Had to tweak staff engagement policy because of Covid: Hindustan Zinc CEO

After a strong performance in the July-September quarter, Hindustan Zinc is optimistic about rural demand and has launched an e-commerce platform. Chief Executive Officer Arun Misra talks to Aditi Divekar about the firm’s thrust on value-added products. Edited excerpts:
 

What’s the demand scenario like? Do you see any key sector or region having strong demand for lead and zinc products?
 

Demand is picking up across India. We see a strong push in the steel sector and prices are going up. This is helping domestic sales of zinc. In the case of auto, the market is on a reversal path with rural tractor sales seeing strong numbers. We have seen battery manufactures having demand and we have been able to serve them.
 

The strongest demand push we see is in rural areas. The new farm policy will push new business models, which should help more growth in rural machinery, and even demand for two-wheelers.
 

Have you changed recruitment strategy during the pandemic? How are you managing production levels with reduced staff?
 

There is a slight tweak in employee engagement. Those who get infected are being placed in isolation. This leads to an impact on (mines) development numbers. We do not see Covid-19 effect going away before Q1FY22, and are working on having bench strength of operators, who could be utilised when certain sections are out of service. Over and above the current staffing, we are having 10 per cent more ready as part of contingency provision.
 

What will be the impact of contingency staffing on costs?
 

It will not adversely impact the cost structure, as it will lead to much higher productivity and make up for less workforce.

Hindustan Zinc has largely remained in the industrial segment. Any reason for not looking at the value-added segment, which is a premium category?
 

We are looking to have 20-30 per cent of our total product basket under the value-added category. We are largely in the plain industrial category of products. We are looking at those products that could be import substitutions. In India, there is no room for inorganic growth in this category, as there is no technology available in the domestic market. So, we are engaged in building capability, along with business models.
 

Domestic metal firms are going for a strong retail push to increase market share. What is Hindustan Zinc doing in this space?
 

We have transformed our commercial and marketing architecture. We are looking at having a single point of contact for every customer where buying of copper, zinc, aluminium value-added products can happen. We have just started an e-commerce portal, the first such platform in the non-ferrous industry where even one-tonne metal can be bought. Our prices are dynamic and change every five seconds. We are also choosing logistics partners for doorstep delivery in some regions.