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Kumar Mangalam Birla pegs valuation of Hindalco's Novelis at $12 billion

Hindalco acquired Novelis in 2007 for $6 billion

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Dev ChatterjeeKrishna Kant Mumbai
Aditya Birla Group chairman, Kumar Mangalam Birla puts the valuation of his Hindalco Industries’ fully owned American subsidiary, Novelis, at $11-12 billion. 

Hindalco acquired Novelis in 2007 for $6 billion; Birla says the company returned equity worth $3 billion back to its promoter within three years.

 “Our real capital invested in Novelis, therefore, was about $3 billion. The value of Novelis today would be $11-12 billion. The acquisition also helped Hindalco move towards more of value added products, which has higher margins and faces less volatility due to London Metal Exchange prices,” he said, soon after announcing the acquisition of US-based Aleris

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First Published: Jul 31 2018 | 5:30 AM IST

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