SDM Comprehensive Assignment

Company name – Hindustan zinc

About the company -

Hindustan Zinc Limited (HZL) is an integrated mining and resources producer of zinc, lead,
silver and cadmium.. HZL is the world's second largest zinc producer and India’s only
integrated Zinc-Lead-Silver producer.. Hindustan Zinc Had a revenue of over Rs 20,000 Crore
in FY18
HZL is able to produce 12 Million Tonne Per Annum of Metallic ore . It is Seeking to Further
Expand its wings and Currently has initiated CAPEX worth Billions for future Growth
Projects.

Hindustan zinc is the subsidiary of Vedanta resources. The zinc lead silver vertical of Vedanta
. Delineating further on the parent company vedanta.

Vedanta Resources Limited is a global diversified metals and mining company. The
Conglomerte has its headquarter in London . It plays a cardinal role in the development of
the India and acts as a backbone for the entire economy. It has mines in Australia, Ireland ,
Zambia and south Africa. The company deals in a variety of commodities and has majority of
the market share in most . Zinc, Lead, Silver, Oil & Gas, Iron Ore, Steel, Aluminium and
Power are its main operations .

Supply chain Management

Definitions –

Critical suppliers –
Hindustan zinc defines critical suppliers suppliers whose goods or services have a significant
impact on the competitive advantage market success or operational efficiency of the
company our critical suppliers include the suppliers who are non substitutable and who
provide critical component/ services for our operations

tier one suppliers - Hindustan zinc defines tier one suppliers as the suppliers that directly
supply goods or services to the company .

critical non tier suppliers -Hindustan zinc defines critical non tier one suppliers as to
suppliers that are considered critical and provide their products and services to the supplier
at the next level in the chain i.e Tier 2 suppliers and above .

Brief –
Hindustan Zinc have advanced well on their journey of leveraging digitalisation and looking
to embrace new technologies such as Artificial Intelligence (AI) and block chain capabilities
in the future.
They have automated their logistics supply chain through a state-of-the-art control tower
for real-time tracking of key inputs and intermediate materials, including concentrate. This
has made the reliability of supply chain quite robust and have already achieved substantial
reduction in the in-plant as well as in-transit (mine to smelter) vehicle turnaround time.

As the largest producer of Zinc in India, it was facing challenges with the speed and scale of
growth. They decided to work with SAP Ariba on an end-to-end sourcing and supplier
management solution to create an integrated and scalable system capable of powering the
company to adapt itself for digital transformation.

The Company primarily deals in 3 Products .

1.Refined Zinc
2.Refined Lead
3.Refined Silver

Innovation in Supply chain –

 a thorough monthly spend based on the data generated by the SAP system
 smart touch-less purchase order for annual rate contract
 launch of ARIBA Phase-II to improve Total Cost of Ownership (TCO)
Process chain –

Operations

Mines

HZL has a sustainable, fully underground mining operation across five locations in Rajasthan.
Total ore mined for FY 19-20 14,465 million MT , an increase of 5% from a year ago, despite
the lockdown imposed due to the pandemic in the third week of March 2020.
Smelters & Refinery

The three smelting locations are in close vicinity of mines. The smelters are Fully integrated
and optimised operations supported by captive power. In FY 19-20 they were able to utilize
their capacity upto 1.123 million MT . Also the first zinc fumer project is complete and wil l
be commissioned this year. This will lead to an annual recovery of valuable metals ,including
32 MT of silver and 5,500 MT of zinc and lead from zinc residue, which otherwise would be
wasted in jarofix.

Exploration
They aim to delineate and upgrade Reserve and Resource (R&R) in and around the existing
deposits. Driven by innovation and technology, exploration remains a key priority for a
sustainable future . They have 403 million MT of total R&R . The mine life is 25+ years . They
are further aiming to increase the R&R to 550 million MT by FY 20-21 by exploring new sites
Captive Power Plant
HZLs captive thermal, solar and waste heat recycling power plants provide low-cost and
reliable power to operations. With their commitment towards climate change, they have
increased solar power capacity by 2.5 times in the last two years and plan to add more in
the near future. They have a total Captive capacity of 549 MW. They are aiming to further
increase this capacity . The extra energy produced is sold to the Energy Department .

Vision - vision is to create an efficient supply chain with focus on technology, innovation and
collaboration. HZL empower their suppliers to share responsibility for integrating
sustainability and human rights by building their own management systems and internal
controls.