Hindustan Zinc Plans ₹5,000-Cr Capex For FY27, 80% For Current Projects

Vedanta group firm Hindustan Zinc Ltd (HZL) is likely to spend about $500-600 million (around ₹5,000 crore) in the current financial year, with most of the capital earmarked for projects already underway and a smaller portion reserved for new initiatives, its Chief Executive Officer Arun Misra said.

In an interview to PTI, Misra said roughly 80% of the guidance is intended for projects that are currently running, while about 20% will be allocated to new projects that the firm plans to announce soon.

He added that the group's total project capacity is about 1 million tonnes, of which 250,000 tonnes (25%) has already been approved with a capex of ₹12,000 crore covering mining and mineralisation.

Orders for mining have been placed and construction of the smelter has started, but milling and concentrate-related orders are yet to be finalised, the CEO said.

The remaining capacity will require investment in a similar proportion to reach 650 KT, with the expenditure expected to be phased over the next 4-5 years.

That translates to an average annual capex of about ₹7,000-8,000 crore, he said, noting that in the current year only 15-20% of that multi-year outlay will be reflected in actual cash outflows.

He did not disclose any further timeline or detailed financial break-up for the new projects.

Hindustan Zinc -- a major zinc-lead producer in India and a subsidiary of Vedanta Ltd -- has been investing to boost capacity and improve efficiencies across its operations in recent years.

The company is a leader in essential metals like zinc, lead, and silver with over five decades of operational excellence. The company operates across the entire value chain, from ore to metal, through fully mechanised underground mines and digitally advanced smelting facilities.

Backed by the Vedanta Group, HZL is listed on the BSE and the NSE, with 60.71% ownership by Vedanta Ltd and 27.92% held by the Centre.