstream manufacturing park for value-added aluminium products.

Officials said the refinery will have an annual production capacity of four million tonnes of alumina, while the smelter will be capable of producing two million tonnes of aluminium each year.

The project will also include facilities capable of producing one million tonnes of downstream aluminium products annually for domestic and international markets.

A 4,000-megawatt captive power plant will be built to provide uninterrupted electricity to the industrial complex and support large-scale production activities.

Odisha was selected as the location for the project because the state possesses some of India’s largest bauxite reserves, the primary raw material used in aluminium production.

The state already contributes more than half of India’s aluminium output and remains one of the country’s most important mining and industrial regions.

Authorities expect the investment to create approximately 53,500 employment opportunities during both construction and operational phases.

Nearly 35,000 jobs are expected to be generated during the construction period, while an additional 18,500 long-term jobs could become available once the facilities begin commercial operations.

Industry analysts believe the project will play a major role in strengthening India’s aluminium industry and reducing dependence on imported value-added metal products.

India is currently one of the world’s leading aluminium producers but domestic demand continues to rise due to rapid urbanisation, industrial expansion and large infrastructure projects.

Demand for aluminium is also increasing in sectors such as electric vehicles, renewable energy, power transmission and modern transportation systems.

Executives from both companies described the partnership as a strategic investment aimed at creating a world-class aluminium production hub and generating long-term economic value.

The project also reflects growing economic cooperation between the United Arab Emirates and India, particularly in manufacturing, energy and infrastructure development sectors.