Message from the Chairperson

FY2025 was a defining year. Today, Hindustan Zinc is the world’s largest integrated zinc producer, India’s only primary silver producer, and a key player at the intersection of India’s economic rise and the global clean energy transition.

We are focused on long-term value creation by driving operational excellence, disciplined capital allocation, and future-focused innovation. These efforts were recognised globally – we were ranked the world’s most sustainable metals and mining company by the S&P Global Corporate Sustainability Assessment 2024 for the second consecutive year and were placed in the top 1% of the S&P Global Sustainability Yearbook.

IN A NEW ERA, FOR A BETTER INDIA

Zinc, silver, and lead play a strategic role in advancing India’s net zero ambitions and economic resilience. As the country accelerates its shift towards clean energy and sustainable infrastructure, these critical minerals enable key technologies across renewable power, electric mobility, and energy storage. Their applications, from galvanising infrastructure and powering solar panels to supporting battery systems, form the material foundation for decarbonisation and industrial growth. Ensuring a stable and secure supply of these metals is therefore essential not only for climate targets but also for strengthening India’s position in the global green economy.

The world around us is changing rapidly. Rising geopolitical tensions, tariff risks, and the global push for energy transition have all placed critical minerals and metals at the heart of industrial transformation. This presents a unique opportunity for Hindustan Zinc.

We are well positioned to lead and we are focused on retaining global leadership in production, sustainability, and cost competitiveness. Zinc and silver, which are central to our business, are now at the forefront of new-age applications from battery technologies to next-generation infrastructure. This is a massive opportunity, and we are investing to stay ahead of the curve.

Our biggest strength is that we are an Indian company. As one of the fastest growing global economies, India is primed to convert today’s global headwinds into tailwinds, and it is where the future of the world economy is being scripted. Hindustan Zinc is privileged to be an integral part of this growth story. With our global scale, advanced technologies, and future-ready practices, we will support India’s rise as an economic powerhouse, fuelled by a self-reliant and sustainable metals ecosystem.

CONSISTENT PERFORMANCE AND VALUE CREATION

FY2025 was a landmark year. We delivered a record-breaking mined and refined metal production, maintained market leadership with around 77% share in India’s primary zinc market, and strengthened our global cost leadership by reducing production cost by 6% to US$ 1,052 per tonne.

Our performance translated into strong value creation. We delivered total shareholder returns of c.68% this fiscal year, outperforming both the Nifty and Nifty Metal indices. With a market capitalisation of ₹ 1.95 lakh crore as of March 31, 2025, we are now among the top 3 in the Nifty Metal Index.

SAFETY FIRST, ALWAYS

At Hindustan Zinc, safety is not just a priority, it is our core value. In our unwavering commitment to achieving zero fatalities, we are continuously strengthening our systems and culture. In FY2025, we advanced our Critical Risk Management (CRM) programme by scaling up high-risk inspections. We also expanded the scope of Suraksha Kavach, our safety stewardship programme, to cover 13 smelting activities in addition to 25 mining activities already under its ambit, ensuring more holistic safety compliance across our operations.

These efforts are yielding tangible results. Our total recordable injury frequency rate has improved by 55% compared to FY2020, exceeding our internal target of 50%. While this progress is encouraging, we know this is a continuous journey and we remain fully committed to building a workplace where every individual goes home safe.

INVESTING IN OUR PEOPLE

People are an integral part of our purpose and progress. We are actively investing in building a future-ready workforce, which is skilled, diverse, and purpose-driven. Through VEDAS (Vedanta Academy for Sustainability), we are creating a strong digital learning ecosystem to build capabilities in artificial intelligence, ESG analytics, and data science.

We’ve also made significant strides in gender diversity. Today, over 700 women are part of our workforce, including 200 in core operations. With 25% gender diversity, we are far ahead of global mining benchmarks. Our ‘25 in 25’ mission (25% women in FY2025) reflects our determined multi-year effort to promote inclusivity in a traditionally male-dominated sector.

It was an honour to be recognised as the Employees’ Choice Workplace at the W.E. Matter Global Awards 2024 – a reflection of the trust, empowerment, and excellence that defines life at Hindustan Zinc.

ENVIRONMENTAL STEWARDSHIP

We continued to make meaningful progress on our environmental commitments across climate action and our net-zero targets, water stewardship, and circular economy. Our focus remains on integrating sustainability into every facet of our operations, driven by a strong ambition to lead the green transition in the metals and mining industry.

In a landmark achievement, we launched EcoZen, Asia’s first low-carbon zinc with 75% lower carbon footprint than the industry average. This not only strengthens our position in sustainable metals but enables our customers to reduce their Scope 3 emissions. With the London Metal Exchange planning a premium on green metals, we believe EcoZen will drive both impact and value.

Renewable energy (RE) now accounts for c.13% of our total energy mix, and we are on track to raise this to 70% by FY2028, supported by new agreements for 530 MW of RE capacity. We also made progress on our circular economy and water goals.

As part of our waste-to-wealth initiatives, we commissioned India’s first fumer plant at Chanderiya for sustainable metal recovery. In water stewardship, we commissioned a 4,000 KLD water treatment plant at Rampura Agucha. This builds on the success of India’s first zero liquid discharge facility established at our Zawar mines in the previous year. This year, we have also achieved 3.32 times water positivity, showcasing our focus on water stewardship. Our sewage treatment plant in Udaipur now treats 80% of the city’s sewage and recycles it, showcasing how industry and city ecosystems can work together for shared sustainability.

Notably, our Rajpura Dariba Complex received the prestigious NITI Aayog’s Scope 1 Certification of Water Neutrality/Positivity Aspiring Company, reinforcing our leadership in responsible resource management.

In line with our commitment to biodiversity and environmental stewardship, we signed an MoU with the Department of Forest, Udaipur, to rejuvenate the Baghdarrah Crocodile Conservation Reserve. This initiative reflects our belief in growth that supports people, nature, and biodiversity.

We are proud of the ESG targets we set five years ago, and we are constantly making progress. But the journey doesn’t stop here. We have set ourselves ambitious 2030 Sustainability Goals and are also targeting a 50% reduction in Scope 1 and 2 emissions, and 25% reduction in Scope 3 emissions, as part of our broader net-zero commitment by 2050 or sooner.

In a landmark achievement, we launched EcoZen, Asia’s first low-carbon zinc with 75% lower carbon footprint than the industry average

CREATING AN IMPACT BEYOND BUSINESS

We believe our progress is meaningful only when it uplifts people and communities. This year, our CSR efforts touched 2.3 million lives, up from 1.9 million in the previous year, across education, health, water, sanitation, livelihoods, and sports. Over 6.5 lakh women and children were direct beneficiaries.

A key pillar of our outreach is our flagship programme, Nand Ghar, which added 1,969 new centres during the year, contributing to the network of over 8,000 centres across the Group – strengthening our commitment to empower women and children and continue to positively scale the impact across communities.

In Udaipur, our sewage treatment plant, operating under a Public Private Partnership model, is making a large-scale impact, by treating 80% of the city’s sewage and converting it into reusable water. This initiative addresses the dual challenge of urban waste and water scarcity – playing a vital role in conserving a critical resource in a water-stressed region.

NEXT PHASE OF LEADERSHIP IN DEEP TECH INNOVATION

In an era defined by global energy transition and escalating demand for strategic resources, Hindustan Zinc is charting a path of pioneering innovation in critical mineral exploration. By leveraging advanced geophysical platforms – such as drone-mounted magnetic surveys and remote-sensing-enabled Geographic Information System (GIS) databases through its subsidiary Hindmetal Exploration Service Private Limited – alongside AI/ML-driven 3D deposit modelling, the company is dramatically enhancing the precision and speed of resource discovery.

Moreover, its proactive participation in government-led exploration licence auctions positions Hindustan Zinc at the forefront of securing lithium, rare earth elements, copper, and gold blocks, with technical capabilities that match its ambition.

Complementing these endeavours, deployment of tele‑remote drifters, LiDAR‑equipped drone stope scanning, and AI‑based predictive maintenance are delivering both operational excellence and sustainable impact.

Through Vedanta Spark, our flagship startup accelerator programme, we’ve partnered with over 80 startups and deployed more than 120 solutions focused on safety, sustainability, and operational excellence.

We combine the strength of a legacy institution with the energy of a new-age company.

THE ROAD AHEAD

As the world transitions to clean energy and India moves forward with confidence, Hindustan Zinc is ready to lead from the front. We combine the strength of a legacy institution with the energy of a new-age company. Our scale and strong fundamentals, lean cost base, and leadership in critical metal position us to outperform across commodity cycles. As we look into the future, with India’s expansion in steel capacity and a strong focus on infrastructure, we are on track to double the capacity to 2 Mnt by 2030. As part of the 1^st phase of expansion, Hindustan Zinc will be setting up a new integrated refined metal smelter with a capacity of 250 ktpa, along with a corresponding scale-up of mines and mills across multiple locations.

We are confident in our ability to remain the world’s leading supplier of transition metals and a trusted partner in India’s growth story. In doing so, we will continue to create value for all stakeholders, while building a future that is greener, stronger, and more inclusive.

Thank you for your continued trust and support. Together, let us build a future that is stronger, greener and more inclusive for our company, our communities, our nation, and our planet.

Sincerely,

Priya Agarwal Hebbar