Hindustan Zinc Limited has taken a major step toward strengthening India’s downstream metal manufacturing ecosystem by signing a strategic Memorandum of Understanding with Tripura Group. The agreement is aimed at fasttracking the development of the much-anticipated Zinc Park in Khankhala, Bhilwara district of Rajasthan.

The announcement was formally communicated to stock exchanges under regulatory disclosure norms. The development is considered significant not only for the company but also for Rajasthan’s industrial landscape and India’s broader Make in India manufacturing vision.

Hindustan Zinc, a Vedanta Group company, is recognised as the world’s largest integrated zinc producer and among the top five silver producers globally. Through this partnership, the company aims to build India’s first integrated downstream industrial hub dedicated specifically to zinc-based value chains.

This article explains the strategic importance of the MoU, the scope of the Zinc Park, the expected impact on industry and employment, and how this initiative fits into India’s larger economic and sustainability goals.

Strategic Importance of the MoU

The Memorandum of Understanding signed between Hindustan Zinc and Tripura Group marks an important milestone in operationalising the Zinc Park project. Under the agreement, Hindustan Zinc will provide assured raw material linkage to Tripura Group’s proposed manufacturing unit at the Zinc Industrial Park.

The agreement includes a long-term offtake arrangement, ensuring supply stability and business continuity for the proposed unit. This kind of structured arrangement reduces uncertainty for investors and strengthens confidence in the viability of the industrial ecosystem.

The partnership reflects a shared commitment between the two companies to build a strong and sustainable downstream zinc ecosystem in India.

Background of the Zinc Park Initiative

The concept of the Zinc Park was first announced in December 2024 during the Rising Rajasthan Global Investment Summit. The announcement was made by Rajasthan Chief Minister Shri Bhajan Lal Sharma alongside Vedanta Group Chairman Shri Anil Agarwal.

The project is planned near Hindustan Zinc’s world-class mining and smelting operations located at:

• Chanderiya

• Dariba

• Debari

These locations already serve as key production centres for zinc and related metals in Rajasthan. By establishing the Zinc Park nearby, the company aims to create logistical and operational efficiency while building a comprehensive value chain ecosystem.

The initiative is being developed in collaboration with the Rajasthan State Industrial Development and Investment Corporation. The goal is to establish India’s first integrated industrial hub focused exclusively on downstream zinc-based industries.

What the Zinc Park Means for India

Zinc is a critical metal used in various sectors such as infrastructure, automotive, renewable energy, construction, and electronics. It is widely used for galvanisation, alloy production, and corrosion protection.

While India is a major zinc producer, much of the downstream value addition has traditionally been fragmented. The Zinc Park aims to address this gap by creating a centralised industrial ecosystem where:

• Raw materials are readily available

• Infrastructure is designed for industrial use

• Manufacturers can operate with reduced logistics costs

• Technology adoption can be standardised

• MSMEs can integrate into larger supply chains

This integrated model could significantly boost domestic manufacturing capacity and reduce reliance on imports for certain value-added zinc products.

Role of Tripura Group

Tripura Group brings decades of expertise in beneficiation inputs and process optimisation for metal processing. Its technical capabilities and operational experience make it a strategic anchor investor in the Zinc Park initiative.

The collaboration is expected to improve:

• Beneficiation efficiency

• Process optimisation for downstream processors

• Quality and reliability of inputs

• Production scalability

As one of the first confirmed partners in the Zinc Park, Tripura Group’s participation signals confidence in the project’s potential.

Statement from Leadership

Mr. Arun Misra, Chief Executive Officer of Hindustan Zinc, emphasised that the Zinc Park represents a strategic initiative aligned with the company’s long-term vision.

He highlighted that the project translates the company’s ambition of building a resilient and competitive metal value chain into actionable steps. The partnership with Tripura Group demonstrates how collaboration can unlock downstream value and accelerate domestic manufacturing growth.

He further noted that assured supply arrangements, performance-linked incentives, and renewable energy commitments would provide investors with the necessary confidence to scale operations.

Economic Impact on Rajasthan

The Zinc Park is expected to deliver multiple economic benefits to Rajasthan, including:

• Increased industrial investment

• Job creation across skill levels

• Strengthening of local MSMEs

• Development of industrial infrastructure

• Skill development for local communities

The project aligns with Rajasthan’s broader goal of becoming a leading industrial state.

A major stakeholder consultation was conducted in late 2024 to invite expressions of interest from potential investors. This indicates a structured and phased approach to development.

Sustainability and ESG Focus

Hindustan Zinc has positioned sustainability at the centre of its operations. The company has been recognised as the world’s most sustainable company in the metals and mining category by the S&P Global Corporate Sustainability Assessment 2025 for the third consecutive year.

The Zinc Park will be developed with strong sustainability credentials, including:

• Renewable energy integration

• Industry-grade infrastructure

• Water conservation measures

• Focus on reduced carbon footprint

Hindustan Zinc has also launched EcoZen, described as Asia’s first low-carbon green zinc brand. Produced using renewable energy, EcoZen reportedly has a significantly lower carbon footprint compared to the global average.

These sustainability initiatives strengthen the long-term attractiveness of the Zinc Park for investors focused on ESG compliance.

Alignment with National Manufacturing Goals

The Zinc Park initiative supports the Make in India program by encouraging domestic value addition in metals and mining.

India’s push for energy transition and infrastructure expansion increases the demand for critical metals such as zinc. Applications include:

• Renewable energy installations

• Electric vehicles

• Infrastructure construction

• Urban development projects

By strengthening downstream manufacturing capabilities, the Zinc Park could reduce import dependence and improve export competitiveness.

Long-Term Vision and Expansion Plans

Hindustan Zinc plans to scale the Zinc Park in phases. The company continues consultations with potential investors and stakeholders.

The phased approach ensures:

• Gradual capacity addition

• Infrastructure readiness

• Balanced investment inflow

• Risk mitigation

The company will work closely with state authorities to ensure that the park meets global industrial standards.

Hindustan Zinc’s Market Position

Hindustan Zinc holds approximately 77 percent market share in India’s primary zinc market and supplies to more than 40 countries.

It became the first Indian company to join the International Council on Mining and Metals in 2025. It is also a certified water-positive company and has committed to achieving net zero emissions by 2050 or earlier.

The company’s strong financial position and global leadership status provide credibility to large-scale initiatives like the Zinc Park.

Challenges and Considerations

While the Zinc Park presents significant opportunities, certain challenges must be considered:

• Capital intensity of industrial infrastructure

• Global metal price volatility

• Regulatory approvals

• Environmental compliance

• Market demand cycles

However, the presence of assured raw material supply and long-term offtake arrangements may mitigate some operational risks.

Broader Impact on the Metals Sector

The development of an integrated downstream hub could serve as a model for other metal sectors in India.

By linking mining operations directly with value-added manufacturing, companies can improve efficiency and enhance global competitiveness.

If successful, the Zinc Park could inspire similar ecosystems in aluminium, copper, and steel sectors.

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