The Adani Group, led by Gautam Adani, is set to spearhead the establishment of a copper refinery with a capacity of 1 million tonnes per annum in two phases.
The world's largest single-location copper manufacturing plant will be in Mundra, Gujarat under a subsidiary of Adani Enterprises Ltd, Kutch Copper Ltd as per as report by The Economic Times.
Adani's venture into the copper business aligns with the conglomerate's ambitious goals in the green energy sector.
Leveraging its robust presence in resource trading, logistics, renewable power, and infrastructure, Adani Group aspires to emerge as a global leader in the copper industry.
Currently, India is an importer of refined copper with imports reaching Rs 14,000 crore in the past year.
India's transition from a net exporter to a net importer of refined copper stemmed from the closure of Vedanta's Sterlite copper plant in Tamil Nadu's Tuticorin in 2018, following protests over alleged pollution concerns.
The closure of Sterlite's plant, which accounted for 40 per cent of the country's copper smelting capacity, resulted in a 46 per cent decline in India's copper production in 2018-19.
India's Copper Needs
The demand for copper in India has witnessed robust growth, driven by various sectors such as building construction, renewable energy, electric mobility, industrial applications, railways, and power transmission.
However, the country's domestic production has been unable to meet this escalating demand, leading to a surge in imports.
India's per capita copper consumption remains significantly lower than the global average, indicating ample room for growth and expansion in the domestic market.
The Adani Group’s entry into the copper sector is expected to play a pivotal role in addressing India's growing demand for copper.
By doubling the nation's domestic capacity and potentially returning refined copper production to pre-closure levels by 2025, the group’s initiative promises to significantly contribute to India's industrial landscape and economic growth trajectory.
Moreover, the global surge in copper demand, driven by the transition to renewable energy sources, underscores the strategic timing and relevance of Adani's venture into the copper industry.
Bhuvan Krishna is Staff Writer at Swarajya.
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