Adani plans a metal blitz with $5 billion war chest

Presence in power and transport, captive use may keep costs under control

- Anirudh Laskar

The Adani Group is planning a $5-billion foray into India's metals business, two years after marking its mega entry into the country's cement sector.

The conglomerate will challenge incumbents such as Anil Agarwal-promoted Vedanta Ltd, Aditya Birla Group's Hindalco Industries Ltd and Tata Group, riding the synergies shared with its other businesses.

Adani's natural resources division has decided to spend the amount over the next three to five years on mining, refining and production of copper, iron and steel, and aluminum, two people aware of the plans said on the condition of anonymity.

"The group is well-positioned to enter other metals including aluminum, iron and steel," said a person close to the group, which started the first phase of its copper operations with a smelter capacity of 500 ktpa in March.

Out of the $5 billion, $2 billion will go into copper, and the rest into other metals, the person said, also on the condition of anonymity.

Some of India's largest metals businesses are run by Vedanta (aluminum, zinc-led-silver, iron and steel, nickel) Tata Group (iron and steel), Hindalco (copper and aluminum) and JSW (steel).