Rajasthan’s Growth Engine: Hindustan Zinc Driving Sustainable Development

India’s largest and only integrated zinc, lead and silver producer, Hindustan Zinc (NSE: HINDZINC) completes 59 years of operations. Incorporated in 1966 as a public sector undertaking, Hindustan Zinc Limited has grown leaps and bounds since then providing zinc sufficiency to the country and the world at large. As a fully integrated producer, Hindustan Zinc operates underground zinc-lead mines, smelters, and captive power plants in Rajasthan.

Hindustan Zinc was set up with a vison of being a key protagonist in India’s growth story, with a capacity of 18,000 tonnes per annum smelter at Udaipur in 1966. Since then, till the time of government disinvestment, Hindustan Zinc’s production grew to approximately 2,00,000 tonnes per annum. Post government disinvestment in 2002 and acquisition by Vedanta Group, the metal production surged over 4X to more than 1 million ton per annum.

Hindustan Zinc, under the stewardship of Vedanta, has become synonymous with the economic and social transformation of Rajasthan. Over the past two decades, the company has not only cemented its position as a global leader in the metals and mining industry but has also significantly contributed to the holistic development of the state. Through strategic investments in community development, taxation, and economic prosperity, Hindustan Zinc has played a pivotal role in shaping Rajasthan into a hub for not just mining, but also sports, agriculture, and overall sustainable growth. The company is also the world’s most sustainable metals & mining company for the second consecutive year by S&P Global Corporate Sustainability Assessment.

Rajasthan, the land of minerals, metals and opportunities shines brightly with zinc and silver that has put the state on the global map of metal manufacturing. Not just metals, but the state has witnessed transformation in agricultural practices, literacy rates and skill development among youth with innovative social impact initiatives undertaken by Hindustan Zinc for the community. With 5 zinc and lead mines and 3 smelters operated out of Rajasthan by Hindustan Zinc, in just the past two decades the state has earned a whopping Rs. 40,000 crores from Hindustan Zinc through taxes, thus contributing to the state’s prosperity. This implies that the company delivers almost Rs.5 crores per day to the state exchequer. On the other hand, the company has invested over Rs. 1,700 crores for the communities in six districts covering 3,700 villages which has created an impact for around 20 lakh people.

Hindustan Zinc addressing challenges such as lack of facilities, social barriers and financial constraints for the people of Rajasthan, Hindustan Zinc has prioritized education and skill development as key pillars of community upliftment. Over the years, Rajasthan has witnessed a remarkable improvement from 45% in 2007 to 93% in 2024 in Class 10 pass percentages wherein the company’s education focussed social impact initiative has played a key role in bridging learning gaps and reducing dropout rates. Shiksha Sambal, Hindustan Zinc’s education focussed initiative impacts more than 2 lakh children annually since its inception in 2008. The company is also actively changing the sporting landscape of the state by nurturing grassroots level football talent in one of the India’s most sophisticated football academies at Zawar. Through the Zinc Football Academy, Hindustan Zinc has nurtured over 8,000 talented footballers since 2018.

Once known as a barren land not suitable for cultivation of fruits such as guavas, strawberries etc, Hindustan Zinc’s agriculture focussed social impact initiative, Samadhan is changing the farming environment of Rajasthan. With the support of Hindustan Zinc established farmer produce organizations, Samadhan farmers generated Rs 5 crores revenues. Under the same initiative, Hindustan Zinc has started a white revolution which has processed over 4 lakh litres of milk, generating a cumulative revenue of Rs. 2.5 crore.

In addition to its tax & community development contributions, Hindustan Zinc has consistently delivered strong financial returns to its shareholders. With a historic high share price of ₹807.70 and a dividend yield of 7.79%, the company’s financial performance underscores its role as a major economic engine for the state, nation and investors. The value creation extends to long-term investments as well, with a ₹1.4 per share investment in FY 2004 growing to ₹444 per share at the end of 2024, coupled with a total dividend of ₹275.55 per share, translating to a remarkable total shareholder return of more than 500 times.

Hindustan Zinc’s multi-faceted approach to development ensures that its impact is felt across various sectors, driving sustainable growth for Rajasthan. By integrating economic prosperity with social responsibility, the company is not only making Rajasthan a global hub for metals and mining but also fostering a future where sports, agriculture, and community well-being thrive.

As Hindustan Zinc continues the state stands poised to become a model for holistic development. The journey from being a mining stronghold to a diversified economy is a testament to the strategic vision and enduring commitment of Hindustan Zinc to the progress of Rajasthan.