Last Updated:June 17, 2025, 14:07 IST
Hindustan Zinc Limited’s Board approved a Rs 12,000 crore investment to double production capacity, expanding integrated refined metal capacity by 250 KTPA.
Hindustan Zinc Dividend FY26
Hindustan Zinc Limited today announced that its Board has approved the first phase of investments for doubling production capacity. The company’s Board of Directors approved the initial plans for expanding its integrated refined metal capacity by 250 KTPA (kilotonnes per annum) along with matching mines & mills capacity across multiple locations with an investment of nearly Rs 12,000 crores.
India’s demand for zinc is projected to double over the next 5-10 years, driven by significant investments in infrastructure, including steel production, according to the International Zinc Association. Hindustan Zinc’s expansion aligns with the strong growth expected in domestic and global steel demand.
Hindustan Zinc Shares Fell 5 per cent intraday on Tuesday. The scrip was trading at Rs 487.45 apiece, against the previous day close at Rs 513.05 apiece. The company’s shares also traded ex-date today for Rs 10 interim dividend for FY2025-26.
The company plans to double its metal and silver capacities over the next five years, taking the total metal production capacity to over 2,000 KTPA and silver production capacity to 1500 tonnes. The Board has approved the project for setting up a new 250 KTPA integrated smelter at Debari in Udaipur district (Rajasthan) along with associated mines & mills expansion across its operations. The project is targeted to be completed in a period of 36 months with an overall cost of nearly Rs 12,000 crores.
This development is significant as it comes at the time of continued global deficit in the zinc market.
Since the government disinvested its stake in 2002 and subsequent acquisition by Vedanta Group, the company’s zinc production has grown 4 times while silver production has grown more than 20 times. The company is amongst the lowest cost zinc producers globally and holds the 2nd highest zinc reserves & resources globally with over 25 years of mine life.
Commenting on the development, Arun Misra, Chief Executive Officer – Hindustan Zinc Limited, said: We are excited to announce this 2x growth project towards doubling our capacity across zinc, lead and silver, which is strategically aligned with the country’s expanding economic landscape, increasing demand opportunities and keeping country self-reliant for Zinc. By closely matching the pace of national growth, we are confident that this will create significant value for our stakeholders and drive long-term success.”
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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