Billionaire Gautam Adani-led Adani Group last week came up with an investment proposal to the tune of Rs 41,653 crore for the alumina refinery. However, the Ahmedabad-headquartered ports-to-power conglomerate has bigger plans than just setting up a mega alumina refinery.
If the ongoing discussions between the Adani Group and the Odisha government are any hint, the conglomerate group is poised to explore the aluminium production opportunity, according to a report in Business Standard.
On Thursday, Adani Enterprises, the flagship company of Adani Group, got the approval of the Odisha government to set up two projects, including a 4 million tonnes per annum (mtpa) integrated alumina refinery. The group said these projects would generate 9,300 direct jobs.
The financial daily quoted Hemant Sharma, Principal Secretary, Industries Department, Odisha, as saying that negotiations are on with the Adanis to forward integration into aluminium from alumina.
“Aluminium production is highly power-intensive and needs to be located close to coal and water resources. This will be at a different location,” Sharma told the daily.
The proposed investment of Rs 41,653 crore includes an alumina refinery of 4 mtpa and a 175- megawatt (MW) captive power plant.
Alumina is used in the aluminium production process, and this alumina refinery will be set up near potential bauxite deposits or already operational mines, said a group statement issued earlier at the time of the announcement of the project. This will involve the production of smelter-grade (metallurgical grade) alumina, which will help India move towards creating import substitution.
At present, India is a net importer of alumina, but the country can become a net exporter once the Adani refinery is set up. Hetal Gandhi, Director, Crisil Research, said total alumina capacity would be 12-13 MMPTA by 2027, against the domestic requirement of 10.5-11 MMPTA.
“With the foray of Adani Group into the alumina business, the surplus is expected to further widen by an incremental 4 MMPTA, leading to India becoming a net exporter of alumina,” the publication quoted him as saying.
The industry is dominated by only three players—Vedanta, Hindalco and state-owned Nalco. Vedanta at 2.27 MMTPA, Hindalco at 1.3 MMTPA, and Nalco at 460,000 tonnes.
The Adani Group could become a major player in the aluminium sector with its 4 mtpa capacity alumina refinery, emulating its quick rise in cement.
