New Delhi, Feb. 15 -- Mumbai: The US' upcoming 25% tariff on aluminium, announced by president Donald Trump, will have a mostly neutral impact on Hindalco Industries Ltd. and its American unit Novelis, according to managing director Satish Pai.

Novelis uses aluminium scrap as well as virgin aluminium as input, which it then processes into flat-rolled sheets to be used by industries ranging from beverage cans to aerospace. The company passes through the cost of aluminium to its consumers after adding its margins, Pai said.

"The metal price is a pass-through for Novelis. It gets paid a conversion premium to convert the metal into a flat sheet for can or auto," Pai told Mint on Friday.

Hindalco, India's second largest producer of the meta...