Priya Agarwal Hebbar, Chairperson, Hindustan Zinc, has highlighted the company's crucial role in Vedanta's evolution into 'Vedanta 2.0'a leading player in critical minerals, renewables, and technology. She emphasised that Hindustan Zinc is central to this transformation, with zinc and silver being vital for the company's future.

"Hindustan Zinc is a crown jewel for Vedanta, and both zinc and silver are essential for our growth," Hebbar told ET in an exclusive interview. She noted the significant potential of silver, describing it as having an "aggressive and ambitious story."

Vedanta has been focused on enhancing its presence in domestic critical mineral production, and earlier this year, it outlined a plan to achieve $10 billion in operating profit through various projects.

With Vedanta holding a 65% stake in Hindustan Zinc, which manages its zinc and silver operations in India, the company achieved record production levels in 2023-24. Hebbar expressed optimism about increasing production further, aiming to boost annual output from 1.2 million tonnes to 2 million tonnes over time.

Hindustan Zinc, the largest producer of zinc-lead and by-product silver in India, plans to increase zinc production by at least 5% annually. It also aims to raise silver output to 800 tonnes, with a future target of 1,000 tonnes within the next 12-18 months. Its 2023-24 figures included 1.08 million tonnes of zinc and 746 tonnes of silver.

Hebbar noted the growing significance of silver, transitioning from a minor by-product to a major revenue contributor. The company is exploring strategic partnerships to expand silver usage in sectors like medical equipment, wind turbines, electric vehicles, and solar panels.

Despite the advancements in silver, Hindustan Zinc remains focused on zinc, recently introducing low-carbon zinc to reduce carbon emissions and enhance its value proposition.

Hebbar also mentioned Vedanta's ongoing demerger and the potential sale of its steel assets. The company is waiting for favorable valuations and is not in a rush to sell. With a gross debt of Rs 780.16 billion and a net debt of Rs 613.24 billion as of June, the company is managing its financial situation without urgency.

(ET)