Industrial wheel still turning amid second Covid wave: Hindustan Zinc CEO

In a Q&A, Arun Mishra talks about the company's focus lowering cost of production amid the ongoing pandemic and likely impact on demand

Despite the second covid-19 wave striking hard across the country, industrial economic activity continues albeit at a varied pace and is certainly in a much better position now, than same period last year when India went into nationwide lockdown, says Arun Mishra, chief executive officer at Hindustan Zinc. In a telephonic interview with Aditi Divekar, Mishra talks about the company’s focus lowering cost of production amid the ongoing pandemic and likely impact on demand. Edited excerpts

How do you see the impact of second Covid-19 second wave on operations and overall business?

On the plant side there is no impact. We have taken all precaution by reducing foot fall at the plant and redesigning workforce. Most of our administrative offices are shut and people are working from home but we do see an impact in the supply chain and market absorption in terms of demand as auto facilities are lowering production and smaller units are staying shut in this wave.

How is doing business this year different from the last for Hindustan Zinc?

Last year we had no idea how to tackle the situation. This year, the picture is completely different. Despite the second wave hitting us, the industrial economic wheel continues to turn. This is a big change. The speed of the economic activity could differ but work has continued.

What are you primarily focusing on this year when you say demand may be impacted as there are restrictions by several states as protective measures?

This year our approach is to be protective. While we will not let our guards down, we will continue to make effort in keeping our cost of production lower, below $1000 per tonne, maintain zero fatality rate which has been in place for last 22 months and achieve cost cutting measures via mine digitisation and innovation in several areas.

To what extent do you see the demand impacting in coming months?

As of now there is no large scale impact on demand. April normally every year is slower since March is the period when maximum absorption takes place as it is the final month of the fiscal. Saying that, we are just beginning to see the impact on demand as different states have started to place restrictions of different kind. Although transportation is open, impact on migrant community such drivers etc is seen. So far, we do not see a scenario where we would need to focus on exports like we did last year since domestic market shut down. There is definitely not a scenario of production cut or building of inventory but some impact is there and we are watching the situation.