New Delhi: Reliance Industries Ltd (RIL), led by Mukesh Ambani, is reportedly evaluating a potential entry into aluminium production, setting the stage for a possible new contest with the Adani Group in India’s fast-growing metals sector. The move is still at an exploratory stage, according to reports.
Reliance’s interest in aluminium could be linked to its plans for coal gasification. The company is developing a major coal gasification project in Andhra Pradesh, and aluminium production could potentially use the power or industrial fuel generated through the gasification process. This integration could improve the commercial viability of the energy-intensive project.
The company has also shown interest in Odisha’s mineral resources. Reliance participated in the recent auction process for the Karlapat bauxite block by purchasing tender documents, although the block was ultimately won by Vedanta’s BALCO at a record 175% premium. The block is estimated to contain more than 200 million tonnes of bauxite.
Adani’s $11.5 Billion Aluminium Project
Reliance’s reported interest comes as the Adani Group prepares for a major expansion into aluminium. Adani Enterprises Ltd and UAE-based International Resources Holding (IRH) have announced a $11.5 billion integrated aluminium project in Odisha.
The project is planned to include a 4 million tonnes per annum alumina refinery, a 2 million tonnes per annum aluminium smelter and a 1 million tonnes per annum downstream manufacturing park. The investment is expected to be developed in two phases and could create around 53,500 jobs.
Aluminium Demand Drives New Investments
India’s aluminium industry is expected to see strong growth as demand rises from infrastructure, electrification, renewable energy, electric vehicles and manufacturing.
Industry estimates cited by Mint suggest domestic aluminium consumption could rise from nearly 6 million tonnes in FY2026 to 8.5 million tonnes by FY2030. With existing producers operating at high capacity utilisation, new investments could help meet future demand.
India’s primary aluminium sector is currently dominated by major producers including Vedanta Aluminium, Hindalco Industries and state-owned NALCO. A potential entry by Reliance would introduce another major industrial group into the sector, while Adani’s planned investment is already expected to significantly expand India’s aluminium production capacity.
Potential Reliance-Adani Competition
If Reliance ultimately proceeds with its aluminium plans, the move could create a new area of competition between two of India’s largest conglomerates. Both groups are already expanding into energy and other capital-intensive businesses, and aluminium could become another major battleground.
However, Reliance has not yet formally confirmed a decision to enter aluminium production. The reported plans remain under evaluation, with the company’s eventual investment strategy likely to depend on access to raw materials, energy economics and the long-term outlook for aluminium demand.