In case Hindustan Zinc is able to materialize the proposal of hiving off Silver business into a new company, this would give India a recognition in the global silver market as Silver of India, as the government holds 29.India is the largest consumer and importer of silver in the world, having a share of about 21 % of global silver demand though it produces only 6-8 % of its consumption requirement.. As the prices are low, imports are also rising.Silver has been the fastest growing vertical for Hindustan Zinc even in the depressed silver prices.Globally, the highest usage of silver is in industrial fabrication (60 per cent), followed by jewellery (21 per cent), coins and bars (15 per cent) and silverware (4 per cent). For example, Fresnillo (the largest silver miner in the world) has an EV/Ebitda multiple of 14 times as against HZL’s multiple of 8 times.As per World Silver Survey 2018 by The Wholesale OEM Heavy Duty Shield Anchors Suppliers Silver Institute,Hindustan Zinc is now the 10th largest silver producer in the world. 1850 Crores in FY2018) which has a potential to increase to Rs. The silver constitutes significantly to its Ebitda (about Rs. For India’s silver imports, 2017 was a strong year, with outward trade almostdoubling fromthe previous year to 183 million ounces (about 5,700tonnes). India has been a silver deficit market for many decades and this has result in emerging of secondary silvermarket.

The Company has increased its production of silver manifold in the last fifteen years from 41 MT in 2002 to 558 MT in FY 2018.Hindustan Zinc, India’s only and the w o r l d ’ s leading integrated zinc, lead and silver producer has apparently written a letter to the Secretary, Ministry of Mines, Government of India, proposing a move to hive off silver portfolio from Hindustan Zinc into a separate entity. India is heavily dependent on silver imports and in future there is an immense scope of tremendous increase in silver consumption in India.In the price-sensitive India market, consumers buy at low prices. China and Japan have seen India as one of the most emerging market for such imports. Even at an EV/Ebitda multiple of 12 times, the current valuation of Hindustan Zinc Silver portfolio alone could be app. The silver import inIndia touches5500 to 7,000 tonnes per annum. Rs. Investors wanting toinvest in precious metals are often different from those wanting to invest in base metals and are willing to pay a premium for companies in the Silver space. The company has its plans set to produce 1000 tonnes of silver in the next 2 years and quite ambitious to produce 1500 tonnes in the next 5-6 years."India is currently 100% importer of solar parts where silver is used. Hindustan Zinc produces 100% of the India’s integrated silver.