Vedanta Chairman Anil Agarwal has welcomed the entry of the Adani Group and Reliance Industries into India’s aluminium sector, saying increased competition could make companies more efficient. He said the arrival of major new players could also lead to consolidation and potential mergers and acquisitions over the longer term.
India’s primary aluminium industry is currently dominated by Vedanta, Hindalco Industries and National Aluminium Company (NALCO), which together account for around 90% of domestic production. Adani Enterprises, along with UAE-based International Resources Holding, has announced an $11.5 billion integrated aluminium project in Odisha. The project includes a 4-million-tonne alumina refinery, a 2-million-tonne aluminium smelter and a 1-million-tonne downstream manufacturing park.
Reliance Industries has also purchased tender documents for the Karlapat bauxite block in Odisha, signalling its interest in the sector. Agarwal said Vedanta would continue expanding its own aluminium operations, targeting capacity of around 6 million tonnes within three years and 10 million tonnes over the longer term.
The aluminium expansion forms part of Vedanta’s broader $25 billion investment programme planned over the next three to five years. The company plans investments across aluminium, oil and gas, zinc, steel, power and other businesses. Agarwal also said efficiency and cost competitiveness would become increasingly important as more players enter the industry.
