IHC and Adani to build $12bn aluminium plant in India

Abu Dhabi conglomerate International Holding Company (IHC) and India’s Adani Group have reportedly signed a memorandum of understanding with the government of the Indian state of Odisha to invest billions of dollars to build a huge greenfield aluminium plant in India.

The joint investment will reach up to $11.5 billion, the largest foreign direct investment in the Indian metallurgy sector, Indian media outlets reported.

The project, equally owned by IHC and Adani, will be developed in two phases, with investments of INR660 billion ($6.9 billion) in the first phase and INR440 billion in the second phase.

The plant will include a 4 million metric tonnes per annum (MMTPA) refinery for alumina (a form of aluminium oxide refined from bauxite), a 2 MMTPA aluminium smelter and a 1 MMTPA downstream manufacturing park. It will be supported by a 4,000 megawatt captive power plant and a 400 MW green energy component.

The clearances for the project will take 12 to 18 months, with another 41 months needed to establish the project, The Hindu newspaper reported, quoting Karan Adani, managing director of Adani Ports and SEZ.

AGBI has approached IHC for a comment.

In May, IHC said net earnings surged 98 percent year on year to AED8 billion ($2.2 billion), while revenues rose 33 percent annually to AED31 billion.

IHC is part of a business conglomerate led by its chair, Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s national security adviser and brother of President Sheikh Mohammed bin Zayed Al Nahyan.

IHC’s direct subsidiaries listed on the Abu Dhabi Securities Exchange include Alpha Dhabi, 2PointZero Group, Emirates Stallions Group, Palms Sports, Al Seer Marine and EasyLease.

IHC shares were trading flat at AED380 on Thursday and are down 5 percent so far this year.

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