Tata Steel, the country’s oldest producer, has signed a Memorandum of Understanding to procure its complete domestic zinc requirements from Hindustan Zinc, India's largest and the world's fifth largest zinc producer.
The move has paves way to bolster the idea of Aatmanirbhar Bharat with one of the largest companies choosing to become ‘vocal for local’.
Under this MoU, Hindustan Zinc will cater to both Tata Steel & Tata Steel BSL (Earlier known as Bhushan Steel Limited, now a subsidiary of Tata Steel).
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“This MoU is a joint step by Tata Steel and Hindustan Zinc towards Atmanirbhar Bharat. 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 and is reflective of our commitment to being value creators for our partners and towards nation-building,” the release quoted Arun Misra, chief executive officer of Hindustan Zinc as saying.
Hindustan Zinc has implemented a vendor management inventory (VMI) solution for Tata Steel.
As the 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 impromptu basis from Hindustan Zinc warehouses with no risk to operation. Besides, Hindustan Zinc will also keep safety stock at all their depots across India for Tata Group Companies.
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