First they clashed over cement. Now, the corporate rivalry between the Aditya Birla Group and Adani Group is shifting to aluminium. Hindalco Industries, the flagship metals company of the Aditya Birla Group, plans to deploy around ₹50,000 crore in capacity expansion, upstream integration and downstream value-added products, in a bid to strengthen its market position ahead of Adani Group’s entry into the aluminium business.

Beyond producing more aluminium, Hindalco’s bigger bet is on controlling a bigger chunk of the value chain and moving towards specialised products, since their earnings are less exposed to London Metal Exchange (LME) prices.

This move is significant because Adani Enterprises has joined hands with Abu Dhabi-based natural resources investment platform International Resources Holding (IRH) to build a ₹1.08-lakh-crore integrated greenfield aluminium complex in Odisha.

The emerging contest isn’t unlike the two groups’ rivalry in cement with UltraTech Cement, the Birla Group flagship, having to defend its leadership through organic expansion and acquisitions, including India Cements and Kesoram Industries. Its capacity has crossed 200 million tonnes per annum and is targeted to reach around 240 mtpa by FY28.

The Adani Group entered the cement segment in 2022 with the acquisition of Ambuja Cements and ACC from Holcim, and then Sanghi Industries, Penna Cement and Orient Cement. Its cement capacity is now around 109 mtpa, with a target of 140 mtpa by FY28.

In the case of aluminium, scale, resource security, energy costs and vertical integration could determine competitive advantage.

The Adani-IRH project envisages a 4-mtpa alumina refinery near bauxite mines in Rayagada district, a 2-mtpa aluminium smelter, a 4,000-MW captive power plant and a 1-mtpa downstream manufacturing park in Sundargarh district.

Spread over 7,300 acres, the two phases of the project entail mega investments of around ₹66,000 crore and ₹44,000 crore, respectively.

Bauxite is expected from Odisha Mining Corporation’s Sasubahumali mines and Adani’s Kutrumali and Bahalda mines. The ore will be moved through conveyor belts and rail to reduce logistics costs.

Adani Enterprises has indicated that clearances could take 12-18 months, and project development about three and a half years.

Hindalco is ready with a response. “They are at the announcement stage, while we are actually expanding and constructing projects on the ground,” said Satish Pai, Managing Director, Hindalco.

In January, Hindalco announced ₹21,000 crore investment to add 3.6 lakh tonnes a year of smelting capacity at its Aditya Aluminium complex in Sambalpur. Its current cumulative aluminium smelting capacity is 13 lakh tonnes a year.

Overall, Hindalco plans to invest around ₹37,000 crore in Odisha across upstream and downstream aluminium operations.

“Our refinery project is about halfway through and scheduled for commissioning in December next year. Our smelter expansions are also coming online next year,” Pai said.

Hindalco believes its ecosystem of mining, refining, smelting, downstream manufacturing and recycling capabilities is its biggest defence against any new entrant.

“We have been in this business for over 68 years and have an established base and assets to build on. We will focus on our strengths, maintain our position on the cost curve and continue to take care of our customers,” Pai said.

Hindalco has also sharpened its management structure. Kailash Pandey, formerly head of mining and the Sambalpur cluster, has been elevated as CEO of Aluminium Upstream, while Kopal Agrawal has been appointed CEO of Aluminium Downstream.

At the promoter level, a royalty of 0.25 per cent of revenue, capped at ₹250 crore, has been levied on both Hindalco and its US-based subsidiary Novelis.

Hindalco’s aluminium business is being built around two objectives: secure the upstream cost base and capture more value downstream.

Kumar Mangalam Birla, Chairman of Hindalco Industries, has pointed to the company’s earlier investments of about ₹45,000 crore in Mahan Aluminium, Aditya Aluminium and Utkal Alumina as the foundation for its current expansion. “Today, Aditya, the fully integrated complex, combines upstream, downstream and recycling operations, giving a unique advantage across the value chain,” Birla said.

Hindalco and Novelis are together investing around $10 billion in organic growth — a historic high for the company.

Hindalco’s expansion is focused on engineered products that are high-margin and not linked to LME prices. Factors such as engineering capability, product specifications, quality, technology and long-term customer relationships can determine pricing and margins.

The company recently commissioned India’s first battery-grade aluminium foil facility in Odisha at an investment of ₹4,500 crore. The plant is designed to support up to 100 GWh of lithium-ion cell manufacturing.

The 99.98 per cent pure aluminium finds applications ranging from defence and aerospace to semiconductor manufacturing. Downstream teams work with customers on material specifications and product designs. Six innovation centres support this effort, alongside expanded prototyping and testing capabilities and collaborations with institutions such as IIT-Bombay Research Park.

Electric vehicles represent a big opportunity as they each require around 120 kg of aluminium in the battery enclosure alone. Hindalco supplies battery enclosures, battery casings, crash-management systems, front forks and structural components to two-, three- and four-wheeler manufacturers.

It also supplies aluminium for smartphones, laptops and other consumer electronics.

The same strategy is being pursued for copper and speciality alumina. Hindalco has developed copper-magnesium and copper-silver alloys for high-speed rail applications and is working on inner-grooved tubes and photovoltaic ribbons aimed at import substitution.

Its speciality alumina business is targeting flame retardants, battery-grade materials and semiconductor applications. It has introduced superfine precipitated hydrate for flame-retardant applications and is evaluating higher-value products such as white fused alumina.

Novelis gives Hindalco another major growth engine. The restart of the Oswego plant and the commissioning of the Bay Minette facility in the US in the second half of 2026 are expected to strengthen Novelis’ position in beverage packaging, automotive and speciality products.

As Bay Minette ramps up, Novelis is expected to support Hindalco’s objective of achieving adjusted EBITDA of $600 per tonne.

The group has 19 plants in India and 29 overseas Annual revenue is around $31 billion.

This global downstream network gives Hindalco an advantage that a new primary aluminium producer will take time to replicate.

Domestic demand for aluminium is set to be driven by the infrastructure, renewable power, electric mobility, high-speed rail, data centres and advanced manufacturing segments. The Ministry of Mines estimates domestic aluminium consumption will rise from about 6.1 million tonnes in FY26 to around 28 million tonnes by FY47. The country also targets self-sufficiency in bauxite and alumina by 2035.

Copper, central to electrification, is expected to see similarly sharp growth, with domestic refined copper consumption projected to rise from around 0.9 million tonnes in FY26 to 3.6 million tonnes by FY47.

Hindalco can position itself not merely as a commodity producer but also supplier of materials and components for the next phase of industrialisation.

The company is already working with customers on lighter, safer and more efficient components, deploying process scientists, alloy specialists, modelling experts and design engineers to accelerate product development.

Hindalco is betting on renewable power to improve its long-term cost position while reducing the carbon intensity of production. It is currently the only aluminium producer in India with round-the-clock renewable power.

The company has secured 400 MW of renewable energy, supported by a gross captive renewable pipeline of more than 1.3 GW and energy storage capacity exceeding 1 GWh.

Since aluminium smelting is energy-intensive, a combination of captive power, renewable energy, resource security and integrated logistics can determine where a producer sits on the global cost curve.

This is where the contest with Adani could become interesting. Adani brings expertise in infrastructure, ports, power, logistics and large-scale project execution — suited to build an integrated aluminium chain around Odisha’s mineral resources.

Hindalco, in contrast, has an operating ecosystem. The emerging battle, therefore, is unlikely to be decided simply by who builds the largest smelter.

Adani is making one of the biggest greenfield bets on India’s aluminium sector. Hindalco’s answer is a combination of brownfield expansion, upstream security, renewable energy, recycling, global downstream operations and specialised products. Its objective is clear: produce competitive primary metal, but also capture more value from every tonne before it reaches the customer.

Published on August 31, 2026