Hindustan Zinc Fertilizer Plant Rajasthan to Start Production in Q1 FY27

Hindustan Zinc Ltd (HZL), a subsidiary of the Vedanta Group, is making a strong move into the fertilizer industry with a new Hindustan Zinc Fertilizer plant India. The ₹1,800 crore project, located at Chanderiya in Rajasthan, is scheduled to start commercial production in the first quarter of FY27 (April–June 2026).

The plant will produce DAP (Di Ammonium Phosphate) and NPK (Nitrogen, Phosphorous, and Potassium) fertilizers. It is funded through a mix of internal and external resources. Construction is already at an advanced stage and progressing well.

Moreover, HZL plans to double the production capacity to 1 million tonnes within the next five years as part of its ambitious “2X Growth Strategy.” At full capacity, the fertilizer business segment is expected to generate annual revenues of ₹2,000–2,500 crore.

One key advantage for HZL is its ability to use large volumes of sulphuric acid, a by-product of its zinc smelting operations, as a raw material for fertilizer production. This integration not only improves sustainability but also lowers production costs.

Importantly, the new fertilizer manufacturing plant in India will help reduce the country’s heavy reliance on imports. Currently, India imports around 60% of DAP and 10–12% of NPK fertilizers.

In addition, Hindustan Zinc Fertilizers Pvt Ltd plans to develop premium coated products, crop-specific blends, and micro-nutrient formulations. The company also secured one of India’s first potash mines during the critical minerals auction. This will enable production of a wider range of fertilizers, including potash-based variants that India heavily imports.

Overall, this strategic move allows Hindustan Zinc Ltd to diversify from metals into the critical agriculture sector. It addresses India’s growing fertilizer demand while strengthening domestic production capabilities.

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