Shares of Hindustan Zinc are in focus today after the company’s board approved a major investment plan to expand its zinc metal production capacity. The board has cleared a proposal to set up a 250 KTPA integrated zinc metal complex at Debari, along with associated mining and milling infrastructure, at a total capital outlay of up to Rs 12,000 crore. This expansion is part of the company’s broader ‘2x growth plan’, aimed at doubling capacity in zinc, lead, and silver production over the next few years.
According to the investor presentation and press release, this new smelter will be completed within 36 months and is expected to increase the company’s total smelting capacity from 1.13 million tonnes to 1.38 million tonnes. The project will be financed through internal accruals and debt.
The expansion comes amid rising domestic demand for zinc, especially driven by steel and infrastructure sectors. Hindustan Zinc is one of the world’s largest integrated zinc producers and the leading player in India’s primary zinc market, with a current market share of over 77%.
The stock may witness active trading today following this significant capital investment and long-term capacity expansion announcement.
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