Adani Group’s $1.1 billion copper project to begin operations from March 2024

The Adani Group is poised to inaugurate its upcoming copper factory in Gujarat by March of the following year. This environmentally friendly copper refinery project, managed by Kutch Copper Ltd (a subsidiary of Adani Enterprises Ltd), is designed to produce 1 million tonnes per annum in two phases. Valued at $1.1 billion, the Mundra-based project is set to play a vital role in bolstering the development of green energy infrastructure.

As per a report from PTI, the first phase of the copper factory, with a capacity of 0.5 million tonnes per annum, is expected to be operational by the end of the current fiscal year. KCL has successfully achieved financial closure for Phase-1 through a syndicated club loan, with a consortium of banks providing the entire debt requirement of ₹6,071 crore.

Earlier this year, the ₹8,783 crore-greenfield project secured full debt tie-up with a consortium of banks led by SBI, while the equity investment came from the parent company, Adani Enterprises Ltd. KCL has obtained all the necessary approvals, ensuring timely execution of the project.

With the burgeoning demand from rapidly growing renewable energy, telecom, and electric vehicle industries, copper has become the third most widely used industrial metal after steel and . However, India’s domestic copper production has struggled to meet this rising demand, leading to an increased reliance on copper imports. Over the past five years, India’s copper imports have consistently surged, reaching a record 1,81,000 tonnes in FY23 (April 2022 to March 2023 fiscal), while exports declined significantly to a record low of 30,000 tonnes.

In FY23, the country’s copper consumption reached an estimated 7,50,000 tonnes (612 KT in FY22), and it is projected to further rise to 1.7 million tonnes by 2027, largely due to the escalating demand from the green energy industry.