Hindustan Zinc Fertiliser Plant Set for FY27 Launch

Hindustan Zinc Ltd (HZL), a Vedanta Group company, is poised to enter the fertiliser sector with a new manufacturing plant in Chanderiya, Chittorgarh district, Rajasthan. According to HZL Chairperson Priya Agarwal Hebbar, the facility is expected to commence operations by FY27, marking a significant step in the company’s diversification strategy.

This factory will produce 500,000 tonnes of fertilizers each year, including stuff like diammonium phosphate (DAP) and nitrogen, phosphorous, and potassium (NPK) blends. It’s all about giving Indian farmers a bigger, more reliable supply of fertilizers to grow their crops. Hebbar says HZL isn’t just sticking to zinc and silver anymore. “Diversification is central to our growth strategy,” she told shareholders.

HZL’s been trying new things lately. Last year, it launched a 30,000-tonne zinc alloy plant, which added some high-value products to its mix. Those products now make up 22% of what HZL does, showing it’s chasing bigger opportunities. The fertilizer factory, first planned back in 2022 with a Rs 2,200 crore budget, will use materials from HZL’s smelters and rock phosphate found in Rajasthan. That’ll keep costs low and make sure everything runs smoothly.

The company’s got the cash to make this happen, too. For the quarter ending March 2025, HZL’s profits jumped 47.3% to Rs 3,003 crore, with income rising to Rs 9,314 crore from Rs 7,822 crore the year before. That’s the best fourth-quarter profit HZL has ever had, so they’ve got plenty to invest in new ideas.

On top of fertilizers, HZL is checking out other key minerals like copper and lithium through a separate company, which fits with India’s push for greener resources. This new factory should bring jobs to Chanderiya and give Rajasthan’s economy a nice boost, helping both the local area and the whole country.