Hindustan Zinc Limited has informed the Exchange about Capacity addition under Regulation 30 of SEBI Listing Regulations
HINDZINC · price
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Hindustan Zinc's board has approved a capital expenditure of up to ₹12,000 crore to set up a 250 KTPA integrated zinc metal complex at Debari, along with matching mining and milling capacities. This is the first phase of the company's 2X growth plan aimed at doubling its zinc, lead, and silver capacity. The project will take existing metal capacity of 1,129 KTPA to 1,379 KTPA and is targeted for completion within 36 months. Funding will come from internal accruals and debt. Current capacity utilization stands at 93% in FY25. The expansion is driven by strong zinc demand from India's growing steel and infrastructure sectors, with Indian zinc demand projected to double over the next 5-10 years.
This is a significant growth capex announcement that signals long-term confidence in zinc demand, but the ₹12,000 crore outlay (a substantial portion of net worth) and 36-month execution timeline mean shareholders should monitor capex pacing, potential debt buildup, and project execution closely. Over the long term, the expansion positions HZL to capture India's rising zinc demand and supports its dominant market share.