Business News | India Can Become Net Aluminium Exporter with Competitive Production, Says Karan Adani

Bhubaneswar (Odisha) [India], July 2 (ANI): India has the potential to transform into a net exporter of aluminium if production is executed at a highly competitive rate, as the domestic market currently maintains enough room for multiple players to operate simultaneously, said Karan Adani, Managing Director of Adani Ports & Special Economic Zone Ltd (APSEZ).

While speaking to the media post the MoU signing between Adani Enterprises Ltd and the Odisha govt, Adani noted that despite the presence of large domestic capacities and established industry participants, India continues to rely on aluminium imports to meet its internal requirements. This ongoing reliance signals robust underlying demand within the local market.

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"I think if you look at the overall market, even with such large capacities being there, large players being there, we still import aluminium, which is a sign that there is more demand and there is going to be enough room for everybody to be in this market," Adani said.

"And at the end of the day, if done at a very competitive rate, India can be a net exporter of aluminium as well," he added.

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The company plans to initiate the physical construction of the project after navigating the initial regulatory and licensing phases. The preliminary groundwork and state clearances are expected to span over the next several months.

"As I mentioned earlier, it will take us 12 to 18 months to get the approvals and then post that we will start the physical construction. So that's the timeline that we are looking at," Adani stated.

A critical component of the upcoming project involves securing a stable supply of bauxite, the primary raw material needed for aluminium production. The company intends to participate in upcoming state mineral auctions and explore partnerships with the state-owned mining entity to secure its supply chain.

"As I said earlier, there are few mines which are coming up for auction. We will definitely look at that. We will try to look at working with OMC as well," Adani said. "We'll find a way where bauxite security is ensured."

The newly signed agreement outlines an initial capital commitment aimed at addressing the structural deficit in the domestic non-ferrous metals sector. The project focuses on aligning local production capabilities with both immediate and long-term industrial consumption trends.

"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's the gap that we are looking to fill," Adani said.

Adani Group on Thursday announced a proposed investment of USD 11.5 billion (nearly Rs 1.08 lakh crore) in Odisha to develop an integrated aluminium manufacturing ecosystem, a project expected to generate more than 53,000 jobs during its construction and operational phases.

According to Karan Adani, the project will integrate the entire aluminium value chain and include an alumina refinery with a capacity of nearly 4 million tonnes per annum, an aluminium smelter of around 2 million tonnes per annum, and a downstream aluminium park of about 1 million tonnes per annum. The project will also be backed by a captive power plant of around 4,000 MW along with a 400 MW green energy component. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)