New plant in Rajasthan to diversify revenue and support India's fertilizer needs
New Delhi, May 12—Chairperson Priya Agarwal Hebbar announced that Hindustan Zinc Ltd (HZL), a Vedanta group company, is entering the fertilizer sector. Operations are expected to commence at its upcoming manufacturing plant in Rajasthan by the next financial year.The 0.5 million tonnes per annum plant, currently under construction at Chanderiya in Rajasthan’s Chittorgarh district, will focus on producing diammonium phosphate (DAP) and nitrogen, phosphorus, and potassium (NPK) fertilizers. This move marks the company’s strategic diversification into agribusiness, targeting reduced reliance on imports and supporting Indian farmers' fertilizer needs.
“Diversification is central to our growth strategy,” Hebbar said in a letter to shareholders. “We are entering the fertilizer segment with a DAP/NPK plant expected to become operational by FY27.”
Value-added products and critical minerals push
Last year, HZL commissioned a 30,000-tonne-per-annum zinc alloy plant, boosting its value-added products (VAP) portfolio, which now contributes 22 percent to its total business. The upcoming fertilizer venture is expected to enhance the company’s margins further and diversify revenue streams.Hebbar also emphasized the company’s future-ready direction through its wholly-owned subsidiary, Hindmetal Exploration Services. The subsidiary actively pursues exploration blocks across India for critical minerals including copper, lithium, nickel, cobalt, potash, and gold — essential elements for electric vehicles, semiconductors, and clean technologies.
“We will evolve from a zinc and silver company into a multi-metal, future-enabling enterprise,” Hebbar said, highlighting alignment with India’s critical mineral security vision.
Record fourth-quarter performance
HZL reported a 47.3 percent jump in consolidated net profit for the March 2025 quarter, reaching ₹3,003 crore, compared to ₹2,038 crore in the same period last year. The company’s total income also rose to ₹9,314 crore from ₹7,822 crore year-on-year.The company described it as its “best-ever fourth quarter profit after tax,” marking a strong finish to the fiscal year.
These developments underscore HZL’s transformation from a traditional zinc producer to a diversified, future-focused mining and resources company.