Vedanta Ltd & President of India-Backed Zinc Company Approves Rs 12,000 Crore Capex for 250 KT Zinc Capacity Expansion at Debari
The stock is up by 28 per cent from its 52-week low of Rs 378.65 per share.
Hindustan Zinc Limited's Board of Directors approved a significant expansion plan today, June 17, 2025, to set up a new 250 KT integrated Zinc metal complex at Debari. This strategic move, which also includes associated mining and milling capacities, is a crucial part of the Company's ambitious "2X growth plan." The expansion aligns with the anticipated strong growth in global and Indian demand for zinc over the next five years.
The project entails a capital expenditure of approximately Rs 12,000 crore, which will be financed through internal accruals and debt. This new capacity of 250 KTPA is expected to be added within 36 months from the zero date, significantly boosting the company's existing metal production capacity of 1129 KTPA, which operated at a 93 per cent utilisation rate in FY2024- 25. The rationale behind this substantial investment is the robust demand for zinc, primarily driven by the strong growth in the steel and infrastructure sectors.
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About the Company
Hindustan Zinc Limited, a Vedanta Group company, is the world's largest integrated zinc producer and a top 5 global silver producer, supplying to over 40 countries and holding 77 per cent of India's primary zinc market. Recognised as the world's most sustainable metals and mining company by S&P Global for two consecutive years, it recently launched EcoZen, Asia's first low-carbon "green" zinc, with a carbon footprint 75 per cent lower than the global average. The company is also 2.41 times Water-Positive, committed to Net Zero emissions by 2050 or sooner, and a Top 10 CSR company in India, transforming 2.3 million lives while providing critical metals for a sustainable future.
The promoter of the company, Vedanta Ltd, holds 63.42 per cent stake and the President of India holds 27.92 per cent stake. The company has a market cap of over Rs 2 lakh crore and has been maintaining a healthy dividend payout of 164 per cent with a good return on equity (ROE) track record: 3 Years ROE 55.1 per cent. The stock is up by 28 per cent from its 52-week low of Rs 378.65 per share.
Disclaimer: The article is for informational purposes only and not investment advice.