• OCTOBER 7, 2008

Zinc: The Indian context

In the last article, we saw an introduction to zinc. In this article, we will focus on how the zinc industry has developed in India over the last few years.

Zinc industry: The Indian zinc industry consists primarily of two players, namely Hindustan Zinc and Binani Zinc. Hindustan Zinc is an integrated producer having its own mines and has a market share of more than 60%. Binani Zinc is a custom smelting producer. All the major zinc ore mines in India viz. Rampura Agucha, Rajpura Dariba and Zawar mines are located in the state of Rajasthan and all of these are under the control of Hindustan Zinc.

Capacity: The zinc production capacity in India is set to register robust growth after the government allowed privatization of the state owned company Hindustan Zinc in 2002. The total production capacity stood at around 707,000 tonnes in FY08. Hindustan Zinc plans to raise its capacity to 1 m tonnes by 2010.

Production: The zinc production has registered a strong growth in India in the last few years. It stood at around 4% of total zinc production in the world in 2007. The zinc production increased from 265,000 tonnes in 2004 to 458,000 tonnes in 2007, registering a growth of 20% CAGR.

Consumption: The zinc consumption has increased from 347,000 tonnes in 2004 to 470,000 in 2007, backed by demand from infrastructure and industry. Important to add that galvanizing accounted for around 70% of the total consumption.

The demand for zinc 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, the growth in automobile and consumer durables industry would also further aid the increase in consumption of zinc.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407