Scribd Upload a Document Search Documents

Top of Form

Bottom of Form

Explore

Sign Up | Log In / 167

Top of Form

Bottom of Form

Download this Document for Free

Chapter 1
Introduction of Vedanta Group: Vedanta, an over US $ 8.2 billion, Vedanta Resources plc (Vedanta) is a London listed FTSE 100 diversified metals and mining major. The group produces aluminum, copper, zinc, lead and iron ore and also commercial energy. Vedanta has operations in India, Zambia and Australia and a strong organic

growth pipeline of projects. With an empowered talent pool of 30,000 employees globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. Chairman Mr. Anil Agarwal Deputy Chairman Mr. NavinAgarwal Chief Executive Officer Mr. Kuldeep Kumar Kaura National presence

Hindustan Zinc Limited (HZL)

Sterlite Industries (India) Ltd (SIIL) Bharat Aluminium Company Ltd (BALCO)

The Madras Aluminium Company Ltd (MALCO) Vedanta Aluminium Ltd. (VAL) Lanjigarh

Sesa Goa Limited Sterlite Energy Limited

Global presence Copper Mines of Tasmania, Tasmania Konkola Copper Mines, Zambia Sterlite Group has also strong presence in Optical cables business through Sterlite Optical Technologies Ltd. (a non Vedanta Company) Project investments Vedanta is slated to make a $7.5 billion investment programmed. First phase of $2.2 billion completed on time and within budget. The next phase of $5.3 billion is under implementation and on schedule.

INTRODUCTION OF STERLITE GROUP Sterlite Industry India Ltd (SIIL), a part of Anil Agarwal Group is one of the major players in Copper Industry. Twin star Holdings Ltd, Mauritius is the parent company of the SIIL by holding 51% Equity in the later. SIIL in turn controls Bharat Aluminum Ltd (BALCO) and Hindustan Zinc Ltd (HZL). The company had in its Rs.551.5 cr bid for 51% stake of Balco. It plans to make Balco the lowest cost aluminum producer over the next three years. The company makes the substantial investment to make balco a world class benchmark producer. Companys vision to acquire Balco is to convert it into a platform to move on and take on the International Market. The Company takes 52% stake Zinc from Government of India at a price of Rs.445 cr. acquired through Sterlite Opportunities and Ventures Ltd., a special purpose vehicle set up for the same. SIIL is also planning for the Restructuring its business under the scheme of arrangement by which, the company would separate the copper business in a separate company. For this a 100% subsidiary company was incorporated vizSterlite Copper Ltd.

The Shareholders have approved the scheme of arrangement and the same has been filed in the High Court of Mumbai and Chennai. During 2001-02 the company embarked on a capital restructuring exercise whereby the company will purchase from its existing Shareholders up to 50% of its existing equity share capital at a consideration of Rs.150 per fully paid up equity share. The same was approved by the Board and Honble High Court of Mumbai and accordingly the company has purchased 2, 00, 68,004 equity shares and the same has been cancelled on 26th August, 2002. Today the govt continues to hold a major 49.92% stake in the company. Before sell off its stake was 75.92% the chairman of the company is a govt. appointee & the govt. still retains control over HZL board with 6 of the present 11 directors.

10

INTRODUCTION OF HINDUSTAN ZINC LTD Hindustan Zinc Ltd. was created from the erstwhile Metal Corporation of India (MCI) on 10th January 1966 as a Public Sector Undertaking in the mining industry. Industrial policy Resolution 1956 kept the extraction of ferrous and non- ferrous mineral resources in the core sector keeping the right of extracting the same exclusive to the government. Nationalization of Metal Corporation of India is to been seen in the context. The authorized and paid up capital of the company at the time of nationalization was Rs. 422.53 crores equally divided into 422531900 equity shares of Rs. 10 each. At the time of nationalization the company was having one mining unit i.e. Zawar Mines, in the State of Rajasthan, one smelting unit i.e. Tundoo Lead Smelter in the State of Bihar and another smelting unit is under construction i.e. Debari Zinc Smelter in the State of Rajasthan in its hand. The initial production capacity of Zawar Mines unit was 500 TDP and that of the Lead Smelter 500 TPA. After nationalization the government of Indias first task was the completion of the Debari Zinc Smelter under construction and its commissioning. The company has gradually increased its production capacity so as to match the demand supply position of lead and zinc. Today the Companys market share is about 70% and it is continuously striving for making the country a surplus one in respect of these two metals. In April 2002, Sterlite acquired a 46% interest in HZL from the Government of India and the open market, and it became a part of the Sterlite group. Since then HZL has been growing from strength to

strength. In August 2003, Sterlite acquired a majority state in HZL by acquiring another 18.9% interest from the Government of India.

11

HZL produces Zinc, Lead and by-products viz. Cadmium, Sulphuric Acid and Silver. HZL achieved an all-time high production output of 81046.94 MT of Zinc concentrate during 2007-08 Today HZL is Indias leading Zinc producer mine. It is one of India's leading base metal producers, and is unique in the context of its technological versatility coupled with vertical integration in several metals. HZL had entered into a Memorandum of Understanding (MOU) with the Council of Scientific and Industrial Research (CSIR) for setting up a nickel technology proving plant of 10 tonnes per day. The technology is for extracting nickel from overburden of chromite at the Sukhinda Mines in Orissa. It has also signed an MOU with BHP Minerals, Australia, and is working on a joint venture project for exploration of base and precious minerals in Rajasthan. The company has entered into yet another MOU with Vigego, Vietnam and La- Source, France, for exploration at Pac-Lang for gold prospecting in Vietnam. HZL has also entered into an arrangement with Broken Hill of Australia for grassroots exploration of zinc, lead and other minerals in Rajasthan. HZL was negotiating with another Australian company, Pasminco, for exploration in the Ajmer district. The company has completed exploration for evaluation of Gossan resource in parts of agpura. The Company has been declared a "Mini Ratna". Its Zinc Smelters are situated in Chanderiya, Debari and Visakhapatnam. It has lead-zinc mines in Dariba, RampuraAgucha, and Zawar. It has nearly 6400 employees. Hindustan Zinc Limited with its world class mines and smelter has now become world renowned lead zinc major. With the present tempo of work, the companys dream of making India a surplus country in respect of these two non-ferrous metals, no doubt, will soon become reality1.
1Ajeet,

Amit (Executive, commercial HZL)

12

Hindustan Zinc Limited (HZL), which is an ancillary of Vedanta Resources is a London listed FTSE 100 diversified metals and mining company. The group produces aluminium, copper, zinc, lead and iron ore and also commercial energy. HZL is the operating company of Vedanta in Lead, zinc and Sulphuric acid business.

HZL is worlds leader in Zinc, Lead, silver and Sulphuric acid business. It is the 3rd largest producer of Zinc and Lead in the world2. Hindustan Zinc is Indias only integrated producer of zinc and lead and is among the worlds leading integrated zinc and lead producers. Its metal production capacity is currently 754,000 tonnes per annum. The smelters are situated at Chanderiya, Debari and Visakhapatnam and the mines are situated at Zawar, Dariba and RampuraAgucha. Hindustan Zinc has about 6,400 employees. The company is a subsidiary of Sterlite Industries (India) Limited3.

13

COMPANYS VISION: The vision of Hindustan Zinc Ltd. is to be a world-class global company, creating value, leveraging mineral resources and related core competences. COMPANYS MISSION STATEMENT: To be the lowest cost zinc producer on a global scale, maintaining market leadership To attain one million ton zinc-lead metal production capacity by 2010 To be innovative, customer oriented and eco-friendly, maximizing stake-holder value4
4http:/

SULPHURIC ACID

/ www.hzlindia.com/ vision.asp

Sulphuric acid is produced as a by-product in the manufacture of Zinc by Hindustan Zinc Ltd. The basic layout of hydro and pyro types of plants that give SO2 as the output, which is then used to manufacture sulphuric acid is given below:

HYDRO PYRO Ore (Zinc + Lead) Zinc concentrate Roaster SO2 Sulphuric acid Ore (Zinc + Lead) Lead concentrate Sinter SO2 Sulphuric acid

15

HZL has acid manufacturing plants in Chanderia, Debari and Vishakapatnam. A plant at Dariba is expected to be operational in upcoming 3-4 months5. Plant Location No. of units Plant type Capacity per year
Chanderia 3 1 pyro, 2 hydro 7.5 lakh tons per year Debari 1 Hydro 3.6 lakh tons per year Vishakapatnam 1 Hydro 90 thousand tons per year Dariba 1

Sulphuric acid is a clear, colourless, odourless, viscous liquid that is very corrosive. As the largestvolume industrial chemical produced in the world, consumption of sulphuric acid is often used to monitor a country's degree of industrialization. Agricultural fertilizers represent the largest single application for sulphuric acid (65%). Other uses include production of dyes, alcohols, plastics, rubber, ether, glue, film, explosives, drugs, paints, food containers, wood preservatives, soaps and detergents, pharmaceutical products, petroleum products, pulp and paper. The common lead-acid storage battery is one of the few consumer products that actually contain sulphuric acid6.
5Garg, 6http

Varun (Executive, Marketing HZL) ://mooni.fccj.org /~e thall/h2so4 /h 2so4.htm