Adani Group Enters Metals Sector, Can It Take On Vedanta, Tata? (image:X/gautamadani)

Adani Group, led by Gautam Adani, is making a foray into the metals sector with a whopping $5 billion investment over the next 3-5 years reported The Mint on Tuesday. This will be likely to challenge the industry giants like Vedanta, Hindalco and Tata.

The investment is mainly to be focused on mining, refining and producing copper, iron, steel, and aluminium. A substantial $2 billion will go towards copper production with the remaining amount allocated to other metals.

This venture is part of Adani’s strategy to ensure captive consumption for its green energy and infrastructure projects, the report added.

Adani Group has been said to be eyeing the aluminium and steel market for some time. They’ve reportedly secured approval to build an alumina refinery and a captive power plant in Odisha. Although work on this project hasn’t begun, the company plans to set up an alumina refinery under its subsidiary, “Mundra Aluminium Ltd.”

Adani aims to reach 50GW in renewable energy by 2030 the company wanted to secure its supply of aluminium and steel is crucial for building solar and wind power infrastructure. This move is said to reduce dependence on external suppliers and ensure a steady supply chain.

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The report further stated that Adani’s entry into the metals sector is likely to give tough competition to established players like Vedanta, Hindalco, and Tata.

In June, Adani Group firm Ambuja Cements announced the acquisition of Penna Cement Industries Ltd (PCIL) for Rs 10,422 crore. This deal, which expands its footprint in southern India marked  Ambuja’s fourth major acquisition since the Adani Group’s entry into the cement industry via Ambuja.

It was in September 2022, that Adani Group acquired Ambuja Cements Ltd and ACC Ltd for $6.6 billion which marked its entry into the cement sector and now he marked his entry into the metal sector as well.

The Adani Group is actively expanding its portfolio as it pursues acquisitions such as Saurashtra Cement, Jaiprakash Associates and Vadraj Cement, aiming to secure approximately 20% of the Indian cement market by the fiscal year 2028.

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