Managing Director of Adani Ports & Special Economic Zone Ltd (APSEZ) Karan Adani.
| Photo Credit: ANI
The Adani Group is entering the aluminium sector to capitalise on its low-cost energy business as well as on the growing demand for the metal, said Karan Adani, Managing Director of Adani Ports & Special Economic Zone Ltd (APSEZ), and Adani Cement. “If you look at it, two aspects which is why we are entering into it. One is it’s a very energy intensive business and it works in the advantage of the group because we are one of the lowest producers of energy. And so, that is one of the biggest competitive edge that we bring on table,” he said when asked the reason behind entering the aluminium business.“And second obviously we see that as digitisation, as manufacturing in the country increases, the demand of aluminium is going to go up. And we see that as a big opportunity, long-term opportunity for the country. And so, that’s the reason why we are entering into this,” Mr. Adani emphasised. On being asked about the company’s call to enter an already crowded market — dominated by Nalco, Hindalco and Vedanta — he said India is still importing aluminium.despite such large capacities being there by these players. “So, this is a sign that there is more demand. And there is going to be enough room for everybody to be in this market. And at the end of the day, if done at a very competitive pace, India can be a net exporter of aluminium as well,” he saidFurther, Mr. Adani added: “So, that’s how we are looking. We are not looking to compete with anybody. I think there is enough room for everybody to be present.”On the strategy for the aluminium business he said, “This is our initial investment that we are looking at. And basically, the idea is to bridge the gap between what is India’s requirement and also the future requirement. And that is the gap that we are filling,” he said. Adani and its proposed joint venture partner, the International Holding Company (IHG) of USE, are expecting all the approvals to be in place including land allotment in the next 12 to 18 months.“And then post that it will take us anywhere between 3 to 3.5 years to get the phase 1 up and running, which is the refinery as well as the smelter. I would say it would take 4.5 to 5 years from now for this project to be commissioned and be up and running,” Mr. Adani said. He said the project will be funded through internal accruals of Adani Enterprise and then 70% debt.The total project cost is pegged at $11.5 billion (₹1.08 lakh crore). While 50% of the cost will be borne by Adani Enterprises — the holding company of the Adani Group — the rest 50% will be by IHC. Published - July 03, 2026 02:23 am IST
