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News Topical, Digital Desk : There was a time when Hindustan Zinc Limited (HZL) was under government control, mired in difficulties for many years, and few could have imagined that the company would one day become India's largest metals company. But then fate took a turn—and a company valued at Rs 5,000 crore has now become the country's top metals story, with a market cap of Rs 3 lakh crore. This isn't just a business turnaround, but a fascinating 60-year journey.
A government company,
HZL was established in 1966 by the Government of India to mine zinc-lead. Decades passed, but the company never reached its full potential. Gradually, HZL became a burden to the government and a loss-making PSU.
After this, year 2000–2003: The government took the first step towards privatization. In the year 2000, the NDA government took steps towards disinvestment of HZL… and from here the story started changing.
Beginning of the story – Sterlite bought 26% and gained control
August 2002
At that time Vedanta Group was known as Sterlite Industries. The Government of India started the process of disinvestment of HZL. Sterlite bought 26% stake of Hindustan Zinc for ₹770 crores.
This stake was a "strategic sale". With this 26%, Sterlite was given the management control of the company.
First important turning point – Vedanta got the control. The objective of the government was to turnaround the loss-making PSU by giving it to private hands.
(2) 2003: Sterlite buys another 19.5% - Total stake above 45%
In November 2003,
Sterlite Industries bought an additional 19.5% stake from the government. Sterlite's total stake increased to 45%+. The company's valuation at the time of this deal was estimated to be around US$ 1.7 billion. Vedanta (Sterlite) now became the majority shareholder of the company. The government's stake reduced to 29.54%.
(3) 2011: Structure changed - SOVL merger
calendar year changed - In 2011, Sterlite merged its holding company SOVL. With this, HZL became a direct subsidiary of Vedanta Resources. The ownership and management structure became simpler. Now Hindustan Zinc completely came under the umbrella of Vedanta Resources.
(4) 2013: Sesa + Sterlite merger formed Sesa Sterlite In the year 2013, Sterlite Industries and Sesa Goa merged. This resulted in the formation of a new company Sesa Sterlite (now Vedanta Ltd). Hindustan Zinc's stake was transferred to this new company...that is, HZL was now under the control of Sesa Sterlite (Vedanta Group).
(5) 2015: Company's name changed to Vedanta Ltd In 2015, Sesa Sterlite was renamed Vedanta Ltd. All mineral/metal businesses were now consolidated under the name Vedanta. Hindustan Zinc was now directly controlled and managed by Vedanta Ltd.
(6) 2025: Vedanta sold 1.6% stake - stake reduced from 64.92% In the year 2025, Vedanta held around 64.92% stake in Hindustan Zinc. To reduce debt and support the de-merger plan, Vedanta sold 1.6% stake. After this, Vedanta's stake reduced to 61.82%. Today's situation: Vedanta has major control, government still holds stake Vedanta (directly and through its units) - 61.82% Government of India - around 28% Market free float - only around 10% HZL is still a privately controlled company, but the government remains a shareholder. The company which was once struggling under government control... is today the second largest zinc producer in the world. Disinvestment gave HZL a turnaround. Vedanta increased efficiency. Silver rally took the company to a rocket. Today Hindustan Zinc is a company worth around ₹3 lakh crore - and GOI has gained ₹27,000 crore+ in value alone. A classic turnaround story from a PSU to a private sector - and today India's largest metal company.
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