Reliance Eyes Aluminium Business

Mukesh Ambani-led Reliance Industries Ltd (RIL) is reportedly considering entering the aluminium production business, although the proposal is still at an early stage and no final decision has been taken. The company purchased tender documents for Rs. 5 lakh to participate in the auction for the Karlapat bauxite mine in Odisha, a key raw material source for aluminium production. However, the mine was ultimately secured by BALCO, a subsidiary of Vedanta Aluminium.

RIL recently won auctions for two coal mines in Andhra Pradesh and is reportedly planning to set up a coal gasification project there. Such a plant converts coal into synthesis gas, which can be used for power generation or as an industrial fuel. RIL is believed to be exploring the use of this gas for producing aluminium and other metals. The move could bring Reliance into competition with the Adani Group, which announced in June plans to establish a 2-million-tonne-per-year aluminium project in Odisha with a UAE-based partner, involving an investment of around Rs. 1.10 lakh crore.