Adani Group to Invest $5 Billion in India’s Metals Sector

The Adani Group plans to invest $5 billion to enter India's metals industry, two years after its foray into the country's cement sector, according to a report from the Mint newspaper. This move will position the conglomerate as a challenger to established players such as Vedanta Ltd., Hindalco Industries Ltd., and the Tata Group. The group's natural resources division intends to spend the investment over the next three to five years on mining, refining, and the production of copper, iron, steel, and aluminium.

Of the total $5 billion, $2 billion is earmarked for the copper business, with the remainder allocated for other metals, according to the report. Adani sees significant synergies between metals and its existing businesses in renewable energy, transmission, logistics, ports, and infrastructure. “It is critical to have an end-to-end ecosystem to keep production and costs under control. Most of these metal businesses should be created over the next two to three years,” sources cited in the report stated.

The group, which aims to reach 50 gigawatts of renewable energy capacity by 2030, requires substantial quantities of aluminium for manufacturing solar panels, frames, stands, and wind turbines, according to the report. The planned assets will play a crucial role in optimizing the group's energy production costs and improving sales margins. The group also plans to invest $1 billion in expanding capacity at its recently operational copper plant under subsidiary Kutch Copper.

“India's direct copper demand is expected to double over the next five years, which means dependence on imports will rise unless incremental supply comes,” the report quoted sources as saying. The Adani Group’s investment aims to help bridge this gap by increasing domestic production capacity.