Tata Steel has taken a decisive step towards substitution of imported zinc for usage in its own units. The company has signed a Memorandum of Understanding to procure their complete domestic zinc requirements from Hindustan Zinc - India's largest and world's fifth largest zinc producer. This initiative would bolster the idea of Aatmanirbhar Bharat with one of the largest companies choosing to become vocal for local. The MoU is for the highest quantity to be ever signed by Hindustan Zinc and accounts for a quantity of around 45KT of zinc and other value-added metals. 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).
Commenting on the MoU, Arun Misra, CEO, Hindustan Zinc, said, "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."
Hindustan Zinc has implemented a vendor management inventory (VMI) 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 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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