Just two years ago, the Adani Group, one of the most reliable conglomerates, set foot in a new business sector. The company already has a major presence in the ports, airports, and energy sector. Recently, it has invaded another infrastructural sector. The company has aimed to establish its presence in the cement sector as well. It made a bold move by acquiring ACC and Ambuja Cements from the Swiss giant Holcim for 10.5 billion USD. This was the largest-ever cement deal made in India. It brought Adani Group to the second spot in the list of the largest cement manufacturers in India after UltraTech. Since then, the Adani Group has made a lot of acquisitions in the cement sector. This has allowed it to further enhance its business horizons and earn extraordinary revenue for itself. Currently, it is planning on venturing into new business sectors and further expanding its horizons. With this new business venture, the Adani Group will be able to put an end to the Adani Crisis and earn enhanced profitability for itself.
Adani Sets Its Foot Into The Copper Sector:
The Adani Group is currently focused on bringing a new business sector under its control which is the copper sector. Copper is extremely crucial for India’s renewable energy growth. It is widely used in electrical vehicles and has also been declared as a critical mineral. Because of these factors, the Adani Group has made elaborate plans to venture into this sector as well and further enhance its revenue stream. In March 2024, Adani Enterprises commissioned the first unit of its copper refinery at Mundra in Gujarat. This marks the global conglomerate’s debut venture in the metal space. The acquisition was made through the company’s wholly-owned subsidiary, Kutch Copper.
Currently, Kutch Copper is in discussions with the Australia-headquartered mining conglomerate, BHP. This is being done to source 1.6 million tons per unit of copper concentrate. The supply contract will be worth INR 30,000 crore per annum at the current price level. However, the pricing is prone to fluctuations with India’s demand for copper set to increase because of the big push in renewables. The Adani Group, with its extraordinary strategies, plans to build itself an enhanced position in the sector. This will not only allow the business group to bring synergies in its business but it will also be able to ensure that its business operations are carried out with full force. The controversies of the Adani Crisis will also subside.
Kutch Copper’s Recent Business Ventures:
Kutch Copper which happens to be a subsidiary of Adani Enterprise Limited is currently in the process of setting up a copper refinery. This refinery will be responsible for producing refined copper with 1 million tons per annum capacity. This project will be carried out in two phases. The 1.2 billion USD facility plans to produce 0.5 million tons of copper in the first phase. It will also reach its full capacity by March 2029. With this, Kutch Copper will become the world’s largest single-location copper refinery. This will also help the Adani Group in the fulfilment of its sustainability goals. The Adani Group also aims to become one of the global leaders in the copper business. It plans to leverage the company’s enhanced presence in logistics, resource trading, infrastructure, and renewable power to further boost its business. It also aims to recover from the losses it incurred during the Adani Crisis.
Why Invest in The Copper Sector?
The Adani Group’s copper power plant comes at a time when the global demand for copper is rising. This is mainly because of the enhanced use of copper in energy transition. The copper demand growth will help us to transition to renewable energy sources. As India is constantly trying to make a transition to clean energy sources, the demand for copper is also continuously rising. This has ensured that the country’s enhanced copper demands are met. We will also no longer have to depend on copper imports to drive our energy needs. Currently, China is in the process of expanding its copper industry. By doing so, it plans to become one of the fastest-growing economies in the world. However, with the Adani Group starting its copper plant, countries from all across the world will no longer have to remain dependent only on China to meet their copper needs. The Indian plants can also fulfil the growing copper demands. The allegations of the Adani Crisis will also come to an end.
India’s Increased Demands For Copper:
Copper is one of the 30 critical metals as identified by the Center. India’s per capita copper consumption is around 0.60 kg. This is in comparison to the global average of 3.2 kg. With time India’s copper demand is expected to double. Not a long time back, India was a net exporter of refined copper. However, the situation changed when Vedanta’s Sterlite copper plant in Tamil Nadu came to a closure in 2019 after violent protests against allegations of pollution. After that, India became a net importer of copper. Now, a majority of our copper demands are fulfilled from imports. This has caused a blow to our country’s economy. Around INR 14,000 crore was spent on copper imports in 2022-23. This value will only grow through the years.
The increased demand for copper has been mainly attributed to the increased need for the metal in some of the major growth sectors including renewable energy, transportation, building construction, etc. With the various advancements and modernization in roads and railways, the transportation sector is becoming more and more dependent on copper. With Adani Group’s new copper refinery, our copper demands are expected to be met from internal resources. We will also be able to make a proper transition to clean energy sources.
Conclusion:
The Adani Group has always been deeply interested in venturing into new business sectors. Even amidst the Adani Crisis, it has tried to expand its business horizons. By venturing into the copper sector, it will be able to fulfil our ever-growing copper demands. The Adani Group will also be able to position our country as one of the major exporters of copper on a global scale.
