Indian Zinc Industry, Zinc Industry in India, Zinc Industry, Zinc Industries

8/10/2019 Indian Zinc Industry, Zinc Industry in India, Zinc Industry, Zinc Industries

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INDIAN ZINC INDUSTRY


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Size Of The IndustryThe total production capacity stood at around707,000 tonnes

Output Per AnnumAt present the smelting capacity for primaryzinc in India is 260,000 tones per annum

Percentage In WorldMarket

The zinc production stood at around 4% inthe world

History

Most widely used metal after steel, aluminium and copper in the world is Zinc. It ismainly used for galvanizing steel, in alloys, batteries, rubber, paint, electroplatingmetal spraying and several other sectors. Because of its resistance to non-acidicatmospheric corrosion zinc is instrumental in extending the life of buildings, vehicles,ships and steel goods and structures of every kind. Zinc is a bluish-white lustrousmetal and normally covered with a white coating on exposure to the atmosphere.Indian Zinc industry entered its transformation along with the privatization of thelargest zinc producer, in the year 2002 the Hindustan Zinc Ltd, in favour of the Sterlitegroup.

The domestic Indian Zinc industry is now completely under the private sector and is in the midst of a serious expansionprogramme. There is an assumption that zinc demand grows by 10% till 2010 and at slower 7 % thereafter, in the year 2020 Indiawould require zinc capacity of 14 lakh tpa, in order to be self-reliant. In the year 20008 the next round of large capacity additionswas preceded. As India was one of the first countries to gain the knowledge of extracting zinc from zinc ores and start theproduction of zinc metal, it should have been an important player in the world zinc market but this is not the current situation.


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India's reputation regarding zinc is not significant as it just produces a small share of the metal in the world's production and isnot able to satisfy its domestic consumption demand making it a net importer of zinc.

Brief introduction

Indian zinc industry consists primarily of two gaint players in the market, namely Hindustan Zincand Binani Zinc. Hindustan Zinc is a producer which is integrated having its own mines and hasa market share of more than 60%. Binani Zinc is a custom smelting producer. All the major zincore mines in India viz. Rampura Agucha, Rajpura Dariba and Zawar mines are located in thestate of Rajasthan and all of these are under the control of Hindustan Zinc. In 2004, Zincconsumption has increased from 347,000 tonnes to 470,000 in 2007, backed by demand frominfrastructure and industry. The metal is important for galvanizing accounted for around 70% ofthe total consumption.

The demand for Zinc in India is expected to remain strong in the coming years on account of growth in the key zinc consuming

industries like infrastructure, realty and manufacturing. Moreover due to the growth in automobile and consumer durables industrywould also further aid the increase in consumption of zinc

India earlier was one of the first countries that started the process of extracting and smelting zinc. Since that time, the country isproducing Zinc is one of the oldest countries. India has approximately 4.3% share in the total zinc smelter capacity in the AsiaPacific region. The largest company, which is indulged in the production of zinc, is a public sector company named HindustanZinc Limited. But now, ever since the company got privatized, the Indian industry is completely in the hands of the private sector.It can be said that the zinc industry in India, after privatization, is heading towards a major expansion programme. The major zincmines in India which were under the control of the company are:

Rampura Agucha mineRajpura Dariba mineZawar mine

Market capitalization


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The Zinc production has registered a strong growth in the country in the last few years. In2007 the Zinc Production stood at around 4% in the world. In 2004 the zinc productionincreased from 265,000 tonnes in 2004 to 458,000 tonnes in 2007, registering a growth of20% CAGR.

Size of the industry

In the year 2002 the Indian Zinc production capacity is set to register robust growth after the government allowed privatization ofthe state owned company Hindustan Zinc. In the year 2008 the total production capacity stood at around 707,000 tonnes. In 2010Hindustan Zinc plans to raise its capacity to 1 m tonnes.

Total contribution to the economy/ sales

Indian Zinc production was in the hands of the government initially as all the operations in India relating to the metal were in thehands of a public sector company - Hindustan Zinc Limited and is biggest company in India, which took care of zinc extractionand its smelting process. In the year April 2002, this company was privatized in favor of Sterlite group and after that the Indianindustry is in the hands of private sector completely. The current Indian demand for Zinc metal stands at around 3.5 lakh tonssatisfied with the help of domestic production and imports too. About 70% of the Indian demand comes from the galvanizingsector. In the year 2010 after privatizing the zinc sector it is expected that the country would become self-reliant to satisfy thedomestic demand. After that, India may transform into a net exporter of the metal.

Domestic and Export Share

The largest zinc market in the world is the London Metal Exchange that affects the world demand and supply for zincsignificantly. Zinc Metal is traded in the Indian commodity exchanges like Multi Commodity Exchange of India, NationalCommodity and Derivatives Exchange of India and National Multi Commodity Exchange of India.

At present the smelting capacity for primary zinc in India is 260,000 tonnes per annum, as against a domestic demand of about350,000 tonnes per annum. Over the next 5 to 6 years, demand is expected to grow at about 12 - 15% annually, as against aglobal average of 5%. Domestic production capacity, however, is also expected to increase to attain self-sufficiency by 2010.


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The main consumer for zinc in the domestic market is the steel industry - over 70 %of zinc is used for galvanizing. Othersources of demand for z inc include die-casting, guard rails for highways and imported-substituted zinc alloys

Top leading Companies

Hindustan Copper Limited (HCL)In the year 1967 HCL was incorporated, under the Companies Act, 1956 and was establishedas a Government of India enterprise to take over all plants, projects, schemes and studies pertaining to the exploration andexploitation of zinc deposits, including smelting and refining from National Mineral Development Corporation Ltd.

National Aluminium Company Ltd (NALCO)- in 1981 NALCO was incorporated which has become the Asia's largest integratedalumina- aluminium complex, comprising bauxite mining, alumina refining, aluminium smelting and casting, power generation, railand port facilities. NALCO and enjoys the status of a Star Export House and a Miniratna company.

Latest developments

The Indian zinc consumption is likely to grow by 8% to 10% in 2009 from 500,000 tones last year, as the country's

spending on infrastructure would rise despite a global slowdown.ndia's per capita consumption is very low at 0.4 kilograms when compared with the world average of 1.8 kilograms. With

many telecoms, housing and other infrastructure projects coming up, this is bound to rise.

The prospect of growth is further enhanced by a boom in the vehicle industry, improved living standards of the people and

rapid over-all industrialization.

Presently the smelting capacity for Indian zinc is 260,000 tonnes per annum, as against a domestic demand of about

350,000 tonnes per annum.

Over the next 5 to 6 years, Zinc demand is expected to grow at about 12 - 15 % annually, as against a global average of

5%. Domestic production capacity, however, is also expected to increase to attain self-sufficiency by 2010

The main consumer for zinc in the domestic market is the steel industry - over 70 per cent of zinc is used for galvanizing.

Other sources of demand for zinc include die-casting, guard rails for highways and imported-substituted zinc alloys.

RECENT PRESS RELEASE


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Show more...

INDIAN ZINC INDUSTRY AT A GLANCE IN 2012 - 2013

INDIAN ZINC INDUSTRY AT A GLANCE IN 2011 - 2012

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Indian Zinc Industry, Zinc Industry in India, Zinc Industry, Zinc Industries