Tata Steel will procure zinc from Hindustan Zinc and cut down on imports in a move towards Aatmanirbhar or self-reliance. The companies have signed a Memorandum of Understanding (MoU) which stands as the first of its kind partnership in the Indian non-ferrous metals industry.
Hindustan Zinc will supply about 45,000mt of zinc and other materials to Tata Steel, annually. The MoU covers supplies to Tata Steel and its subsidiary, Tata Steel BSL. Hindustan Zinc stated that this MoU falls in line with the company’s vision to ‘galvanize India’ under the Vocal for Local initiative.
Hindustan Zinc has placed a vendor management inventory (VMI) solution for Tata Steel and as a first VMI customer, inventories and stocks of Tata Steel will be closely monitored. This would give Hindustan Zinc a real-time status of inventory levels of Tata Steel and on sensing shortages, HZL would deliver material as required.
Tata Steel has always accumulated zinc from HZL but this is the first time that a vendor management inventory is set up, said official from Hindustan Zinc.