Commodities

Tata Steel, Hindustan Zinc ink pact

Our Bureau Mumbai | Updated on November 09, 2020

This is a first of its kind partnership in the non-ferrous metals industry

Tata Steel has decided to procure zinc required for its plant from the domestic market rather than importing it. The company has signed a Memorandum of Understanding to secure zinc from Anil Agarwal-owned Hindustan Zinc.

As per the tie-up, Hindustan Zinc would supply about 45,000 tonnes of zinc and other value-added metals to Tata Steel. It will cater to both Tata Steel and Tata Steel BSL, a subsidiary of Tata Steel.

Arun Misra, CEO, Hindustan Zinc said while global technical experts deliver curated technical services for productivity and quality improvement, Vendor Managed Inventory will ensure significantly lower inventory costs across Tata Steel units.

This is a first of its kind partnership in the non-ferrous metals industry, he said.

Hindustan Zinc has implemented a vendor management inventory solution for Tata Steel. As a first VMI customer, Tata Steel's inventory and stock will be closely monitored.

Upon sensing a shortage on a real-time basis, the material shall be delivered on an impromptu basis from Hindustan Zinc warehouses with no risk to the operation. Besides, Hindustan Zinc will also keep safety stock at all their depots for Tata Group companies, he added.

Published on November 09, 2020

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