Hindustan Zinc Plans Up to $2 Billion Investment to Double Production Capacity: CEO Arun Misra

Vedanta Group’s Hindustan Zinc plans to invest up to $2 billion (approximately ₹17,000 crore) to double its production capacity to 2 million tonnes within the next few years, CEO Arun Misra shared in a statement to PTI. The company has engaged consultants to help boost capacity and is actively seeking mining partners to support the expansion.

Misra outlined the production targets, aiming for 1.2 million tonnes by 2025, followed by 1.35 million tonnes in 2026, and 1.8 million tonnes in 2027, with the final goal of reaching 2 million tonnes. He expects project-specific announcements by the end of this quarter, specifying details on capacity, investment, and location.

The estimated investment, despite the presence of existing mining infrastructure, is projected to be between $1.95 billion and $2 billion. "It’s roughly around ₹14,000 crore to ₹17,000 crore," Misra added.

On the company’s restructuring plans, Misra noted that discussions with stakeholders are ongoing, especially as the government explores its own disinvestment strategy for Hindustan Zinc.

As the world’s second-largest integrated zinc producer and third-largest silver producer, Hindustan Zinc holds a dominant 75% share in India’s primary zinc market, with exports to over 40 countries.

The company recently reported a 34.5% increase in consolidated net profit, reaching ₹2,327 crore for the quarter ending September 30, 2024, up from ₹1,729 crore in the same period last year. Revenue in the second quarter climbed to ₹8,522 crore, with ₹6,403 crore from zinc, lead, and other segments, and ₹1,550 crore from its silver vertical.

HBL