# Adani Group Plans an $11.5 Billion Aluminium Plant in Odisha, Setting Up a Direct Fight With Vedanta and Hindalco

> Adani Group and Abu Dhabi's International Holding Company are planning to invest around $11.5 billion in a massive aluminium plant in Odisha, a move that would take on established players like Vedanta and Hindalco head-on.

**Type:** article · **Category:** Business · **Published:** 2026-07-02 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/odisha-men-1-lakha-karora-ka-elyuminiyama-planta-adani-grupa-ki-nai-taiyari-se-vedanta-aura-hindalco-ki-mushkilen-barhengi-4062 · **Language:** English
**Tags:** Adani Group, Aluminium Plant, Odisha Investment, Vedanta, Hindalco, Gautam Adani, International Holding Company

Gautam Adani, one of India's best-known industrialists, is now gearing up to make a big entry into the aluminium business. Adani Group and Abu Dhabi's International Holding Company (IHC) are planning to build a large aluminium plant together in Odisha, with a combined investment of around $11.5 billion, roughly ₹1 lakh crore. If the project takes off, it will go up directly against heavyweights like Vedanta and Hindalco in the aluminium market.

 The proposed plant is expected to have an annual production capacity of more than 2 million tonnes (20 lakh tonnes). It will be an integrated unit, housing both aluminium refining and smelting at the same site. On top of that, the project will include a captive power plant so that the electricity needed for production is always available and supply stays smooth.

 

## A Tougher Road for Vedanta and Hindalco
 At the moment, Vedanta Aluminium and Hindalco Industries have a firm grip on India's aluminium market. Adani Group's arrival in the sector is set to make the competition much sharper. It is believed that once this new plant goes live, India's total aluminium production capacity could rise by about 50 percent.

 

## Why Odisha Was Chosen
 There is a clear reason behind picking Odisha for the project. About 60 percent of the country's bauxite reserves, the key raw material for making aluminium, lie in this state. Adani Group also owns the Dhamra Port here, which will make both the inflow of raw material and the export of finished goods easier. The direct benefit is that the project's logistics costs are likely to stay low.

 

## Aluminium Demand Is Rising Fast
 India is currently the world's second largest aluminium producer after China. Last year the country produced around 4.2 million tonnes of aluminium, while domestic consumption stood at 5.5 million tonnes. With growing infrastructure, electric vehicles, railways and the construction sector, demand is set to climb further in the coming years. It is estimated that demand could reach 8.5 million tonnes by 2030, 18 million tonnes by 2040 and 28 million tonnes by 2047.

 

## Adani's Growing Hold on the Metals Sector
 This will be Adani Group's second major bet in the metals business. Earlier, the company had already started a copper smelter in Gujarat. It is believed that the group is working on a strategy to secure a steady and stable supply of raw materials for its energy, infrastructure and manufacturing operations. If this mega project gets the green light, it could kick off an entirely new phase of competition in India's aluminium industry.

## What this means for you
- **Across India:** A big new plant could raise the country's aluminium capacity by about 50%, strengthening domestic supply over time and potentially helping metal-dependent industries.
- **In Odisha:** The ₹1 lakh crore project could become a major source of new jobs and economic activity in the state, especially around the Dhamra Port area.

## Questions & Answers

### 1. How much is Adani Group investing in Odisha?
Adani Group and the International Holding Company together plan to invest around $11.5 billion, roughly ₹1 lakh crore.

### 2. Who is Adani Group's partner in this project?
Adani Group's partner in this project is Abu Dhabi's International Holding Company (IHC).

### 3. What will the proposed plant's production capacity be?
The proposed plant is expected to have an annual production capacity of more than 2 million tonnes (20 lakh tonnes).

### 4. Why was Odisha chosen for the project?
About 60% of the country's bauxite reserves are in Odisha, and Adani Group's Dhamra Port is also located there, making raw material supply and exports easier.

### 5. Which companies will this plant compete with?
The plant will directly compete with the market leaders in India's aluminium sector, Vedanta Aluminium and Hindalco Industries.

### 6. How much is aluminium demand expected to grow in India?
Demand could reach 8.5 million tonnes by 2030, 18 million tonnes by 2040 and 28 million tonnes by 2047.

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