EXPANDING DOWNSTREAM PRODUCT PORTFOLIO THROUGH ALLOYS

PROBLEM STATEMENT

As a commodity-based company, Hindustan Zinc’s topline is majorly linked to the LME and LBMA price cycles. So, it is imperative that we should transition from a commodity-based company to a product-based company by enhancing our downstream product portfolio. Currently, India is importing zinc alloys to cater to the domestic automotive sector demand, presenting an opportunity for us to venture into zinc alloy segment. This will not only enable the domestic auto original equipment manufacturers (OEMs) and component manufacturers to reduce imports from other countries and build a resilient value chain of high-quality products within the country, but also fetch higher premiums through an expanded customer-centric portfolio.

OUR APPROACH

• Commissioned a new state-of-the-art 30 ktpa zinc alloy plant in FY2024 under a wholly-owned subsidiary, Hindustan Zinc Alloys Private Limited (HZAPL). This plant allows us to foray into a promising opportunity of alloys, majority of which are currently being imported into India with a presence of a very few domestic players
• Successful trials are undertaken for establishment of our new product, Zinc-Aluminium-Magnesium (ZAM) alloy, in the market
• Our zinc die casting alloys, specially developed for the hot chamber die casting process, are engineered to cater to the evolving needs of the automotive sector, offering exceptional castability, long-term dimensional stability, fast machining, and superior finishing for plating, painting, and chromate treatments

KEY OUTCOMES

• Offers the automotive sector with significant fuel and emission savings by providing a high degree of corrosion resistance to lightweight steel bodies (BIW or Body-In-White), ensuring durable, long-lasting vehicles with longer anti-perforation warranty against corrosion
• HZDA 3 & HZDA 5 alloys provide higher strength, electrical conductivity, corrosion resistance, and dimensional tolerance to automobiles
• Achieved highest-ever sales of value-added products, increasing the share of value-added portfolio to c.22% in FY2025, including 10 kt of alloys produced in the 30 ktpa alloy plant. Also, started supply of toning alloys to the customers
• Hindustan Zinc Alloy Pvt Ltd has recorded an EBITDA of ₹ 93 crore, against the overall investment of ₹ 190 crore, delivering a payback of less than 2 years
• The alloys produced have fetched better realisations than traditional special high grade (SHG) ingots, and aided in increasing our domestic zinc market share