Monday, March 18, 2013

An Exclusive Interaction with Virat Bahri of B&E

HZL COO Akhilesh Joshi in an Exclusive Interaction with Virat Bahri of B&E

B&E: What is your outlook with respect to the market for Zinc globally, as there are some economies that are still not bak on the growth track?
AJ: In India, domestic demand is going to be high. Internationally, it is not going to be good in some countries but in countries like China, it is expected to remain good. If you look at the availability of the concentrate, it is expected to remain in short supply in the coming years, so it has good potential.

B&E: Your margins were affected in the first half of the current fiscal owing to factors like higher stripping costs and higher coal pries. What challenges do you see to your margins going forward?
AJ: There is no challenge as such – it is our DNA to work for better efficiencies and productivity in order to keep our cost under control. On the price front, we are not expecting any downfall in the prices.

B&E: On the front of Zinc prices, do you feel that the London Metal Exchange (LME) is a robust exchange?
AJ: Yes it is a very robust exchange. If you see, the general marginal cost of production for Zinc is around $1000-1200 per tonne and any LME price above that will always give margin to the producer.

B&E: What is the role of innovation in your business?
AJ: The role of innovation in our business is to reduce costs. The rest is market trends. This is an ongoing  initiative and we are showing improvement every year.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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