Adani plans $5.2 billion alumina mill in growing metal ambitions

Adani Enterprises Ltd. is set to invest $5.2 billion in establishing an alumina refinery in Odisha, Eastern India, as part of Asia’s wealthiest man Gautam Adani’s ongoing expansion of his business empire. The flagship company of the Adani Group has received approval for the construction of the refinery and a captive power plant in Rayagada, with an investment of 416.53 billion rupees ($5.2 billion), as announced in a Twitter post by the office of the state’s Chief Minister, Naveen Patnaik. The proposed refinery is designed with an annual capacity of 4 million tons, according to a statement from the local government.

Adani Enterprises’ representative declined to comment on the Odisha project or the company’s strategies regarding its emerging aluminum venture. Gautam Adani, the billionaire behind the Adani Group, ventured into the aluminum sector by establishing Mundra Aluminium Ltd., a wholly owned subsidiary, in December. This move reflects his ambitions in an industry traditionally dominated by major players such as the Aditya Birla Group and London-based Vedanta Resources Ltd.

Having amassed the world’s most significant wealth gain this year, reaching $126 billion, Adani initially built his empire in agri-trading and ports. However, he has rapidly diversified into areas like airports, data centers, and renewable energy, aligning with the priorities of the Indian government. In May, Adani scaled up his relatively new cement business by acquiring Holcim Ltd.’s India units for $10.5 billion. He continues to expand his group’s metals portfolio with plans for steel and copper plants announced earlier in the year.

In June, Adani Enterprises secured 60.7 billion rupees through a syndicated club loan for a new 500,000-ton copper refinery complex in Gujarat. The company also revealed a partnership with South Korean steel major Posco in January to explore business opportunities in India, including the establishment of a green steel mill.