Aleris' modern Zhenjiang facility located proximate to Novelis' facility in Changzhou enhances Novelis' competitive position in Asia by giving it access to SHFE (Shanghai Futures Exchange) metal integration and strengthening its market leadership as an aluminium sheet supplier in the world's largest and fastest growing automotive market where electric vehicle demand is expected to grow significantly requiring lightweight materials like aluminium for both batteries and car bodies.

The acquisition adds to Hindalco's ability to bring in the latest capabilities in aluminium value added products to India. The Indian aluminium market is at the cusp of growth given the evolving state of per capita GDP vs Aluminium consumption in the country -  similar exponential growth was witnessed in China a decade ago. In these early stages of growth and fuelled by the government's Make-in-India campaign, segments like B&C and transportation are likely to grow significantly. Given its synergy with Novelis, Hindalco has become the market leader in aluminium value added products in India and is poised to capture this growth in the future. Further, Aleris' expertise in this segment will give Hindalco's India Aluminium value added products business an edge over local competition while enabling it to compete with global players foraying into the lucrative Indian market.

This acquisition of Aleris Corp. by Novelis Inc. is subject to customary closing conditions and regulatory approvals.

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