IHC and Adani Group to establish $11.5 billion aluminium production hub in Odisha

Abu Dhabi-based investment company International Holding Company (IHC) and India-based Adani Group have announced plans to jointly invest $11.5 billion in a massive, integrated aluminium project in the eastern Indian state of Odisha. This investment marks a historic record for foreign capital investment in India's metal sector and is considered one of the country's most significant industrial initiatives in recent years. The project is positioned as a critical part of strategies to expand India's domestic aluminium production capacity to meet the growing demands of rapidly expanding infrastructure, transportation, energy, and renewable power sectors.

According to the agreement signed between the two companies, IHC and Adani Group will hold an equal stake in this joint venture, i.e., 50% each. The planned industrial complex will include an alumina refinery, an aluminium smelter, a captive power plant to meet the project's energy needs, and a manufacturing park for value-added products. According to information provided by authorities, the refinery section will have a capacity to process four million tons of alumina per year, while the smelter section will reach a production capacity of two million tons of aluminium annually.

The project also includes facilities for producing value-added aluminium products with an annual capacity of one million tons, aimed at both domestic and international markets. To support the uninterrupted and large-scale production operations of this massive industrial complex, a 4,000 megawatt captive power plant is planned to be constructed. This plant is of vital importance to ensure the energy security of the facility and meet the electricity needs required for a continuous production line.

The primary reason for selecting Odisha state as the location for this project is that India's largest reserves of bauxite, the main raw material for aluminium production, are found in this state. The state currently meets more than half of India's total aluminium production on its own and stands out as one of the country's most important mining and industrial regions. Officials estimate that this investment will create approximately 53,500 new employment opportunities during the construction and operational activities.

According to employment projections, nearly 35,000 jobs will be created during the construction process, and 18,500 permanent employment opportunities will emerge once the facilities commence commercial operations. Industry analysts note that this project will play a major role in strengthening India's aluminium industry and reducing dependence on imported value-added metal products. The project is also considered a tangible indicator of increasing economic cooperation between the United Arab Emirates and India, particularly in manufacturing, energy, and infrastructure development sectors.