A

SUMMER INTERNSHIP REPORT

ON

Marketing scenario of zinc

Undertaken at AT

HINDUSTAN ZINC SMELTER, DEBARI, UDAIPUR

SUBMITTED BY KRISHAN KANT MEENA MBA 2010-12 (CENTERAL UNIVERSITY OF RAJASTHAN) FOR MASTER OF BUSINESS ADMINISTRATION (MBA)

CENTRAL UNIVERSITY OF RAJASTHAN KISHANGARH AJMER

INDEX

S.N o. 1. 2. 3. 4. 5.

Topic Acknowledgement Preface Chapter 1 : Introduction Chapter 2 : Conceptual frame work Chapter 3 : Research Methodology

Page No. 1 2 3 4 6

Productio Chapter 4 : Data Analysis and Interpretation 6.

7. 8.

Chapter 5 : Sales And Marketing Chapter 6 : Finding and conclusion

15 16

ACKNOWEDGEMENT The present study would not have been the light of the day without the due guidance and co-operation of HZL employees. This project involves valuable contribution from some person. I wish to express my appreciation gratitude to every direct or indirect co-operation and assistance expanded to me, by different individual and officials of respective department of HZL. I shall always be indebted ZINC SMELTER, DEBARI, UDAIPUR for giving me an opportunity to undergo this summer training in such a prestigious and professional organization and also for their immense contribution towards execution and completion of the project. As the outset I humble acknowledge the kind grace of the management of HZL for highly illuminating summer placement training. I am thankful to Mr. P.K Jain for their guidance and gracious support in accomplishing this summer training successfully. I would also like to present my heartfelt thanks to Mr. S.C. Sharma (Sale Manager) for their precious guidance, tolerance and understanding. I am really grateful to sir for the time they have spared for me during the course of my tenure in HZL, Debari. Last but not the least I would like to thank all the employees of HZL and fellow summer trainees for their co-operation extended.

Date:MEENA Place:- UDAIPUR \

KRISHAN KANT

Preface We have just stepped in 21st century. In last century, India was developing country keeping pace with the rest of the world.The mining industry has also played a vital role in development of the country, since independence the mining industry contributed a lot in making a fast development of the country. Keeping in view Zinc Smelter, Debari a giant company mainly involved in mining of Zinc, sulphuric acid, cadmium, lead, silver offers the opportunity to study, The Marketing Scenario of Zinc. Zinc and lead are the 23 and 34 most abundant elements on the earth crust among the oldest metal used by men in alloys and in metals. In terms of tonnage used, these are the fourth and most widely consumed industrial metals today after iron, aluminum and copper, sulphate and galena source of most of the worlds suppliers of these metals generally co-occur in association with minerals of sodium, silver, copper. Zinc and lead are resources known to be hosted by at least six geological environment but most of the major deposits occur strata bound massive, mixed sulphide ores in metamorphic rocks and irregular breccias replacement in carbonate rocks. The primary producers of lead ore are US and ex-USSR and the primary producers of zinc ore are Canada and ex-USSR. India has the pride of having the oldest known deposits of zinc ore at Zawar Mines. Zinc metals also used to be extracted through a crude Pyro metallurgical process in ancient times. Recognizing this zinc extraction district as the oldest in the world. American society of metals declared it as an INTERNATIONAL HISTRORICAL LANDMARK by placing at Zawar in Rajasthan state in 2nd of February 1989. The industrial upswing that took place in the country during 60s assured in a new era of zinc metal extraction from ores. It was during this decade that government of India, realized the strategic importance of zinc and lead metals incorporated HZL. The company has over the years, shriven hard to be bridge the gap between indigenous zinc production and the national demand. Relationship of man with metals dates of the evolution of man himself. Common man generally associates the world metal only to such material that are made of gold, silver, platinum and copper and are unaware that most articles that he is using in day today life have a direct or indirect association of metal Zinc predominately zinc metal is known due to its unique property of corrosion resistance, which lands its uses for galvanizing. Today there is hardly any industrial sector of common product that has except the influents

of zinc in some from or the other. Zinc is one of the essential non-ferrous metals required in the industrial economy and is fourth order of consumption amongst the major metals after iron, aluminum and copper.

CHAPTER 1

INTRODUCTION

Hindustan Zinc Limited

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 nonferrous 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 crore 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. 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 tones 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, Rampura Agucha, 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 mwill so become

Hindustan Zinc Limited Hindustan Zinc Ltd. (HZL) is one of the worlds largest integrated zinc and lead producer based in India. The company is a subsidiary of Sterlite Industries (India) Limited which is a subsidiary of Vedanta Resources plc. The companys core business comprises of mining and smelting of zinc and lead along with captive power generation. The companys mining operations are

located at Sindesar Khurd, Rampura Agucha, Rajpura Dariba, and Zawar in Rajasthan. The company carries out its smelting operations at Chanderiya Lead Zinc Smelter Complex, Debari Zinc smelter and Vizag Zinc smelter. The products offered by the company include refined zinc metal, refined lead metal, silver, cadmium and sulphuric acid. In addition, the company is also involved in wind energy business. It operates through four regional offices in Mumbai, Kolkata, Delhi, and Hyderabad. The company is headquartered at Udaipur in Rajasthan, India.

THE VISION Be a world-class zinc company, creating value, leveraging mineral resources and related core competencies Change environment in India and the rapid development in the world we have Profound implications on Hals operations and future growth, requiring adoption of pro-acting strategies. The corporate planning group (CPG) in the process of formulation of the corporate plan for the period 2007 2012 conducted situation analysis be scanning socio political economy and technology environment and adopted the VISION as: Be a major natural resources company with diversified businesses leveraging the competitive advantage offered by its mineral resource portfolio and competencies, including best management practices based on efficiency. TQM concept and trust

Be a world class Zinc Company, creating Value,leveraging mineral and core competencies. To put India on the world metals and mining map by becoming a fortune 500 company. To build an organization having world class capabilities and high performance culture by attracting, developing and retaining talented people. To have relentless focus on execution using best in class processes. Explore and develop additional mining resources.

THE MISSION To produce 1 Million MT p.a. of Zinc metal and 200,000 MT p.a. of Lead metal by 2011 Be a lowest zinc producer on a global scale, maintaining market leadership To double per capita consumption of copper, aluminum and zinc through application To explore and develop mineral reserves by 2010, for the subsequent 15 years in Copper, aluminum and zinc. To set up CPPs/ captive sources for entire power requirement. To develop value and added products such as CGG alloys, zinc sheet etc. To become a significant global producer of Zinc and to remain as the dominant market leader of zinc and lad in India. To avail opportunity to diversify into other businesses, synergy with its competencies. To maximize satisfaction of its stakeholders.

KEY OBJECTIVE: To increase smelting capacity so as to maintain and enhance market. To locate world-class lead and zinc deposits by grass-root exploration either independently or through joint venture. To diversify, into other mineral based industries and precious metals and important infrastructure sector like power. To attain international levels of productivity and quality standard through HRD efforts and intense R&D and technology up gradation in mining, beneficiation, and smelting. To utilize technologies for optimizing energy consumption. To adopt the best international practices for environment protection and safety. To maximize generation of nitration of internal resources for financing its expansion and diversification activities.

To strengthen the image as the organization with commitment to excellent amongst all concerned.

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. Agarwal Deputy Chairman Mr. Navin Agarwal Chief Executive Officer Mr. Kuldeep Kumar Kaura

National presence

Hindustan Zinc Limited (HZL) Sterlite Industries (India) Ltd (SIIL) Bharat Aluminum Company Ltd (BALCO) The Madras Aluminum Company Ltd (MALCO)

 Global presence

Vedanta Aluminum Ltd. (VAL) Lanjigarh Sesa Goa Limited Sterlite Energy Limited

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)

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 viz Sterlite 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 it exists 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.

OPERATION UNIT Highlights Revenue o `` f Rs 8,017 Crore, higher by 41%compared to the previous year, driven by higher volumes, increase in LME prices and improved operational efficiencies. `` Highest ever Mined metal production of 768,620 tonnes; Refined metal production of 650,038 tonnes1; and 176,381 kilograms of Si1lver2. `` PBDIT of Rs 5,392 Crore, up by 47% compared with FY 2009.`` EPS of Rs 95.65 per share. `` The 210 ktpa zinc smelter at Dariba and 1 mtpa concentrator at Rampura Agucha successfully commissioned, around a quarter ahead of schedule. `` Stable operating costs, supported by higher volumes, increased operational efficiencies, increased capacities.`` Strong balance sheet with shareholders fund base of Rs 18,124 Crore and cash flow and liquid investments of Rs 11,900 Crore.`` Total dividend recommended at Rs 6 per share. 1 Includes captive consumption of 7,308 tonnes Lead. 2 Includes captive consumption of 37,831 kilograms Silver. Hindustan Zinc Limited is an integrated producer of zinc and lead. The Companys core business comprises of mining and smelting of zinc and lead along with captive power generation. The company has announced Q1 (ending June 2010) results of the current fiscal (FY10-11) and the net profit rose 82.88% to Rs 131.49 crore. It was Rs 71.90 crore in Q1 (ending June 2009) last year.

The company informed the BSE that the total sales rose 19.45% to Rs 413.53 crore in Q1 (ending June 2010) of the current fiscal (FY10-11) when compared with the same quarter Q1 (ending June 2009) of previous year. Total sales was Rs 341.54 crores in last years quarter Q1.Shares Data :BSE Code : 500188 Mkt. Cap : Rs 41,740.89 Crores Hindustan Zinc Ltd. shares CMP is Rs 987.95 on 23rd July 2010.

Growth projects `` The 210 ktpa zinc smelter at Dariba and 1 mtpa concentrator at Rampura Agucha successfully commissioned. `` 100 ktpa Lead smelter, 160 MW CPP and the mine projects are on track for scheduled completion. Hindustan Zinc at a Glance We are one of the lowest cost producers in the world and are well placed to serve the growing demand of Asian countries. Hindustan Zinc is a subsidiary of the NYSE listed Sterlite Industries (India) Limited (NYSE: SLT) and London listed FTSE 100 diversified metals and mining major Vedanta Resources plc. Our core business comprises of mining and smelting of zinc and lead along with captive power generation. We have four mines and four smelting operations: mines are situated at Rampura Agucha, Sindesar Khurd, Rajpura Dariba and Zawar in the State of Rajasthan, while the smelters are located at Chanderiya, Debari and Dariba in the State of Rajasthan and Vizag in the State of Andhra Pradesh. 1. Rampura Agucha Mine Ore Produced in FY 2010: 5,135,625 tonnes Type of Mine: Open Cast Reserves: 75.71 million tonnes Resources: 44.65 million tonnes Reserves Grade: Zinc 14.23%; Lead 1.99%

Ore Production Capacity: 6.00 mtpa 2. Rajpura Dariba Mine Ore Produced in FY 2010: 501,282 tonnes Type of Mine: Underground Reserves: 7.80 million tonnes Resources: 34.41 million tonnes Reserves Grade: Zinc 6.25%; Lead 1.40% Ore Production Capacity: 0.90 mtpa 3. Sindesar Khurd Mine Ore Produced in FY 2010: 444,715 tonnes Type of Mine: Underground Reserves: 10.74 million tonnes Resources: 50.08 million tonnes Reserves Grade: Zinc 5.45%; Lead 2.95% Ore Production Capacity: 0.50 mtpa 4. Zawar Mines Ore Produced in FY 2010: 1,020,250 tonnes Type of Mine: Underground Reserves: 7.85 million tonnes Resources: 53.36 million tonnes Reserves Grade: Zinc 3.66%; Lead 1.95% Ore Production Capacity: 1.20 mtpa Mining Rajasthan India ,Gujarat, AndhraPradesh, Karnataka Facts + figures (2009-10): 578 ktpa Refined Zinc production: 102.09 mtpa Reserves: 196.56 mtpa Resources:8.60 mtpa Ore production capacity 1. Chanderiya Smelting Complex Production in FY 2010: 436,909 tonnes of Zinc , 71,627 tonnes of Lead 1176 tonnes of Silver Capacity: 525,000 tonnes of Zinc 85,000 tonnes of Lead; 168 tonnes of Silver 1. Chanderiya Smelting Complex Type: Coal based Capacity: 234 MW Type: DG Set Capacity: 14.81 MW Type: Waste Heat Recovery Capacity: 13.7 MW 2. Zawar Mines Type: Coal based Capacity: 80 MW Type: DG Set

Capacity: 6 MW 3. Zinc Smelter Debari Type: DG Set Capacity: 14.81 MW Type: Waste Heat Recovery Capacity: 6.5 MW 4. Samana Wind Power Plant Type: Wind energy farms Capacity: 88.8 MW 5. Gadag Wind Power Plant Type: Wind energy farms Capacity: 34.4 MW 2. Zinc Smelter Debari Production in FY 2010: 87,347 tonnes of Zinc Capacity: 88,000 tonnes of Zinc 3. Zinc Smelter Vizag Production in FY 2010: 54,184 tonnes of Zinc Capacity: 56,000 tonnes of Zinc 4. Dariba Smelting Complex Hydro Zinc Smelter Capacity: 210,000 tonnes of Zinc SMELTER Debari Zinc smelter: (ZSD) ZSD is some 14 km away from Udaipur, Raj. Electrolytic extraction process is adopted to produce Zinc cadmium, sulphuric acid etc. ZINC-LEAD SMELTER VISHAKHAPATNAM: In the Zinc lead smelter at in Andhra state, electrolytic extraction process is adopted to produce Zinc, cadmium, sulphuric acid etc. CHANDERIYA ZINC LEAD SMELTER: Chanderiya Zinc lead smelter is located 12 km away from chittorgarh in Raj. Imperial smelting furnace (ISP) Technology is being adopted for extraction of Zinc, lead & other by products.

PRODUCTS AND PRODUCTION CAPACITY OF MINES AND SMELTERS OF HZL . 1.MINES: S.NO. 1. Zawar group of mines (Raj.) 2. Rajpura mines (Raj.) Dariba PRODUCTS Zinc, lead, silver ores and concentrates Zinc, lead, silver ores and concentrates Zinc, lead, silver ores and concentrates ANNUAL CAPACITY (tpa) 12,00,000

9,00,000

3. Rampura agucha mining complex (Raj.)

13,50,000

SMELTERS: S.NO. 1. Zinc smelter Debari (Raj.) PRODUCTS Zinc ingot Sulphuric acid Cadmium Silver Zinc dust ANNUAL CAPACITY (tpa) 52,000 87,000 250 6.8 3600 -

2.Vizag Zinc lead smelter, Visakhapatnam, Andhra Pradesh

Zinc Lead Sulphuric acid Cadmium Silver

30,000 22,000 75,000 115 30

3.Chanderiya Zinc lead smelter, Rajasthan

Zinc: PW SHG Lead Cadmium Sulphuric acid Silver Bismuth Copper cathode 35,000 35,000 35,000 375 1,76,000 74 10 2,100

DEBARI ZINC SMELTER

INTRODUCTION Debari Zinc Smelter, a premier Smelter of Hindustan Zinc Limited is engaged in the production of high grade Zinc metal other by products like Sulphuric acid and cadmium since from 1968. It is some 14 Km. away from Udaipur, Rajasthan. Electrolytic extraction process is adapted to Zinc, cadmium Sulphuric acid etc. SALIENT FEATURES: 1. Annual production capacity: (a) Zinc: 49000MT (till the end of 2000 (At present it is 81046MT) (b) Sulfuric acid: 120545 MT (c) Cadmium: 232.97 MT (d) Zinc dust: 2545 MT 2. 3. Maximum power demand: 32 MW Capital investment: Rs. 92.52 crore PERFORMANCE Zinc smelter Debari has achieved an impressive growth pattern and continuous endeavors are being made to impressive production as well as productivity. Emphasis is given for energy conservation, improvement in recovery efficiency and reduction in process consumption, which are prime factors in controlling the cost of production. The performance of Debari Zinc smelter for the last 3 years is tabulated below: (A) Production performance: (B) Productivity Performances: Particulars Zinc recovery Efficiency% Industrial water Consumption (M3\MT) 14.69 14.23 15.04 2004-05 96.25% 2005-06 96.25% 2006-07 96.21%

Cathode power Consumption (kwh)

3453

3428

3463

PRODUCTION PROCESS AND VARIOUS DEPARTMENTS All the department of ZSD is categorized under following heads: 1. PRODUCTION DEPARTMENT: The production of Zinc ingot is the main product of the production process. Zinc ingot is obtained after the completion of process through various departments. 1. ROASTERS AND ACID PLANT 2. LEACHING, PURIFICATION AND CADMIUM PLANT 3. 4. ZINC ELECTROLYSES AND MELTING PLANT ZINC DUST PLANT

2. SERVICE DEPARTMENT: The department, which are indirectly engaged in the production of Zinc ingot by providing some sort of service to the production departments. They are categorized as under: 1. PERSONNEL & ADMINISTRATION DEPARTMENT 2. INDUSTRIAL ENGINEERING CELL 3. SAFETY DEPARTMENT 4. STORES DEPARTMENT 5. SALES DEPARTMENT 6. FINANCE DEPARTMENT

A BRIEF ABOUT PRODUCTION DEPARTMENT ROASTER: Zinc concentrate at DZS comes from three mines, namely, the Rampura Agucha mines, Zawar mines & Rajpura Dariba mines. Variable speed belt conveyer in a particular ratio, which is 50%, 37%, and 13%, feeds zinc concentrate to roaster; respectively temperature maintained in roaster is approximately 950degree centigrade. The gases coming out of roaster are passed through waste heat boiler & get cooled to 350 degree centigrade calcite by the gases fall here & is Collected in Hooper. Further gases are passed through cyclones & hot gases from different source cooled in conveyers & sent to leaching plant silos. Old one having capacity of 227 tpd. ACID PLANT: Sulphur di oxide-bearing gases are first dried in a drying tower with H2SO4 to reduce the moisture content of the gases. Dried gases are subsequently heated in shell &tube type heat exchanger to a temperature of 400 degree centigrade. The heated gases repassed through V205 (venial oxide). Catalyst fed in an inverter where SO3, which is absorbed in absorption, towers. By further processing it changes into H2SO4. This acid by product for the company. Just 10-20% acid is used in the plant, 80% goes to the market & is used in the fertilizers. LEACHING PLANT: Calcine, which consist oxide of Zinc & other metals, is sold in form. Here in leaching plant, it is mixed with Sulphuric acid. This is called the leaching process. Soluble oxide get dissolved producing respective sulphates Manganese di oxide is added to convert the ferroussulphate solution to ferric which gets precipitated at Aph of 4.8as, Sb, Ge etc are also precipitated along with ferrichyderoxide. The reaction is as follows: Zno+H2SO4 - ZnSO4 + H2O PURIFICATION: The clean over flow from the neutral thickener is fed into purification stage. Purpose of this stage is to remove the basemetalimpurities like Cu, Cd, Lo, Ni etc that are harmful for the electrolyses of Zinc. All this elements are removed by the precipitation with the help of Zinc dust being placed higher than all these elements in the electromotive series of elements, displaces them from the solution of sulphate as per the following reaction: -

Zn + MSO4= ZnSO4 +M ZINC DUST: Zinc brick are melted her, who comes from Zinc electrolysis plant, in this plant, Zinc dust is prepared. Zinc dust is used for internal purposes. In every 15 days this plant is checked for maintenance.

ZINC ELECTROLYSIS & MELTING: It consist of 560 number of concentrate lead lined HDP liner cells divided in three circuits of 240, 160& 160 cells each. First circuit of 240cells operates at 10-kilo ampere & the remaining 2 circuits of 160 cells each is operated at 15kilo ampere each. The spent electrolyte added to purified ZnSO4 solution being pumped to cell house to maintain the PH of 3.5 before being cooled in atmospheric coolers. Gypsum removal take place in the super settler & the cooled neutral solution is stored in storage tanks. The neutral solution is then added to the recirculating cooled spent electrolyte at the rate to maintain the desired Zinc to acidity ratio of 30 liters per minute to each of the cells through a system of FRP launders. Gum Arabic is added to the electrolyte to improve the texture of the Zinc cathode sheets as serfactance. The cells of the concentrate provide with HDPE lining in which the electrodes are placed. These are three different circuits with each having its own DC power source. The anodes are 0.5% Ag- Pb & the cathodes are of aluminum Zinc deposits on the cathodes & MnO deposits on the anodes. The Zinc is allowed to deposit for a period of 24 hours after which the electrolyte sheets are stripped out manually. The Zinc cathode sheets obtained from stripping is weighted & melted in induction furnaces; these are namely, Demaj& Ajax. Finally these are castled. The recovery efficiency of Zinc is 95% approximately. In the process, firstly Zinc plates are prepared & that Zinc makes bricks. Each brick weight 25 kg.

A BRIEF INTRODUCTION TO SERVICE DEPARTMENTS

PERSONNEL & ADMINISTRATION DEPARTMENT: -

Personnel & administration department is a crucial department as it is concerned with management & operating functions with a view to attain the organizational goals economically & effectively & meeting the individual & social goals. It checks the working of the following functions: Time office Administration Welfare Establishment section Workmen establishment Executive establishment

INDUSTRIAL ENGINEERING CELL: Industrial engineering is a science, which develops methods, processes to provide an interface between man, machine, and material &minutes to have an optimum output. To achieve this cell makes the use of: Incentive scheme Suggestion schemes Human resource department Work study of system & matrix Value engineering Ergonomics SAFETY DEPARTMENT: Safety department look after the safety of the people working in the smelter & factory by providing all the necessary safety equipments to protect from he acid &harmful gases. It keeps vigilance on the safety conditions prevailing in the whole organization. STORE DEPARTMENT: Store department deals with the management of material. It helps in controlling the inventory &keeping a check on the requirements on the various materials. In brief, it has the following functions: - Procurement of material Storage Issue of material

- Inventory controls SALES DEPARTMENT: -

All sales are affected through the central Marketing office; New Delhi .The interested parties contact this office. The selling price of Zinc ingot is the monthly weighted average of the price quoted by the London metal exchange. 30 days interest free plus 60 days, interest bearing credit at the rate of 14% per annum will be allowed against confirm L/C &B/G all grades of Zinc without any quantity restriction. For any delay beyond approved credit policy interest at the rate of 24% will be charged. FINANCE DEPARTMENT: The main function of accounts department is to keep systematic record of all financial transaction. Finance department is further divided in three sections: 1. COSTING/ BUDGETING SECTION 2. BOOK- KEEPING SECTION 3. CASH SECTION 4. CONTRACTOR SECTION 5. EXCISE & MODVAT SECTION 6. ESTABLISHMENT SECTION

ENVIRONMENT PROTECTION Being concerned with the upkeep of environmental safety ecological balance, HZL installed appropriate pollution control & environmental monitoring systems at its mining & smelting operations. Incorporation of dust extraction plants, tailing ponds for solid waste disposal and waste water reclamation systems at mining units & modem effluent treatment facilities, gas cleaning, mercury removal plants at its smelting units that enables it not only to meet the permissible emission standards but also to conserve natural resources. Pollution control measures include a forestation, stabilization of liquid & gaseous effluent & management of solid wastes. TECHNOLOGICAL UPDATE HZL technology scenario is a rich blend of both self developed & acquired know how. One of the important spins off benefits of the blend is the, ability to rapidly absorb different technologies. Over the years the company has implemented a number of technology updating schemes in mining, beneficiation & smelting leading to increase competitiveness of its operations. The use of buck mining methods viz: blast hold stopping, vertical crater retreat mining (VRM) has achieved higher safety & productivity. The

concentrator returns have been optimized through computerized in stream analysis & process control. While the smelting practices include hydro & pyro routes, the recent thrust areas have been metal recoveries from leach residues, precious metal recoveries, and optimization of consumables & modernization of facilities. HZL has pioneered computer applications in the indigenous non-ferrous metal industry for a wide range. SCOPE FOR FUTURE DEVELOPMENT HZL a leading producer of 149000 tones Zinc &650 of lead per annum besides silver and other by products has ever been seeking new markets for its expansion &development. The company is trying to achieve new melting & smelting capacities at various other prospective areas in order to attain higher level of productivity at lower cost of inputs. It is trying to explore new Zinc mines at kayar near Ajmer

CHAPTER 2 CONCEPTUAL FRAMWORK OF INDUSTRY

1. OBJECTIVE:

(1 ) DESCRIVE THE MARKET SCENARIO OF ZINC (2) 4 PS OF MARKETING

The concept- industrial marketing

The marketing concept for business enterprises of industrial buyer is to define the needs of target market and modify the organization product or service to satisfy those needs more successfully than its competitors. The marketing concept is applicable and important in both the industrial and consumer markets due to difference in the terms of the nature of market .it is evident that consumer marketers have embraced The marketing concept more fully than their industrial counterpart because industrial costumer like organization businesses , institution, and gov. Agencies having unique needs. The industrial marketing concept involve more than facilitating exchanged with these customer because it is based upon structure of a partnership between buyer and sellers for the purpose of achieving the organizational goals of both. Generally, industrial organization tend to be technically oriented much more interested in a particular product and its technically development many manager in such firms are promoted out of engineering and research an d development department. Some time technical values tend to dominate there decision making. For marketing effectiveness , the product should always be regarded as a variable and should be viewed on the prospective of customer. Customer

benefits and needs satisfaction ,rather than ph ,rather than physical product , should be the center of attention . further customer satisfaction should be dominant In all corporate decision making; so it cannot be the exclusive domain of the marketing department. Providing customer satisfaction must involve all decision makers and will affect product design, demand analysis, manufacturing techniques, resource utilization , and long range profits of the business organization . moreover , the understanding of the concept of industrial marketing is compulsory for industrial marketing manger to providing proper guidance and stimulation for research and development of new product to exploit and developed market for new products to define the method for promoting products to customer considering the major increase in the cost of media advertising and personal selling to innovate in distribution and other area to keep up with changing requirement of industrial customer doing business on the multinational basis to meet stiff competition through modernized business to refine and modify product positioning and to approach problems in the modern ways. CHARACTERISTICS: INDUSTRIAL AND CONSUMER MARKETING The basis of marketing management deciding the target market finding out the need and wants of the target market , developing product and services to meet the requirement of the market .and involving marketing program or strategies to reach and satisfy target customer in a better and faster way than competitors apply to both consumer and industrial marketing. The industeral markets are geographical concentrated the customer are relatively fewer. The distribution channels are short . the buyer or customer are well informed, the buying organization are highly organized and use sophisticated purchasing techniques. The purchasing decision is based on observable stage in industrial marketing. Industrial marketing is more responsibility of general management in comparison to consumer marketing. It is difficult to separate industrial marketing strategy from the corporate strategy. But in case of consumer marketing , many times the changes in marketing strategy are carried out within the marketing department , through changes in advertising , sales promotion , and packaging strategies . however , the changes in industrial marketing strategy generally have company wide implications . Table 2.1: difference between industrial and consumer marketing S.NO 1 Bases Market characteristics Industrial markets Geographically concentrated, relatively few buyer Consumer market Geographically disabused, market mass

2 3

Product characteristics Service

Technical customized

complexity

Standardized Service, delivery and availability somewhat important Involvement of family members, purchasing decision are mostly made on the basis of psychological needs, less technical expertise Observable stage , mental

Service , timely delivery and availability very important Involvement of various functional area in both buyer and splayer firms ,purchase decision are mainly made on rational basis, technical expertise Observed stage , distinct Shorter , more direct, fewer intermediaries Emphasis on personal selling Competitive bidding and negotiated prices ,list price for standard product

Buyer behavior

5 6

decision making Channels

Indirect, multiple layer of intermediaries Emphasis advertising on

7 8

Promotion Price

List prices or maximum retail price(MRP)

Market characteristics Market participants, customers and demands The market for thermo technology comprises products and systems for space and domestic water heating including systems using renewable energy sources for private households, commercial properties and public buildings. It does not comprise air conditioning and ventilation technology. All figures and values refer to manufacturer sales to distributors and wholesalers. The global thermo technology market is very heterogeneous. Nearly all regions differ with regard to consumption behavior, market structures and competition. The markets are influenced not only by regional climates and building styles, but also by the existing infrastructure, energy supplies as well as by local regulations and standards. The thermo technology market is characterized by a large number of market participants, both at manufacturer and wholesaler level. Among the traditional heating and hot water solutions alone, there are over 350 brands in Europe, which are marketed by more than 250 manufacturers, partly on a

national scale or only regionally. In addition, there are some 130 special suppliers and brands for systems using renewable energy sources. While some manufacturers have their own wholesale network, the products are mostly sold by independent sanitary and heating wholesalers, most of who operate regionally. They account for approx. 70 % of total brand sales. The customer base of manufacturers and wholesalers of heating and hot water solutions is equally large and diversified, comprising installers and specialist heating engineers, planners, builders and architects as well as a small number of final consumers. A new customer group specialist companies for systems using renewable energy sources has entered the market in recent years. Their importance has increased steadily in line with the growing technological complexity and the more widespread use of renewable energies in the heating technology sector.

Competitive nature Competitive situation Ongoing globalization has reached the market for heating and hot water solutions. Larger manufacturers of thermotechnology products meanwhile have an international presence and generate a growing portion of their revenues outside their home markets. So far, however, there is no truly global thermo technology manufacturer who holds material shares of the three large continental markets, i.e. North America, Asia and Europe. Europe, the most important market for thermo technology products, continues to be dominated by German suppliers. Last years league table was again led by three German manufacturers BBT Thermotechnik, Vaillant Group and Viessmann Werke followed by the British Baxi Group and the Italian MTS Group, who switched places as compared to the previous year. Other companies with significant market shares are Ferroli and Riello from Italy, Atlantic from France, Remeha/De Dietrich from the Netherlands/France and Weishaupt from Germany. Between them, these top ten held just under 70 % of the European market for gas and oil-fired heating systems in 2006. When including the heavily fragmented sub-markets for systems using renewable energies, the share of the top ten declines to 58 %. These relatively new markets are characterized by a large number of smaller specialist companies, many of which operate only regionally.

Market consolidation continues Competition in the thermotechnology sector continued to increase in the past year. The growing technological standards of the systems, combined with strong pressure on prices led to continued market consolidation with numerous cooperations and acquisitions, especially in the western European heating technology market. Nearly all of the larger manufacturers are currently adopting an increasingly international positioning with a view to benefiting from future growth opportunities, also outside western Europe. The consolidation process goes hand in hand, however, with a major structural change. The trend towards highly efficient heat generators powered by a growing proportion of renewable energies continues. As a result, a large number of new players such as manufacturers of electric heat pumps, solar collectors or solid fuel heating systems have entered the market. Accordingly, 2006 saw increased investment in companies with this kind of special expertise. Competition has also become much more intense at the wholesale level. Faced with declining margins, wholesalers have stepped up their efforts to cut costs, increase their range of services and expand their activities across regional and national borders. This led to a growing number of mergers and acquisitions in the past two years, in which larger wholesalers in Europe played an active role. The Richter + Frenzel Group, for instance, took over 80 branches with roughly 700 employees from the bankrupt Schulte Group in mid-January 2007. Wolseley, the worlds largest wholesaler of sanitary and heating products, also announced four more acquisitions at the beginning of 2007. Since August 2006, Wolseley has made 29 acquisitions with a sales volume of 560 million British pounds in Europe and North America. The French Saint-Gobain Group also attracted attention with a large number of cross-border acquisitions, most of them in Europe. Nevertheless, the acquisitions in the wholesale sector represent only isolated activities, which have not changed the sector structure materially so far.

Product characteristics
In industrial marketing ,the product and services are generally technically complex and not purchased for personal use. They are purchase as a component part of the product and service to be produced or serve the operation of the organization . because the importance given to the technical aspects of product, the purchase are made based on the specifications evolved by the buyer. The real risk in finagling in love with the technical aspects of a product in industrial marketing is to ignore the flexibility in responding to the customers need In a competitive market . Some companies as a result ,commit the serious mistak of trying to change the customer to fit the product . for example the quality control manager of a

cold rolled(cr) steel strip manufacturing company informed an important customer that the customer was not justified in rejected his company product , as it was as per the relevant Indian standard specifications and that the customer s product specification were more rigorous Indian standards specification . however , the customer refsed to accept the product ,as it was failing at the shop floor operation. The customer , therfor not only returned the entire rejeaction but also cancelled the balance order. Subsequently ,other competitors supplied the product as per the need and specification of the customer ,who placed order with them . as compared to consumer marketing ,industrial customer place a greater importance on service, thayt is timelines certainly delivery or availability of product , because any delay in supply will have a significant impact on the production or operations. Buyer behavior In industrial marketing the buyer process is more difficult as compared to consumer marketing. The purchase decisions in industrial marketing are based on many factors, such as compliance with the product specification and product quality, availability, timely supply, acceptable payment and other commercial terms cost effectiveness, after sales service, and so on rather than on social and psychological needs. The buying decisions generally take a longer time and involve many individuals from technical, commercial/materials, and finance department. Channel characteristics Inventory or stock control is very much important factor in the business organization therfor the distribution channels are needed more direct from the manufacturer to the customer in industrial marketing. the manufacturers use their own sales/marketing personal to sell the product directly to major customer. But , in case of selling to small scale customer or geographically scattered markets y manufacturer use either distribution /dealers , agents/ representatives , which also help in minimizing the cost of market. Promotional characteristics In consumer marketing, the emphasis is given on advertising whereas, in industrial marketing , the importance is given to personal selling through the company sales force. As a result, a much larger expenditure budget is provided for adverting in consumer marketing inn comparison to industrial marketing .advertising is used to lay a foundation for the sales call rather than serve as the primary communication tool. Sales people act mare as consultants and technical problem solver, utilizing in depth product knowledge and technical understanding of the buyers need, whereas industrial advertising normally stresses more factual and technical data.

Price characteristics The product are sold through the intermediaries to the consumer based on the price list of the manufacturer or the maximum retail price(MRP) for the packaged product in consumer marketing . Sometime the retailer reduced the price by passing on to the consumer a part of his discount due to different degree of intensity of the competition . In industrial marketing , price is less critical factors for purchase decision .competitive bidding and price negotiations are very common in industrial marketing and financing arrangements are often considered part of pricing package. When there are no price negotiations in certain government tenders , the competitive bidding become very important ,as only the lowest bidders are are considered for placement of order. Market Overview No one can spend a day without using metal or mienral . in the production or supply of metal or minral, hzl ,part of the vedanta group is one of the worlds most diversified companies . major production zinc, lead , silver and power. Zinc Global Market In FY 2010, world smelter production increased by 4% to 11.7 million tonnes; however during the same period, the worlds Zinc consumption decreased by about 3% to 10.5 million tonnes, leaving the Zinc market with a surplus of over 1.2 million tonnes of refined Zinc metal. In FY 2010, the average price of Zinc was US$1,936 on the London Metal Exchange (LME) compared to FY 2009 average price of US$1,563, an increase of 24%. Indian Market Demand in Indian market for refined Zinc increased by 25% to 525 kt in FY 2010, from 419 kt in the previous year. This was mainly driven by the demand created by the various infrastructure projects. The Indian Zinc demand is expected to grow in the coming years based on a positive GDP forecast. The key components for demand growth are the ongoing and upcoming infrastructure projects, telecom and power projects and automobile sector. 37 Infrastructure projects worth Rs 70,000 Crore have already been approved by the Indian Government including various projects for Railway Electrification, Ports, Airports, power projects etc. In long-term we see a promising future for Zinc demand in India. We hold around 74% share of the Indian Zinc demand, where we see continuous growth in Zinc consumption in line with a positive GDP outlook. As

is typical of all developing economies, the growth rate of metal consumption in India is expected to be 1.5 times the GDP growth rate. Applications of Zinc Galvanizing: Zinc is one of the best forms of protection against corrosion and is used extensively in building, construction, infrastructure, household appliances, automobiles, steel furniture,and more. Galvanizing accounts for around 48% of global Zinc usage. Zinc Oxide: The most widely used Zinc compound, Zinc oxide is used in the vulcanization of rubber, as well as in ceramics, paints, animal feed, pharmaceuticals, and several other products and processes. A special grade of Zinc oxide has long been used in photocopiers. 10% of global Zinc usageis in this segment. Die Castings: Zinc is an ideal material for die casting and is extensively used in hardware, electrical equipments, automotive and electronic components. 17% of Zinc used in the world is through Die Castings Alloys: Zinc is extensively used in making alloys, especially brass, which is an alloy of copper and Zinc. Alloy accounts for around 11% of global Zinc usage. Rolled Zinc: Zinc sheets are used extensively in the building industry for roofing, flashing and weathering applications. These are also used in graphic art to make plates and blocks,as well as battery callouts and coinage. Lead Global Market Demand for refined Lead increased slightly to 8.43 million tonnes in FY2010, compared with 8.41 million tonnes in FY2009. Replacement battery demand, mainstay of Lead consumption, was able to shield Lead from the flat growth to some extent. At the same time, the global Lead smelter production was 8.68 million tonnes. This left the refined Lead market in surplus, barely by 25,000 tonnes for the year. In FY 2010, the average price of Lead on the London Metal Exchange (LME) was US$1,990, up by 20% compared to US$1,660 in FY 2009. Consequent to a number of mines and smelter production cuts being announced, mine production supplies are expected to decline, which will in turn continue providing strong support tothe LME prices. Indian Market Demand for Lead increased by 5% to 355,000 tonnes in FY 2010 as compared to the previous year. This makes India second economy after China which has shown demand growth. The main driver was the increase in the battery demand in replacement market. Also, demand of auto sector fared much better in India and Industrial demand especially inverter battery has fuelled growth. Indian Lead demand is expected to increase in the coming years, at the back of Industrial and Inverter battery segment growth and replacement market especially in auto sector. The demand of the Indian Battery industry is

estimated to be around 90% of Indian Lead demand. Our share in the domestic market is around 15%. Applications of Lead The battery sector is the single largest consumer of Lead, accounting for around three-quarters of the demand. It can be sub-divided into the following groups: SLI (Starting-Lighting- Ignition) batteries, which currently accounts for around half of the total Lead demand. These are mainly used in cars and light vehicles, but are also found in other applications such as golf carts and boats. SLI battery demand in turn can be split into original equipment and replacement, with replacement demand outstripping original equipment demand by about 4:1 in mature markets. Industrial batteries, which currently consumes around a quarter of the total Lead produced. This sector can be split roughly 50:50 into stationary and traction batteries. Stationary batteries are principally used in back up power supply systems; traction batteries are used for motive power in equipment such as forklift trucks and motorized wheelchairs. The remainder is used in non-battery applications. The second largest current end use of Lead for non-battery applications, accounting for around 8% of Lead consumption, is the chemical industry, in the form of Lead-based pigments and other compounds. Principal markets are for cathode ray tubes used in television screens and computer monitors, and for Poly Vinyl Chloride (PVC) stabilizers. Silver Global Market In the year 2009, the demand for Silver remained flat at around 900 million ounces, as compared with the previous year. The year has seen robust growth in coins & investment and a modest rise in jewelry & Silverware, this was however offset by decline in demand by fabrication sector. Average annual price for Silver in the FY 2010 was US$15.74 per troy ounce, up by around 15% from the previous financial year. Indian Market Indian demand for Silver was slightly lower at around 2,900 tonnes in FY 2010, as compared to the previous year; this was mainly due to a lull in the first half. However the demand picked up in the second half driven by Jewelry and Silverware demand. The growth is expected to continue this year on account of industrial recovery and increased silver Jewelry exports. Lead & Zinc Mine Production Cost Reports & Databases This year and beyond will be notable for a decline in total cash costs before by-product credits. Unlike recent years, nickel producers have discovered that the shortages of skilled and specialist labour, materials, trucks, machinery and equipment is rapidly abating, leading to lower costs. Oil is no longer at the record highs and consequently the lower cost of oil-related products, such as diesel, have assisted operations. 2008 will be remembered as the culmination and rapid reversal of years of unprecedented demand growth for commodities from the developing

economies. This overwhelmed the supply of skilled labour, materials and equipment, resulting in dramatic price increases for mining, milling and offsite costs. Margins for lead and zinc producers widened to historically unmatched levels. The revenue received from by-product credits is critical to net cash costs and profitability. A number of mines have negative cash costs. The proportion of production recording negative costs will decline, and the proportion of production with costs exceeding the current lead or zinc price will increase dramatically. Almost all lead and zinc mines produce meaningful quantities of at least one other base metal. Therefore, in most cases, the sale of by-products has a material impact on the overall cost of producing a pound of metal. This means that polymetallic mines in particular can have very wide variations in total cash costs. Modest declines in by-product revenue assumptions can move a mine with moderate costs to the upper end of the cost curve very quickly. Currency fluctuations have affected the cost structure of the industry. The global economic crisis has seen currencies of the commodity-based economies of Australia, Canada, South Africa and the South American producers depreciate significantly, which has decreased costs. Conversely, it has resulted in the United States becoming less competitive internationally. Our Lead & Zinc Mine Production Cost Report covers operational data over a 10-year time span, representing around 85% of Western World zinc output and 82% or world lead production. The multi volume analysis estimates production costs in 25 countries, including many of the major facilities around the world. Cost estimates, covering the production process from concentrate or finished metal are provided. Zinc Mine Cash Cost Breakdown

We benchmark all major operations to highlight changes, assess profitability and identify opportunities. This research provides: Production and financial performance over the next ten years with five years of history.

Detailed cost breakdowns by project for up to 30 major components such as process technology, production, labour, energy usage, royalties and transport costs. Access to published reports and AMEs Excel-based Cost Modeller via AME Direct, allowing users to change assumptions, analyse cost sensitivities, as well as introduce and compare new projects and operations: o Change operating cost, energy cost assumptions o Alter exchange rates for any producing country o Change freight rates o Override detailed cost assumptions for individual operations o Introduce new operations or projects o The database ensures access to accurate and timely information for most of the worlds operations. Our analysts conduct thorough examinations of well-sourced data to provide valuable answers, saving you time and effort. Specifically, our work is based on detailed analysis of flow sheets, exhaustive company research, and ongoing revisions supplemented by mine visits and technical contact with individual operations.

Lead & Zinc Strategic Market Reports Market fundamentals will be determined by the speed and size of the recovery from the global recession. At this stage, 2009 will be a tough year for global consumer demand, and deflationary conditions will remain until 2010. Planned fiscal stimulus plans in China, USA and a host of lesser economies will assist with demand and consumer confidence, and this is likely to effect an improvement on commodity demand in 2010. Longer term the economy will revive, driven by the planned Keynesian government expenditure, continued urbanization in Asia and progressive industrialization in the wider developing world. However, global growth will be at more modest levels in comparison to the last ten years. Thus spectacular growth was driven by four principal factors, a combination unlikely to be replicated any time too soon:

Enormous increase in the availability of credit to households and industry, driven by innovations such as securitization of receivables, deregulation of the banking industry, credit insurance and increased acceptance of risk. The initial high growth rate of industrialization of greater Asia, and the consequent development of this region into the worlds dominant manufacturing and metal powerhouse. The impact on the world was greater than any preceding Industrial Revolution. Tremendous productivity growth driven by an IT revolution which provided enormous communication, data flow and data storage capability at a fraction of previous historical costs. Huge growth in international trade that was by and large well managed by the World Trade Organization. The compound growth rate of 5% has been unprecedented in recent economic history. Global GDP growth rates will recover after the recession is over, but will be somewhat more modest at around 2% per annum below the rates experienced in the last five years. Deep cuts are being made to supply by many major zinc producers, and at the higher end of the cost curve operations are ceasing production for example, San Cristobal, Aljustrel, Balmat, Galmoy and Myra Falls have closed. Rapidly rising stock levels have depressed the zinc market, and conversely the success of producers in cutting supply will be evidenced in time by lower inventories, and higher prices. Global Demand for Zinc by Region

Future prices in the short term will be set by the progress of the race between declining demand and current producer efforts to cut production. Prices will receive support as many future expansions and projects are being deferred, delayed or simply cancelled with no reasonable likelihood of proceeding until firm evidence of demand growth restoration. This is exacerbated by the absence of lending on any real scale, and the collapse of equity markets funding. In the longer term, demand growth will occur from a combination of the global fiscal stimulus packages, continued urbanization, infrastructure building in the developing world and a recovery in consumer confidence in the Western world. When this occurs, it is likely that supply might once again

lag demand growth as it did in 2006 and lead to a surge in the price of zinc. Recovery in the automotive and construction markets, drivers of galvanised steel demand, will be the harbingers of the recovery in zinc. Concentrate supply is obviously no longer a major concern for smelters, and this will allow improved treatment terms for smelters and refiners this year and beyond. With over three decades of experience in market analysis, AME appreciates the old adage "the devil is in the detail" is a fundamental truth. To this end, we concentrate our investigation on end-users, particularly the construction, transport, equipment and consumer durable sectors. We provide, usually quarterly, strategic supply/demand and price analysis to generate our long-term view. We offer: An innate understanding of raw material flow i.e. supply, which supports our project-by-project costing analysis. Comprehensive coverage of the entire global supply chain. Detailed end-use analysis, (transport, construction, consumer-durable sectors) as part of a coherent macro-economic demand view. Explanations of market dynamics and the implications for operations, companies and the industry. Support from our experienced team of industry analysts. Full electronic access through AME Direct as well as the printed reports. Lead & Zinc Price

Lead & Zinc Outlooks Our monthly Outlook offers short-term analysis on developments, operations, consumption, production and trade and export in the Lead & Zinc Industry. A tactical, topical and thought-provoking tool; the service includes:

SOME OF THE CUSTOMERS (Debari Zinc Smelter)

Zinc used in Brass pipes, Brass etc.

1. Gangwal Industries

Gwalior

2. Agrawal Metal Works (P) Ltd. 3. Alcobex Metal Ltd.

Zinc used in Galvanizing, GI, HR sheets, etc.

Rewari Jodhpur

1. Steel Co. Stripes Ltd.(Unit No.2) 2. National Steel & Agro Ind. Ltd. 3. Vardhman Industries Ltd. 4. Jindal Industries Ltd. 5. JSW Steel Ltd. 6. Laxmi Metal Udyog 7. Multimetals Ltd. 8. Swastik Pipes Ltd. 9. Tata Steel Ltd. 10. Techman (India) 11. Bharat Sanchar Nigam

Doraha, Punjab Indore Rajpura, Punjab Hissar Tarapur Delhi Kota New Delhi Mumbai

Richhai, Jabalpur

12. Zinc used in Battaries 1. Nippo Bataries Co. Ltd. Nellore

Zinc used in Insulaters, power transmission

1. Man Structurals (P) Ltd. 2. Modern Insulation Ltd. 3. KEC International Ltd. 4. Agrawal Salt Company

Jaipur Abu Road Jaipur Bikaner

Zinc used for Chemicals

1. Demosha Chemicals (P) Ltd. 2. Transpek-Silox Industry Ltd.

Bulsar, Gujarat Silvasa

CHAPTER-III RESEARCH METHODOLOGY

SECANDRY DATA USE IN RESEARCH: WEBSITE OF HZL , AND OTHER ZINC PRODUCER IND. RESEARCH AND DEVLOPMENT DEPARTMENT PROVID SEC. SOURCES OF DATA CALEACTION PROCESS..

Zinc prices to trade sideways in H2 2010 However, we believe that the rally in zinc prices would not last long. A look at the fundamentals suggests that the market scenario has not improved largely over the last one quarter. The galvanizing industry, which accounts for 50% of total zinc demand, witnessed a decline in production in the last quarter as the Chinese Government has curbed lending in the country. We expect production levels to increase from current levels for the rest of the year due to seasonal factors. We estimate zinc prices to remain range-bound in H2 2010 as we expect major commodities will remain in a surplus state as the increase in supply will overtake the increase in demand. Attractive commodity prices have led to many idle capacities being restarted during the first half of 2010. However, metal demand has not returned to the 2008 levels. We estimate average zinc prices ofUS$2,000/ton in FY11 and US$2,100 in FY12.

Competitive scenario : Although zinc mining operations are carried out in around 50 countries, the world's main zinc mining regions are: China (27.1%), Peru (13.6%), Australia (12.6%), Europe (8.9%) and the United States (7.0%); these regions accounted for 69.3% of total zinc mined in 2008. Meanwhile, China is the world's main zinc producing country, with a global share of 33.5% in 2008. Most zinc producers are non-integrated and rely on concentrate suppliers; the main markets for concentrate procurement are Peru and Australia. HZL's major global rivals include Nyrstar, Xstrata and Korea Zinc. Nyrstars key markets are Europe and China, while Xstrata's are Australia, Europe and North America. Korea Zincs major markets are Taiwan, Malaysia, the Philippines, Indonesia, Bangladesh, China, Japan and Vietnam. HZL exports

around the world, including to Europe, the US, southeast Asia, the Middle East, China and Japan, making it a relatively more diversified exporter than Nystar or Xstrata. Exports accounted for around one-third of total revenues in FY 2011. HZL dominates India's domestic market, trailed by Binani Zinc. HZL's zinc smelting capacity was 669,000 tons per annum as of 31 March 2009, compared to just 38,000 tons for Binani Zinc. Binani Zinc is a non-integrated player which sources its concentrate requirement abroad. According to the India Lead Zinc Development Association, HZL accounted for 79.7% of total zinc production in India in 2011, versus just 7% for Binani Zinc; the balance is made up of imports and scrap. Tight regulation by the Indian government, difficulty in locating and securing new mine sites, high capex requirements and long lead times all act as barriers to entry in this market, limiting competition for HZL.

ZINC PRODUCTION

There are zinc mines throughout the world, with the largest producers being China, Australia and Peru, in that order. In 2005, China produced almost onefourth of the global zinc output, reports the British Geological Survey. The largest producing zinc mine in the world is the Red Dog Mine located in Northwest Arctic Borough, Alaska and operated by Teck-Cominco. This massive mine produces over 600,000 metric tons of zinc concentrate per year. World Zinc production grew by 4% to 10.7 million tones in 2006. An additional 640,000 tones of Zinc metal is forecast to be produced in 2007, enabling a 6% rise in total output to 11.3 million tones. The increase in global production will come from a number of mine expansions and new projects that, in turn, reflect growing explorations budget in recent years. Global exploration budget have increased by approximately 150% since 2002. Increases to supply are expected to come on line progressively over the medium term. For example, San Cristobal in Bolivia (capacity of 167000 tones a year) and Cerro Lindo in Peru (capacity of 110000 tones a year) are both due to be commissioned in the third quarter of 2007. Herald Resources 220 000 tonnes a year Dairi mine in Indonesia is yet another mammoth project. EuroZinc is also planning to restart the Aljustrel mine (80 000 tonne capacity) in Portugal. Over the medium term, four large confirmed projects in Canada, Mexico, the Russian federation are projected to add an extra 700000 tonnes to global capacity. In addition to this, a number of smaller projects, amounting to at least 400 000 are also expected to be

completed. This increase in capacity, combined with the new projects and expansions in 2007, is projected to result in world Zinc production reaching 13.9 million tonnes by 2012. Production in Canada is forecast to increase significantly as a number of new mines start up, with expected capacity of approximately 330000 tonnes a year. Three projects are due to start production in 2007, increasing Canadian output in short term by around 120000 tonnes. However the largest project, the Perseverance mine, owned by Xstrata, which is expected to produce 115000 tonnes Zinc a year, is not forecast to start up until 2009. Over the medium to long term, countries in Africa may emerge as major producers of Zinc. International investment by Chinese and Australian companies in African continent has already begun to pay off.

GRAPHICAL REPRESENTATION PRODUCTION GEOGRAPHICHAL PRODUCTION

OF WORLWIDE ZINC DISTRIBUTION OF ZINC

MINE MINE

GRAPHICAL REPRESENTATION PRODUCTION

OF

WORLDWIDE

ZINC

METAL

TOP ZINC PRODUCING COUNTRIES*

TOP ZINC CONSUMING COUNTRIES

PRODUCTION OF ZINC IN INDIA India was one the first countries that started the process of extracting and smelting zinc. Since that time, the country is producing this metal and is one of the oldest countries to do that. Though, India is not a leading player in the production zinc but it is moving in the direction to get self reliant in this context. India has approximately 4.3% share in the total zinc smelter capacity in the Asia pacific region. The largest company, which was indulged in the production of zinc, is a public sector company named Hindustan Zinc Limited. But now, ever since the company got privatized, the Indian industry is completely in the hands of the private sector. It can be said that the zinc industry in India, after privatization, is heading towards a major expansion programme. The major zinc mines in India which were under the control of the company are Indian zinc market As India was one of the first countries to gain the knowledge of extracting zinc from zinc ores and start the production of zinc metal, it should have been an important player in the world zinc market but this is not the current situation. Indias reputation regarding zinc is not significant as it just produces a small share of the metal in the worlds production and is not able to satisfy its domestic consumption demand making it a net importer of zinc. Zinc production in India was in the hands of the government initially as all the operations in India relating to the metal were in the hands of a public sector company Hindustan Zinc Limited. It was the biggest company in India,

which took care of zinc extraction and its smelting process. But in April 2002, this company was privatized in favor Sterlite group and after that the Indian industry is in the hands of private sector completely. The current Indian demand for zinc stands at around 3.5 lakh tons that is fulfilled with the help of domestic production and imports too. About 70% of the Indian demand comes from the galvanizing sector. After privatizing the zinc sector it is expected that by 2010 the country would become self-reliant to satisfy the domestic demand. After that, India may transform into a net exporter of the metal.

Rampura Agucha mine Rajpura Dariba mine Zawar mine

The smelting plants in India engaged in the production of zinc metal are

Chanderia Lead Zinc Smelter (CLZS) Rajasthan Debari Zinc Smelter (DZS) Rajasthan Dariba Smelting Comples(DSC),Rajasthan Vizag Zinc Smelter (VZS) Andhra Pradesh Binani Zinc Smelter Kerala

CHAPTER - IV DATA ANALYSIS AND INTERPRETATION

SWOT ANALYSIS SWOT analysis is a good management approach, which helps the manager to analyze the strength, weakness, opportunity and threats. STRENGTH: 1. Well set up organization structure:

The organization is well defined and this helps in better coordination at various levels of management. Proper authority is delegated at lower levels and responsibility of each personnel is well defined. 2. Human Resource Development: The progressive programs are designed to fill up gaps in the knowledge and skills of employees. Executives are trained through various executive training programs. On the job as well as off the job training programs are conducted for the workers at the shop floor level. 3. Welfare Activities for workers: Various welfare activities are under taken by the company, such as: Subsidize canteen facility. Residential facility with subsidized electricity and water supply. Free medical facility for workers at their working place. The company provides free safety equipments security of employees through PF, gratuity scheme, pension plan and accidental claims.

4. Welfare activities for society: Family planning camps, adult education programs, various events to promote games, sports and cultural activities. 5. Environmental Control Method: The various pollution control measures are operating effectively maintaining ambient air quality and effluent discharge at HZL smelters, mines and townships. 6. Leading producer: HZL is the leading producer of zinc in the country and has the market share of about 70% so he is the market leader. WEAKNESS: 1. Extra Manpower: I think that there is extra manpower still even after the privatization of the company and the operating cost can be reduced if we can reduce the unwanted manpower. OPPORTUNITIES:

1. Increasing Demand: Demand for zinc is increasing day by day but supply of zinc and lead is not fulfilling the requirement. 2. Especially zinc is used for galvanization, paints, pharmaceuticals, automobile etc. THREATS: 1. Globalization: In the present sense, the entire world is experiencing an explosive growth of global trade. 2. Globalization has provided an opportunity to expand business it has lead to simultaneous increase in international competition. 3. Government Policies: Instability within the country is major threats to all business organization whether it is a public sector or private sector undertaking. CHAPTER V SALE & MARKETING Of HZL

SALES & MARKETING ORGANIZATIONAL CHART

(Mgr. Comm.)

S.C. SHARMA
(Jr.Exe. Comm.) (Jr.Exe. Comm.)

(Sr. Assistant.)

(Head Clerk.)

(Head Clerk.)

(Head Clerk.)

(Sr. Assistant.)

(Sr. Assistant) MAHVEER SINGH

(Sr. Assistant.)

(Jr.Despatcher.)

(Jr.Despatcher.)

(Head Helper.) HARI PAWAR SINGH

Dispatch of Finished Goods to Customers/Stock Points & Realization of Payment | Input --- Delivery Order / Stock Transfer Advice / Price Circular / Finished Goods | Pending Delivery | Dispatch Programme | Intimation to Transporters | GRs from Transporters Orders

| Allow Slip, Loading Slip / Advice | Loading | Weighment at Weigh Bridge | Invoice Preparation/Receipt of Material/Handover Invoice to Transporter

| Documentation | Credit Payment ---------------------------------------------- Advance Payment | L/C | Bank | | Central Sales Accounting Department. | | Output ----Delivery of Material, Realization of Payment and Customers Satisfactio | Mktg Office | B.G. | | | Dispatch to Party | Bank

HANDLING AND DESPATCH OF FINISHED GOODS Scope: Receipt of Zinc Ingot (finished) from Zinc Electrolysis Plant, Receipt of Delivery Orders, Determination & review of requirement related to the product. Dispatch of finished goods to customers against delivery orders, dispatches to stock points, inter unit transfers and internal consumption at Zinc Smelter, Debari. (A) (B) (C) (D) Delivery Orders (D.O.) Stock Transfer Advice (STA) G.R. (Goods Receipt) SIV (Store Issue Voucher) (E) Zinc Material Receipt Report

References:

Definitions: (A) Delivery Order: Document issued by H.O. (Mktg)/ Regional Offices (Mktg) wherein payment as well as dispatch particulars of a

particular item, its specification, quantity to be delivered and guide lines for preparation of invoices cum delivery challan are given. (B) Stock Transfer Advice: It is a tentative programme given under the authority of Head (Mktg.) giving details of quantity to be dispatched to various stock points during a particular month. (C) Allow Slip: A printed form issued by shift in charge for allowing lorries / tankers into the Factory based on the delivery order/stock transfer programme. Loading Slip: A printed form issued by shift in charge to dispatcher mentioning therein details of quantity of Zinc Ingot to be loaded in the truck allowed. (D) Loading Advice: A printed form issued by Shift In charge (based on the Delivery Order) mentioning therein details of quantity of Sulphuric Acid to be filled in the tanker by the Roaster & Acid Plant. (E) SIV: A printed Performa issued by shift in charge to dispatcher duly signed by H.O.D. to Cadmium Plant for delivery of Cadmium Metal as per details mentioned in the SIV. (F) GR: Performa for receipt of goods issued by transporter concerned for taking delivery of the material. (G) Invoice cum Delivery Challan: A document issued against clearance of excisable commodities (Consignment wise) showing details of dispatch particulars viz. Date, Name of Consignee, payment particulars, Quantity, Rate per Unit, Amount, Central Excise Duty, Sales Tax, Gross Amount, D.O. Number, G.R. Number Truck Number / Tanker Number wherein the material is loaded for transportation and name of transporter etc. (H) Zinc Material Receipt Report: Report being sent by Zinc Electrolysis & Melting plant giving details regarding Date of Production, Heat Number, Number of pieces and weight.

Procedure
(i)

Determination of requirement of the product Requirement of customers like Product, Quantity, delivery period and destination etc. are received from various Marketing Offices in the form of Delivery Orders. Based on these DOs pending DO list is prepared. Dispatch plan is prepared considering requirement of major and regular customer, stock transfers, actual user and other buyers and informed to customers/representatives/transporters. Review of requirements related to the Product Any new special requirement (for which development/modification is required) received from the customers is discussed in a group comprising of DGM, MR, and OM and In charge of Sales and Dispatch. For other special requirements like Jumbo Ingots, production department is informed accordingly and follow up is done by In charge of Sales and Dispatch.

(ii)

(iii)

The Zinc Ingots (finished) is received from the Zinc Electrolysis Plant with proper heat numbers and stacked in Zinc Yard. Zinc Ingots for dispatches /internal consumption are stacked separately. Dispatch of finished goods to customers is done through their authorized representative or authorized transporter. In case of dispatches to stock points, transporter authorized by Materials and Contracts department at Head Office does it. Delivery Order is duly checked by H.O.D. Stock Transfer Advice is received under the authority of Head (Mktg.). transporter and

(iv)

(v) (vi)

(vii) Dispatch programme is informed to authorized maintained in dispatch programme register.

(viii) Allow slip is issued by Shift In charge, based on delivery order and dispatch programme (ix) (x) (xi) In case of Zinc and Cadmium, tare weight is taken in presence of Security representative, partys / transporters authorized representative by Weigh Bridge Attendant. Dispatch of finished goods to customers is done through their authorized representative or authorized transporter. In case of dispatches to stock points, transporter authorized by Materials and Contracts department at Head Office does it.

(xii) Loading slip for Zinc and SIV for Cadmium is issued by shift in charge according to Delivery Order / STA to dispatcher on duty, who ensures that correct material is loaded under his supervision by loading contractors labor. In the case of Sulphuric acid, loading advice is issued by dispatcher, which is duly checked and countersigned by the Shift In charge to the Roaster & Acid Plant for filling the tanker by them. (xiii) For Zinc Ingots, gross weight is taken by Weigh Bridge Attendant in presence of Security representative, Dispatcher on duty and partys / transporters authorized representative. However for Cadmium, the weight as indicated by the Cadmium Plant on SIV is treated as final. For Sulphuric Weigh Bridge Attendant takes acid gross weight in presence of Security representative. (xiv) For dispatch of finished goods tare weight as well as gross weight is taken on Electronic Weigh Bridge, which is being calibrated by Instrumentation department periodically.

(xv) Preparation of invoice cum delivery challan by Shift In charge is done strictly on the basis of instructions given in the D.O./as per STA after finalization of Net weight.
(xvi) List of Documents

Retention period ZSD/S&D/F01 ZSD/S&D/F02 ZSD/S&D/F03 ZSD/S&D/F04 ZSD/S&D/F06 ZSD/S&D/F08 ZSD/S&D/F09 ZSD/S&D/Zn One Year One Year One Year Five One One One Five Years

1. 2. 3.

Allow slip Loading slip Loading Advice

4. Invoice Cum Delivery Challan Years 5 Daily Dispatch & Pending Order Year 6 Monthly Allocation for Dispatch Year 7 Daily Dispatch Report Year 8. Delivery orders

Work Instruction for Shift In charge & Dispatcher for Dispatch of Finished goods 1. 2. 3. 4. Shift In charge to Co-ordinate with Zinc Electrolysis plant and give necessary instructions to dispatcher for proper stacking of Zinc lots in the Zinc Yard. At the time of delivery, dispatcher to check quantity and pieces loaded correctly in the truck / wagon / container as per the loading slip issued by Shift In charge. Dispatcher to check Tare weight and Gross weight at the time of delivery at Electronic weighs bridge for Zinc Ingots. Dispatcher to submit weighment slip to shift in charge after weighment and counting of number of pieces by Security representative and signature of concerned agencies for preparation of Invoice cum delivery challan. Verify signature/authority letter / G.R. of the Partys authorized representative / Transporter. Check Delivery Order (D.O.). Issue Allow-slip. Write the details of truck No., D.O. No., G.R. No., Name of party etc. in the register meant for.

5. 6. 7. 8.

9.

Issue loading slip to dispatcher in case of Zinc Ingot, Loading Advice for Sulphuric Acid and S.I.V. for Cadmium. 10. Verify loading advice after loading of the truck under the supervision of dispatcher deputed. 11. Verify loading slip and weighment slip. 12. Prepare Invoice cum delivery challan. 13. Obtain signature of party/transporters representative. 14. Handover the Invoice cum delivery challan to Transporter/ Partys representative. Company to perform and coordinate its marketing functions effective. Also this enhances convenience to customer. 1) NORTH ZONE: For this zone the regional are in the state of Haryana, UP, Punjab, Hibachi Pradesh, and Delhi. The stock points in the region are Gaziabad, Sahibabad, Faribabad, and jagadhari, Chandigarh. Delivery orders through Delhi office. CENTRL ZONE the regional marketing offices are located at New Delhi, Hyderabad, Kolkata, Mumbai, Bangalore, Jaipur and Udaipur. HZL has opened a large number of stock points spread all over the country: 1) 2) 3) 4) 5) 6) KOLKATA GAZIABAD FIRIDABAD NAGPUR TARAPUR INDORE

PRICING STRATEGY

Hindustan Zinc uses different pricing strategy for better grip on the market and to face stiff competition and also to achieve maximum net sales realization multi dimensional pricing approach helps Hindustan zinc to stand

in market different types of pricing strategies are elaborated and supported by graph wherever required. Competitors parity Pricing: Hindustan Zinc mainly price the product with the strategy of competitors price parity prices of the competitors play the major role in the strategy price of the zinc ingots is kept near to the price of the competitors End use pricing End use pricing is that pricing method in which prices are decided by company not by the LME because the prices of LME are higher ,if the customer wants to buy capital goods then he prefer this policy Day Settlement pricing Sometime the customer need to buy the product according to the day to day price, in that case LME decides the price according to the day to day settlement. MONDAY TO THURSDAY PRICING POLICIES LME decides the average price weekly from Monday to Thursday and also from Monday to Saturday. Contract pricing Hindustan Zinc follows the contract pricing policy for long-term contract in order to achieve the continuous selling of sulfuric acid since sulfuric acid is the by product in preparation of ZINC and is produced in large quantity as compared to the production of ZINC also being a hazardous waste makes it necessary to sell off sulfuric acid. Sometimes the prices are lower than the production cost that is when the demand is very less so to avoid this loss company goes in for the long term contract of duration from 6 months to 1 year. Although nowadays there is a huge demand in the market therefore prices are high but when prices are low revenue generated from these long-term contract keep the boat on water. Short Term Contract Pricing Too much dependency on long-term contract cannot be done, as there are some drawbacks of long-term contract like mostly keeping the prices lower then the average market price due to the bulk buying of sulfuric acid. Also too much market volatility may cause the uncertainty in revenue generation therefore Hindustan Zinc has undergone the shorter format for the contract viz. short term contract under this contract scheme customers or the retailers are covered for contract under 15to 30 days for a fixed prices

this not only dilutes the effect of market volatility but also makes a good will among the customer as prices may change too much during a fortnight or a month. This pricing was started from June 2008 by Hindustan zinc. Spot pricing Many a times the customer approach the firm for urgent requirement for the product Hindustan Zinc facilitates these customers with pricing method of spot pricing customer are allowed to fill in a form through e-sales mate programme on company website where they can fill in the required quantity the product major advantage of this method are fast execution of the trade and pricing irrespective of the constraints of future demand the days price are then given by the company if the customer agree on the price the he can take the product from any of the plant location of the firm. PLACE Hindustan Zinc supplies zinc from its three plant locations Viz. Debari Zinc Smelter Udaipur, Rajasthan, Chanderiya Lead Zinc Smelter Chittorgarh, Rajasthan, and Vishakhapatnam Zinc Smelter, Vishakhapatnam, Andhra Pradesh. Although the positions are not spread all over the country but strong logistic department facilitates Hindustan Zinc Limited to penetrate to every part of the country Strong logistic operation makes it possible for Hindustan Zinc Limited to deliver the goods to every part of the country. For the international market Hindustan Zinc Limited do the frequent export threw JNPT port and Mundra port. Hindustan Zinc has its own transport system for port and export purpose. China is hub for metal market and Chinese are highest importer of Zinc and lead around the world. China has 52% shares in total zinc consumption around world. Hindustan zinc has a long-term relationship with some Chinese traders. Mainly, Hindustan zinc targeted the developing nations for export and expansion of export programme. Most of Asian countries are in developing phase so we get good opportunities in Asian market. Asia itself is major consumer of zinc. Through this depot we manage our business network and it help us to overcome the problem of geographical barrier. PRODUCT Main products: 1. ZINC INGOTS:

Special high grade-99.99% High grade -99.95% Premium grade-99% 2. 3. 4. ZINC UNWROUGHT: LEAD: CADIUM; 99%

5. SILVER 6. SULPHURIC ACID; 98% INTERMEDIATE PRODUCTS: 1. CALCINE 2. ZINC SULPHATE 3. ZINC DUST B PRODUCT: SCRAP AND WASTAGE

PROMOTION By membership of several zinc group By joining metal trading group Direct approach Concern about branding issues PLACE: Worldwide, place is not a concern for zinc business but have to take special precautions for specific places in global trade.

CHAPTER VI

FINDING , CONCLUSION AND SUGGESTION

CONCLUSION 1. As we can see from the above financial statement that the turnover or sales of the company is increasing at increasing rate expect the last 0708. This shows the company is regularly increasing the production capacity as there is demand in the market. 2. As we have seen above the various uses of zinc in various products the company has covered customers of virtually all kind as we can see from the above customer list.

3. As we have seen from above that there are only two major players of zinc in India i.e. HZL and Binani so there is virtually no competition in the market as the HZL is having all major mines with him. 4. As the sales is increasing every year it shows that increasing demand of zinc in the market.

Suggestions

1. As the demand is more than the supply in the domestic market and nearly 25% of demand is fulfilled by importing it from other countries so, HZL should search more mines and should increase the production as there is still some demand left in the domestic market even though the company is having market share of nearly 70%. 2. As we have seen from the above customer list that most the customers are those which are engaged in galvanizing of steel and having less customer of batteries so, company look more zinc batteries company , zinc die casting companies, zinc sheets manufactures which is used in infrastructure.

3. Zinc consumption in India is expected to grow at 8%-10% p.a due to the growing market of automotive and industrial batteries from current demand, so company should increase its production capacity to increase in sales and earn more profit.

BIBLIOGRAPHY Annual Report HZL Zinc News www.crnindia.com www.azobuild.com www.iza.com www.hzlindia.com HZL Debari Zinc Smelter