Hindalco Industries Limited has entered into a definitive agreement to sell two wholly-owned subsidiaries of its subsidiary, Novelis Inc.: Novelis (China) Aluminum Products Co. Ltd. and Novelis (Shanghai) Aluminum Trading Co. Ltd. The sale is for a consideration of USD$265 million, with an additional potential earn-out of $10 million. These entities contributed approximately 1% of Hindalco’s net sales and 2% of its net worth in the last financial year.
Hindalco Divests Chinese Subsidiaries
Hindalco Industries Limited has announced the signing of a definitive agreement for the sale of Novelis (China) Aluminum Products Co. Ltd. and Novelis (Shanghai) Aluminum Trading Co. Ltd. These entities are wholly-owned subsidiaries of Novelis Inc., which is itself a subsidiary of Hindalco.
Financial Impact of the Sale
In the financial year 2026, the Novelis China Entities contributed approximately USD$376 million (or 3,319 Crore) in net sales, representing about 1% of Hindalco’s total net sales for that period. Furthermore, as of the end of Hindalco’s last financial year, these subsidiaries accounted for approximately USD$259 million (or 2,420 Crore) of the company’s net worth, which was around 2% of the total net worth.
Transaction Details
The agreement for the sale was entered into on November 14, 2026. The closing of the transaction is anticipated within 12 months from the execution date, subject to necessary regulatory approvals. The total consideration for the sale is USD$265 million, with the potential for an additional USD$10 million contingent earn-out upon the achievement of specified conditions.
Buyers and Compliance
The buyers of these subsidiaries are identified as Shenzhen Hongzhi Industrial Investment Co., Ltd., and/or one or more of its affiliates. It has been confirmed that the buyers do not belong to the promoter group of Hindalco Industries Limited. The transaction does not involve related party transactions and is not considered a slump sale, thus not requiring specific disclosures related to amalgamations or mergers.
Source: BSE
