Adani Took a loan of Rs. 6071 Crore to make, also called a Project of KCL. Will Adani be the biggest manufacturer of Copper in the World?
Kutch Copper Limited (KCL), a subsidiary of Adani Enterprises, recently borrowed Rs. 6071 crores to build a copper factory in Mundra, Gujarat.
The loan was granted following the execution of financing documents with the consortium of banks by the State Bank of India. KLC was integrated in March 2021 as a subsidiary of Adani Enterprises, which was hatched as a new business in Adani Groups.
What could be Adani’s vision?
India used to be the biggest exporter of copper in the world, but when India’s biggest copper manufacturing power plant shut down. India was in such a shortage of copper then, and even though we had to import $1.2 billion, it was a great opportunity for Adani to fill this gap. So, India won’t have to import that much copper from outside.
The whole world is running after EVs (Electrical Vehicles) and even though everyone thinks that EVs hold the global future, Even the sales of electric vehicles in India have increased by 400% in just one year. The most useful metal in electric vehicles is copper. Over 100kg of copper is used to make electric vehicles (cars).
The most exciting thing is the timing of Adani’s loan. When India’s biggest copper manufacturing company had to shut down, Adani’s loan was sanctioned right after that. So Adani has now become not only India’s biggest copper manufacturer, Adani even wants to buy India’s biggest manufacturing plant even at the cheapest cost.
Adani Group Director Vinay Prakash says that the construction is going well and the plant is scheduled to start production in the first half of 2024. “It will be one of the largest copper refining complexes in the world, with modular ESG performance standards, leveraging the latest technology and digitization” he said.
The demand for copper is more likely to increase with the shift to renewable energy and the adoption of electric vehicles.
Read More: Adani to enter Metal and Alumina industry
