InvestorQ : Why is the Adani group planning to invest so heavily in the metals and minerals space in the state of Odisha?
Crowny Pinto made post

Why is the Adani group planning to invest so heavily in the metals and minerals space in the state of Odisha?

Answer
image
2 months ago
Follow

Adani group is going aggressive in the minerals and metals space having already forayed into copper through its Kutch Copper unit. Now, the Adani group plans to invest a massive sum of Rs57,575 crore in the state of Odisha. IN dollar terms, that translates into nearly $7.25 billion. Adani group will set up an alumina refinery in the state of Odisha and the approval was given a high level committee that was headed by the chief minister of Odisha, Naveen Patnaik, who is known to have a very business friendly image.

The Adani group is already the third most valuable group in India in terms of market after the Tata group and the Reliance group. The Adani empire today spans a wide gamut of assets and that includes airports, ports, renewable power, green hydrogen, FMCG products, cement, copper, energy transmission, gas distribution and a lot more. It is also incubating new ideas through Adani Enterprises on a consistent basis. Adani has exposure to the consumer facing businesses as well as the enterprise facing business in India.

In the state of Odisha, the Adani group will set up a 4-million tonnes per annum (TPA) alumina refinery near the bauxite mines. It will also set up an iron ore project with 30 million tonnes per annum (TPA) capacity as part of the iron ore value addition project. Incidentally, both the alumina and iron ore businesses are power hungry, so these plants become captive market for Adani power franchise. Their investment of $7.25 billion in Odisha will create close to 9,300 direct jobs and thousands of other business options.

The iron ore beneficiation plant will be located in Deojhar in Keonjhar district while the pellet plant will be located in Dhamra in Bhadrak district. Adani’s interest in Odisha is understandable since Odisha holds more than 50% of India’s bauxite and iron ore reserves. Naveen Patnaik is very keen to aggressively develop the downstream units in metal sector, as part of his Vision 2030. This project of the Adani Group is also fully aligned with the larger goal that the state of Odisha is pursuing.

4 Views