The Gujarat plant, according to Adani Enterprises, will be one of the largest copper refinery complexes in the world, and will commence production in two years. Agarwal’s Tamil Nadu unit, which remains closed since 2018 over alleged pollution violations, used to cater to 40% of India’s copper needs.
Adani Enterprises incubates new business ventures for the Adani Group. It incorporated Kutch Copper on March 24, 2021 to manufacture copper materials, which are used in electric vehicles (EVs), renewable energy systems, cables, etc.
The Adani Group forayed into the electric mobility infrastructure space in association with French energy giant Total by launching the first EV-charging station in Ahmedabad in March this year. The duo plans to ramp up the infrastructure to 1,500 EV charging stations across the country. The Ahmedabad-based conglomerate also plans to manufacture EVs, but little information is publicly available.
While Adani Enterprises did not reveal the total cost for the 1MTPA copper plant in Mundra, which also houses its port (India’s largest), it said the project entails a mix of debt and equity. “This financial closure (loan of Rs 6,071 crore) enables us to accelerate the copper project and complete it within the set timelines,” said Adani Enterprises director Vinay Prakash.
An SBI-led consortium of banks has sanctioned the entire Rs 6,071-crore loan for phase-1 of the copper project, Adani Enterprises said.
Adani Enterprises’s latest move pits it against Aditya Birla Group’s Hindalco (India’s largest copper producer) and the government-owned Hindustan Copper. Demand for the soft metal is expected to rise as India ramps up its focus on clean energy and EVs. Following the closure of Agarwal’s Tamil Nadu plant, India has become an importer of copper, buying at a record high price of $ 9,600 a ton.