Hindalco Industries' subsidiary Novelis Inc. has entered into an agreement to sell two of its wholly-owned subsidiaries in China to Shenzhen Hongzhi Industrial Investment Co. Ltd. and/or one or more of its affiliates for approximately US$265 million (around ₹2,340 crore). The transaction also includes a contingent earn-out of up to US$10 million, subject to the achievement of specified conditions.
The agreement for the sale of Novelis (China) Aluminum Products Co. Ltd. and Novelis (Shanghai) Aluminum Trading Co. Ltd. was signed on November 14, 2026. The proposed transaction is expected to be completed within 12 months of the agreement date, subject to regulatory approvals. Following completion, the two entities will cease to be subsidiaries of Hindalco.
The two China-based entities reported net sales of US$376 million (₹3,319 crore) in FY2026, accounting for approximately 1% of Hindalco's consolidated net sales during the period. Their combined contribution to Hindalco's net worth stood at US$259 million (₹2,420 crore), representing around 2% of the company's net worth at the end of the last financial year.
Hindalco stated that the buyers do not belong to its promoter or promoter group. The transaction will also not be classified as a related-party transaction.