Novelis, a major exporter of aluminium to the US, has made a recent USD 2.5 billion investment in a new plant in Alabama and is seen as a strategic hedge against potential tariff impact. Brokerage firm Nuvama says ‘the effect of tariff imposition, if it happens, shall be minimal on Novelis’s earnings’.
The Hindalco management has indicated that any increase in aluminium prices due to the tariffs will be decreed on to buyers through higher premiums. This, coupled with Novelis’ operational efficiency, is expected to cushion the blow.
