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Hindalco Industries, an Aditya Birla Group company, expects a $550-650 million (about ₹5,700 crore) cash flow hit due to the fire at its US subsidiary, Novelis, on September 16. The company said that the losses include an adjusted EBITDA impact of about $100-150 million. Novelis may also incur an additional $21 million in costs to restore operations at the plant. This is in addition to a significant impact on the revenue. Hindalco said that the insurance companies will cover 70 -80 per cent of the losses or damage caused by the fire at the Oswego, New York, facility. Last quarter, a fire broke out at Novelis’ plant. Although there were no casualties, the accident caused major production disruptions at the plant, especially in the hot mill area. Recovery plans Hindalco, in a statement, said it expects to restart the hot mill in December this year. “Despite this unexpected challenge, we remain confident in the strength of our business, the resilience of our team, and our ability to adapt and recover,” said Steve Fisher, President and CEO of Novelis Inc. Earnings take a hit Novelis’ net sales in the September quarter increased 10 per cent to $4.7 billion, while EBITDA dipped 9 per cent to $422 million. The company attributed the EBITDA decline to a net negative tariff impact and higher aluminium scrap prices, partially offset by higher product pricing and cost-efficiency actions. Published on November 5, 2025
