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

The units are Novelis (China) Aluminum Products Co Ltd and Novelis (Shanghai) Aluminum Trading Co Ltd. The first runs Novelis's automotive aluminium plant in Changzhou, which makes sheet for lightweight vehicle structures and body panels.

The sale reduces Novelis's footprint in China's car market, its main business in the country. Its Zhenjiang operation, which serves aerospace and industrial customers, sits under a separate Chinese subsidiary and is not included.

The businesses are small within the group. The two units recorded net sales of Rs 3,319 crore in fiscal 2026, about 1% of Hindalco's consolidated net sales, according to the filing as reported. They contributed Rs 2,420 crore to Hindalco's net worth at the end of the year, about 2% of the group total.

Hindalco did not give a reason for the sale. It said the transaction is not a related-party deal. Neither the buyer's plans for the Changzhou plant nor what happens to its staff and customer contracts were set out in the report.

The deal still needs approval from regulators. "Closing is expected to occur within 12 months of the execution date, subject to regulatory approvals," Hindalco said. Novelis signed the agreement on Saturday, so closing could fall as late as November 2027.