Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions

12 Months Ended

Mar. 31, 2025

Investment In and Advances To Non-Consolidated Affiliates and Related Party Transactions [Abstract]

8. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS

Included in the accompanying consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates.

Alunorf

Alunorf is a joint venture investment between Novelis Deutschland GmbH, a subsidiary of Novelis, and Speira GmbH. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the production capacity of the facility. Alunorf tolls aluminum and charges the respective partner a fee to cover the associated expenses.

UAL

UAL is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe. UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from Novelis and Kobe. UAL is controlled by an equally represented Board of Directors in which neither entity has sole decision-making ability regarding production operations or other significant decisions. Furthermore, neither entity has the ability to take the majority share of production or associated costs over the life of the joint venture. Our risk of loss is limited to the carrying value of our investment in and inventory-related receivables from UAL. UAL's creditors do not have recourse to our general credit. Therefore, UAL is accounted for as an equity method investment, and Novelis is not considered the primary beneficiary. UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of March 31, 2025, Novelis and Kobe both hold 50% interests in UAL. During fiscal 2025 and fiscal 2024, we made additional contributions to UAL in the amount of $21 million and $30 million, respectively.

AluInfra

AluInfra is a joint venture investment between Novelis Switzerland SA, a subsidiary of Novelis, and Constellium SE. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the facility.

The following table summarizes the assets, liabilities, and equity of our equity method non-consolidated affiliates in the aggregate as of March 31, 2025 and 2024.


	March 31,
in millions	2025		2024
ASSETS
Current assets	$	570	$	561
Non-current assets	815		825
Total assets	$	1,385	$	1,386
LIABILITIES
Current liabilities	$	276	$	292
Non-current liabilities	277		258
Total liabilities	$	553	$	550
EQUITY
Total equity	$	832	$	836
Total liabilities and equity	$	1,385	$	1,386

As of March 31, 2025, the investment in Alunorf exceeded our proportionate share of the net assets by $392 million. The difference is primarily related to the unamortized fair value adjustments that are included in our investment balance as a result of the acquisition of Novelis by Hindalco in 2007.

As of March 31, 2025, the investment in UAL exceeded our proportionate share of the net assets by $41 million. The difference primarily relates to goodwill.

The following table summarizes the results of operations of our equity method non-consolidated affiliates in the aggregate for fiscal 2025, fiscal 2024, and fiscal 2023 as well as the nature and amounts of significant transactions that we had with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates.


in millions	Fiscal 2025		Fiscal 2024		Fiscal 2023
Net sales	$	1,568	$	1,519	$	1,721
Costs and expenses related to net sales	1,531		1,492		1,652
Income tax provision	9		4		21
Net income	$	28	$	23	$	48

Purchase of tolling services from Alunorf	$	298	$	297	$	332

Related Party Transactions

Included in the accompanying consolidated financial statements are transactions and balances arising from business we conduct with our non-consolidated affiliates and our indirect parent company, Hindalco.

The following table describes related party balances in the accompanying consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates.


	March 31,
in millions	2025		2024
Accounts receivable, net — related parties	$	136	$	161
Other long–term assets — related parties	3		3
Accounts payable — related parties	275		280

Transactions with Hindalco

We occasionally have related party transactions with Hindalco. During fiscal 2025 and fiscal 2024, we recorded net sales of $1 million between Novelis and Hindalco, which primarily related to certain services and sales of equipment. During fiscal 2023, we recorded net sales of less than $1 million between Novelis and Hindalco, which primarily related to certain services and sales of equipment. As of March 31, 2025 and 2024, there were $1 million and $2 million of accounts receivable, net — related parties net of accounts payable — related parties related to transactions with Hindalco, respectively.

Return of Capital

We did not pay a return of capital to our common shareholder in fiscal 2025. We paid a return of capital to our common shareholder in the amount of $100 million during the fourth quarter of fiscal 2024 and second quarter of fiscal 2023, respectively.