Vedanta Group company, Hindustan Zinc to invest Rs 12,000 crore for capacity expansion at Debari facility

Vedanta Group subsidiary, Hindustan Zinc, will invest Rs 12,000 crore to expand its metal smelting and refining operations at the Debari, Udaipur, facility. The company said that the investment will go towards setting up new metal smelters with 250 kilo tonnes capacity per annum. 

In a statement, the company said the project will be completed in 36 months’ time. The announcement comes in line with the company’s plan to increase its capacity two-fold.  

Arun Misra, the Chief Executive Officer of Hindustan Zinc, said in a statement, “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.”

 Hindustan Zinc: Current capacity

Hindustan Zinc, a subsidiary of Vedanta, is among the leading Zinc and Silver producing companies in the world. The company has operations in mining, smelting, and refining of metals such as Zinc, Lead, and Silver. 

The company has a smelter capacity of 1,129 kilotonnes per annum at present and said that its existing capacity utilization stands at 93 percent as of FY25. The proposed addition of 250 kilo tonne capacity per annum will increase the company’s capacity by 22 percent. 

Capacity addition in line with rising demand

Hindustan Zinc said the primary reason for expanding the capacity is the demand growth in the next five years in India as well as throughout the world. The company said that it will finance the proposed Rs 12000 crore investment through Internal accruals and debt. 

Besides a 63.42 percent stake in Vedanta in Hindustan Zinc, the government also holds a significant stake in the company. The Government of India has a 27.93 percent stake in the company.