Adani Group is planning $5B jump into metals business: Report
Adani Group is gearing up to invest $5 billion in the metals sector in the next three to five years, LiveMint reported. The strategic move comes two years after the conglomerate's successful foray into India's cement industry. The investment will be focused on mining, refining and production of copper, iron and steel, as well as aluminum. It will take on Anil Agarwal-led Vedanta, Tata Group, and Aditya Birla Group's Hindalco Industries.
Adani Group's 1st phase of copper operations
The Adani Group launched the first phase of its copper operations in March with a 500 ktpa smelter. An insider told The Economic Times that "the group is well-positioned to enter other metals, including aluminum, iron and steel." The investment breakdown reveals that $2 billion will go into copper production, while the rest will be invested in other metals.
Synergies with existing businesses and captive consumption
The Adani Group's entry into the metals sector is likely to generate strong synergies with its current renewable energy, logistics, transmission, ports and infrastructure businesses. An insider emphasized captive consumption as a major driver for the move, adding it will be "significant and critical for the group's green energy businesses (solar, wind and green hydrogen) and transmission."
Adani's future plans
Adani Group's copper plant, which is now operational under subsidiary Kutch Copper, will receive another $1 billion investment in the coming quarters to double its capacity. The proposed $5 billion investment for the metals sector is distinct from this existing commitment to Kutch Copper.
