Hindustan Zinc Announced Capex of ₹12,000 Crore: Plans Capacity Expansion by 250 ktpa

On Tuesday, June 17, 2025, Hindustan Zinc informed the stock exchanges that its Board has approved an ambitious plan to double the production capacity of zinc, lead, and silver. Despite the positive development, Hindustan Zinc shares fell over 5%, reaching a day low of ₹483.95 at 02:45 PM after opening at ₹505.00 on BSE.

Scope of New Capacity Expansion

Under this expansion strategy, the company will increase its integrated refined metal capacity by 250 ktpa, accompanied by proportional enhancements in mining and milling operations. The project is slated for completion within the next 36 months, with an estimated investment of around ₹12,000 crore.

This capacity boost is designed to meet the robust growth in demand anticipated both domestically and globally over the coming five years. Specifically, the Board has greenlit the establishment of a new 250 ktpa integrated smelter at Debari, along with expansions across the company’s mining and milling assets.

Arun Misra, CEO of Hindustan Zinc, said, “We are thrilled to embark on this transformative 2x growth initiative aimed at doubling our output in zinc, lead, and silver. This move aligns strategically with India’s expanding economic landscape, growing demand, and the country’s goal of self-reliance in zinc production. By synchronising with national growth trajectories, we are confident this will deliver substantial value to our stakeholders and ensure sustained long-term success.”

Also Read: Hindustan Zinc ₹10 Dividend Ex-Date Today, June 17; Check Your Payout for 1,000 Shares

Hindustan Zinc Declared ₹10 Dividend

In related news, Hindustan Zinc has declared its first interim dividend for the financial year 2025-26 at ₹10 per equity share, representing a 500% payout on the face value of ₹2 per share. The record date for this dividend has been set for June 17, 2025.

As per the shareholding data for the March quarter, Vedanta holds a 63.42% stake in Hindustan Zinc and is expected to receive ₹2,679 crore as dividend from its investment.

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