Adani, IHC to Invest $11.5 Billion in Indian Aluminum Project

By Jason Chau

Indian conglomerate Adani Enterprises and IHC Group will jointly invest $11.5 billion in an aluminum project in eastern India.

The greenfield project in the mineral-rich state of Odisha will be funded through an equal joint venture between billionaire Gautum Adani's flagship company and IHC's natural resources-focused unit, International Resources Holding. IHC, a United Arab Emirates-based investment company, is valued at $230 billion.

The joint venture, signed through a memorandum of understanding with Odisha's government, plans to build a 4 million-metric-ton-a-year alumina refinery, a 2 million-ton-a-year aluminum smelter and a 1 million-ton-a-year downstream manufacturing park, the partners said Thursday.

The companies and Odisha's government said they will advance the project into the next phase, which includes acquiring land, securing statutory approvals and planning infrastructure.

The project is expected to generate around 53,500 jobs, they said without providing a time frame.

The proposed project will be developed in two phases, with investments of 660 billion rupees, equivalent to $6.91 billion, and 440 billion rupees, respectively.

The investment is set to be India's largest foreign direct investment in the metallurgy sector, the companies said.

Odisha has the largest bauxite reserves in India and has vast deposits of metals and minerals, including iron ore, manganese and gold.

"Already India's leading hub for metals and mineral-based industries, the state is now poised to become a global center for aluminum and value-added manufacturing," Odisha Chief Minister Shri Mohan Charan Majhi said.

"[This project] is among the most significant aluminum investment ecosystem anywhere in the world," said Karan Adani, Gautum Adani's elder son, at the signing ceremony, adding that it "brings together the full aluminum value chain in one integrated ecosystem."

The Odisha project is Adani Group's second multibillion-dollar deal this week.

On Tuesday, the conglomerate's Adani Ports said it has agreed to sell 49% of one of its Indian ports to Mediterranean Shipping Company for $1.40 billion. That deal is facing fresh uncertainty, after the chief minister of Kerala said in a post on X that he opposes the deal over a lack of consultation with state authorities.

Adani Group didn't immediately respond to a request for comment.

The aluminum-project investment is in line with India's plan to move beyond supplying raw minerals to become a value-added manufacturing hub in the critical minerals sector, amid elevated uncertainty around mineral supply due to geopolitical tensions.

Shares of Adani Enterprises last traded flat after edging 0.5% higher earlier Friday and ending 1.1% higher Thursday after the announcement.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

July 03, 2026 03:45 ET (07:45 GMT)