IHC-Adani Sign Historic $11.5B Pact For Massive Indian Aluminium Project Abu Dhabi’s IHC and Adani Group form a 50:50 jo…
IHC-Adani Sign Historic $11.5B Pact For Massive Indian Aluminium Project Abu Dhabi’s IHC and Adani Group form a 50:50 joint venture for a $11.5B integrated aluminium mega project in Odisha, India. Adani IHC Odisha Aluminium adani-ihc-odisha-aluminium-project Adani Group, IHC, Odisha investment, aluminium refinery, foreign direct investment, metallurgy sector, industrial development business
Abu Dhabi’s International Holding Company (IHC) and India’s Adani Group have finalized an initial agreement to invest $11.5 billion (βΉ1.08 lakh crore) in a massive greenfield aluminium project. This landmark initiative in Odisha represents the single largest foreign direct investment within the metallurgical sector of the Asian country.
Key Highlights
- Strategic 50:50 Joint Venture: Adani Enterprises and IHCβs subsidiary, International Resources Holding (IRH), will hold equal shares, marking Adaniβs strategic entry into global aluminium manufacturing.
- Massive Industrial Infrastructure: The mega complex features a 4 million metric tonne alumina refinery in Rayagada and a 2 million metric tonne smelter in Sundargarh.
- Extensive Socio-Economic Impact: The multi-phased development is projected to generate approximately 53,500 domestic jobs across its construction and operational timelines.
- Supply Chain Integration: Bauxite will be sourced directly via local agreements with the Odisha Mining Corporation alongside two dedicated Adani-owned mines.
Abu Dhabi’s International Holding Company and India’s Adani Group have signed an initial pact to invest $11.5 billion to develop an aluminium project in the Asian nation.
IHC and Adani Group will each hold a 50 per cent stake in the project, which will be in the state of Odisha, Indian media reported. The joint venture formally pairs Adani Enterprises Ltd (AEL) with International Resources Holding (IRH), the natural resources investment platform of Abu Dhabi’s premier conglomerate, following a definitive Memorandum of Understanding signed at the Lok Seva Bhawan Convention Centre in Bhubaneswar.
The project will include a refinery, a smelter, a captive power plant and a downstream aluminium manufacturing park, creating the state’s largest aluminium complex. Specifically, Phase I will see an deployment of βΉ66,000 crore, followed by βΉ44,000 crore in Phase II, funding a 3,200-acre refinery site in Rayagada alongside a 4,100-acre facility in Sundargarh housing a 4,000-megawatt power plant.
It will have an annual capacity of four million tonnes of alumina and two million tonnes of aluminium, with one million tonnes per annum of downstream aluminium facilities. The project marks the biggest foreign investment in India’s metals sector. Raw mineral inputs will be secured from the Sasubahumali deposits via Odisha Mining Corporation, alongside Adani’s existing Kutrumali and Bahalda reserves.
IHC, one of the most valuable holding companies in the Middle East, operates through more than 1,300 subsidiaries, with a presence in technology, infrastructure, financial services and the consumer sector. The firm commands a global market capitalization of $233 billion, targeting vital mineral frameworks to bolster industrial supply chain resilience worldwide.
Despite the Iran war, the company has not changed its investment strategy and will continue to deploy capital in global markets, its chief executive and managing director Syed Basar Shueb told The National in an interview in May. The executive reiterated that global geopolitical volatility has not dampened their long-term institutional expansion goals.
IHC planned to invest up to $8 billion over the next six months in sectors including mining, energy and financial services, he said. This strategy aligns with the firm’s capital allocation targets for the 2026 fiscal period.
In January, Mr Shueb also told The National that India is a key focus of the country’s global investment strategy. He outlined a broad portfolio of investments across the energy, industrial and property sectors, underlining Indiaβs role as a strategic rather than an opportunistic allocation.
βWe are investing in renewable solar power projects. We are investing in battery solution. We are investing in nuclear, we are investing in aluminium smelter and real estate development,β he said at the time.
India is keen
The latest project is expected to create 53,500 jobs, according to an Indian state official quoted in local media reports. High-ranking dignitaries, including Odisha Chief Minister Mohan Charan Majhi and Industry Minister Sampad Chandra Swain, confirmed that land acquisition and regulatory planning will commence immediately.
Future Outlook
The partnership anticipates a timeline of 12 to 18 months to clear statutory benchmarks and finalize environmental permits. Following initial clearances, an estimated 3.5 years of construction will be required to bring the integrated metallurgical ecosystem online, positioning Odisha as a primary manufacturing hub in Asia.
FAQs
What is the total investment value of the Adani-IHC project?
The total investment for the joint venture is $11.5 billion, which translates to approximately βΉ1.08 lakh crore. The capital will be deployed in two distinct phases financed through internal resources and corporate loans.
Where exactly will the new aluminium facilities be located?
The integrated complex will be split across two main districts in Odisha, India. A 4 million metric tonne alumina refinery will occupy 3,200 acres in Rayagada, while the smelter and power plant will span 4,100 acres in Sundargarh.
How many jobs will the project create in Odisha?
State officials estimate that the massive infrastructure development will create roughly 53,500 employment opportunities during its consecutive construction and operational phases.
