Larsen & Toubro (L&T), the Indian engineering and construction powerhouse, has clinched a major engineering, procurement and construction (EPC) contract from Hindustan Zinc Limited (HZL), a Vedanta Group company. This landmark development, announced on August 1-2, 2025, signals a fresh chapter in India’s metals and mining sector, underscoring L&T’s dominance and deepening its decades-long partnership with HZL.
EPC Win: At a Glance
This big-ticket contract, classified by L&T as “Large,” is valued between ₹2,500 crore and ₹5,000 crore and focuses on the massive expansion of HZL’s Debari Smelter Complex in Rajasthan. The facility will be pivotal in boosting India’s production of high-purity zinc, aligning both companies with the country’s rapidly expanding industrial ambitions.
Key Elements of the Deal
Expansion Focus
L&T will deliver a complete EPC solution for a 250,000 tonnes per annum (KTPA) Leaching, Purification and Cellhouse facility at the Debari Smelter.
The deal also includes a new 125 KTPA Jarosite Circuit, enhancing the site’s operational sustainability and efficiency.
Project Scope
The L&T Minerals & Metals business unit will manage every aspect:
Civil, structural, and equipment design and engineering
Procurement of critical components and technologies
Full-scale site services, right from installation to commissioning
The project covers the creation of systems for calcine storage, leaching, purification, electrowinning (Jumbo Cell House), and associated auxiliaries like utilities, effluent treatment (ETP) with zero liquid discharge (RO-ZLD), plant electrics, instrumentation and automation systems.
Production & Impact
The upgraded smelter will manufacture Special High Grade Zinc Cathodes with 99.995% purity, reinforcing India’s status as a global leader in the zinc market.
This expansion is designed to meet surging demand from sectors such as construction, automotive, and renewable energy.
Strengthening a Legacy Partnership
L&T and Hindustan Zinc share a relationship spanning over three decades. L&T has previously executed multiple projects for HZL, from beneficiation plants to smelter expansions.
This new order reaffirms L&T’s strategic role as a preferred EPC player for HZL, supporting the latter’s vision for capacity growth and operational excellence.
Industrial and Strategic Relevance
L&T’s Minerals & Metals vertical delivers comprehensive EPC solutions across multiple industries, including mining, minerals processing, material handling, and industrial product manufacturing.
Its Product Business Unit, with facilities in Kansbahal (Odisha) and Kancheepuram (Tamil Nadu), supports sectors like mining, cement, steel, fertilisers, and ports with robust and cost-effective product solutions.
The successful execution of this contract will further entrench L&T’s dominance and reliability as a project partner for large-scale industrial infrastructure.
Management Perspective
T. Kumaresan, Senior Vice President & Head – Minerals & Metals, L&T, highlighted that the win demonstrates L&T’s leadership in the minerals and metals sphere and underscores a commitment to customer-centric excellence.
Market Reaction
The announcement brought focus to L&T’s share price movements, reflecting investor confidence in the company’s order book and execution capabilities.
Why This Matters
This contract is a shot in the arm for India’s efforts toward self-reliance in critical industrial metals.
By advancing high-grade zinc production, the project supports national initiatives in infrastructure and green technology.
The deal represents a significant employment boost in engineering, manufacturing, and site management roles, contributing to regional economic activity.
Today’s news reaffirms the enduring strength of L&T and Hindustan Zinc’s collaboration, with far-reaching benefits for India’s industrial value chain and global competitiveness.
Source: L&T Official Announcement, Angel One, JM Financial Services, Machine Maker, Realty N More, The Industry Outlook, MarketSetup, Economic Times, Moneycontrol, Upstox.
