Vedanta to Invest Rs 13,226 Crore in Odisha to Expand Aluminium Capacity by FY28

Vedanta, led by Anil Agarwal, has announced a massive investment of Rs 13,226 crore to significantly expand its aluminium production capacity in Odisha. The company plans to increase annual output from 2.4 million tonnes to 3.1 million tonnes by the financial year 2028, positioning aluminium at the core of its growth strategy.

This expansion reflects Vedanta’s commitment to meeting the rising demand across critical sectors such as electric mobility, renewable energy, infrastructure, and aerospace. The company aims to achieve an interim capacity of 2.75 million tonnes by FY26, paving the way for full-scale operations by FY28. Its subsidiary, Bharat Aluminium Company Limited (BALCO), is also set to join the prestigious one-million-tonne production club, reinforcing Vedanta’s leadership in India’s aluminium industry.

Vedanta currently holds more than 50 percent of the country’s aluminium market. Over the past 11 quarters, the company has successfully reduced production costs by approximately 24 percent, bringing costs down to around USD 641 per tonne. This has been achieved through backward integration, including expansion of the Lanjigarh refinery and captive coal mining operations, ensuring cost efficiency and supply stability.

The Odisha expansion project will further strengthen Vedanta’s position as a fully integrated aluminium producer, offering resilience against global price volatility and enhancing operational efficiency. Analysts predict that this growth will not only meet domestic demand but also bolster India’s export capabilities in the aluminium sector.

With global trends increasingly favoring sustainable and energy-efficient solutions, Vedanta’s investment aligns with broader industrial and environmental objectives. The company’s strategic focus on high-demand segments like electric vehicles and renewable energy underscores its role in supporting India’s industrial transformation and clean energy initiatives.

Vedanta’s ambitious expansion in Odisha signals a new era for India’s aluminium market, promising robust growth, cost efficiency, and strategic advantages that will shape the industry’s future.