Hindustan Zinc approves ₹12,000 crore worth project; shares fall over 4%

Hindustan Zinc Ltd (HZL), a Vedanta Group company, on Tuesday announced a major capacity expansion plan as part of its 2x growth strategy aimed at doubling its zinc, lead, and silver production. Shares of Hindustan Zinc Ltd fell 4.5% on Monday to ₹489.85, down ₹23.10.

The Board of Directors has approved the setting up of a new 250 kilo tonnes per annum (KTPA) integrated smelter at Debari, Rajasthan, along with matching expansion across mines and mills, at an estimated investment of around ₹12,000 crore, the company said in an exchange filing.

The project is expected to be completed within 36 months from the zero date and will be funded through internal accruals and debt. Once operational, the new facility will significantly augment HZL’s existing refined metal production capacity of 1,129 KTPA, which stood at 93% utilisation in FY25.


“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 country self-reliant for Zinc,” said Arun Misra, Chief Executive Officer of Hindustan Zinc.

“By closely matching the pace of national growth, we are confident that this will create significant value for our stakeholders and drive long-term success.”

The move comes amid growing domestic and global demand for zinc, driven by increased infrastructure activity and steel consumption. The company will hold an investor call on Tuesday, June 17 at 4:00 pm IST to elaborate on its 2x growth roadmap.

Hindustan Zinc is the world’s largest integrated zinc producer and among the top five silver producers globally. The company commands around 77% market share in India’s primary zinc segment and supplies to more than 40 countries.