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Hindalco Industries' subsidiary Novelis Inc. has achieved a critical commissioning milestone

ICICIdirect Research 08 Oct 2026 DISCLAIMER

News: Hindalco Industries' subsidiary Novelis Inc. has achieved a critical commissioning milestone by producing the first aluminum coil on the cold mill at its 600 KT greenfield recycling and rolling facility in Bay Minette, Alabama. With all primary core assets now undergoing active commissioning, Novelis remains on track for customer qualification procedures ahead of commencing commercial shipments in Q2 CY2027.

View: This development marks a significant positive for the company as hitting cold mill commissioning in H2 CY2026 keeps the revised Q2 CY2027 (Q1 FY28) commercial shipment target fully intact. Alonside, north american tightened supply-demand fundamentals of beverage packing cans might contribute to rapid capacity absorption. The plant aims to add $800mn - $1 bn to the overall EBITDA at full utilisation. This helps to drive the company EBITDA from $525/tonne to the guidance of ~$572/tonne and long term guidance of $600/tonne. Thus, we remain positive for Hindalco and further watchful as it goes for production qualification cycle from its end-user industries (Packaging and Auto OEMs)

Impact: Positive

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