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Hindalco's Novelis to Sell Two China Units for About $265 Million

Novelis has agreed to sell two China subsidiaries to Shenzhen Hongzhi Industrial Investment, Hindalco said in a filing.

Jhanvi Shah Nov 15, 2026, 5:38 PM IST 3 min read

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Key Takeaways

Novelis agreed to sell two China subsidiaries for about $265 million.
The buyer is Shenzhen Hongzhi Industrial Investment and/or its affiliates.
Up to $10 million more may be paid if specified conditions are met.
The units made about 1% of Hindalco's consolidated net sales in FY26.
The deal is expected to close within 12 months, subject to regulatory approvals.

Table of Contents 6 sections

Hindalco's Novelis China sale at a glance
How much the two China units add to Hindalco's numbers
Novelis's road into China's automotive aluminium market
When Hindalco expects the Novelis China deal to close
Where Hindalco stands after agreeing to the China sale
FAQs

Hindalco Industries said on Sunday, November 15, 2026, that its US-based subsidiary Novelis has agreed to sell two wholly owned subsidiaries in China for about $265 million. Hindalco shared the news in a stock exchange filing, and said the agreement was signed on Saturday, November 14.

The two units are Novelis (China) Aluminum Products Co Ltd and Novelis (Shanghai) Aluminum Trading Co Ltd. The buyer is Shenzhen Hongzhi Industrial Investment Co Ltd and/or one or more of its affiliates. Novelis can get up to $10 million more if specified conditions are met, which would take the total to about $275 million.

Hindalco's Novelis China sale at a glance

Detail	Value
Seller	Novelis, the US-based subsidiary of Hindalco Industries
Units being sold	Novelis (China) Aluminum Products Co Ltd and Novelis (Shanghai) Aluminum Trading Co Ltd
Buyer	Shenzhen Hongzhi Industrial Investment Co Ltd and/or its affiliates
Price	About $265 million
Extra payment	Up to $10 million if specified conditions are met
Agreement signed	November 14, 2026
Expected closing	Within 12 months, subject to regulatory approvals
Related-party deal	No

How much the two China units add to Hindalco's numbers

In FY26, the two units had net sales of about $376 million, or Rs 3,319 crore. That is about 1% of Hindalco's consolidated net sales for the year, as per the filing.

The units also contributed Rs 2,420 crore to Hindalco's net worth, which is about 2% of the group's net worth. Hindalco said the buyer is not a related party, so the sale is not a related-party transaction.

Novelis's road into China's automotive aluminium market

Novelis is a US-based aluminium producer owned by Hindalco Industries. In April 2012, Hindalco said Novelis would build its first manufacturing plant in China, a $100 million automotive aluminium sheet plant in Changzhou in Jiangsu province, with a capacity of 120,000 tonnes a year.

When	What happened
April 2012	Novelis announced a $100 million automotive aluminium sheet plant in Changzhou, China, with a capacity of 120,000 tonnes a year
November 14, 2026	Novelis signed the agreement to sell its two China subsidiaries for about $265 million
November 15, 2026	Hindalco disclosed the deal in a stock exchange filing

When Hindalco expects the Novelis China deal to close

Hindalco said the deal is expected to close within 12 months of signing. The closing depends on regulatory approvals.

Where Hindalco stands after agreeing to the China sale

Novelis has agreed to sell its two China subsidiaries to Shenzhen Hongzhi Industrial Investment for about $265 million, with up to $10 million more if specified conditions are met. The two units made about 1% of Hindalco's consolidated net sales in FY26. Hindalco said the deal is expected to close within 12 months, subject to regulatory approvals.

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Frequently Asked Questions

What is Hindalco selling in China?

Hindalco's subsidiary Novelis has agreed to sell two wholly owned China subsidiaries, Novelis (China) Aluminum Products Co Ltd and Novelis (Shanghai) Aluminum Trading Co Ltd.

How much will Hindalco's Novelis get for the two China units?

Hindalco said Novelis will sell the two China units for about $265 million.

How much more can Novelis get from the deal?

Hindalco said Novelis can get up to $10 million more if specified conditions are met, taking the total to about $275 million.

Who is buying the Novelis China units from Hindalco's subsidiary?

Hindalco said the buyer is Shenzhen Hongzhi Industrial Investment Co Ltd and/or one or more of its affiliates.

When did Novelis sign the agreement?

Hindalco said Novelis signed the agreement on November 14, 2026, and Hindalco disclosed it in a stock exchange filing on November 15, 2026.

How big are the two units compared with Hindalco?

Hindalco said the two units had FY26 net sales of about $376 million, or Rs 3,319 crore, which is about 1% of its consolidated net sales.

How much did the units contribute to Hindalco's net worth?

The two units contributed Rs 2,420 crore to Hindalco's net worth, which is about 2% of the group's net worth.

When will the Hindalco Novelis China deal close?

Hindalco said the deal is expected to close within 12 months of signing, subject to regulatory approvals.

Is the Novelis China sale a related-party transaction for Hindalco?

No, Hindalco said the buyer is not a related party, so the sale is not a related-party transaction.

What is Novelis?

Novelis is a US-based aluminium producer and a subsidiary of Hindalco Industries.

What is Hindalco?

Hindalco Industries is an Indian company and the parent of Novelis, the US-based aluminium producer selling the two China units.

When did Novelis plan its first plant in China?

In April 2012, Hindalco said Novelis would build a $100 million automotive aluminium sheet plant in Changzhou, its first manufacturing plant in China.