Hindustan Zinc is the largest integrated producer of zinc-lead with a capacity of 1 million tons per annum and among leading global lead and silver
producers. While we are in the business from since 1966, we are not standing still. In the last fifty years, we have been consistently innovating and using
technology to meet the demand for our products in the global market in a sustainable manner.
Sustainability is inherent to our products. They enhance life of other products, reduce the demand for natural resources, and significantly shrink
the environmental footprint of humankind. A coat of zinc on steel or iron prevents rusting and increases their longevity, while lead has radiation
resistance properties and is used as a shield in high radiation environments. Silver is anti-microbial as well as non-toxic which makes it useful in
medicine and several consumer products such as jewellery; while cadmium protects iron from rusting.
These products contribute in a large measure to our daily lives. From mobile phones and renewable energy products to medical equipment, and
automobiles to infrastructure such as bridges, these metals are the building blocks of society and the economy. It is our constant endeavour to
enhance the sustainability quotient of our products and reduce our footprint through innovation and optimisation.
Product Profile
ZINC
We produce refined zinc metal, which is used in a number of applications including galvanising, oxides, die casting and alloys in a variety of grades.
Last year saw a healthy increase in zinc
consumption in the three major
consuming regions - Asia, Europe and
North America. Demand growth in China
from the real estate and automotive
sectors, and the 'One Belt One Road'
initiatives, was partly offset by the impact
of pollution control measures.
In India, zinc consumption in the near-term
will benefit from ongoing restructuring
of the steel industry and adherence
to newly established IS 277 coating
standards. The alloys and die casting
sector also witnessed robust growth,
led by zinc-magnesium alloys. Demand
from the automotive sector remains robust
due to the rising penetration of galvanised
steel in domestic cars.
We produce zinc
in a variety of grades
Special High Grade (SHG) Zinc
99.995%
High Grade (HG)
99.975%
Prime Western (PW)
98.65%
Continuous
Galvanising Grade (CGG)
Electro-Plating
SHG Zinc (EPG SHG)
Zinc Die Casting
Alloy (HZDA)
Zinc die casting alloy can be cast into
virtually limitless shapes and sizes ranging
from simple toy cars to complex auto
components due to its unique physical and
mechanical properties.
Grades
HZDA Z3
& HZDA Z5
Hindustan Zinc Special High-Grade Zinc
99.995% conforms to the following
standards
ASTM B6-SHG Z13001 Grade
BS EN 1179:2003 – Z1 Grade
Over the next five years, zinc demand in India will be a beneficiary of higher construction spending,
which is expected to increase at around 10% CAGR with projects under the Metro Rail, Smart Cities
Mission and Swachh Bharat (Clean India) driving investments in urban infrastructure.
LEAD
We produce refined lead, which is LME registered. Lead metal is used in several applications
including battery segment, lead-based pigments, and cathode ray tubes.
The battery sector is the single largest consumer of lead, accounting for around three-quarters
of the demand. Starting-Lighting-Ignition (SLI) batteries, which currently accounts for over
half of the total lead demand, are mainly used in cars and light vehicles, but are also found in
other applications such as golf carts and boats. Industrial batteries currently consume
around a quarter of the total lead produced. This sector can be split roughly 50:50 into
stationary and traction batteries. The remainder is used in non-battery applications. Around
20% of lead consumption is in alloys and chemical industry, in the form of lead-based
alloys, pigments and other compounds.
Hindustan Zinc Lead Ingots are LME registered – Hindustan Zinc
has two LME registered lead brands - Vedanta 99.99 & Vedanta
Pb 99.99.
The number denotes purity of lead produced and signifies that these lead ingots are
acceptable for delivery at the LME warehouse.
Historically, the market for industrial batteries has grown at a CAGR of 20% and is expected to
clock a similar growth rate in the coming years.
Non-auto consumption in telecom and the power back-up segments has performed consistently at
around 7.7% CAGR in the past. The expansion of services by operators, the rollout of 4G
services, and a surge in data traffic led to a quick increase in the number of Base Transceiver
Stations (BTS) per tower for which lead-acid battery are being used.
HZL is set to benefit from operating efficiencies in the long run as it is one of the lowest cost
producers globally. This will help maintain higher margins compared to peers, in both up and
down economic cycles. Domestic consumption of primary lead has grown at over 6% CAGR for
the past 5 years primarily driven by growth in the automotive segment which comprises 55% of
consumption.
CADMIUM
We are India's largest cadmium producer. We recover cadmium from our zinc smelting process as it is mainly found in association with zinc ores. We produce high quality cadmium pencils having a minimum purity of 99.95% to 99.99%
The single most important use of cadmium
is in the production of nickel-cadmium ("Ni-
Cad") batteries. About three quarters of the
cadmium consumed annually is used to
make batteries. Cadmium is also useful in
a few other applications as paint pigments,
low-temperature melting alloys, etc. Its
malleability and ductility properties have
led to an increased demand in the semiconductor
and electronics industry.
SILVER
We are India's largest and one of the world's leading primary silver producers. We produce refined
silver which is recovered as a by-product of lead metal and produce high quality bullions having a
minimum purity of 98.5% to 99.9% of silver.
Silver
99.99%
Hindustan Zinc holds the position of being India's only primary silver producer – 17.9 million ounces in the last financial year – and ranks 10th
globally in terms of the top silver-producing companies. A major proportion of the Indian market's appetite is satisfied through imports, with the
balance coming from secondary manufacturers and recyclers. With the latest accreditation of 'London Good Delivered Bars' in April 2018, HZL's
silver is on par with international standards.
In India, the highest usage of silver is in jewellery (38%), followed by coins and bars (22%) silverware (20%) and industrial fabrication (20%),
according to the World Silver Institute. We cater to markets including the industrial sector (electrical contacts, solder and alloys, pharmaceuticals),
and the jewellery and silverware manufacturing segments. As the sole producer of silver in India, HZL is poised to reap benefits from the
government's focus on solar energy projects and use of electric vehicles, both tipped to boost demand for silver. Silver contributed INR 1,850 crore
to HZL's operating profit in FY 2017-18 while accounting for 9% of its revenues.
INITIATIVE
Plant Dispatch of Finished Goods to Customers
The double handling of material, once at the plant and next at depots, was time consuming and led to logistical and environmental
issues. Hence, we started dispatching goods directly to our customers from our plant locations. With additional services of dependable
transporters and reports of real-time movements to customers, we have been able to retain the reliability and carry out the transition
smoothly. The move reduces emissions, enhances productivity and saves costs. We have already replicated this in the North and West
regions and aim to extend it for our South and East region customers as well.
DIGITISATION
Technology makes it easier for us to produce these products in a sustainable manner. Digitisation is the way forward for Hindustan Zinc. We are
using digital capabilities heavily in our mining operations and across the organisation to create value for our stakeholders.
We are working towards making our mines smart, connected, intelligent, besides making them safer and more productive. Key features of our
future mines will be autonomous drilling, autonomous haulage, remote controlled operations, and real-time asset tracking and mine monitoring.
We already have a prototype of a digital mine in Sindesar Khurd and we expect 80% of our entire fleet to be autonomous in the next three years.
Sindesar Khurd Mine is India's largest underground mine with production of 4.5 million MT in FY 2018. With an average reserve grade of 7%, the mine
differentiates itself with its silver-rich, zinc-lead deposit and highly mechanised and low cost of operations. We have added another differentiator to
this mechanised mine. SKM is being transformed into a fully digital mine enabling us to maximise efficiency, improve safety, reduce cost of
operations and provide much greater transparency across the value chain.
A pilot project to digitise over 1.5 km of decline and portals was taken up in partnership with global technology experts to check the feasibility. Full
roll-out across the mine is now in progress after conducting the pilot successfully. Once fully operational, the project will allow monitoring and
optimisation of assets, traffic management, improved scheduling and task management, autonomous fleet operations and real-time visibility of
machine health and productivity data.
