A PROJECT REPORT ON

STUDY OF SALES AND EXPORT PROCEDURE & DOCUMENTATION AND PERFORMANCE ANALYSIS OF HINDUSTAN ZINC LTD. COMPARISON OF PRE & POST DISINVESTMENT PERIOD.

A Training Project Report Sir Padampat Singania University,Udaipur (Raj.)

PROJECT GUID: Dr. Bibhash Chandra Faculty-Marketing

SUBMITTED BY: Prakash Shrotriya MBA(marketing)

2nd year

ACKNOWLEDGEMENTS

There are many people who have provided invaluable assistance during the analyzing, writing and completion of this Project report on sales Process and export management in CHANDERIYA LEAD ZINC SMELTER (CLZS) of HINDUSTAN ZINC LIMITED (HZL). In particular, I would like to express my sincere appreciation to Sales and Department Head Mr. R.S. Jha who provided many forms of assistance, but best of all always kept us in good spirits through the completion of this Project, and would also like to mention names of some of the staff member Mr. Brajesh Mathur, Mr.A.S. Ranawat & Mr.Gajveer Singh Solanki for their support and help . All of them provided support for this project and contributed to reviewing and editing the report. I also thank all of the HZLs department heads and staff for providing the data and information on the programs covered in this report. Without their time and interest this project would not have been possible.

Prakash Shrotriya

MBA (Marketing)

PREFACE
The completion of this project has left us indebted to many persons whom are in the word . Mr. w . Wilson can be expressed as I not only used all the brain I had but all could borrow. It is my great privileged to have the vocational training in such an esteemed business empire chanderiya lead zinc smelter of Hindustan zinc limited. The practical training is an essential requirement for an MBA student . The student has to take the training for the pre-described period as per the university norms. The purpose of training is to help to student to gain the industrial experience. Moreover, as for the utility of concerning, it can be said that the student gets a chance during her theoretical knowledge about the subject in field work & to clear the difficulties in a better way of looking the whole process in the person. I took my training at chanderiya lead zinc smelter, popurly known as CLZS a unit of m/s Hindustan zinc limited of VEDANTA RSOURCES GROUP.

CONTENTS
ACKNOWLEDGEMENT PREFACE CHAPTER-1 COMPANY PROFILE ABOUT VEDANTA GROUP ORGANIZATION STRUCTURE CHAPTER-2 HINDUSTAN ZINC LTD:-AN OVERVIEW HZL-INTRODUCTION VISION & MISSION BOARD OF DIRECTOR AWARD & RECOGNITION MILESTONE OF THE COMPANY CUSTOMER SOCIAL RESPONSIBILITY COMPETITIVE POSITION OF ZINC

CHAPTER-3 CHANDERIYA LEAD ZINC SMELTER CHAPTER-4 MINES & SMELTER OF ZINC POSITION OF MINES & SMELTER DETAILS OF MINES & SMELTERS CLZS AT A VIEW DEPARTMENTS OF HZL CLZS PRODUCT PROFILE PRODUCT UTILITY

PROJECT PROFILE Objective Of The Project Project Design Export Procedure & Documentation

CHAPTER-5

ANALYSIS OF COMPANY PERFORMANCE

CHAP[TER-6

CONCLUSION

CHAPTER-7

ABRIVATION

CHAPTER-8

BIBLIOGRAPHY

CHAPTER-1 COMPANY PROFILE

ABOUT VEDANTA GROUP

VEDANTA is metals & mining company situated in London. The major metals produced are Aluminum, Copper, Zinc & Lead. Vedanta is India's only integrated Zinc producer. A London listed metals and mining major with Aluminum, Copper and Zinc operations in UK, India and Australia. The Principle operations are in Rajasthan, dominated by Rampura Agucha Mine, Rajpura Dariba Mine Zawar Mines. The Zinc business of Vedanta is managed with in Hindustan Zinc Limited. HZL is India's only integrated Zinc Company with a purpose to make India self-reliant. Zinc company operation from mines to finished metal & supplies around 90% of India's Zinc requirements. Expansion has taken pace to increase output from the Rampura Agucha Mine along with larger facilities at the nearby Chanderiya Smelter. The ore Produced at the mines contains Lead, which is smelted along side the Zinc. Zinc is used mainly in galvanizing steel to improve its durability. HZL plays a role in develop the market of the end product. The capacity for galvanized steel in India is increasing significantly due to the demand for the product in infrastructure & construction work.

The key areas that Vedanta addresses are :ENVIRONMENT:The company aims to reduce the impact of its activities on the environment wherever feasible. The majority of the sites are certified to the International Environment Management Systems standard ISO 14001. This includes the requirement that environmental impacts are identified and that there are ongoing programmes for improvement across key impact areas. HEALTH & SAFETY:The company proud of the fact that they have won numerous safety awards. In September 2003 the Indian Ministry of Labor presented the National safety Award to HZL's Debari Zinc Smelter for outstanding performance in industrial safety. In 2003-04 & 2004-05 the Green tech safety Award was presented to the Hindustan Zinc Limited.

ORGANIZATION STRUCTURE OF VEDANTA GROUP

Resources Pls

Konkola Copper Mines PLC. 51%

Sterlite Industries (India) Ltd. 80%

Madras Aluminum Company Ltd. 80%

Vedanta Alumina Ltd. 94%

Hindustan Zinc Ltd. 52%

Bharat Aluminum Company Ltd. 41%

CHAPTER-2 HINDUSTAN ZINC LTD.-AN OVERVIEW

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INTRODUCTION OF HZL
Over the past 45 years, global zinc demand has increased over 250%. And not only is the demand for the galvanizing metal continuing to grow today, but now it's growing at the fastest rate ever. Between 1960 and 1990, worldwide zinc consumption grew at a steady, average annual rate of about 2%. But since 1993, annual worldwide demand has been growing by an average of 3.2%. Global demand for refined zinc will increase by nearly 4% in 2007 over last year! In the past 24 months zinc prices have increased a whopping 203.6%. This increase outperforms the total gains from the four precious metals combined over the same period. Hindustan Zinc Limited (HZL) is Indias leading Zinc producer. A vertically integrated Mining & Smelting company, with purpose to make India self reliant in Zinc, HZL is currently gearing up to become a global lowest cost producer. As a part of Vedanta Resources, HZL takes advantage of its mineral resources and related core competencies and believes it has growth opportunities for increasing products and improving returns. Continuous operational improvements, debottlenecking, meticulous planning, constant innovation, process improvements and much moreHZL has come a long way and grown into multi location company producing Zinc, Lead, and silver.

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Hindustan Zinc Ltd. was created from the erstwhile Metal Corporation of India (MCI) on 10th January 1966 as a Public Sector Undertaking. 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. Sulphuric Acid and Silver. HZL achieved an all-time high production output of 283,698 tonnes Zinc and a record production of 889,007 tonnes of Zinc concentrate during 2005-06.Today HZL is Indias leading Zinc producer. HZL is a vertically integrated Mining & Smelting company, gearing up to:

Harnessing mining resources to help India maintain self sufficiency in Zinc. Become a global leader in Zinc. Create value for all entities whether it is Customers, Investors or Employees.

Constant innovation, meticulous attention to detail, extensive investments in R&D and technology are the hallmarks of HZL making it a multi-unit and multi-product company.

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The company has created the Research, Planning and Development wing which has played a major role in the planning and designing of projects besides improvements of existing operations. The company has a well equipped Central Research and Developments Laboratory (CRDL) which is listed in the American Society of Testing Materials (ASTM)'s directory of International Testing. Laboratories Recognized R & D Centre by Dept. of Science & Technology. The company has 6 regional offices in Calcutta, Mumbai, Delhi, Bangalore, Jaipur and Hyderabad. It also has strong marketing network countrywide. Mining and smelting operations are in Rajasthan, Andhra Pradesh, Orissa and Bihar.

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VISION

&

MISSION

OF

COMPANY

Vision:Be a world-class zinc company, creating value, leveraging mineral resources and related core competencies.

Mission:o Be a lowest cost Zinc producer on a global scale, maintaining

market leadership
o Be innovative, customer oriented and eco-friendly, maximizing

stake-holder value
o The only integrated Zinc producer in India o Refined Zinc production capacity 411,000 tpa in 2005 -06 o Refined Lead production capacity 85,000 tpa in 2005 -06 o Ore treatment capacity 6.2 Mtpa

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BOARD OF DIRECTOR
Mr. Agnivesh Agarwal, Chairman. Mr. M. S. Mehta, CEO & Whole-time Director. Mr. S. K. Mittal, Director. Mis.Ajita Bajpai Pande, Director. Mr.A.K.Singh, Director. Mr.Nand Kishore Shukla, Director. Mr.Anil Agarwal, Director. Mr.Navin Agarwal, Director. Mr.Taruan Jain, Director. Mr.K.K.Kaura, Director.

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AWARD & RECOGNITION

Hindustan Zincs initiatives in the various fields like Health, Safety, Environment and Corporate Social Responsibility have been well recognized by several commendations such as:

Golden Peacock Award for Corporate Governance 2007 in metal sector by Institute of Directors. Pegasus Corporate Social Responsibility Award - 2007 Asian Power Plant of the Years 2007 and also Best Emission Reduction Project in Asia by Asian Power Charlton Media Group, Singapore to Chanderiya Captive Power Plant. TERI Corporate Social Responsibility Award 2007 FIMI Social Awareness Award 2006-07

16

Bhamashah Award 2006 by Department of Education, Govt. of Rajasthan to Chanderiya Smelter for the contribution in the field of Education. FICCI-SEDF Corporate Social Responsibility Commendation Award 2006. National Energy Conservation Award by the Government of India to Rampura Agucha Mine. Golden Peacock National Training Award: 2006 by the Institute of Directors for the most significant achievement in the field of Quality in Training.

Health Safety and Environment Awards

Golden Peacock Occupational Health & Safety Award 2007 to Chanderiya Smelter Safety Innovation Award 2007 by Institution of Engineers (India) for initiating and implementation of innovative safety practices Four Star Rating for Health and Safety Performance by British Safety Council, UK to Rampura Agucha Mine International Safety Award: 2006 by British Safety Council, UK to Zinc Smelter Debari. Golden Peacock Award for Environment Management 2006 to Vizag Smelter.
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ROSPA Gold Award for prevention of accidents to Zinc Smelter Debari Environment Excellence Award 2005-06 by FIMI in the mechanized category of mines to Rampura Agucha Mine.

Greentech Environment Excellence Awards 2006 in metal and mining sector -Gold Award to Chanderiya Smelter, Vizag Smelter and Zawar Mines and Silver Award to Rampura Agucha Mine.

MILESTONE AT A GLANCE

18

19

20

Competitive position of Zinc

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CHAPTER-3 CHANDERIYA LEAD ZINC SMELTER

22

MINING & SMELTER OF HZL

MINING:-

RAJPURA DARIBA LEAD & ZINC MINE ZAWAR LEAD & ZINC MINE RAMPURA AGUCHA MINE ANGIKUNDLA LEAD MINE

SMELTER: CHANDERIYA SMELTER DEBARI SMELTER VIZAG SMELTER

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POSITION OF MINING & SMELTER

COSTUMR SOCIAL RESPONSIBILITY

Hindustan Zincs social vision is an integral part of business. We are committed to raising the quality of life and social well being of communities where it operates. Our key areas of sustainable community investment are:

Social Investment - health, education & livelihood Bio-Investment - water harvesting, agriculture and social forestry
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Environment Conservation

With a 45 member team comprising of professionals and subject matter specialists, we reach out and positively impact more than 500,000 people in 173 villages in and around the vicinity of our operations.

KeyInitiatives under Public Private Partnership

Model Village Development:A sustainable holistic development plan has been put in place for 59 villages in phases, In phase I, of the 12 villages 9 have been phased out, bringing more than 24,000 families above poverty line and raising their income levels from INR 1,700/- per month to 3,000/- per month.

Case study 1
Mid Day Meal :This project is a collaborative effort of the Government of Rajasthan, Naandi Foundation (NGO) and Hindustan Zinc. More than 100,000 primary school going children are being fed through 6 Hi Tech Kitchens established at Chittorgarh, Udaipur and Bhilwara Districts under the centralized mid-day meal scheme of the government of Rajasthan. The overall school attendance has gone up by 90% and girls attendance by 70% as per the recent World Bank Study.

Case study 2
Computer Education Programm :In collaboration with the Education Department, Government of Rajasthan and Sterlite Foundation we have created computer learning opportunities for rural school children in 250 Government schools in Chittorgarh,
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Udaipur, Rajsamand and Bhilwara Districts of Rajasthan. These centers impart basic computer literacy to more than 40,000 student.

HEALTH AND SAFETY:Sustainable development is an integral part of our business philosophy. Our processes and performance have evolved on safety, health and environment in tandem with our sustainable development goals. We stay committed to continue to improve our performance in line with our HSE & Social Policy. Hindustan Zinc constantly reviews pollution control and environment safety controlling and monitoring systems at all its mining and smelting units. Dust emission control plants, tailing ponds for solid waste disposal and secure containments, water reclamation systems, effluent treatment plants, and gas cleaning treatment units, a forestation efforts, management of solid waste and much more to keep its operations eco-friendly.

In 2003 Hindustan Zinc, along with others in the Zinc industry has committed to an environment charter with the Indian Central Pollution Control Board and Ministry of Environment and Forests, establishing levels of environmental performance beyond legal compliance. Some of
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the major actions under Corporate Responsibility for Environmental Protection (CREP) were: Reducing sulphur dioxide (SO2) emissions by half by 2006. Achieving zero waste water discharge through 100% recycling by December 2004. The recycling of intermediate and waste materials. Reducing fugitive dust emissions from vehicles. Developing greenbelt around the plant and accommodation areas. Hindustan Zinc has prepared action plans and has planned investment of Rs. 380 million over the next 2-3 years. All our smelters made significant progress in implementing compliance to CREP, which included reducing sulfur dioxide emissions, achieving zero discharge of waste water, handling and disposal of hazardous waste, and enhancement in housekeeping and on-site plantations.

Highlights of Health Safety and Environment

Regular occupational health check-ups Safe and healthy working environment is a culture at Hindustan Zinc. Ongoing projects to reduce water and energy consumption and to harness waste heat. 9.4 MW Waste Heat Recovery based Power Plant at Chanderiya (Roaster) got United Nations (UNFCCC) stamp of registration thus qualified for CER credit. Net result o Reduced Accident frequency (LTIFR) o Reduced specific water consumption
o

Reduced specific energy consumption

SMELTERS
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Hindustan Zinc Limited (HZL) operates smelters using the ISPTM pyrometallurgical (Chanderiya Lead Zinc Smelters), RLE hydrometallurgical (Dabari, Vizag and Chanderiya Smelters) and AusmeltTM Chanderiya Lead Smelter routes.

CHANDERIYA LEAD ZINC SMELTER

The Chanderiya Lead Zinc Smelter is one of the modern smelting Units situated in the north of CHITTORGARH. The plant is in PUTHOLI, 12 Km. from CHITTORGARH. Its technology has been imported from U.K., GERMANY & is also called a super smelter as the capacity of the plant is as follows :MAIN PRODUCTS 1. Good Ordinary Band (Gob Zinc (98.5%) 50000 Tpz (Tones Per Annum) 2. Special High Grade (SHG) Zinc (99.99%) - 50000 Tpz (Tones Per Annum) 3. Lead 50000 TPA BY PRODUCTS 1. 2. 3. 4. Commissioned: Location:Capacity:Cadmium Silver (99.9%) 100 TPA Sulphuric acid (98.5%) Copper Sulphet 1991 120 Km. east of Udaipur, Rajasthan, India. 105,000 tpa of refined Zinc, 35000 tpa of refined lead pyrometallurgical Lead Zinc Smelter. 170,000 tpa of refined Zinc Hydrometallurgical Zinc Smelter. A pyrometallurgical Smelter using ISP tm technology. Main by products are sulphuric Acid and Silver. A hydrometallurgical Smelter
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Details:-

using the state of the art RLE technology commissioned in the year 2005 06. main by product is Sulphuric Acid. An AusmeltTM lead Smelter commissioned in February 2006. Certifications: Captive Power:Targets:ISO 9001:2000, ISO 14001:1999 (For Pyro Plant). Coal based 154 MW captive power plant Commissioned in 2005. Annual production capacity (in Tones) :Main Product: Zinc : 70,000 Lead : 35,000 By Products: Sulphuric Acid: 1, 76,000 Cadmium: 375 Silver: 74

VIZAG ZINC SMELTER

Commissioned:Location:Capacity:Details:1977 17 Km from Vishakhapatnum, Andhra Pradesh, India 56,000 Tpa of refined Zinc. A hydrometallurgical Smelter using RLE Technology. Main by - products are Sulphuric Acid and Cadmium. The plant obtains part of Power requirement at low cost due to share holding in a gas utility company in Andhra Pradesh. ISO 9001:2000, ISO 14001:1996, OHSAS 18001:1999.
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Certifications:-

DEBARI SMELTER
LOCATION:Commissioned:Hydrometallurgical:Zinc Smelter 14 km from Udaipur,Rajasthan, India. 1968 Roast leach electrowining technology with conversion process Gone through a series of Debotelnecking 80,000 tonnes per Annum of Zinc 29 MW DG Set

Captive Power:Generation

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MINES
RAMPURA AGUCHA MINE

COMISSIONED LOCATION Capacity :-

::-

1991 225 km north of Udaipur, Rajasthan, India 3.75 million tones per annum ore
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Details

:-

An open cast mine and good ore grade Leading to higher recovery and overall low Cost of production. Onsite concentrator to Produce Zinc concentrates.

RAJPURA DARIBA MINE

Commissioned Location

::-

1983 75 km north-east of Udaipur, Rajasthan, India. 0.6 million tones per annum ore

Capacity

:-

Rajpura Dariba Mine

:-

An underground mine with onsite concentrator and two vertical access shafts mining is done through vertical crater retreat and blast hole stoping.
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ore is crushed underground before hoisting and stockpiling for secondary and tertiary crushing.

Certifications

:-

ISO 9001:2000, ISO 14001:2004,OHSAS 18001:1999, SA 8000:2001

SINDER KURD MINE

Commissioned :2006

Location

:-

80 km north-east of Udaipur, Rajasthan India. 0.3 million tonnes per annum ore

Capacity

:-

Sindser Kurd Mine

:-

An underground mine having access through a decline & service incline.

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Mining is done through blast hole Stopping Method. Ore produced is hauled up to surface stockpile & crushed and then transported to RDM concentrator for secondary & tertiary crushing.

ZAWER MINE

Commissioned

:-

1942

Location

:-

40 km east of Udaipur, Rajasthan, India. 1.2 million tonnes per annum ore

Capacity

:-

Details

:-

An underground mining complex consisting of four underground mines and one concentrator for all mines. Mining is done with sublevel stopping with matching infrastructure.
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CLZS

CLZS AT A VIEW

UNIT -1 PYRO

UNIT-2 HYDRO

UNIT-3 CPP

ISF TECHNOLOGY COMMISSIONED:1 99 1RC 105000 TPA ZINC 35000 TPA LEAD

AUSMELT TECHNOLOGY COMMISSIONED:200 5 RC:50,000 TPA LEAD

ORTOKUMPU TECH. COMMISSIONED:2 005 35 RC:170000 TPA ZINC

CAPTIPE POWER PLANT COMMISSIONED: 2005 RC : 154 MW

DEPARTMENT OF HZL
PRODUCTION DEPARTMENT
The production of Zinc Ingot is the main product of production process Zinc Ingot is obtained after the completion of the process through various departments: 1. Roaster and Acid Plant 2. Leaching and Purification 3. Cadmium 4. Zinc Electrolysis 5. Melting and Casting 6. ETP 7. Zinc Dust Plant SMELTING OPERATION I:Roaster plant:1. The Zn concentrate having Zn in the form of Zinc Sulphide is roasted in a flue solid Roaster to convert in soluble Zinc Sulphide into oxide form which is easily soluble in dilute sulphuric acid. The roasting reaction is exothermic and heat generated is sufficient to sustain the roasting reaction at 900-950 C. 2 ZnS + 302 = 2 ZnO + 2 So2 + 223.6 Kcal/kg. 2. The So2 & dust laden gases are freed from calcite & cooled by passing through gas cleaning system sat hat the gases leaving the roaster plant are suitable for production of H2So4. The equipment used in gas clearing section serve dual purpose of process requirement as well as pollution control. 3. used in gas clearing section serve dual purpose of process requirement as well as pollution control. ROASTER AND ACID PLANT

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Acid Plant:The roaster gases with about 6-8% So2 From gas cleaning are dreid in the drying tower & passed through converter where So 2 is converted to So3. The Converter qutlet gas is absorbed in 98%. H2So4 in Absorption tower to produce H2So4 with a concentration of 98.5%. The reaction involved are 2 So2 + O2 = 2 So3 So3 + H2O = H2So4 The Caline from roaster is collected by conveyer system and conveyed to calcine silo for storage. SMELTING OPERATION-LEACHING AND RTP-ILEACHING PLANT:1. Calcine from silo is conveyed in leaching plant. 2. The leaching section consists of the following steps neutral Leaching Weak acid leaching Jorosite Precipitation and filtration (RTP) Neutralization 3. In neutral leaching stage colcine is leached with spent electrolyte from electrolysis plant. The Zn oxide in calcine is readily leached but Zinc ferrite remains in the solid slurry from this stage is thickened and clear solution is premked for purification. Smelting Operation Leaching and RTP II Weak acid leaching and Jorosite:The thickened residue from the neutral leach is further treated in weak acid leaching with spent electrolyte. The underflow from the weak acid leaching is treated in RTP for Jorosite precipitation with NH4So4. The Clear solution from Jorosite stage is further treated in neutralization section and recycled to neutral leaching stage. Jorosite cake from filter after from repulsing is sent to ETP where it is neutralized with lime slurry is pumped to jorosite pond for its storage.

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Smelting Operation Purification Neutral overflow from leaching contains impurities like copper, cadmium, cobalt, nickel etc NOF is purified by addition of Zinc dust. Initially in the bust stage Zn duct is added to precipitate copper the solution is filtered in filter presses. The resultant Cu-cd cake is treated in cadmium plant. The filtered is pumped through spiral heat exchange to hat purification tanks solution is heated to 80C & purified by addition of Zn dust and potassium antimony tartarate. In this stage impurities like Cd, Cobalt, Nickel etc are removed. Purified solution is treated in potishing stage filtered to semeone any traces of impurities purified Zn sulphate solution is sent to Electrolysis plant. Smelting Operation Cadmium Cu-Cd cake generated from purification is treated in Cd plant the impurities are separated during process and oponge generated is leached. Purified and filtered. The Cd neutral solution obtained is bed to cd cells sheets are stripped every 24 hours dried melted cost into pencil. Smelting Operation Zinc Electrolysis In has 592 electrolytic cells wherein acidic ZnSo4 electrolyte is electrolyzed by passing DC current. In cells aluminum sheet is the cathode & high silver lead alloy is Anode. Te Zn gets deposits on the aluminum cathode is stripped after 24 hours of deposition. The Zn cathodes thus obtained are shifted to melting section. The Zn cantent in the electrolyte gets depleted the Zn cantent is maintained by mixing neutral ZnSo4 solution supplied by leaching plant. The spent from cells is cooled in atmospheric coolers to reduce temperature before mixing with fresh neutral solution. Smelting operation Melting & casting Zn cathodes from cell hoisr are changed into induction furnaces & the molten metal free of dress is pumped to an auto casting machine for casting into Zn slabs of 26 kg. NH4Cl is used as a flux to prevent excess format in of dross. The dross formed during melting process is removed from time to time & is treated in dross grinding system for separation of metallic Zn. Metallic are recycled to the melting & fine dross is sent to roaster plant for recycling.

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Smelting operation ETP Jorosite cake generated from RTP is neutralized with lime in ETP 7 sent to Jorosite ponds 4 starage. Acid circuit from roaster is treated with lime & alum. & settled in Dorr thickner, overflow water is sent to lagoon & recycled. Zn circuit zn electrolysis & leaching is treated with acid circuit. Smelting Operation Zinc Dust Plan Zinc bricks are melted here which come 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. There are 30-35 employees working in this plant.

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PRODUCTION PROCESS

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ROBOT OPERATION:Robot is a very important part of melting and casting section, which saves the men power. The work of the robot is to carry the slab from the conveyor in a particular sequence and it arrange the slabs at another conveyor in each bunch of one ton. It is hydraulically operated. Robot is nothing but it is a programmed machine. Its working principle is completely based on sensors. It can be operated automatically or manually. Its main assembly for lifting the slab is completely based on mechanical design. The robot arm is the main part of its moving assembly. It is having a number of holding pins to grip the slabs. These pins are adjustable, which can be adjust according to its width. It is a most sensitive part of the plant so it should be handled with a lot of care

Fig no.5 robot operation

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SERVICE DEPARTMENT
The department which indirecting engaged in the production of Zinc Ingot by providing some sort of services of the production departments, they are categorized as under; Personal and Administration Department Industrial Engineering Cell Safety Department Stores Department Sales and dispatch Department Finance Department A Brief Introduction to Service Department: 1. Personnel & Administrative Department:-

Personnel & Administrative Department is a crucial department as its concerned with management & operating functions with a view to obtain the organization goals economically &effectively & meeting the individual & social goals. Time office Administration Welfare Establishment Section Workmen Establishment Executives Establishment 2. Industrial Engineering Cell:-

It is a service which develops methods process to provide an interface between Man, Machine, Material & Minutes to have an optimum output. To achieve this, cell makes use of Incentive Scheme Suggestion Scheme HRD Manpower Work Study of system & matrix Value Engineering Ergonimics

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3.

Safety Department:-

It look after the safety of the people working in the smelter & factory by providing all the necessary safety equipments to protect from the acid & harmful gases. It keeps vigilance on the safety conditions prevailing in the whole organization. 4. Stores Department:It deals with the management of material. It helps in controlling the inventory and keeping a check on the requirement of the various materials. In brief have the following functions. Procurement of material Storage Issue of material Inventory Control 5. Sales Department:All sales are affected through the central marketing office, New Delhi. The interested parties contract this office. The selling price of Zinc Ingot is the monthly weighted average of the price quoted by the London Metal exchange. The credit policy is offered to 30 days interest free + 60 days interest hearing credit @14 % p.a. will be allowed against conformed L/C & B/G on all grades of Zn without any restriction any delay beyond opposed credit policy @ 24% will be charged. 6. Finance Department:The main function of accounts department is to keep systematic records of all financial transactions. Finance Department is further divided in different Sectors. Costing Budgeting section Book keeping section Cash section Contractor section
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 Excise & modvat payment section Establishment section

PERSONNEL AND ADMINISTRATION DEPARTMENT

Personnel department is the heart and soul of any organization where it helps the management in securing, using and developing appropriate manpower to achieve the organizational Objectives. The main objectives of personnel department at Zinc Smelter, Debari are the following: 1) 2) 3) 4) 5) 6) 7) Responsibility for the maintenance of industrial peace, good labour management relations, of industrial strikes. Recruitment and selection of the right person for the right job. Implementation of Training programme. Proper maintenance of service records of employees. Implementation of agreements, awards and agreed discussions. Organizing welfare activities for general health and welfare of the workmen and the vicinity. Proper implementation and co-ordination of managements personnel policies.

The functions of personnel and administration department are:-

FUNTIONS OF (P&A DEPARTMENT)

Time Office

Administration

Welfare

Transport

Establishment

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 TIME OFFICE:Its function is to keep a record of the timing of the workmens entry into and exit from the company. The wages are fixed on the basis of work of workmen. Record about absenteeism and leave are maintained. All financial matters related to workers like compensation, overtime etc. are also dealt with by Time Office. ADMINISTRATION:Providing stationary to all the offices within the company. Keep liaison with outside agencies, Tele - communication maintenance, giving contracts and issuing tenders for bus, postal service etc. are the function of this section of personnel department. WELFARE:Funds are contributed by all the three agencies management, workers and the union for the welfare activities. School and Balsadans are maintained to provide primary education to children. HZL also supplies water to the nearby villages. Donations are given to the cardiology section in the General Hospital. Besides, different functions, games and tournaments are also organized regularly by the sports committee. TRANPORT:There are separate colony buses specially run for the convenience of the people. The medical and transport expenses are borne by the company. The employees are also given HTC and LTC facilities. ESTABLISHMENT:All orders relating to the workers are dealt with and send from this section. Besides, this section is held responsible for promotions, transfers, recruitment, performance appraisal etc. Loans cannot be sanctioned without the approval of the establishment section.

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HUMAN RESOURCE DEPARTMENT

It is a common fact that without a continuous development of employees competencies on organization can survive today, let alone grow and compete. To be effective every manufacturing organization needs competent people in all areas whether they be cost reduction, reduction in delays, increased customer satisfaction, better quality, prompt service, improved earnings, improved market image and so on. All type of organization, which wants to grow, diversifies, renew, change, improve or stabilize competent employees. Human Resource Development meets this need. HRD DEFINITION 1. HRD is the process of helping people to acquire competencies. It is that dynamic process by which employees of an organization are helped and supported in continuous and planned way to:(a) Acquire and sharpen capabilities required to perform various functions associated with there present and future expected roles, (b) Develop there general capabilities as individuals and discover as well as exploit there inner potentials for individual and organizational development, (c) Develop an organizational culture in which nurturing relationships, team work, professional well being, motivation, pride and commitment and loyalty is enhanced in multiple manner. - T.V. Rao - Udai Pareek 2. HRD is a system of developing in a continuous and planned way the competence of individual employees, dyadic groups, teams and the total organization to achieve organizational goals. - Keith Davis

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GOALS OF HRD 1. Develop the skills of individual. 2. Develop the individual to realize his potential as an individual to the maximum extent. 3. Develop the individuals capabilities to perform his present job better. 4. Develop the capabilities to handle future likely roles. 5. Strengthen superiors subordinate relationships. 6. Strengthen team spirits among different teams. 7. Promote inter team collaboration and 8. Promote climate development and organizational health development NEED FOR HRD HRD is needed to develop competencies. To mitigate some of the evil consequences of industrialization. To bring about system wide changes. To develop a proper climate in the organization. The progressive HRD programs are designed in Debari Smelter to fill the gaps in the knowledge and skills of the employees . He mechanisms and techniques adopted by the human resource department are as follows: Training and development programs and cources (both in house or through outside experts where ever necessary) Performance appraisal. Counseling Organization development interventions are used to initiate, facilitate and promote this process in a continuous way. The basic thrust remains towards improved productivity, safety, automation and environment control with a HRD philosophy that values human being and promotes their development.
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CLZSS PRODUCT PROFILE

HZLs product profile comprise of the following main and by- product: 1. MAIN PRODUCTS: zinc :Being a unique protective metal Zinc is Mainly used for galvanizing. Other uses for Zinc are for die casting, gravity casting, Corrosion protection, production of brass, batteries, rolled zinc, zinc compounds, zinc oxide etc. a. Special High Grade Zinc. b. High Grade Zinc c. Prime Custom Zinc. A. Special High Grade Zinc: 1. Galvanizing : It is one of the best forms of protection against corrosion, used extensively in building, construction, infrastructure, house hold appliances, auto mobiles, steel furniture, etc. 2. Zinc Oxide: Most widely used zinc compound, Zinc oxide is used in the vulcanization of rubber, as well as in ceramics, paints, animal feed and pharmaceuticals, and many other products and processes. A special grade of Zinc oxide has long being used in photocopiers. 3. Zinc Die Castings: Zinc is an ideal material for dicasting and is extensively used in hardware, electrical equipments, automotive and electronic components. 4. Rolled Zinc: Zinc sheet is used extensively in the building industry for roofing, flashing and weathering applications. Zinc sheet is also used in graphic art to make plates and blocks, as well as battery callots and coinage. USES OF ZINC: 1. Zinc Powder 2. Brass Item 3. G.I. Pipe 4. CuSO4
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PRODUCTION:62002 Mt. Ton (2000-2001) 85944 Mt. Ton (2001-2002) LEAD :- Being a wonderful energetic metal, lead is mainly used in Batteries. Other uses of Lead Metal are for chemicals, pigments, paints, pipes, sheets, alloys, cables, galvanizing, etc. Lead with a purity of 99.99% is Being used in industries like Lead Acid battery. Ceramic Glazes, Pigments, Electrodes & Electrolysis, galvanizing and Alloys. Standards components Lead, Min Copper , Max Antiminy, Max Bismuth, Max Iron, Max Silver, Max Zinc, Max Arsenic, Max Cadmium, Max Nickel, Max Tin, Max Products Range Lead Slabs (25 kgs)
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HZL Grade 99.99% 5 ppm 10 ppm 50 ppm 5 ppm 20 ppm 5 ppm 10 pp m 5 ppm 5 ppm 5 ppm

USES OF LEAD:PRODUCTION:-

1. Die Casting 3. Battery

2. Power Cable

28900 Mt. Ton (2000-2001) 32719 Mt. Ton (2001-2002) ZINC AND LEAD IN NATIONAL ECONOMY :Zinc and Lead plays an important role in service of mankind. These Metals are used in almost every important sector such as energy, transport, agriculture, communication, power transmission, water supply, defense, house hold appliances, etc. Due to use of lead in ammunition, it has a strategic role to play in national defense, just as zinc plays a similar role in the nations economic growth. 2.) BY PRODUCT:A.) SULPHURIC ACID Being a bountiful chemical, Sulphuric acid is used to manufacture fertilizer, other acids, dyes and drugs, explosives, textiles, rubber, phographic films, etc.

PRODUCTION:142579 Mt.Ton (2000-2001) 156605 Mt.Ton (2001-2002) B.) CADMIUM:Being a decorative and protective metal, cadmium is used in the manufacture of alkaline batteries, electroplating, antifriction alloys and pigments. SILVER:Silver is precious and valuable metal, silver is used in photo films, printing plates, jewellery and
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C.)

silver ware. It is also used in contact and conduction products for the electrical and electronic industry.

PRODUCTION :31284 Mt.Ton (2000-2001) 41427 Mt.Ton (2001-2002) D.) COBALT:Being a super alloy metal that provides strength at high temperature and corrosion resistance, cobalt is used in jet engines. It is also finds in permanent magnets, radioactive isotopes, and a variety of chemicals and pigments. ROCK PHOSPHATE:An economical sources of phosphorous for plant and crop grown in acid soils.

E.)

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PRODUCT UTILITY
Sulphuric acid Fertilizer Detergent Dyes Textile industries Lead Batteries Lining in tankers. Diabrisives for Marble Polishing Bullet or other defensive Armamements

Zinc Galvanizing protection to electrical transmission towers, telephone poles, and steel structures. Medicines in the pharmaceutical industries. Pyro silver Photo films Jewellery

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53

CHAPTER-4 PROJECT PROFILE

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Objective of the project: To study the export procedure & documentation of the company To have an analytical study of performance of Hindustan zinc limited after acquired by sterlite company To takes into consideration the various parameters that show the performance of the company & makes a comparison of HZL before and after disinvestment. To provide the performance analysis of the company for the previous ten years viz. 1994-1999 to 2002-2007. Project design: Research design specifies the methods and procedure for conducting a particular study. In my project company wants to conduct a deep study To find out the changes in performance analysis after Privatization . I have a sufficient thought to framing types of data to be collected and procedure to be used for this purpose. In my view the data which I have collected the source is reliable.

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Study of exports process at CLZS

Topics to be covered are:1. Grant of permission. 2.Documents to be prepared. 3.Mode of inspection. a. By party. b. By excise department. 4.Documents to be sent with transporter. 5.details of the various documents. 6.Annexure -19.

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Grant of permission The company has to take permission from the local central excise department in order to export the finished products which acts as the raw material for other firms. The permission is granted by the superintendent of local central excise department when a letter of undertaking is taken by the company. HZL-CLZS is exporting finished goods without payment of duty under Letter of Undertaking. The concept of furnishing of a Letter of Undertaking by a manufacturerexporter has been introduced. The clearances for export by a manufacturerexporter will be effected similar to clearance for home consumption after he furnishes the Letter of Undertaking. The Letter of Undertaking is to be furnished in the form UT-1 specified in Annexure-15 to Notification No. 42/2001- Central Excise ( N.T. ). Any manufacturer, who is an assessee under Central Excise Rules,2002, shall furnish a Letter of Undertaking only to the Deputy/Assistant Commissioner of Central Excise having jurisdiction over his factory from which he intends to export. A Letter of Undertaking shall be valid for twelve calendar months provided the exporter complies with the conditions of the Letter of Undertaking, especially the procedure for acceptance of proof of export under this instruction.

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Mode of Inspection By Party:The party can rely either on the analysis report of the company or can go for self inspection.In case party relies on the analysis report party asks for the report and samples. In case he wants to have a self assessment, he sends his appointed team which checks the material and a lots and batches. When the inspection is over he provides a Holding Certificate. The purpose of such certification is that it has certified the material and the same material is to be dispatched whenever the delivery order is sent for execution. By Excise Department:Previously, an inspection team used to visit the company for verification every time the exports take place. But now the procedure has been changed. The material to be exported is verified at the time it is loaded on the ship at the port. The report of the same is sent to the company.

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Documents to be sent with transporter

(A)

An envelope addressed to the agent appointed by the company to carry out the remaining formalities.

Following are the documents 1. Invoice Cum Delivery Challan No.___ Dtd.__ (Original For Buyer copy) 2. Invoice Cum Packing List. 3. Goods Receipt No.___ For Transporter. 4. Test Certificate(1 Copy For Each Batch) 5. Samples (2 Packets Of Each Batch) 6. ARE-1 No.___ Dtd.___ ( White Copy And Blue)

(B)

Other envelope containing the following documents are No___ Dtd.___

1. Invoice Cum Delivery Challan (Duplicate For Transporter Copy) 2. Invoice Cum Packing List( 1 Copy) 3. Test Certificate ( 1 Copy Of Each Batch) 4. ARE-1 No.___ Dtd.___ (Buff Copy)

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Details of the documents

1. Dispatch approval form. 2. Sales order. 3. Invoice cum delivery challan. 4. Invoice cum packing list.. 5. ARE-1 form. 6. Material receipt. 7. Shipping bill. 8. Bill of lading. 9. Annexure-19.

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1. Disapatch approval form (DAF):Dispatch approval form is a document which is prepared and faxed by the regional office as its approval to dispatch the specified goods. It contains the following detailsBuyer___ Consignee___ Notify party ( ship to party) Quantity___ e.g. 61-63 MT (max) it should not exceed 63 MT From the holding certificate. Description of the goods. Customs exchange rate. e.g. USD 1 = Rs. 45.10 * final price = USD. 1115.78/mt So it comes out to be Rs.50,321.678 .we will release the quantity of Rs. 50,321 between 61-63. EPCG license no.___ According to this license no. The party will be getting benefits in its country as per their laws. Advance license no.___ DESTINATIONS. Port of discharge ___ Port of loading ___ e.g. JNPT, NSICT If free on board condition is given, then the responsibility of sending the goods up to the port is on the shoulders of the company. After that the company has no liability. SBLC validity. Issuing Bank. Any special letters:1. Letter of credit no.___ 2. Last date to reach ports. 3. Companys agents name who will receive the goods and complete the remaining formalities. 4. Put truck no.___ 5. Put other details as asked___

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2. Sales Order:Sales order is already created in SAP as per DAF, it is just like any other sales order which contains the necessary information. The sales order is prepared after the payment/ letter of credit is received. 3. Invoice Cum Delivery Challan:-

Invoice cum delivery challan is a legal document which is to be prepared by the company. It is prepared under rule 11 of excise rules 2002. It is prepared in five copies Original For Buyer. Duplicate For Transporter Copy. Triplicate For Assessee Copy. Bank Copy. Extra Copy (Security Copy) The company keeps the triplicate for assesse copy, bank copy and extra copy for records and future reference. 4. Invoice Cum Packing List:Invoice cum packing list contains the necessary information and details of the Lot Nos. and batch Nos. of goods to be exported. For instance- strap weight, gross weight, net weight, port details and destination details etc. 5. Are-I Form:ARE-1 form is to be filled as an application for removal of excisable goods for exports by sea. It is prepared in five copies. * * * * * Original - White Duplicate - Buff Triplicate - Pink Quadruplicate - Green Extra Copy - Blue

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6. Material Receipt:It is prepared by the appointed agent. It shows that the goods have been received in containers subject to the terms and conditions of the bills of lading in use for the vessel. This receipt must be presented to be exchanged for proper receipt or bill of lading. 7. Shipping Bill:Shipping bill is provided by the shipping agent and represents some kind of certificates for all parties, included ships owner, seller, buyer, and some other parties; for ship owner represents the responsibility of take the goods from one place to another, for seller the documentary prove that the merchandise was shipped in certain vessel, in certain condition, and consignee to certain buyer including the merchandise conditions characteristics and quality, for the buyer the necessary documents for claim the merchandise, for the shipping agency at the port of arrival represents the only and unique document for continue the process of commerce, which is duly filled in by the agent which is appointed by the company. It is a proof that the material has been received and loaded in the ship. 8. Bill Of Lading:It is a legal document which is issued by the carriers, e.g. a ships master or by a companys shipping department, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee and contains terms and conditions which are mentioned on the face and back of bill of lading. It states the material receipt no., bill no. and carriers responsibility which starts from the port of loading to the port of discharge. It is duly verified by the appraising officer of the customs. It is final proof of exports and utmost important document. It is necessarily to be submitted to the local central excise department along with aneexure-19 (Monthly return of Export).

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9.

ANNEXURE-19: ANNEXURE-19 is a legal document, format of which is prescribed by central excise department and is available in excise manual. It is a statement regarding exports of excisable goods without payment of duty (rule 19). It contains the following information Name of assesse___ Registration no___ Address___ Details of excisable goods manufactured and exported, proof of export and duty payment in case proof of export is not available within statutory time limit. ANNEXURE-19 is to be submitted to the local central excise department once in every month

It consists of the following five parts1. 2. 3. 4. 5. It gives the details of the exports during the month. Details of proof of exports received relating to earlier quarter. Details of proof of exports which is not yet received and relates to earlier quarter but within statutory limit. Details of short shipment and duty deposited for the same by giving details of TR-6 challan through which duty is deposited. Details of duty amount involved in part -2 along with received verified ARE-1 Nos.

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CHAPTER-5 ANALYSIS OF COMPANY PERFORMANCE

65

ANALYSIS PROFIT AFTER TAX

TABLE 1
Year 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 Profit 7643 4244 3022 7377 7632 (Rs. in lakh)

9000 8000 7000 6000 5000 4000 3000 2000 1000 0 1994- 1995- 1996- 1997- 19981995 1996 1997 1998 1999

IN Rs. Lakh

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TURNOVER
TABLE -2
YEAR 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 TURNOVER (IN Lakh) 99992 84838 99861 126320 130927

140000 120000 100000 80000 60000 40000 20000 0 19941995 19951996 19961997 19971998 19981999 IN Rs. Lakh

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PRODUCTION

TABLE -3
YEAR 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 PRODUCTION (IN MT) 154283 143307 138750 172037 180816

200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 19941995 19951996 1996199768 1997 1998 1998-

IN MT

1999

PROFIT AFTER TAX

TABLE 4 YEAR 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

PAT (IN Rs. LAKH) 14200 40500 65500 147200 444200

500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 2002- 2003- 2004- 2005- 20062003 2004 2005 2006 2007 69

In Rs.Lakh

TURNOVER

TABLE - 5
YEAR 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 TURNOVER(IN Rs. LAKH) 141100 184200 220200 387700 856000

900000 800000 700000 600000 500000 400000 300000 200000 100000 0 20022003 20032004 20042005 20052006 20062007

IN Rs. LAKH

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PRODUCTION

TABLE -6 YEAR 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

Production (In MT) 207000 221000 212000 283000 300000

350000 300000 250000 200000 150000 100000 50000 0 20022003 20032004 20042005 20052006 20062007 in MT

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INCREAS IN PAT
TABLE- 7 Year 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 TOTAL In Rs. lakh YEAR PAT 2002-2003 14200 2003-2004 40500 2004-2005 65500 2005-2006 147200 2006-2007 444200 TOTAL 711600

PAT 7643 4244 3022 7377 7632 29918

800000 700000 600000 500000 400000 300000 200000 100000 0 19941999 20022007

IN Rs. LAKH

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INCREASE IN TURNOVER
TABLE- 8
YEAR 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 TOTAL TURNOVER 99992 84838 99861 126320 130927 541939 YEAR 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 TOTAL In Rs. lakh TURNOVER 141100 184200 220200 387700 856000 1789200

2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 19941999 20022007

IN Rs. LAKH

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INCREASE IN PRODUCTION
TABLE 9
YEAR 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 TOTAL PRODUCTION 154283 143307 138750 172037 180816 789193 YEAR 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 TOTAL (In MT) PRODUCTION 207000 221000 212000 283000 300000 1223000

1400000 1200000 1000000 800000 600000 400000 200000 0 19941999 20022007 IN MT

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EXPORT & IMPORT PERFORMANCE

TABLE 10
Year 2005-2006 2006-2007 2007-2008 Export Volume 36501 86235 421358 Rs. In lakh Import Volume 22145 17449 37742

EXPORT PERFORMANCE
450000 400000 350000 300000 250000 200000 150000 100000 50000 0 2005-2006 2006-2007 2007-2008

IN LAKH

YEAR

IMPORT PERFORMANCE
40000 35000 30000 25000 20000 15000 10000 5000 0 2005-2006 2006-2007 2007-2008 IN LAKH

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YEAR

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INTERPRETATION:-REASON BEHIND THE GROWTH

The figures clearly prove that post-disinvestment, sales and profits of these company have increased dramatically. In april 2002, government of India sold 26% stake in hzl to sterlite industries and transferred management control. The rationale of the government to divest their stake in hzl can be elaborated as follows: 1.Low margins due to pressure on international prices:The operationas at hzl were unviable . this coupled with a continuous downward trend in prices culminating in a 14- year low led to severe & continuous pressure on margins . the rational of government to sell off the entity while it was still profitable made economic sence , as any further squeeze in prices would have resulted in the company going in the red & therefore attracting lower valuations

2.Viability of zinc as a metal in doubt:Unfortunately for Hindustan zinc , there was a slump in the zinc industry worldwide . in the us , for instance , demand for zinc had fallen & there was not much activity in its key end use markets ---auto, electrical appliances and construction . according to the international lead and inc study group , world consumption of c , which went up 5.3% in 2000, fell 1.33% in 2001 .in i8ndia , demand for zinc , which is linked , to the demand for steel as zinc is used by the steel industry for galvanization , was then plagued by low off-take.

3.Non core and non strategic sector:In 1999, the government of India had set out to initiate disinvestment in sectore3s , which it consider ed as non core and which were not strategically important vis--vis security of the country . zinc was recognized as one of them and thusn hzl was decided to put on the block.

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4.Inability to incur necessary large investment by way of cap-ex:Hzl needed investment in exess of rs. 1000 crores , which the government was hesitant to spend.

5.Employee costs:Prior in 2002 , the number of employees and salaries & wages were as follows Particular No. of employees Salaries & wages Units % of total cost 1994-1999 8355 27.36 2002-2007 6055 14.09

As can be sen , salaries and wages as percentage of totel cost redused by almost 50% However this does not provide the complete picture . couplrd with rationalization , sterlite managrment incentivized productivity, employed a reward and recognition , system , and invested in training (including overseas training ), which has translated Into higher production per employees as seen above . this in my opinion could not have been achieved in a typical government cadre with limited incentives.

6.Reduction in power costs:This has been achieved by going in for captive power consumption , which has redused the cost and dependence on external sources of power . the cost per unit has redused the from rs. 6.07/kwh to rs.2.19/kwh which translates into the drastic cut in power cost percentage as seen earlier. This is especially important because of sensitivity of zuinc production costs to power costs .$0.01 increase in power costs can increase operating cost by $50 per tonne. The graph below shows the reduction in energy consumption by hzl.
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Energy Consumption in HZL

Source: Vedanta Annual Business Report 2006-07 Howere there is more than just reduction that sterlite has brought to the table . the true difference and value creation made possible by sterlite can only be gauged when yoyu considwer the following decisions taken by thenm.

7.Expansion of capacity erecting scale:The expansion also put the global league of zinc players. In mar06,hzl was the 4th largest zinc and lead mine player and 6 th largest in terms of smelting capacity . such economies of scale also contribute to spreadiong of costs and add to bottom line There are plans of further expansion , which will extend capacity to 570000 tonnes of zinc and 85000 tones of lead , apart from 230 mw of captive power by 2008.

8.Debottelnecking-operations:At time of acquisition, zinc demand in India was more than production, with the balance met by imports . to grape a share of this market , HZL went for tolling (i. e. exporting zinc concentrate to smelters outside India and importing zinc metal). Although this was only a temporary measure till the new capacity became operational , it increased HZLs market share in India . in 2005-2006 about 14% of sales were from tolling.
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9.Widening of product offerings:Hzl has added new products from chanderiya smelter, which produces high grade zinc.these products such as galvanized re-bars, cast alloyes, cast alloyes ,safty gurds for highways etc are positioned for the rapidly growing construction section in India

10.Increasing mining reserves:For a mining company , its mining reserves determine whether it will remain in the market for a long time . hzl has been continuously attempting to increase the area under exploration and applied for newer reconnaissance permits . in 2006 , it added 12.8mtp containing 2.2 mtpa in situ metals , thereby increasing proven and probable to 68.6 million tones.

11.Leveragig the company:Hzl before disinvestment was an almost zero debt company. The new management increased the leverage, thereby lowering the costn of capital by adding on lower cost debt. Thus has been able to put up a sterling performance in the years post divestment. This may even help it tide over externalities like reduction in zinc and lead import duties which are today at 7.5% and 5% respectively , and stand at par with most asean countries. No doubt the figures look fantastic when it comes to shareholder returns. HZL Share Price since 2000

Source: Moneycontrol.com
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12.Zinc prices:The sterlite management was praised in acquiring hzl when the zinc prices had bottomed out. It seems that they correctly predicted that the zinc prices were to increase. So I thought of collecting some data on zinc prices from the London metal exchange to validate this claim.

LME Zinc Prices 1989 to 2007

Source: Yukon Zinc, Zinc Supply Outlook 2007

The graph shows that the major upturn in zinc prices came about after 2005. considering that the initial bids were called in November 2001 and the final bid got approved on 11 th april 2002 , it si slightly difficult to believe that the sterlite management could predict this around three years in advance . the forsight could have been attributed to the management of sterlite had the upturn in the zinc prices taken place earlier but this seems more by chance than a well thought out management decision.

13.Share prices:The share prices of hzl was around rs 20 when the first round of bidding took place. The sterlite management bid rs 26per share , which shows what they perceived hzls value to be but it was rejected by the government since it thought it was too low . the prices post nov. 2001 till mar. 2002 rose in anticipation ofn as higher bid by sterlite and the indogulf since the government had fixed the reseve price at rs 32.15 per share.
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CHAPTER-6 CONCLUSION

82

CONCLUSION
PAT has increased by 2279%in 2002-2007 as compared to 19941999 i.e. after disinvestment. TURNOVER OF HZL has increased by 230% in 2002-2007 as compared to 1994-1999 i.e. after disinvestment. PRODUCTION of HZLhas increased by 55% in 2002-2007 as compared to 1994-1999 i. e. after disinvestment. EXPORT VOLUME OF HZL has increased by 1054% in 2007-2008 as compared to 2005-2006. IMPORT VOLUME OF HZL has increased by 70% in 20072008 as compared to 2005-2006. These six weeks at HZL have proved to be greatly influential in my academic life .in fact it can be stated as a turn around for me ,turning me from academic myself to professional myself. Every word, theory , & hypothesis printed in business management course material turned out to be true for me . the experience pilled up slowly , give me a total insight into the practical aspect of business. This exposure has made me confident in my field of interest i.e. EXPORT POCEDUR & DOCUMENTATION even with inputs of strategic decisions. This was not only just summer training that I carried out I carried out with it a new dimension to my personality. It was a great experience for me to get industrial exposure, which will be helpful me to enter in corporate world .

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CHAPTER-7 ABBRIVATION

84

ABBRIVATION
CLZS - CHANDERIYA LEAD ZINC SMELTER HZL MT L/C MR PO HINDUSTAN ZINC LIMITED MILLION TONNE LETTER OF CREDIT MATERIAL RECIEPT PURCHASE ORDER DESPATCH APPROVAL FORM COMMERCIAL TERMS

DAF CT -

CAD - CASH AGAINST DOCUMENT

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BIBLIOGRAPHY
www.hzlindia.com www.vedantaresources.com www.google.co.in 42th annual report of 2007-2008. Journals of Hindustan Zinc Ltd. Balance Sheet & Profit & Loss Account of HZL Of Year 1994 to 2008 . Moneycontrol.com

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