Hindustan Zinc Limited (HZL), India’s largest zinc and silver producer, has outlined plans to evolve into a multi-metal company. Chairperson Priya Agarwal Hebbar stated in her letter to shareholders that the company is consistently focusing on sustainability, ESG and its cost leadership initiatives to cement its position as a global player in clean energy and critical mineral supply chains. In the letter, she mentioned that the company is strongly positioned to leverage the green premiums on sustainable metals that are being introduced by the London Metal Exchange.“We are evolving from a zinc and silver company into a multi-metal, future-enabling enterprise. Through Hindmetal Exploration Services, we are aligned with India’s critical mineral vision and ready to power the clean tech economy with agility and purpose,” she said. Hindustan Zinc remains the largest integrated zinc producer globally and India’s top silver producer. Silver now contributes 38% of the company’s EBIT. Over the past 20 years, Hindustan Zinc has increased silver production 20-fold and is now among the top five primary silver producers in the world. Given their applications in clean energy infrastructure, semiconductors, electric vehicles, 5G technology, and water purification systems, the company expects demand for both metals to rise. Priya Agarwal Hebbar also outlined how Hindustan Zinc is ready for the ongoing and emerging challenges facing the global economy. “Among the many uncertainties, there lie huge opportunities for Hindustan Zinc…it is absolutely certain that we will maintain our global leadership in production, sustainability, and costs. We remain firmly
committed to protecting our margins and seizing new avenues for growth. Zinc and silver are recognized as critical transition metals, with demand set to grow exponentially. Global supply chains may shift and adapt, but we will remain plugged-in and future-ready.” The company reported record financial and operational performance in FY25. Mined metal production grew to 1,095 KT and refined metal production increased to 1,052 KT, giving Hindustan Zinc a 77% share in India’s primary zinc market. Revenue grew 18% year-on-year to ₹34,083 crore, EBITDA rose 28% to ₹17,465 crore, and Profit After Tax increased by 33% to ₹10,353 crore. The company also reduced its cost of production by6% to $1,052 per tonne and aims to bring this down further to $1,000 per tonne. Despite its growing significance, India’s per capita zinc consumption is only 0.5 kg—one- fourth the global average. This poses a huge opportunity for India. The International Zinc Association projects domestic zinc demand will exceed 2 million tonnes in the next decade. To prepare for this, Hindustan Zinc plans to double its mining and smelting capacity. Sensitivity: Public (C4) On the diversification front, Hindustan Zinc has commissioned a 30 KTPA zinc alloy plant, with value-added products now contributing 22% to total business. It also aims to enter the fertiliser sector with a DAP/NPK (diammonium phosphate/nitrogen, phosphorous and potassium) plant expected to become operational by FY27. The company’s wholly owned subsidiary, Hindmetal Exploration Services, is exploring for copper, lithium, nickel, cobalt, potash, and gold in India—minerals seen as vital for the global energy transition and digital economy. Sustainability remains a core focus. Renewable energy currently powers 13% of Hindustan Zinc’s operations, with a target of reaching 70% by FY28. At Rampura Agucha,the world’s largest underground zinc mine, the company launched a 4,000 KLD (kiloliter per day) Zero Liquid Discharge plant to improve water management. Hindustan Zinc is also investing in technology to support its ESG goals. Through Vedanta Spark, a startup accelerator, the company has partnered with over 80 ESG-focused startups and deployed more than 120 digital solutions in areas like automation, safety, and sustainability. Real-time underground monitoring systems and AI-based analytics are now part of regular operations. With a market capitalization of ₹1.95 lakh crore, Hindustan Zinc ranks among the top three companies in the Nifty Metal Index. The company’s CSR initiatives have reached nearly 25 lakh people across more than 2,300 villages.