Tata, Birla, Vedanta… Adani is preparing to compete with everyone, created a stir with a project of Rs 42000 crore
New Delhi: Gautam Adani, the country’s second richest man and chairman of Adani Group, is going to invest heavily in the metal industry. His move has created panic among many big business groups like Tata, Birla and Vedanta. Adani is investing 5 billion dollars (about 42 thousand crores rupees) for this business.
Adani’s metal business will focus on mining, refining and production of copper, iron, steel and aluminum. For this, Adani Group will spend 5 billion dollars in this sector in the next 3 to 5 years. According to media reports, out of the total investment, 2 billion dollars will be spent on copper. Adani’s entry into this business will challenge big companies like Vedanta, Aditya Birla Group’s Hindalco and Tata.
Already stepping into the copper sector
The Adani Group has started the first phase of its copper operations in March with a smelter capacity of 500 KTPA (kilotonnes per annum). At the same time, the Adani Group is also eyeing other metals like aluminum, steel etc.
The group has got approval to build an alumina refinery and a captive power plant in Raigarh, Odisha. Work will start here soon. But before that, the Adani Group is considering setting up an alumina refinery under its subsidiary Mundra Aluminum Limited.
These companies will face competition
After entering the metal sector, Adani Group will face competition from many big companies like Vedanta, Hindalco, Tata Steel, JSW Steel etc. Vedanta is known for its operations in aluminium, zinc, iron etc. Hindalco specializes in copper and aluminium. Tata Steel and JSW Steel are leaders in the iron and steel sector.
What is Adani’s goal?
Adani’s goal is to reach out to sectors that have so far eluded him. The group had recently entered the cement sector by acquiring Ambuja Cements Limited and ACC Limited.
The new investment in the metal sector is part of Adani’s strategy to ensure captive consumption for his green energy and basic infrastructure projects.
