Hindustan Zinc, a Vedanta subsidiary and the world’s largest integrated zinc producer, declared that its Board has accepted the first phase of investments for doubling production capacity. The corporation’s Board of Directors permitted the preliminary plans for increasing its integrated refined metal capacity by 250-ktpa (kilo tons per annum) alone with matching mines & mills capacity across multiple places with an investment of almost Rs. 12,000-crore.
India’s need for zinc is projected to double over the next 5-10 years, driven by significant investments in infrastructure, consisting of steel manufacturing, according to the International Zinc Association. Hindustan Zinc’s expansion aligns with the strong development anticipated in domestic and global steel demand.
The corporation plans to double its mental and silver capacities over the next 5 years, taking the overall metal manufacturing capacity to over 2,000-ktpa and silver manufacturing capability to 1,500 tons. The Board has permitted the venture for setting up a new 250-ktpa included smelter at Debari in Udaipur district (Rajasthan) along with associated mines & mills growth across its operations. The corporation’s recent metal manufacturing capacity stands at 1.1-million tons. The venture is targeted to be finished in a period of 36 months.
This development is significant as it comes on the time of continued global deficit in the zinc market. Since the government disinvested its stake in 2002 and next acquisition by Vedanta Group, the corporation’s zinc manufacturing has grown four time whilst silver manufacturing has grown more than 20 times.
Vedanta to sell 1.6% stake In another development, Vedanta is stated to be planning to sell up to 1.6% stake in Hindustan Zinc via a block deal for around $350-mn. As per the term sheet, the Anil Agrawal promoted group could be selling up to 6.67-crore shares at a floor price of Rs. 452.50. Vedanta held a 63.4% stake in Hindustan Zinc at the end of March 2025.
