Adani Group and Abu Dhabi's International Holding Company (IHC) are deepening their partnership with an $11.5 billion integrated aluminium project in Odisha, according to Business Today. The partners have formed an equal joint venture to build what will be one of India's largest aluminium hubs.
The integrated complex will comprise a 4-million-tonne alumina refinery, a 2-million-tonne aluminium smelter, a 1-million-tonne downstream aluminium facility, and a 4,000-MW captive power plant, as reported by Business Today. Adani Enterprises, an investor in the venture, also launched a $1 billion qualified institutional placement (QIP) on Thursday. The QIP was priced at an indicative Rs 2,883 per share, a 9.3% discount to Adani's closing price of Rs 3,118 on the NSE on Thursday, resulting in an equity dilution of 2.6% on a post-issue basis.
Project Details and Funding
The QIP follows Adani Enterprises' $2.8 billion rights issue in December 2025, the company's largest capital raise since the Hindenburg-triggered market turmoil in 2023. The flagship Adani Group company has built large-scale businesses across ports, airports, energy, and cement, and is now expanding into data centres, copper, and petrochemicals. It already operates a $1.2 billion copper smelter in Gujarat, billed as the world's largest single-location facility of its kind, according to Business Today.
| Component | Capacity |
|---|---|
| Alumina Refinery | 4 million tonnes per annum |
| Aluminium Smelter | 2 million tonnes per annum |
| Downstream Facility | 1 million tonnes per annum |
| Captive Power Plant | 4,000 MW |
Competitive Landscape
The IHC-Adani venture will compete with the aluminium businesses of Kumar Mangalam Birla-led Hindalco and Anil Agarwal's Vedanta, as reported by Business Today. The project positions Adani Group as a major player in India's aluminium sector, which is currently dominated by these two firms.
IHC's Role and Partnership with Adani
"We are building long-term platforms in industries that will define the future of the global economy," IHC chief executive Syed Basar Shueb said while announcing the project. With a market capitalisation of $233 billion, IHC has a portfolio of more than 1,300 companies across technology, infrastructure, financial services, and consumer sectors. The Abu Dhabi-based conglomerate already partners the Adani Group in energy, transmission, and AI. Earlier this year, IHC and Adani Green Energy formed a joint venture to pursue renewable energy projects across India.
Implications for Commodity Markets
For commodity traders and procurement teams, this integrated aluminium project represents a significant potential increase in global aluminium supply. The two-million-tonne smelter alone would add roughly 3% to global primary aluminium production (based on estimated 2025 global output of ~70 million tonnes). The captive power plant ensures energy cost control, a critical factor given that electricity accounts for about 40% of aluminium production costs. The project also includes downstream facilities, indicating a focus on value-added products rather than just primary ingot. The partnership with IHC provides strong financial backing and access to Middle Eastern capital markets. Key upcoming milestones to watch include project financing details, construction timelines, and any offtake agreements that may be announced. The $1 billion QIP by Adani Enterprises further strengthens the group's balance sheet for this and other expansion ventures.
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