Hindustan Zinc Strategic Priorities and Growth Overview slide image

Hindustan Zinc Strategic Priorities and Growth Overview

Solid Portfolio with Strong Growth Fundamentals Refined Zinc (Zn) Refined Lead (Pb) Refined Silver (Ag) HINDUSTAN ZINC Zinc & Sver of India Production volume 7,15,445 tons Revenue `13,961 crore Outlook Global demand shrunk by 4.6% in CY 2020 due to pandemic. It is expected to grow by 4.7% in CY 2021 and 2.3% in CY 2022 and CY 2023. • Production volume 2,14,399 tons Revenue 3,281 crore Outlook Demand and production shrunk by 3.6% and 7.4% respectively in CY 2020 and are expected to grow by 4.5% and 3.6% respectively in CY 2021. Price per ton is expected to rise from $1,824 in CY 2020 to $2,055 in CY 2021. Demand drivers 5G roll-out to boost demand for transmission towers and Zinc to galvanise bars for corrosion protection Shift to renewable energy and Electric Vehicles (EV) to open potential for zinc batteries as an emerging technology over lithium variants Zinc metallization of railway tracks Galvanized steel in car bodies Demand drivers Lead Acid Battery industry, driving 80% of lead demand, is expected to witness sustained demand as next generation EVs deploy them for starting, lighting and ignition SLI battery applications. PSPI 161-1 99. KILDS 38 947 Production volume 706 tons Revenue 4,378 crore Outlook Demand was impacted and production of major producers dropped significantly in CY 2021. Physical investments though increased by 27%. Demand rebound is expected due to low interest rate and silver credentials. Prices expected to average $27.30 in CY 2021 with a peak to $32. Demand drivers • Rising consumer confidence Increased focus and incentive on local manufacture of solar panels in India will drive demand of silver paste Low industrial demand in India compared to globally Commodity Super Cycles to drive demand of metals Signs of new commodity super cycle-a decade- long period in which commodities trade above their long-term price trend - are evident. Near- zero interest rates across developed nations are fueling pent-up demand and further contributing to super cycle. Prices of base metals, including Zinc and Lead that have risen on back of this are to further rise in CY 2021 and CY 2022. ୮ ך
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