Adani Enterprises Limited (AEL) has announced a significant move in the copper tube manufacturing sector, entering into a strategic partnership with MetTube Mauritius Private Limited. This collaboration aims to bolster India's self-reliance in copper tube production and cater to the growing demands of the heating, ventilation, and air conditioning (HVAC) industry.

Key Highlights of the Partnership

• Adani Enterprises is divesting a 50% stake in its wholly-owned subsidiary, Kutch Copper Tubes Limited (KCTL), to MetTube.
• Concurrently, AEL will acquire a 50% stake in MetTube Copper India Private Limited (MCIPL), a wholly-owned subsidiary of MetTube.
• The partnership is formalized through Share Purchase and Shareholders Agreements executed on July 24, 2025.
• Both KCTL and MCIPL will be equally owned by Adani Enterprises and MetTube post-transaction.

Strategic Implications

This alliance is set to create a powerhouse in the copper tube manufacturing sector, combining Adani's infrastructure capabilities with MetTube's global expertise. The partnership is expected to:

1. Reduce India's dependence on imported copper tubes significantly.
2. Accelerate domestic production and innovation in the sector.
3. Support India's green infrastructure goals by supplying high-performance copper tubes for HVAC, renewable energy, and smart construction applications.

Synergies and Expansion

The collaboration leverages Adani's forward-integrated copper ecosystem, including its 0.5 MTPA copper refinery project in Mundra, Gujarat. MetTube brings decades of global experience in manufacturing high-performance copper tubes, operating state-of-the-art facilities in Malaysia and India.

Industry Impact

The partnership is poised to address the surging demand for copper tubes in critical sectors such as air conditioning, refrigeration, and plumbing. This demand is driven by rapid urbanization and the need for climate-responsive infrastructure.

Management Perspectives

Jeet Adani, Whole Time Director of Adani Group, stated, "This partnership with MetTube is a strategic leap towards making India self-reliant in copper tube manufacturing. By combining Adani's infrastructure and operational excellence with MetTube's global expertise, we are not just building capacity—we are building capability."

Apurv Bagri, Chairman of Metdist Group, added, "India's copper tube demand is growing rapidly, and this alliance strengthens our commitment to the 'Make in India' vision with globally benchmarked manufacturing. Together with Adani, we aim to deliver high-quality, locally manufactured Inner Grooved copper tubes that meet international standards."

Governance and Structure

The partnership ensures equal ownership and shared governance:

• Both companies will have the right to appoint an equal number of directors on the boards of KCTL and MCIPL.
• They will have equal rights to subscribe to additional issuance of shares by KCTL and MCIPL.
• Any changes in capital structure or geography will require mutual consent.

This strategic alliance between Adani Enterprises and MetTube marks a significant step towards enhancing India's manufacturing capabilities in the copper tube sector, aligning with the country's vision of self-reliance and sustainable growth.

In a significant shift in investor sentiment, mutual funds have emerged as net buyers in seven out of ten Adani Group stocks during the June quarter, while foreign institutional investors (FIIs) have reduced their holdings. This development comes as the Adani Group reports record profits and ambitious investment plans.

Mutual Funds Increase Stakes

Mutual funds have shown increased confidence in Adani stocks, with the most notable change seen in Adani Energy Solutions. The holdings in this company surged by 74 basis points, reaching 3.19%. This trend of increased mutual fund investment was observed across a majority of Adani Group companies.

LIC's Strategic Moves in Cement Assets

Life Insurance Corporation of India (LIC), a major institutional investor, has selectively increased its stakes in Adani's cement assets. LIC boosted its stake in ACC by 142 basis points, bringing its total holding to 9.11%. Similarly, it increased its stake in Ambuja Cements by 125 basis points, now holding 6.80% of the company.

Foreign Investors Reduce Exposure

In contrast to the bullish stance of domestic institutions, foreign institutional investors have reduced their holdings in eight out of ten Adani stocks. The most significant reduction was observed in Adani Energy Solutions, where the FII stake dropped by 173 basis points to 15.85%.

US-based GQG Partners, in particular, has reduced its exposure to the group. The firm sold stakes in Adani Green Energy and Adani Power, while completely exiting its position in Ambuja Cements.

Adani Enterprises Group's Financial Performance and Future Plans

Amidst these ownership changes, the Adani Group has reported strong financial results. The conglomerate posted a record profit after tax of ₹40,565.00 crore. Looking ahead, the group has announced plans to invest $15-20 billion over the next five years, signaling confidence in its growth trajectory.

Analyst Perspective

Despite the mixed investor sentiment, some analysts remain optimistic about select Adani Group companies. Jefferies, a prominent financial services company, has included Adani Energy Solutions and Adani Ports in its value picks. The firm cites growth potential and attractive valuations compared to historical levels as reasons for their inclusion.

These developments highlight the dynamic nature of investor sentiment towards the Adani Group, with domestic and foreign investors taking divergent positions. As the group continues to report strong financials and announce ambitious plans, it remains a focal point in the Indian stock market landscape.