Hindustan Zinc INR 12,000 Cr Expansion Plan: Boosting Production Capacity

18-Jun-2025

Key Takeaways

Capacity Enhancement and Investment: Hindustan Zinc has sanctioned a INR 12,000 crore investment aimed at expanding its refined metal output by 250 ktpa, with a primary focus on producing zinc, lead, and silver.
Rajasthan to Host New Smelter: As part of the expansion strategy, a state-of-the-art integrated smelter with a capacity of 250 ktpa will be established in Debari, Rajasthan, accompanied by upgrades to existing mining and milling facilities.
Project Timeline: The expansion is expected to be completed within 36 months.
Increased Demand: The project is aligned with the anticipated rise in zinc demand due to infrastructure growth and steel production, both in India and globally.

Hindustan Zinc, a subsidiary of Vedanta, has approved a significant INR 12,000 crore investment to increase its refined metal capacity by 250 kilotons per annum (ktpa), in response to surging global demand. Over the next five years, this bold growth initiative is set to double the company’s output of zinc, lead, and silver, catering to the requirements of both global and local markets.

New Smelter and Enhanced Mining Operations

As part of the expansion, the company will establish a new 250 ktpa integrated smelter in Debari, Rajasthan, and ramp up its mining and milling operations across multiple sites. The initiative is expected to complete within 36 months, enhancing Hindustan Zinc's ability to meet rising demand for zinc driven by infrastructure growth and steel production, both within India and globally.

CEO Arun Misra shared his enthusiasm about the project, emphasizing how it aligns with the nation’s economic growth and self-reliance for zinc. "This 2x growth project is strategically aligned with India’s expanding demand and will create significant value for our stakeholders," said Misra.

Strong Financial Growth and Industry Leadership

Hindustan Zinc, the world’s largest integrated zinc producer and a top-five silver producer, continues to lead the market. In the most recent quarter (March 2025), the company reported a 47.3% increase in net profit, reaching INR 3,003 crore, up from INR 2,038 crore in the previous year. The company’s total revenue for the period grew by 19% to INR 9,314 crore.

The company’s growth trajectory since its privatization in 2002 has been remarkable, with a fourfold increase in zinc production and a more than 20-fold rise in silver output. Hindustan Zinc now holds the second-largest zinc reserves globally, with a mine life exceeding 25 years.

This expansion plan reinforces the company’s position in the global zinc market and its commitment to sustaining long-term growth while addressing rising metal demand worldwide.

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