Can Hindustan Zinc's 11 MoUs Boost Zinc Manufacturing?

Zinc manufacturing is set to gain a downstream boost as Hindustan Zinc signs 11 MoUs with industry partners to develop its proposed Zinc Industrial Park in Bhilwara, Rajasthan.

The agreements cover manufacturing, engineering and industrial services across galvanising, die-casting, zinc alloys, zinc oxide and advanced zinc applications.

Located near the company's Chanderiya, Dariba and Debari operations, the proposed park aims to connect metal production with value-added industrial activities.

The development also comes amid rising domestic zinc consumption, creating opportunities for manufacturers to expand India's downstream processing capabilities and strengthen industrial supply chains.

How Will the Zinc Industrial Park Support Manufacturing?

The proposed 111-acre park at Khankhala will be developed with support from the Rajasthan State Industrial Development and Investment Corporation (RIICO), which is responsible for infrastructure such as roads, water and electricity.

The six partners identified in the November 5 announcement include:

• Gainwell Commosales
• Epiroc Mining India
• Sai Deepa Rock Drills
• Shree Nakoda Infrasteel
• Suryakiran Earthmovers
• J.G. Chemicals

Hindustan Zinc has also partnered with Group Nirmal to establish a zinc wire manufacturing facility at the park. The proposed unit will use the company's Special High Grade zinc for infrastructure, automotive, renewable energy and engineering applications.

Also Read: How India's Government Policies Support Chemical Manufacturing (2026 Strategy Guide)

Why Is India's Zinc Demand Creating Opportunities?

India consumed nearly 1 million tons of zinc in CY2025, up 9 percent year-on-year, while domestic production grew 2.4 percent to approximately 850,000 tons. Galvanizing accounted for nearly 72 percent of consumption.

Hindustan Zinc produced 851,000 tons of refined zinc in FY26, up 3 percent year-on-year, and holds approximately 75 percent of India's primary zinc market.

How Will Government Incentives Support Zinc Manufacturing?

Rajasthan's Investment Promotion Scheme (RIPS) 2024 offers eligible manufacturing enterprises:

• Investment subsidy through reimbursement of 75 percent of state tax for seven years, or alternative capital and turnover-linked incentives.
• 100 percent exemption from electricity duty for seven years.
• Employment and training incentives, subject to eligibility.

RIICO also revised the park's administrative development sanction and industrial plot allotment rates in October 2026 to support its development framework.

The 11 MoUs mark another step towards establishing a downstream zinc manufacturing cluster, although individual investment commitments and commissioning timelines have not yet been disclosed.