ZINC & LEAD IN INDIA- A MACRO VIEW

L PUGAZHENTHYPast President, The Indian Institute of Metals &

Executive Director, India Lead Zinc Dev. Assn

MTLEXS Conference25 April 2015, Mumbai

EMERGING SCENARIO

• Zinc & Lead– ancient metals with modern uses

• India– world‘s third largest integrated Zn smelter

• Lead– India a major recycling country

• Both metals– impressive growths in production, consumption

ZINC PRODUCTION(tonnes)

Year Hindustan Zinc

Binani Zinc

Total

2010-11 712,471 32,662 745,133

2011-12 758,717 25,368 784,085

2012-13 676,921 32,836 709,757

2013-14 749,000 19,781 768,781

2014-15 (Jan)

591,796 4,184 595,980

(Source: 12th Five Year Plan Draft)

INDIAZINC SECTORAL DEMAND

(Source: HZL)

PRIMARY LEAD PRODUCTION

Year Hindustan Zinc

2011-12 92,098

2012-13 118,316

2013-14 122,864

2014-15 (Jan)

103,415

LEAD IN INDIA- SECTORAL USES

Batteries, 75%

Alloys, Chemicals,

20%

Cable & Others, 5%

ZINC

third widely used non-ferrous metal known for excellent corrosion resistance when molten, great affinity for steel two-thirds used in coating twelve inherent advantages recyclable & reusable essential for life

Maintenance Free Long Term Protection & Life Cycle Economics

Why Galvanizing?

What is Galvanized now?

Continuous or Semi-continuous

Batch or General

GENERAL GALVANIZING - GROWTH TRENDS

To add 88000MW by 2017PGCIL to invest Rs.30000cr

POWER RAILWAYS

Electrification: 6600 kms in 2015-16

1) Current Teledensity 70%2) 8.0 million subscribers addition/month

(Source: TRAI)

TELECOM

Guard Rails Galvanized

HIGHWAYS: Rs 10 Lakh Crores by 2019

EMERGING MARKETS

Target:20kms /day

INDIAINFRASTRUCTURE INVESTMENTS

– 12 FIVE YEAR PLAN (2012-17)

• Power• Telecom• Roads US $ 1000 Billion• Ports• Aviation

(Source: Planning Commission)

11th Five Year Plan (2007 - 12)- Investment was half

Courtesy: Valmont Structures Pvt Ltd

LIGHTING

High Mast

LIGHTING

Street Lamp Poles

PRE-ENGINEERED BUILDING SYSTEMS

Government Office, Delhi

Growth: 10-15% per yearMarket Demand 500,000tpa

GALVANIZED REBARS

300 MT of Galvanized Rebars

Lotus Temple, New Delhi

ILZDA guidance …… 1985

Courtesy: Inar Profiles Pvt Ltd

350 MT of Galvanized Rebarsin a Power Project

GALVANIZED REBARS

Courtesy: Galbro Ispat Galvanizers Pvt Ltd

1100 MT of Galvanized Rebarsin a Residential Building, Mumbai- 22 Floor High Rise

GALVANIZED REBARS

Vrindavan “Chandrodaya” Mandir

Height 210m(70 floors)

Courtesy: Inar Profiles Pvt Ltd

PORTS

60 MT of angles Galvanized & used

Courtesy: Inar Profiles Pvt Ltd

SOLAR ENERGY

Renewable EnergyTargets by 2022

Corrosion Rate(mm/year)

Below 0.012

0.012 – 0.05

0.05 – 0.12

0.12 – 0.25

Above 0.25

CORROSION MAP OF INDIA

LEAD BATTERIES INDIA- CURRENT SCENARIO

• Market Size : Rs.21000 crores• Break Up : 60% Automotive &

40% Industrial• Players : 3 Large Mfrs

25 Medium Size Estimated 100 Small Mfrs &

1000 Reconditioners

BATTERY INDUSTRY- DOUBLE DIGIT GROWTHS

Telecom Inverters UPS Renewable Energy

Electric Vehicles

SECONDARY LEAD- GROWTH OPPORTUNITY

0

100

200

300

400

500

600

2012-13 2013-14 2014-15 2015-16 2016-17

Sec. Lead Demand

Primary LeadCapacity(0

00 t

on

nes

)

(Source: 12th Five Year Plan)

MoEF’s Initiatives for ESM Recycling (2001)

1.RegulatingAuctions

2.Battery MgmtRules

6.Monitoring

5.Battery Recycling

4.Collection ofULABs

3.MoEF/CPCB Regn. Scheme

2010 - Collection Monitoring & Registration Scheme shifted to State Pollution Control Boards

Close Loop

Battery (Management & Handling) Rules 2001

• ILZDA Recycling Conference, 1998• Core Group• Draft notified, 2000• Final notification, 2001• Dealers to furnish returns to mfrs.• Battery mfrs. to report to SPCBs/PCCs • SPCBs/SPCCs to file annual returns with

CPCB (30th April)• Computerized tracking of batteries and

recycled lead• National inventory

COLLECTION TARGETS

• I Year (2002) 50% (of new Batteries)

• II Year (2003) 75%

• After II year 90%

BATTERIES (MANAGEMENT & HANDLING)

AMENDMENT RULES 2010

1. Bulk Consumer Defined2. Registration of Dealers3. Registration of Importers

ENVIRONMENT - FRIENDLY LEAD RECYCLING

• Authorization for Hazardous Wastes• Regn. with State Regulatory Bodies• Periodic monitoring, health check ups• Mechanized breaking recommended• Wet scrubber, prescribed• Close watch on Collection & Recycling

GDP Growth Trends in India

6.7

5.1

6.97.4

8.1

‘11 - 12 ‘12 - 13 ‘13 - 14 ‘14 - 15 ‘15 - 16

MESSAGES

• Favourable Economic Growth• Increasing Infrastructure Investments• Increasing Steel & Zinc Production• Unlimited Galvanizing Market

Potential• Growth in Automobiles, Renewable

Energy to spur Lead Demand

CONCLUSION

• Increase Consumer Awareness• Meetings, Advts, Electronic Media etc.,• Proactive Lead & Zinc Industry• Industry Associations (ILZDA, IZA)

can lend a big hand