Adani, UAE's IHC Join Hands For $11.5 Billion Aluminium Mega Project In Odisha

India's ambitions to become a global manufacturing powerhouse have received a major boost after Adani Group and Abu Dhabi-based International Holding Company (IHC) signed an agreement to develop one of the country's largest integrated aluminium projects.

The two companies have entered into a 50:50 joint venture to invest $11.5 billion (around ₹1.08 lakh crore) in a greenfield aluminium complex in Odisha, a project expected to become the largest foreign direct investment (FDI) in India's metallurgy sector.

The Memorandum of Understanding (MoU) was signed with the Odisha government, reinforcing the state's position as India's aluminium hub and marking Adani Group's biggest move yet into the aluminium value chain.

A Fully Integrated Aluminium Complex

Unlike a standalone smelter, the proposed project will be an integrated aluminium manufacturing ecosystem. According to details released by the company, the complex will include:

• A 4 million tonnes per annum (MTPA) alumina refinery

• A 2 MTPA aluminium smelter

• A 1 MTPA downstream aluminium manufacturing park

• A 4,000 MW captive power plant to ensure uninterrupted energy supply for operations.

Once operational, it is expected to become Odisha's largest aluminium manufacturing complex.

Why Odisha Was Chosen

Odisha remains the natural choice for large aluminium investments because of its abundant bauxite reserves.

The state currently contributes around 54% of India's aluminium production, supported by extensive mineral resources and well-developed industrial infrastructure.

The project is also expected to leverage logistics infrastructure, including Adani Ports' Dhamra Port, for importing raw materials and exporting finished products.

India's Aluminium Ambitions

Although India is the world's second-largest producer of aluminium, domestic demand continues to outpace supply in several value-added product categories.

India produced around 4.2 million tonnes of aluminium in FY25, while domestic consumption reached approximately 5.5 million tonnes, highlighting the need for additional capacity.

Industry estimates suggest the Adani-IHC project alone could increase India's aluminium production capacity by nearly 50% once fully commissioned.

Adani's Second Major Metals Bet

The aluminium venture represents Adani Group's second major investment in the metals sector.

Last year, the conglomerate commissioned its $1.2 billion copper smelter in Gujarat, currently among the world's largest single-location copper smelting facilities.

With aluminium now joining copper, Adani is steadily building a diversified metals business that complements its existing operations in ports, logistics, energy, mining and infrastructure.

UAE's Growing Investment In India

For Abu Dhabi's International Holding Company (IHC), the investment strengthens its expanding presence in India. The sovereign-backed investment firm has steadily increased its exposure to Indian businesses over the past few years, including previous investments across Adani Group companies.

The latest partnership reflects the deepening economic relationship between India and the UAE, particularly in strategic sectors such as manufacturing, energy and infrastructure.

Employment And Economic Impact

Beyond manufacturing capacity, the project is expected to generate substantial employment.

According to project estimates:

• 35,000 jobs are expected to be created during construction.

• Around 18,500 permanent jobs will be generated once commercial operations begin.

In total, the project could create 53,500 employment opportunities, making it one of the largest industrial job creators in Odisha.

Why This Project Matters

The aluminium industry is becoming increasingly important as countries accelerate investments in clean energy and advanced manufacturing. Aluminium is a critical input for:

Electric vehicles

Solar installations

Transmission infrastructure

Aerospace manufacturing

Packaging

Construction

By expanding domestic production, India aims to reduce dependence on imports of value-added aluminium products while strengthening its position in global manufacturing supply chains.

The Bottom Line

The proposed $11.5 billion aluminium project is far more than another industrial investment.

It marks Adani Group's formal entry into aluminium manufacturing, represents India's largest foreign investment in the metals sector, and reflects the growing strategic partnership between India and the UAE.

If completed on schedule, the integrated Odisha project could substantially expand India's aluminium capacity, create more than 53,000 jobs, and strengthen the country's ability to meet rising demand from infrastructure, renewable energy and advanced manufacturing industries.