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BUSINESS MODEL

Forging Ahead with Our Value Creation Model

Our integrated operations are a core strength propelling the Company’s growth journey. To strengthen these operations, we have developed a highly evolved, integrated business model for long-term, holistic and sustainable value creation. Judicious deployment of resources, backed by sustained investments in building our capitals, is a key tenet of our business model. We are continuously strengthening the business model in line with the transforming external ecosystem and stakeholder demands. During FY 2023-24, we made further investments in our capitals and took responsible actions to boost the outcomes of our business operations. We took into consideration the various constraints and trade-offs that emerge in the course of our complex and elaborate operations to make prudent investments and take proactive actions.

A diagram illustrating the value chain activities from exploration to customer delivery. Key stages include Exploration, Mining, Inbound Logistics, Beneficiation, Smelting, Refining, By-product Recycling/Reprocessing, Finished Product, Consumable/Saleable Product, Outbound Logistics, Marketing, and Customers. The flowchart shows the sequential steps involved in transforming raw materials into finished products and their distribution.

INPUTS

An icon representing Natural Capital, featuring a leaf and circular elements, symbolizing environmental resources and sustainability. The text Natural Capital is displayed next to the icon.

NATURAL CAPITAL

Inputs deployed

  • Ore R&R: 456.3 Mt
  • Zinc-Lead metal R&R: 30.8 Mt
  • Silver R&R: 854.3 Moz
  • Energy consumption: 47.63 GJ per tonne of metal
  • Water consumption: 25.31 m3 per tonne of metal

Key focus areas

  • Need for optimal and judicious utilisation of natural resources, including mineral resources
  • Striking a balance between extraction activities and environmental preservation to avoid ecological degradation and ensure long-term sustainability
An icon representing Manufactured Capital, featuring an image of a factory, symbolizing industrial and infrastructural assets. The text Manufactured Capital is displayed next to the icon.

MANUFACTURED CAPITAL

Inputs deployed

  • World-class technologically advanced plants and operations
  • Zinc cost of production: US$ 1,117 per MT
  • Fixed assets: ₹ 43,684 crore

Key focus areas

  • Infrastructure, equipment and technology vital for our business operations, and securing funds for these critical components remains the key
  • Long mine life and R&R base for secured raw material availability
  • Modern processing facilities capable of producing diverse products
An icon representing Intellectual Capital, featuring an image of a light bulb within a brain, symbolizing knowledge, innovation, and intellectual assets. The text Intellectual Capital is displayed next to the icon.

INTELLECTUAL CAPITAL

Inputs deployed

  • Collaborations/memberships with technical institutes: 17
  • Investments in technology, innovation and automation: ₹ 32.5 crore
  • Patents awarded: 2 (India)

Key focus areas

  • Challenges related to knowledge, expertise and innovation
  • Importance of attracting and retaining trained pool of geologists, geophysicists, analysts and professionals for designing and executing exploration programmes
  • Sustained investment in research and development
  • Automated and digitally integrated value chain
An icon representing Human Capital, featuring images of two people, symbolizing workforce and human resources. The text Human Capital is displayed next to the icon.

HUMAN CAPITAL

Inputs deployed

  • Total workforce: 23,796
  • Employee benefit expenses: ₹ 828 crore
  • Learning & development: 122,107 hours
  • HSE training: 745,111 hours

Key focus areas

  • Need for new-gen workforce with differentiated skills of digitisation, artificial intelligence (AI) and best mining practices, given the new industry demands
  • Ongoing training and skill development ensures optimal manpower and higher productivity
An icon representing Social and Relationship Capital, featuring interconnected circles, symbolizing networks, relationships, and social interactions. The text Social and Relationship Capital is displayed next to the icon.

SOCIAL AND RELATIONSHIP CAPITAL

Inputs deployed

  • CSR spending: ₹ 269 crore
  • Healthy relations with stakeholders, aided by ongoing and productive engagements
  • Strong people-led institutions at the grassroots: 13

Key focus areas

  • Proactive focus on external relationships and community engagement is a prerequisite
  • Local employment, sourcing and increased social spending required to ensure social licence to operate
  • Strong customer relationships, positive connections with local communities, regulatory bodies and stakeholders to mitigate reputational risks
  • Focus on leadership development, exposure to best practices, governance and go-to-market approaches
An icon representing Financial Capital, featuring upward arrows, symbolizing financial growth and economic value. The text Financial Capital is displayed next to the icon.

FINANCIAL CAPITAL

Inputs deployed

  • Equity capital: ₹ 845 crore
  • Net cash: ₹ 1,731 crore
  • Reserves & surplus: ₹ 14,350 crore

Key focus areas

  • Adequate access to sufficient capital and funds for investment in value-accretive projects

OUTPUTS

Zinc

817,059 tonnes

(820,898 tonnes)

Lead

215,984 tonnes

(210,690 tonnes)

Silver

746 tonnes

(714 tonnes)

Figures in brackets are for FY 2022-23

OUTCOMES

NATURAL CAPITAL

Outcomes

  • All units are certified:
    • ISO 14001 - Environmental Management
    • ISO 50001 - Energy Management System
    • Environment Product Declaration for Zinc
  • GHG emissions (scope 1 & 2): 4.81 mn tCO2e
  • Maintaining zero liquid discharge across sites
  • Total waste generation: 20.24 Mt
  • HVLT waste generation: 1.26 Mt
  • Fly ash generation: 0.34 Mt
  • Waste recycled: 6.32 Mt
  • Water recycled: 18.41 mn m3

Actions to improve outcomes

  • Optimal usage of natural resources with a focus on the use of recycled water, renewable energy and gainful waste utilisation
  • Investments in low-emission technologies and renewable energy
  • Collaborative models for metal recovery and waste recycling
  • Aim for 0.5 mn tCO2e GHG emission savings in operations, becoming 5x water positive and 3x increase in gainful utilisation of smelter waste by 2025
  • 50% reduction in scope 1 & 2 emission and 25% reduction in scope 3 by 2030, achieve net zero emission by 2050 (SBTi approved target)
  • Biodiversity conservation initiative across sites

UN SDGs impacted

Icons representing the UN Sustainable Development Goals (SDGs) impacted: Clean Water and Sanitation (Goal 6), Affordable and Clean Energy (Goal 7), Industry, Innovation, and Infrastructure (Goal 9), Responsible Consumption and Production (Goal 12), Climate Action (Goal 13), Life on Land (Goal 15), and Partnerships for the Goals (Goal 17). The text UN SDGs impacted is displayed above the icons.

MANUFACTURED CAPITAL

Outcomes

  • Long mine life (average): 25 years+
  • Among the world’s lowest cost producers of zinc
  • Mined metal production: 1,079 kt
  • Refined metal production at: 1,033 kt

Actions to improve outcomes

  • Investments in:
    • New-age technologies
    • R&R additions (target 500 Mt with 35 Mt metal) and new tenements while maintaining existing leases
    • Smelter expansion and regulatory approvals
  • Higher recoveries and efficiency ensuring improved ore-to-metal ratio
  • Cost control through consistent efforts on operational efficiencies (including minor metal recovery and gainful waste utilisation), volume delivery, cost rationalisation and investment in cost-effective sustainable solutions

UN SDGs impacted

Icons representing the UN Sustainable Development Goals (SDGs) impacted: Industry, Innovation, and Infrastructure (Goal 9), Responsible Consumption and Production (Goal 12), and Climate Action (Goal 13). The text UN SDGs impacted is displayed above the icons.

INTELLECTUAL CAPITAL

Outcomes

  • Diverse product offerings: 12
  • Value-added portfolio: 19.7%
  • Minor metal extraction capabilities
  • Strong brand recall

Actions to improve outcomes

  • Digital best practices replicated across sites
  • Ongoing innovation for metal recovery, adding green products, minimising GHG emissions, and people safety
  • Enhance in-house R&D capabilities and undertake new product development based on market research
  • Invest in new business
  • Increased use of automation and of subject matter experts (SME) for designing and executing exploration programmes

UN SDGs impacted

Icons representing the UN Sustainable Development Goals (SDGs) impacted: Industry, Innovation, and Infrastructure (Goal 9), Responsible Consumption and Production (Goal 12), Climate Action (Goal 13), and Partnerships for the Goals (Goal 17). The text UN SDGs impacted is displayed above the icons.

HUMAN CAPITAL

Outcomes

  • Revenue per employee*: ₹ 8 crore
  • Diversity ratio: 21.7%
  • Attrition rate: 11.7%
  • Total recordable injury frequency rate (TRIFR): 1.84

Actions to improve outcomes

  • Attracting industry-best talent
  • Investments in safe, productive and inclusive workplace
  • Deployment of outsourced services from global exploration experts

UN SDGs impacted

Icons representing the UN Sustainable Development Goals (SDGs) impacted: Good Health and Well-being (Goal 3), Gender Equality (Goal 5), Decent Work and Economic Growth (Goal 8), Reduced Inequalities (Goal 10), Peace, Justice and Strong Institutions (Goal 16), and Partnerships for the Goals (Goal 17). The text UN SDGs impacted is displayed above the icons.
* considering permanent employees and permanent workers

SOCIAL AND RELATIONSHIP CAPITAL

Outcomes

  • CSR beneficiaries: 1.91 mn
  • Contribution to the exchequer: ₹ 13,195 crore

Actions to improve outcomes

  • Generate local employment opportunities through ancillaries & ensure sustained livelihood for communities
  • Facilitate 25% higher freshwater availability for communities
  • Zero land acquisition for waste storage
  • Compliance with community and environmental regulations
  • Contribution to nation building and resource sufficiency

UN SDGs impacted

Icons representing the UN Sustainable Development Goals (SDGs) impacted: No Poverty (Goal 1), Zero Hunger (Goal 2), Good Health and Well-being (Goal 3), Quality Education (Goal 4), Gender Equality (Goal 5), Clean Water and Sanitation (Goal 6), Affordable and Clean Energy (Goal 7), Decent Work and Economic Growth (Goal 8), Industry, Innovation, and Infrastructure (Goal 9), Reduced Inequalities (Goal 10), Sustainable Cities and Communities (Goal 11), and Partnerships for the Goals (Goal 17). The text UN SDGs impacted is displayed above the icons.

FINANCIAL CAPITAL

Outcomes

  • Revenue: ₹ 28,932 crore
  • EBITDA: ₹ 13,677 crore
  • Earnings per share: ₹ 18.36
  • Total interim dividend: ₹ 5,493 crore

Actions to improve outcomes

  • Investments in value-accretive projects, new businesses and value-added products for enhanced profits in the medium and long term and protection from commodity price volatility
  • Agility in decision-making, cost optimisation, investment in new-age technologies for enabling cost excellence
  • Maintaining robust profitability and returns thereby creating value for stakeholders
  • Cost control through consistent efforts on operational efficiencies, volume delivery and cost rationalisation, to combat the inflationary input commodity environment
  • Higher cost credits through enhanced minor metal recovery, gainful utilisation of waste

UN SDGs impacted

An icon representing the UN Sustainable Development Goal (SDG) impacted: Decent Work and Economic Growth (Goal 8). The text UN SDGs impacted is displayed above the icon.
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