Mumbai: Mukesh Ambani-led Reliance Industries Ltd (RIL) is evaluating a plan to venture into aluminium production as part of its broader exploration of the metals business, four people familiar with the matter told Mint.
The move comes months after another conglomerate, Gautam Adani-led Adani Enterprises Ltd, announced an $11.5-billion investment to enter the aluminium business.
RIL, which has won two coal blocks in Andhra Pradesh through an auction, plans to set up a coal gasification project in the state. A coal gasification plant converts coal into a combustible gas that can be used to generate power or as an industrial fuel.
The proposed entry into aluminium could potentially link the coal resources and gasification plans with metals production, the people cited earlier said, requesting anonymity.
“They are considering an entry into metals production to utilize the fuel generated from coal gasification to improve its commercial viability,” said the first person cited above.
While the company’s plans are still at an exploratory stage, it participated in the recent auction of the Karlapat bauxite (aluminium ore) block in Odisha, the second person said, which was won by a rival.
The potential move would mark another step in Reliance’s broader diversification beyond its traditional oil-to-chemicals business, as the conglomerate expands into energy, mining and other natural-resource-intensive businesses.
Reliance did not respond to Mint's queries till press time.
The Economic Times reported on 20 August that the conglomerate has proposed an investment of ₹2.73 trillion over 30 years to develop India’s first integrated underground coal gasification complex in Andhra Pradesh.
Ambani vs Adani
In June, Adani Enterprises announced its investment to develop a 2 million tonnes per annum (mtpa) aluminium project in Odisha in partnership with UAE’s International Holding Company (IHC), setting up competition with established players such as Vedanta Aluminium and Hindalco of the Aditya Birla Group.
If Reliance proceeds with its plans, it would be the fourth major player to enter the sector, signalling a growing interest among India’s large business groups in the silvery-white metal.
Ambani and Adani, India’s wealthiest businessmen, have operated in separate orbits and largely avoided competing in each other’s core business turfs. Both groups, however, are scaling up investments in renewable energy and data centres. Reliance’s potential entry into aluminium would mark another major area of overlap between the two groups.
Apart from its oil refinery business, RIL has built a sprawling telecom and retail empire. Adani, on the other hand, dominates in infrastructure, including airports, ports, and power generation and distribution.
India’s aluminium industry is entering a strong structural growth phase, driven by infrastructure, electrification, renewable energy, electric vehicles (EVs) and manufacturing.
According to BigMint, a commodities market intelligence firm, domestic aluminium consumption could rise from nearly 6 million tonnes (mt) in FY26 to 8.5 mt by FY30 and 28 mt by FY47.
“Even after accounting for around 4.5 mtpa of announced expansions by FY30, total capacity would reach only around 10.9 mtpa. Against a requirement of around 12.3 mtpa by FY30, including domestic consumption and export requirements, this leaves a capacity gap of around 1.4-1.5 mtpa. This creates significant room for new investments and explains the growing interest from large conglomerates,” said Jayprakash Sahu, general manager -non ferrous, BigMint.
Interest in Karlapat
Reliance’s aluminium ambitions also coincide with its interest in the Karlapat bauxite block. Mint first reported on 17 July that Reliance and the Adani Group were among companies interested in the block. Spread across more than 3,100 hectares, Karlapat contains over 200 million tonnes of bauxite and was the largest bauxite reserve on offer in the current auction, according to BigMint.
Vedanta Aluminium’s Balco emerged as the preferred bidder for the block, offering a record auction premium of 175%.
India’s primary aluminium industry remains concentrated among Vedanta, Hindalco and state-owned National Aluminium Co. Ltd (Nalco), leaving room for new entrants as demand is expected to rise sharply, Sahu said.
“The opportunity is also not limited to primary metal. India has considerable headroom in downstream and value-added aluminium, including high-performance alloys, battery foils, automotive applications, conductors and solar components,” he said.
Room for new players
India is already the world’s second-largest aluminium producer after China, with output exceeding 4.2 mtpa in 2025, according to BigMint. About 70-75% of the country’s aluminium production comprises primary aluminium, which involves refining bauxite into alumina and subsequently smelting it into metal.
Vedanta Aluminium is India’s largest aluminium producer, with annual capacity of about 2.5 mtpa, followed by Hindalco Industries at 1.4 mtpa and Nalco at 0.5 mtpa.
“Therefore, new players with integrated access to bauxite, alumina, power, logistics and downstream manufacturing can potentially build competitive positions across the value chain,” Sahu said.
For now, India is not facing an immediate shortage of primary aluminium. However, the industry is operating at nearly 100% capacity utilisation, according to BigMint.
“This indicates that while current supply is adequate, there is very limited spare capacity to absorb further demand growth. With domestic aluminium consumption projected to rise sharply in the coming years, timely capacity additions will be critical to ensure adequate primary aluminium supply,” Sahu said.