New Delhi: Vedanta group firm Hindustan Zinc Ltd (HZL) has held fresh discussions with the government on a proposal to divide the company into two verticals, instead of three proposed earlier, CEO Arun Misra said on Wednesday.
The company's restructuring plan to create separate entities was put on hold as the government, which owns a 29.54 per cent stake in the miner, had expressed resistance to the bid.
In an interview to PTI here, Misra said with regard to Hindustan Zinc's demerger, the discussions happened very well with the government.
"So now they (the government) will come back (on this)."
"Yeah, we have discussed again...So three become two," the CEO said.
The Mines Ministry, which is a minority shareholder, had earlier written to the company, pointing out that any restructuring of business operations would require the ministry's clearance.
Misra said that he was with the mines secretary recently and both the government and HZL are communicating on this subject which is "big".
"This is a big subject. ...it requires restructuring of assets, including mines, smelter," the CEO said.
He further stated that HZL aspires to make both the companies asset-based "so asset means mines, smelter have to be separated.
"Even if we separate, there is no mine which produces only silver. And then there is no mine, which produces only zinc and lead. So there will be interactions between the two. Right. So these are all complicated issues for which all the discussions are on."
Hindustan Zinc had last year announced plans to spin off its businesses into separate entities to increase its market capitalisation.
The company had engaged a leading advisory firm to study its plans to spin off the business.
HZL is hosting Zinc College 2024 here, which is an international event organised by International Zinc Association.
The Vedanta group firm has last month said that its board has approved the second interim dividend of Rs 19 per share for the current financial year amounting to Rs 8,028.11 crore.
HZL has reported a 19.4 percent rise in consolidated net profit at Rs 2,345 crore in April-June quarter of FY25 due to higher EBITDA (earnings before interest, tax, depreciation and amortization).
The company had posted a net profit of Rs 1,964 crore in the year-ago period.
Income rose to Rs 8,398 crore from Rs 7,564 crore in the year-ago period.
Hindustan Zinc Ltd is the world's second-largest integrated zinc producer and the third-largest silver producer.
The company supplies to more than 40 countries and has a share of over 75 per cent of the primary zinc market in India.
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