Hindustan Zinc To Invest ₹12,000 Crore To Double Capacity Across Zinc, Lead And Silver

New Delhi, June 17, 2025:  Hindustan Zinc Ltd (HZL), a Vedanta group company and a global leader in zinc production, has announced an ambitious expansion plan, committing nearly ₹12,000 crore to double its production capacity across its zinc, lead, and silver verticals. This significant decision was approved by the company’s board during a meeting held today.

₹12,000 Crore Investment to Boost Capacity By 250 ktpa

As part of its “2x growth plan,” HZL’s board has approved the establishment of a 250 kilotonne per annum (ktpa) integrated smelter at Debari, Rajasthan, alongside expansions in mining and milling capacities. The total capital outlay for this ambitious project is ₹12,000 crore and will be financed through a combination of internal accruals and debt.

HZL aims to complete this project within a 36-month timeline, significantly boosting its integrated refined metal capacity.

Strategic Expansion to Meet Growing Domestic and Global Demand

“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 the country self-reliant for zinc,” said Arun Misra, CEO of Hindustan Zinc.

HZL is already the world’s largest integrated zinc producer and ranks among the top five global silver producers. The company commands a dominant 77% share in India’s primary zinc market and exports its products to over 40 countries worldwide. This expansion is poised to solidify HZL’s market leadership further and cater to the rising demand for these essential metals, both domestically and globally.

Strong Financial Performance Backs Growth Plan

The announcement follows a robust financial performance by Hindustan Zinc. For the March quarter of FY25, the company reported a remarkable 47.3% jump in consolidated net profit to ₹3,003 crore, compared to ₹2,038 crore in the same period last year. Revenue also saw a healthy increase, rising to ₹9,314 crore from ₹7,822 crore in the corresponding quarter of FY24.

This strong financial standing provides a solid foundation for HZL’s major investment, signalling sustained growth momentum in the coming quarters and reinforcing investor confidence in its expansion strategy.

Share Price Effect

The shares of Hindustan Zinc Ltd were down 5.12% or ₹26.25 and were trading at ₹486.70 at around 3:20 P.M, just before the closing of today’s market session.

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