Introduction

Hindustan Zinc Limited (HZL), incorporated in January 1966 with its headquarter at Udaipur, Rajasthan is a Government of India enterprise under Ministry of Mines, to develop mining & smelting capacities to substantially meet the domestic demand of zinc and lead metals. Being a proud inheritor of world's oldest zinc technology, HZL is gearing it self to position among the prime metal producers of the world. 

Despite the trials and tribulations, " the Company has been through in the past three and a half decades, HZL has emerged stronger and is a force to be reckoned with in India's non ferrous metals sector, dealing' not only with zinc and lead, but a host of by products like cadmium, silver, copper, cobalt, sulphuric acid etc. The constant endeavour has been to aim for a steady improvement through strategic planning, innovation, team work, investment in the state-of-the-art techniques and innovative research and development, along with a self-committed route to greater productivity. HZL has been recognized as a 'Mini Ratna PSU' by the Government of India. 

Growth Profile 

There has been a gradual forward I stride in the physical aspects of the I Company. Starting with a 150,000 j" tonnes per annum (tpa) mine, a 3,600 tpa lead smelter and an 18,000 tpa zinc smelter under construction, HZL has come a long way and grown into a multi unit and multi product company. HZL operates 4 lead-zinc mines with a total ore production capacity of 3.342 million tpa and 4 smelters with combined capacity of 1,69,000 tpa zinc and 65,000 tpa lead. HZL has developed in-house R&D capabilities to adopt new technologies and to improve the existing ones. The Central R&D Laboratory of HZL is a recognised in-house R&D center by Department of Science & Technology, Government of India. 

Over the years, HZL has gradually stepped up the production levels in its mining and smelting operations. The year 1966 saw a humble 14,790 tonnes zinc-lead concentrate production from mines. The zinc-lead concentrate production has since touched 420,065 tonnes during 2000-01. The zinc and lead metal production during 2000-0 1 stood at 148,092 and 34,840 tonnes, respectively. The Company offers different Zinc and lead metal grades to its consumers besides a range of by products. Rampura- Agucha zinc lead mine and Derby zinc smelter have been accredited with ISO 9002 certification. 

Record Achievement

For HZL, the year passed by, was another outstanding year in achieving new milestones in turnover, financial and operational performances, demonstrating the Company's inherent strength to meet the expectations of shareholders. The performance rating under MoU with Ministry of Mines is "Excellent" for 2000-01. HZL has been able to maintain the rating as 'Excellent' for the fourth year in succession.

The physical and financial performance of the Company witnessed new record levels in 2000-01. 

• Record sales turnover of Rs.16130 million (highest since inception) .
• Net Profit (before tax) ofRs.2822 million (up by 55% over previous year), 
• The profit after tax of Rs 1692 million, agrowth of 87% over previous year. 
• Highest Zinc metal production of 148,092 tonnes.
• Highest sales of 143,621 tonnes of Zinc metal and 35,186 tonnes of Lead Metal. 
• Contribution to National Excheq- uerofRs.4541 million.
• A Dividend payment @ 12.5% of equity (highest ever declared).
• Foreign exchange earning of US$12.72 million (Rs.589.7 million).
• Completion of expansion programmes at Debari and Vizag zinc smelters (production capacity of zinc metal, up by 17000 tpa) 

HZL's technology scenario is a rich blend of both self-developed and acquired know-how. One of the important spin-off benefits of the blend is the ability to rapidly absorb different technologies. Over the years, the Company has implemented a number of technology updating schemes in mining, beneficiation and smelting leading to increased competitiveness of its operations, besides achieving higher safety and productivity. The concentrator returns have been optimized through computerized in-stream analysis and process control. While the smelting practices include both hydro-and pyro-routes, the recent thrust areas have been metal recoveries from leach residues, precious metal recoveries, optimization of consumables and modernization of facilities.

On-going Projects 

In order to improve the zinc-lead resources constantly to compensate the depletion, HZL has been con ducting exploration to locate new prospects. Detailed exploration is in progress in Kayar zinc-lead prospect, near Ajmer, Rajasthan, to firm-up its resource potential. The pre production mine development of Sindesar Khurd lead-zinc prospect, in Rajasthan, with a capacity to produce 1000 tpd ore, is in progress.

HZL intends to set up a 100,000 tpa Green Field zinc smelter project at Kapasan, Rajasthan. Although the Government accorded its approval for setting up of the smelter, the actual implementation of the project is likely to commence only after completion of disinvestments process. It is also proposed to set up a70,000 tpa scrap battery Lead recycling project. The work on EIAI EMP for the project is Likely to commence shortly. The data generated from operating Nickel Technology Proving Plant established the viability of extraction of nickel from chromite overburden at Sukinda, Orissa. Efforts are onto register this processing under "Intellectual Properly Rights". To counteract the volatile market conditions in the nonferrous industry and to add to .the value of its products, HZL has been looking for diversification opportunities in the field of other metals, alloys and minerals. 

Economic Scenario

During the last decade; zinc metal production and consumption in the world had recorded all annual average growth rate of 2.5%. In case of Lead, while the metal production had recorded an annual average growth rate of 2.3%, consumption has recorded an annual growth rate of 2.5%. In the new millennium, the downturn in USA and the European economies resulted in a slowdown in zinc-lead metal market. The world- wide demand growth in zinc is expected to be around 0.2% in 2001. In case of lead, the demand will not be affected by the economic downturn. The world-wide lead consumption is expected to increase by 1.1 % during 2001. 

In the Indian context, the Country's GDP in 2000-01 is estimated to grow at 5.1 % compared to 6.4% in previous financial year. The industrial production is expected to grow at 4.9% compared to 6.7% of previous year. Despite economic decline in 2000-01, the zinc and lead consumption recorded a growth of 6.2% and 7%, respectively.
The GDP growth in 2001-02 is expected to be around 6.5%. During X and X1 plan periods, the GDP is expected to grow at 7%. The zinc and lead consumption growths are expected to be 6.5% and 6%, respectively, during X and XI plans, which will necessitate the need to build up capacities in the country.

Market Share 

With the completion of expansion programmes in zinc smelters, HZL has positioned itself as a market leader for zinc in India. HZL's market share in Zinc has been around 56% in 1999-2000. In case of Lead, however, after touching a high of 45% in 1993-94, HZL's market share has been around 24% in 1999-2000. 

Exports 

HZL has exported zinc metal during 1993-94 and 94-95 to the neighbouring Asian countries, it has exported cadmium between 1974 and 1997, and silver during 1977-78. Since 1994-95, it has been exporting surplus zinc concentrates from Rampura- Agucha and Rajpura-Dariba mines to Japan, China, Korea, Russia, Bulgaria, Spain, Italy, Romania and Algeria. The approximate earning of foreign exchange is to the tune of Rs.2700 million. As a recognition of this export achievement, HZL has been bestowed the "Export House" status by the Government of India.

Environmental Concerns

Environmental compliance and employee safety are the goals for to day's progressive worldwide enterprises. Following this tradition, HZL is conscious of the responsibility of protection of the environment and maintenance of ecological  balance, in all its operations. The measures adopted by HZL are based on Indian or British standards, whichever are the more stringent, for prevention of air, water, and soil pollution. In the units now operating, pollution control aims for zero discharge by installing appropriate effluent treatment facilities, environmental monitoring systems, vegetative stabilization of waste dumps  and reclamation of process water. Owing to the proximity of the mining and smelting complexes to the nearby villages and productive agricultural fields etc., HZL has adopted a "good neighbour" policy and considerable effort has been expended in reducing the impact of operations on the community.

Human Resources Development

The main strength of any organization is its employees. The management of human resource in HZL is a continuous process to ensure the development of employees confidence, dynamism, effectiveness,  motivation and morale in a system at way, which help to achieve higher productivity in terms of physical and financial Outputs. The management of human resource is always aimed at, to develop and nurture a cultural change in the Company, which focuses on positive attitude, openness, trust and achieving, excellence in all spheres of activities.

Social Responsibilities

The concern for mankind at HZL is not limited to its boundaries, but spills over the whole country, providing the backward and tribal populace in and around its units in Orissa, Andhra Pradesh, Bihar and Rajasthan. The concern manifests itself in the form of numerous rural health campaigns, family welfare activities, adult education programmes, water supply, construction of roads in rural areas, cattle fodder camps, cyclone relief measures in Orissa and Andhra, earth quake relief measures in Bhuj, etc.

Disinvestment 

For the competitive success in the fast changing global market, strategic partnership alliance is inevitable. The focus shall be on the value creation within alliance. The capacity of both partners to dynamically and creatively maneuver the alliance through a thicket of uncertainties, changing priorities, organizational fractions and competitive surprises is of vital importance. In this background, the Government of India is in the process of identifying a strategic partner for divesting 26% of the equity, during 2001-02. In the early 90s, Government of India had already divested 24.08% of the equity of HZL.

Concluding Remarks 

With the planned expansion activities and constant thrust towards improving performance with cost efficiency, HZL is geared to face all the challenges with courage, determination and greater sense of commitment to strive to make each year, an year of prosperity, better than the previous one."