Hindustan Zinc is Crucial to Vedanta’s Transformation into ‘Vedanta 2.0’
The Chairperson of Hindustan Zinc, Priya Agarwal Hebbar, has highlighted the essential role that the company plays in Vedanta’s evolution into ‘Vedanta 2.0’. This transformation aims to position Vedanta as a leading player in critical minerals, renewables, and technology. In an exclusive interview with ET, Hebbar emphasized the vitality of zinc and silver for Vedanta’s future success.
Silver: An Aggressive and Ambitious Story
Hebbar acknowledged the significant potential of silver and described it as having an “aggressive and ambitious story.” With Hindustan Zinc’s strong focus on silver operations, the company recognizes the growing importance of silver as a major revenue contributor. Hindustan Zinc plans to explore strategic partnerships to expand silver usage in sectors such as medical equipment, wind turbines, electric vehicles, and solar panels.
Record Production Levels and Ambitious Goals
Having achieved record production levels in 2023-24, Hindustan Zinc aims to further increase its annual output from 1.2 million tonnes to 2 million tonnes over time. As the largest producer of zinc-lead and by-product silver in India, the company plans to boost zinc production by at least 5% annually. Additionally, Hindustan Zinc aims to raise silver output to 800 tonnes, with a future target of 1,000 tonnes within the next 12-18 months.
Hindustan Zinc’s Focus on Sustainability
Recognizing the importance of sustainability, Hindustan Zinc recently introduced low-carbon zinc to reduce carbon emissions and enhance its value proposition. With a strong commitment to environmentally friendly practices, the company is addressing the need to reduce its carbon footprint while maintaining its position as a leading player in the industry.
Vedanta’s Ongoing Demerger and Steel Asset Sale Potential
While discussing the future plans of Vedanta, Hebbar mentioned the ongoing demerger and the potential sale of its steel assets. She stated that the company is waiting for favorable valuations and is in no rush to sell. Vedanta currently has a gross debt of Rs 780.16 billion and a net debt of Rs 613.24 billion as of June. Despite the financial situation, the company remains committed to managing its debts carefully.
A Bright Future for Hindustan Zinc and Vedanta
Hindustan Zinc’s crucial role in Vedanta’s transformation into ‘Vedanta 2.0’ underscores its significance as a “crown jewel” for the company. With zinc and silver poised to be drivers of the company’s growth, Hindustan Zinc aims to continue its impressive production levels while expanding into strategic partnerships and sustainable practices. This commitment, combined with Vedanta’s ongoing demerger and potential sale of steel assets, suggests a bright future for both companies in the evolving landscape of critical minerals, renewables, and technology.
