Adani Group to Invest $5 Billion in Metals Sector

MUMBAI, India - The Adani Group is planning a multi-billion-dollar foray into the metals sector two years after its debut in the country's cement sector.

According to LiveMint, the conglomerate will invest a total of $5 billion over the next three to five years on mining, refining, and production activities. This includes $2 billion allocated towards copper production, with the remaining amount being invested in other metals such as aluminium, iron, and steel.

The investment is seen as a strategic move by the Adani Group to explore opportunities for synergies with its existing renewable energy, transmission, logistics, ports, and infrastructure businesses.

"A significant reason to enter the metals business is captive consumption," said a person close to the group. "This will be critical for our green energy businesses (solar, wind, and green hydrogen) and transmission."

The company's entry into the metals sector marks it as a challenger to industry majors such as Vedanta, Hindalco Industries, and Tata Group.

In 2022, Adani entered the cement sector by acquiring Ambuja Cements Ltd and ACC Ltd for $6.6 billion. However, ACC Ltd has reported a significant decline in its net profit due to declining cement prices and continued demand inertia from multiple sectors.

Notably, moneycontrol could not independently verify the report on Adani's metals investment plans.