A SUMMER INTERNSHIP REPORT ON

ANALYSIS OF PHYSICAL DISTRIBUTION OF HZL IN DOMESTIC MARKET AT

Under the guidance of

Mr Santosh Pullewar
Submitted by Ram Paliwal

For

S. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Contents
ACKNOWLEDGMENT PREFACE CHAPTER-1 CHAPTER-2 CHAPTER-3 CHAPTER-6 CHAPTER- 7 CHAPTER-8 CHAPTER-9 CHAPTER-10 CHAPTER-10 CHAPTER-11 Annexure BIBLIOGRAPHY INTRODUCTION OF STUDY INDUSTRY PROFILE COMPANY AND PRODUCT PROFILE LITRETURE SURVEY OBJECTIVES OF REPORT RESEARCH METHODOLOGY DATA ANALYSIS FINDINGS CONCLUSIONS SUGGESTIONS

Page no.

15

Glossary of technical words

CHAPTER-1

INTRODUCTION

CHAPTER - 2

VEDANTA AN OVERVIEW
They are an LSE-listed diversified FTSE 100 metals and mining company, and Indias largest non- ferrous metals and mining company based on revenues. Their business is principally located in India, one of the fastest growing large economies in the world. In addition, they have additional assets and operations in Zambia and Australia. They are primarily engaged in copper, zinc, aluminium and iron ore businesses, and are also developing a commercial power generation business. They have experienced significant growth in recent years through various expansion projects for their copper, zinc and aluminium businesses and their acquisition of Sesa Goa in April 2007, which enabled us to enter the iron ore business. Revenue from their businesses increased from $3,701.8 million in fiscal 2006 to $7,930.5 million in fiscal 2010, representing a compound annual growth rate of 21%. They believe their experience in operating and expanding their businesses in India will allow us to capitalise on attractive growth opportunities arising from Indias large mineral reserves, relatively low cost of operations and large and inexpensive labour and talent pools. They believe they are also well positioned to take advantage of the significant growth in industrial production and investments in infrastructure in India, China, Southeast Asia and the Middle East, which they expect will continue to create strong demand for metals. Vedanta Resources plc Vedanta Resources plc is a diversified metals and mining company with revenues in excess of US$6 billion. They are proud to be the first Indian manufacturing company to be listed on the London Stock Exchange.

Their experienced workforce of over 30,000 people is distributed among their operating locations in India, Zambia and Australia.

The principal members of their consolidated group of companies are as follows:

COPPER BUSINESS
Sterlite Industries (India) Ltd. Sterlite is headquartered in Mumbai. Sterlite has been a public listed company in India since 1988, and its equity shares are listed and traded on the NSE and the BSE, and are also listed and traded on the NYSE in the form of ADSs. Vedanta owns 53.9% of Sterlite and have management control of the company. Konkola Copper Mines. They own 79.4% of KCMs share capital and have management control of the company. KCMs other shareholder is ZCCM Investment Holdings Plc. The Government of Zambia has a controlling stake in ZCCM Investment Holdings Plc. Copper Mines of Tasmania Pty Ltd. CMT is headquartered in Queenstown, Tasmania. Sterlite owns 100.0% of CMT and has management control of the company.

ZINC BUSINESS
Hindustan Zinc Limited. HZL is headquartered in Udaipur in the State of Rajasthan. HZLs equity shares are listed and traded on the NSE and BSE. Sterlite owns 64.9% of the share capital in HZL and has management control. Sterlite has a call option to acquire the Government of Indias remaining ownership interest.

ALUMINIUM BUSINESS
Bharat Aluminium Company Ltd. BALCO is headquartered at Korba in the State of Chhattisgarh. Sterlite owns 51.0% of the share capital of BALCO and has management control of the company. The Government of India owns the remaining 49.0%. Sterlite exercised an option to acquire the Government of Indias remaining ownership interest in BALCO in March 2004. Vedanta Aluminium Ltd. Vedanta Aluminium is headquartered in Lanjigarh, State of Orissa. Vedanta owns 70.5% of the share capital of Vedanta Aluminium and Sterlite owns the remaining 29.5% share capital of Vedanta Aluminium.

IRON ORE BUSINESS

Sesa Goa Limited. Sesa Goa is headquartered in Panaji, India, and its equity shares are listed and traded on the NSE and BSE. They own 57.1% of Sesa and have management control of the company.

COMMERCIAL POWER GENERATION BUSINESS

Sterlite Energy Limited. Sterlite Energy is headquartered in Mumbai. Sterlite owns 100.0% of Sterlite Energy and has management control of the company. Madras Aluminium Company Ltd. MALCO is headquartered in Mettur, India. MALCOs equity shares are listed and traded on the NSE and BSE. They own 93.9% of MALCOs share capital and have management control of the company

MISSION Their mission is to be a world-class metals and mining group and generate superior financial returns. THEIR VALUES ENTREPRENEURSHIP They foster an entrepreneurial spirit throughout their businesses and value the ability to foresee business opportunities early in the cycle and act on them swiftly. Whether it be developing organic growth projects, making strategic acquisitions or creating entrepreneurs from within, they ensure an entrepreneurial spirit at the heart of their workplace. Their ability to translate an idea into reality within the shortest possible timeframe is critical to their rapid growth and diversification into new areas and commodities. People are their most important asset and from day one they actively encourage them to seek new opportunities and pursue their goals. They have fostered this entrepreneurial spirit amongst the individuals and communities who form a part of their entire value chain. GROWTH They continue to deliver industry-leading growth and generate significant value for their shareholders. Moreover, their organic growth pipeline is unrivalled and they are confident that they will continue to deliver significant growth for shareholders in the future. They have pursued growth across all their businesses and into new areas, always on the basis that value must be delivered. They do not believe that they are the only beneficiary of their growth. They see growth as a means to increase the wealth and prosperity of their society at large. They clearly recognise the benefits that their growth brings to their key stakeholders and the communities in which they operate. Their growth has enabled us to significantly enhance the lives of hundreds of thousands of people in both India and Africa, and has helped to raise their living standards significantly EXCELLENCE Achieving excellence in all that they do is their way of life. They consistently deliver projects ahead of time at industry-leading costs of construction and within budget. They are constantly focused on achieving a top decile cost of production in each of their businesses. To achieve this, they follow a culture of best practice benchmarking. Their tonne-for-tonne exploration philosophy is to replace each tonne of ore mined out with at least one tonne of new resource. Equally important to us is achieving benchmarks in health, safety and environment standards. It is their people who make all this possible. They benchmark their operations and identify opportunities for continuous improvement and projects with high potential. Without

this commitment to excellence, they would not have been able to achieve their growth and expansion they have managed to date.

TRUST The trust that their stakeholders place in us is key to their success. They recognise that they must responsibly deliver on the promises they make to earn that trust. They constantly strive to meet stakeholder expectations of us and deliver ahead of expectations. They always behave in a manner that is consistent and upholds their value system. Trust is also their stakeholders belief that they will always act in a competent manner. They take feedback seriously and act upon it. They continuously work to improve ourselves and enhance their ability to deliver at all times. They actively foster a culture of mutual trust in their interactions with their stakeholders and encourage an open dialogue which ensures mutual respect. They believe that this is part of being a good corporate citizen. SUSTAINABILITY They practice sustainability within the framework of well defined governance structures and policies and with the demonstrated commitment of their management and employees. Their sustainability team comprises over 425 full time resources and over 600 extension workers. They aim not only to minimise damage to the environment from their projects but to make a net positive impact on the environment wherever they work. They fully recognise the importance of including local communities and other key stakeholders in their development strategy to ensure that their impact is positive. Rather than simply providing aid, they aim to create sustainable livelihood opportunities improving the quality of life for society and contributing to the basics of life harmoniously. They believe that the principle of sustainability is a key component of conducting business in a responsible manner and it is a primary aim of Vedanta to operate as a good corporate citizen

EXECUTIVE DIRECTORS:

ANIL AGARWAL
(Executive Chairman) Mr Agarwal, who founded the Group in 1976, is also Chairman of Sterlite and is a Director of BALCO, HZL, and Vedanta Alumina Ltd. Since 1976 the Group has grown under his leadership, vision and strategy. Mr Agarwal has over 30 years experience as an industrialist.

NAVIN AGARWAL
(Deputy Executive Chairman) Navin Agarwal, Deputy Executive Chairman of Vedanta, is responsible for the Groups business strategy as well as overseeing its overall performance and growth. He chairs the Groups Executive Committee. In this role, he directs the planning, execution, and completion of the pipeline of strategic organic growth projects as well as bringing together business heads and financial heads to ensure best practices are shared and implemented. Mr. Agarwal is also responsible for inorganic growth, strategic treasury and fund raising initiatives, and global investor relations as well as augmenting and managing the top talent of the Group. He has 25 years experience in strategic and business management.

MS MEHTA
(Chief Executive) Mr Mehta was previously CEO for Hindustan Zinc Ltd and joined the Group in 2000. Prior to moving as CEO of HZL, he was the Commercial Director (Base Metals) responsible for the marketing of copper, aluminum, zinc and lead, procurement of copper concentrate, export and tolling of zinc concentrate and coal procurement.

Before joining the Group, Mr Mehta was with Lloyds Steel Industries Ltd, where he handled wide ranging portfolios; marketing, procurement, working capital finance and projects. Mr Mehta has a Mechanical Engineering degree from MBM Engineering College and an MBA from the Indian Institute of Management, Ahmedabad.

NON EXECUTIVE DIRECTORS:

NARESH CHANDRA
Mr Chandra joined the Board in May 2004. Mr Chandra was Home Secretary in India in 1990, Cabinet Secretary from 1990 to 1992, Senior Adviser to the Prime Minister of India from 1992 to 1995 and the Indian Ambassador to United States of America from 1996 to 2001. He was Chairman of the Indian Government Committee on Corporate Governance & Audit from 2002 to 2003 and was Chairman of the Committee on Civil Aviation Policy in 2004 2005. He was awarded the prestigious award of Padma Vibhushan by the Honourable President of India this year. Mr Chandra has a Masters degree in Mathematics from Allahabad University.

AMAN MEHTA
Mr Mehta, a senior banker, joined the Board in November 2004 following his retirement from HSBC where he had a career spanning 36 years. He held numerous positions, including Chairman and Chief Executive Officer of HSBC USA Inc (the New York based arm of HSBC Holdings plc), and as Deputy Chairman of HSBC Bank Middle East, based in Dubai with responsibility for the HSBC Groups operations in the Middle East. In 1999, Mr Mehta was appointed Chief Executive Officer of the Hong Kong and Shanghai Banking Corporation, a position he held until his retirement. Mr Mehta has a degree in Economics from Delhi University. He now resides in Delhi and is a member of a number of Corporate and Institutional Boards in India as well as overseas.

EUAN MACDONALD
Mr Macdonald spent over 20 years with SG Warburg, specialising in emerging market finance. From 1995 to 1999, Mr Macdonald was Chairman of SBC Warburg India, responsible for all the banks activities in India, and from 1999 to 2001, he was Executive Vice Chairman of HSBC Securities and Capital Markets, India. Mr Macdonald has a degree in Economics from Cambridge University and a Masters degree in Finance and International Business from Columbia Business School.

WHAT VEDANTA DO
Vedanta Resources is a London-based FTSE 100 metals and mining group, diversified in operations and inclusive in scope. They currently operate in India, Zambia and Australia, with extensive interests in aluminium, copper, zinc and lead. They employ over 30,000 people in their various locations. In December 2003, they proudly became the first Indian company to be listed on the London Stock Exchange. Their vision is clear and committed: achieving and sustaining a global leadership position in non- ferrous metals. Their mission is to become a million-ton per annum producer at the lowest decile costs in aluminium, copper and zinc. In so doing, they will put India on the global metals and mining map. They have undertaken several greenfield and brownfield expansion projects in a number of locations in order to achieve this goal. The capital expansions completed in the first phase involved fairly complex project technologies, and an investment of $2.2 billion. They completed these expansions in record time, at costs significantly lower than international benchmarks, and now, the next phase of the expansion pipeline is currently underway. India is a fast-emerging and attractive resource destination, and they believe their strategy and business objectives will harness India's high-quality wealth of mineral resources at low costs of development, positioning it as a leader on the global metals and mining map.' Chairman, Anil Agarwal For thirty years, they have continually demonstrated their ability to deliver major value-creating projects, offering unparalleled growth at lowest costs and generating superior financial returns for their shareholders. At the same time, they continue to ensure that their expansion projects meet high conservative financial norms and do not place an unwarranted burden on their balance sheet and financial resources. They develop and manage a diverse portfolio of mining and metals businesses to provide

attractive returns to their shareholders, whilst always carrying out their activities in a socially and environmentally responsible manner, creating value for the communities where they operate. As one of the largest metals and mining groups in India, they remain continually committed to managing their business in a socially responsible manner. The management of environment, employees, health and safety and community issues, in respect of their operations is central to the success of their business. The majority of their operations are certified to the International Management Systems Standard ISO 14001. They have also won numerous awards for safety and environment: they won the 2005 Recognition of Commitment Award from the Institute of Internal Auditors, USA, for their demonstrated strengths and continued focus on achieving operational efficiencies and process improvements. Vedanta is the only manufacturing company out of a total of four Indian companies to have ever received this award; the other recipients from India are in the technology and banking sectors COPPER Their copper business is comprised of operations in India, Zambia and Australia. Their Indian copper business is principally one of custom smelting and is operated by Sterlite, while their Zambian copper business is owned and operated by KCM. They own 59.9% of the share capital of Sterlite and 79.4% of the share capital of KCM. Sterlite was Indias largest metals and mining company based on net sales in fiscal 2008. In addition, they own the Mt. Lyell copper mine in Tasmania, Australia, which provides a small percentage of Sterlites copper concentrate requirements. Their Zambian operations are comprised of four mines, one at Konkola, two at Nchanga and one at Nampundwe, a tailings leach plant at Nchanga and a smelter at Nkana. Their copper cathode production increased from 437,000 tonnes in fiscal 2006 to 507,000 tonnes in fiscal 2010, representing a CAGR of 4%. The production increases, together with higher copper market prices, drove revenue of their copper business from $2,241.3 million in fiscal 2006 to $3,812.2 million in fiscal 2010, representing a CAGR of 14.2%. The mid shaft loading station at Konkola Deep Mine Project was commissioned in March 2010 as scheduled. This resulted in an increase in the hoisting capacity of the mine, which has allowed the mining of ore to commence while simultaneously allowing the continued development of the shaft to an ultimate depth of 1,500 metres. Construction work on the bottom shaft sinking us progerssing well for completion by end 2011.

ZINC Their fully integrated zinc business is owned and operated by HZL, Indias leading zinc producer with a 79.7% market share by volume of the Indian zinc market in fiscal 2008, according to the Indian Lead Zinc Development Association. HZL was the worlds fifth largest zinc mining company in 2007 based on mine production and is also one of the top ten lead mining companies by production volume worldwide, according to Brook Hunt. Sterlite owns 64.9% of the share capital of HZL. HZLs operations include three lead-zinc mines, three hydrometallurgical zinc smelters, one lead smelter and one lead-zinc smelter in Northwest India and one hydrometallurgical zinc smelter in Southeast India. HZLs zinc production increased from 284,000 tonnes in fiscal 2006 to 578,000 tonnes in fiscal 2010, representing a CAGR of 19.4%. The production increases, together with higher zinc market prices, drove revenue of their zinc business from $875.5 million in fiscal 2006 to $1,651.7 million in fiscal 2010, representing a CAGR of 17.2%. HZL achieved the 1 mtpa zinc lead capacity through recent commissioning of the 210,000 tonnes zinc smelter in Rajpura Dariba. The 100,000 tonnes lead smelter and the associated 160 MW capitve power plant is progressing well and on schedule for completion by Q2FY2011. HZL expects to increase its silver production from the current levels of approximately 100-120 tonnes per year to a level of approximately 500 tonnes per year in the form of silver and silver bearing residue. A large part of this increase would be from the Sindesar Khurd mine where silver occurrences are approximately at levels of 200 ppm and from the use of appropriate technology in the new smelters. The ongoing explorationn activities at HZL has yielded significant success with an increase of 33.7 mt gross reserves and resources, prior to depletion of 7.1 mtpa in FY2010. Total Reserves and Resources as at 31 March 2010 stand at 298.6 mt containing 34.1 mt of zinc lead metal and 832.7 moz of silver.

ALUMINIUM
Their aluminium business is primarily owned and operated by BALCO. Sterlite owns 51.0% of the share capital of BALCO. Vedanta Aluminium also contribute to their aluminium business. They own 94.5% of the share capital of MALCO and 70.5% of the share capital of Vedanta Aluminium, with Sterlite owning the remaining 29.5% of Vedanta Aluminium. BALCO received a coal block allocation of 211.0 million tonnes for use in its captive power plants.

In addition, they are expanding their aluminium business through Vedanta Aluminium. In March 2007, Vedanta Aluminium began the progressive commissioning of a 1.4 mtpa greenfield alumina refinery project and an associated 90 MW captive power plant, at Lanjigarh in the State of Orissa. Vedanta Aluminium is also building a greenfield 500,000 tpa aluminium smelter, together with an associated 1,215 MW captive power plant, in Jharsuguda in the State of Orissa, in two phases of 250,000 tpa each. Commissioning of the first phase commenced in May 2008, and they expect the second phase to begin commissioning in 2010. They also recently announced a $7.8 billion investment programme to increase their fully integrated aluminium smelting capacity to nearly 2.6 mtpa by 2012. Upon completion, this is expected make us Asias largest and among the top 5 integrated producers of aluminium worldwide. India is positioned to become one of the worlds largest producers of aluminium, with the 4th largest reserves of bauxite globally of c2.3 billion tonnes and the 4th largest reserves of coal worldwide of over 250 billion tonnes. Of these reserves, over 1.4 billion tonnes of bauxite and 62 billion tonnes of coal reserves are co-located in the State of Orissa alone. Vedantas existing presence in the region, together with its excellent track record of executing projects ahead of time and at low capital costs, make it ideally placed to lead the development of these abundant bauxite and coal reserves. India also has the benefit of a fast growing domestic market with close proximity to the high growth markets of Asia and the Middle East. Demand for aluminium globally is projected to grow strongly at a compound rate of 5.7% between 2007 and 2020, with India and China projected to grow at 8.2% and 9.7%, respectively in the same period. The next phase of brownfield growth projects comprises a 1,250 kt aluminium smelter project in Jharsuguda, Orissa (the Jharsuguda II Project), as well as a 325 kt aluminium smelter project together with an associated 1,200 MW captive thermal power plant in Korba, Chattisgarh (the Korba III Project). Correspondingly, they will also increase their alumina production capacity at Lanjigarh from 1.4 mtpa to 5 mtpa. The Jharsuguda II Project will comprise four pot lines, each containing 336 cells. The first production is scheduled for Q2FY2011 and it will be fully commissioned in Q2 FY2013. The Korba III Project will comprise one single pot line containing 336 cells and is expected to produce first metal by October 2010. It will be fully commissioned by September 2011. The associated captive thermal power plant will comprise four units of 300 MW each. The commissioning of the power plant units is being scheduled to meet the power requirement of the new Korba smelter. The increase in alumina production capacity will be achieved by debottlenecking the capacity of the existing 1.4mtpa alumina refinery by an additional 0.6 mtpa by Q3FY2011 and building three new production streams of 1 mtpa each. The first production is scheduled for Q4FY2011 and and it will be fully commissioned by Q3FY2012. The estimated investment in the aluminium smelter projects is $2.9 billion for the Jharsuguda II Project and $1.8 billion for the Korba III Project. The total additional investment in Lanjigarh is estimated at $1.7 billion. This investment includes the cost of building the aluminium smelters and the

alumina refinery, and all necessary infrastructure including railway networks and water pipelines. The investment will be funded through a combination of existing cash, internal cash accruals and external financing.

IRON ORE
Their iron ore business is owned and operated by Sesa Goa, Indias largest producer-exporter of iron ore in the private sector by volume in fiscal 2007, according to the Federation of Indian Mineral Industries. In April 2007, they acquired a 51% ownership in Sesa Goa, which owns 88.3% of the share capital of SIL. Sesa Goa is engaged in the exploration, mining and processing of iron ore. Sesa Goa owns or has the rights to proved and probable reserves which consist of an estimated 352.7 million tonnes of iron ore. In fiscal 2010, Sesa Goa produced approximately 21.4 million tonnes of iron ore fines and lumps. Sesa Goas mining operations are carried out in the Indian States of Goa, Karnataka and Orissa. In addition, Sesa Goa manufactures pig iron and metallurgical coke. During FY2010, revenue from their iron ore business was $1,221.7 million.

POWER GENERATION
Their Commercial Power generation business comprises of the sale of power from 100MW plant at MALCO, 270 MW plant at BALCO - I and 123 MW wind power plant at HZL, and the surplus power sales from various captive power plants. They are setting up a 2,400 MW (600 MW*4) coal based commercial power plant at Jharsuguda, Orissa. The first unit of 600 MW is expected to be commissioned by Q1FY2011 with the remianing three units to be progressively commissioned by end FY2011. They are also setting up an 1,980 MW super critical IPP project in Talwandi Sabo in Punjab. The project is expected to be progressively completed by Q2FY2014.

They currently operate in India, Zambia and Australia through their various subsidiaries.
AUSTRALIA CMT is an integrated producer of copper which currently produces 30,000 tpa of copper concentrate. This is supplied entirely to Sterlites copper smelter operations in India. ZAMBIA KCM is the largest mining and metals company in Zambia, with annual capacity of 200,000 tpa of copper. INDIA STERELITE is a leading producer of copper in India. It pioneered the manufacturing of continuous cast copper rods in India, and established India's largest copper smelting and refining plant for production of world class refined copper.

MALCO has a power plant with a generation capacity of 100 MW. BALCO has a capacity of 245,000 tpa aluminium, 510 MW captive power plant. BALCO also has a 270 MW power plant which currently sells power in the commercial market. VAL comprises Lanjigarh alumina refinery with an initial installed capacity of 1.4 million tpa and associated captive power plant. It also includes the 500,000 tpa aluminum smelter, together with an associated thermal coal-based 1,215 MW captive power plant in Jharsuguda. Vedanta acquired 51% stake in Sesa Goa. A well-established company with over fifty years of operations, Sesa is India's largest private sector iron ore producer-exporter. Sesa currently produces over 21 million tonnes of iron ore, of which over 90% is exported to leading global steel companies in China, Europe and Japan.

CHAPTER- 3

HZL OVERVIEW :
HZL is India's largest and world's second largest integrated producer of zinc & lead, with a global market share of approximately 6.0% in zinc. They are one of the lowest cost producers in the world and are well placed to serve the growing demand of Asian countries. Hindustan Zinc is a subsidiary of the NYSE listed - Sterlite Industries (India) Limited (NYSE: SLT) and London listed FTSE 100 diversified metals and mining major - Vedanta Resources plc. Their core business comprises of mining and smelting of zinc and lead along with captive power generation. They have four mines and three smelting operations: mines are situated at Rampura Agucha (largest zinc producing mine in the world), Sindesar Khurd, Rajpura Dariba and Zawar in the State of Rajasthan; while the smelters are located at Chanderiya and Debari in the State of Rajasthan and Vizag in the State of Andhra Pradesh. In March 2010, we have successfully commissioned our 210 ktpa Hydro Zinc Smelter at Dariba Smelting Complex in the state of Rajasthan. Their current metal production capacity is 964,000 tonnes per annum (879,000 tonnes of zinc and 85,000 tonnes of lead). The ore production capacity stands at 8.40 million tonnes per annum. They also own 314 MW of coal based thermal captive power plants in Rajasthan to support our metallurgical operations. As a green energy initiative, we also have 123.2 MW of wind energy in Gujarat and Karnataka, which is sold to the respective State grids

Vision :
To be a world-class zinc company, creating value, leveraging mineral resources and related core competencies

Mission:
Be a lowest cost zinc producer on a global scale, maintaining market leadership One million tonne zinc-lead metal capacity by 2010 Be innovative, customer oriented and eco-friendly, maximizing stake-holder value

Our BoardBoard of Directors Profiles

Mr. Agnivesh Agarwal - Chairman Mr. Akhilesh Joshi - COO & Whole-time Director Ms. Ajita Bajpai Pande - Director Mr. Sanjiv Kumar Mittal - Director

Mr. Navin Agarwal - Director Mr. Mahendra Singh Mehta - Whole-time Director Mr. A. R. Narayanaswamy - Director

HISTORY
Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India on 10 January 1966 as a Public Sector Undertaking. In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for acquisition of shares of the company; consequent to the disinvestment of Government of India's (GOI) stake of 26% including management control to SOVL and acquired additional 20% of shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL acquired additional shares to the extent of 18.92% of the paid up capital from GOI in exercise of "call option" clause in the share holder's agreement between GOI and SOVL. With the above additional acquisition, SOVL's stake in the company has gone up to 64.92%. Thus GOI's stake in the company now stands at 29.54%.

AN OVERVIEW- OUR MAJOR AREAS MINES:

1. Rampura Agucha Mine is the world's largest zinc mine with an annual ore production capacity of 6.0 million tonnes. In FY 2009, Rampura Agucha produced 591,743 tonnes of contained zinc and 56,946 tonnes of contained lead. The successful commissioning of 1 mtpa concentrator in March 2010, has enhanced its ore production capacity from 5.0 million tonnes per annum to 6.0 million tonnes per annum. Rampura Agucha is also one of the lowest cost zinc producer globally.

2.

Sindesar Khurd Mine is the second largest ore body in the portfolio of Hindustan Zinc mines with reserves and resources base of over 56 million tonnes after Rampura Agucha. Sindesar Khurd has annual ore production capacity of 0.30 million tonnes and achieved a production level of 11,870 tonnes of contained zinc and 5,350 tonnes of contained lead in FY 2009. We plan to increase the current ore production capacity of Sindesar Khurd from 0.30 mtpa to 1.50 mtpa.

3.

Rajpura Dariba Mine has annual ore production capacity of 0.90 million tonnes and achieved a production level of 19,700 tonnes of contained zinc and 4,930 tonnes of contained lead in FY 2009. Bulk concentrate production at Rajpura Dariba has resulted in significant recovery improvements in Zinc, Lead and Silver

4. Zawar Mines have annual ore production capacity of 1.20 million tonnes and achieved a production level of 28,190 tonnes of contained zinc and 16,580 tonnes of contained lead in FY 2009. Bulk concentrate production at Zawar Mines has resulted in significant recovery improvements in Zinc, Lead and Silver.

SMELTERS
1. Chanderiya Smelting Complex (CSC) is the single largest zinc smelting complex in the world. Its current metal production capacity is 610,000 tonnes per annum (525,000 tonnes per annum of zinc and 85,000 tonnes per annum of lead). The main products are special high grade (SHG) zinc, continuous galvanizing grade (CGG) Zinc, prime western (PW) zinc and pure lead. It also produces a number of valuable by-products including silver and cadmium. Our Chanderiya facility utilizes a combination of best proven technology and innovation to continuously improve environmental and operational performance. This approach has enabled us to be one of the largest and most efficient zinc and lead smelting complexes in the world. 2. Zinc Smelter Debari is a Hydrometallurgucal zinc smelter situated at Debari, about 13 kms from Udaipur, in Rajasthan, India. The primary product of Debari is High Grade (HG) zinc and it also recovers cadmium as by-product. Zinc Smelter Debari was commissioned in the year 1968 with an initial production capacity of 18,000 tonnes per annum of zinc. In the past several years the capacity of the smelter has been expanded five folds to its current production capacity of 88,000 tonnes per annum of zinc. Zinc Smelter Debari employs state-of-the- art Roast Leach Electro-winning Technology at its Hydro metallurgical zinc smelter. The plant has three roasting facilities, one leaching and purification section, one electrolysis and one melting and casting sections. It produces extra calcine an intermediate product which is supplied to the rest of the Hydro metallurgical zinc smelters. Zinc Smelter Debari also has 14.5 MW captive power plants (diesel generation units) to supply the power requirements for its metallurgical operations; it also sources additional power requirements from our captive thermal power plants located at Chanderiya and at Zawar. It also has 7.3 MW of power generation capacity from Waste Heat Recovery.

`
The management system of Zinc Smelter Debari comprises of: the Quality System ISO 9001:2008, the Environmental System ISO 14001:2004, Occupational Health Safety and Assessment Series OHSAS 18001:2007, Social Accountability SA 8000 2008; and is also a 5S Certified unit.

Roast Leach Electro-winning (RLE) process description The hydrometallurgical smelting process is a roast, leach and electro-winning(RLE) process. In this process zinc concentrate is first oxidized in the roaster and the gases generated are cleaned and sent to the sulphuric acid plant. The primary output from the roaster, called calcine, is sent to the leaching plant to produce a zinc sulphate solution that is then passed through a cold/hot purification process to produce purified zinc sulphate solution. The purified zinc solution then goes through an electrolysis process to produce zinc cathodes. Finally, the zinc cathodes are melted and cast into zinc ingots. 3. Zinc Smelter Vizag is a hydrometallurgucal zinc smelter situated at Vizag, in the State of Andhra Pradesh, India. The primary product of Vizag is High Grade (HG) zinc and it also

recovers cadmium as by-product. Zinc Smelter Vizag was commissioned in the year 1978 with an initial production capacity of 30,000 tonnes per annum of zinc. In the year 2003 the capacity of the plant had been expanded to 56,000 tonnes per annum of zinc through de-bottlenecking. Zinc Smelter Vizag employs state-of-the-art Roast Leach Electro-winning Technology at its Hydro metallurgical zinc smelter. The management system of Zinc Smelter Vizag comprises of international standards: the Quality System ISO 9001:2008, the Environmental System ISO 14001:2004, Occupational Health Safety and Assessment Series OHSAS 18001:2007 and Social Accountability SA 8000:2008.

Roast Leach Electro-winning (RLE) process description The hydrometallurgical smelting process is a roast, leach and electro-winning (RLE) process. In this process zinc concentrate is first oxidized in the roaster and the gases generated are cleaned and sent to the sulphuric acid plant. The primary output from the roaster, called calcine, is sent to the leaching plant to produce a zinc sulphate solution that is then passed through a cold/hot purification process to produce purified zinc sulphate solution. The purified zinc solution then goes through an electrolysis process to produce zinc cathodes. Finally, the zinc cathodes are melted and cast into zinc ingots

POWER
In line with our vision to be cost effective and fully integrated, we have captive power plants at Chanderiya and Zawar with a total installed capacity of 314 MW. In addition we also generate power from our Diesel Generation (DG) units and Waste Heat Recovery Plants (WHRP) installed at Chanderiya, Debari and Zawar having a total installed capacity of 35 MW (DG Units) and 16.7 MW (WHRP). With respect to our green energy initiative projects, we have successfully commissioned 123.2 MW wind power plants in the States of Gujarat and Karnataka. Captive Power Plants Operations and maintenance of our power plants have been outsourced to the world's renowned power plant maintenance and operations companies. As a part of our power cost reduction measures, we have taken various initiatives to decrease the cost of coal, the main cost driver. We have been successful in obtaining coal via coal linkages, coal blocks, optimizing the blend of Indian and imported coal, keeping the auxiliary consumption at a minimum and operating the power plants at a high plant load

factor (PLF). Any surplus power generated is sold to the State grid and power exchanges. Key statistics for FY 2009: During FY2009, total power generated was 1,986 million units (MU), an increase of over 50% as compared to FY2008. During the year, we received an approval for 35,000 tonnes per month of coal through the linkages. We also have a coal block of 31.5 million tonnes which is a joint venture with five other parties. The work on the coal block is progressing per schedule. Our persistent efforts in operating the plants in most efficient way have been recognized by way of various awards including, Asian Power Plant of the year Award, Best Emission reductions project in Asia, National Competition for Excellence in Water Management by the Confederation of Indian Industry (CII) and Innovative Case Study and Water Efficient Unit. Wind Power Plants We have successfully commissioned 123.2 MW wind power plants in the States of Gujarat and Karnataka. The power generated is sold to the respective state grids. Our wind energy mills have state-of-the-art gearless synchronous wind turbine generator technology which helps in higher power generation. During the year, we produced 230.5 million units (MU) of wind power, an increase of 122% as compared to FY2008. Our wind energy project in Gujarat has achieved the highest per Wind Turbine Generator (WTG) power generation amongst its peer group in Gujarat.* Our Wind energy projects at Gujarat and Karnataka are registered under the United Nations Framework Convention on Climate Change (UNFCCC's) Kyoto protocol for Clean Development Mechanism (CDM). Source: Gujarat Energy Development Authority (GEDA)

RESEARCH CENTER
Central Research & Development Laboratory (CRDL) was established in the year 1977 and is functioning since then for the continuous improvements in operating practices and technologies, in order to meet the demands of highly competitive business environment. Our dedicated team at CRDL aims to establish the Company's image as a leading technology-driven company through in-house development of path breaking technologies and by working closely with technology leaders, universities, and research institutions in India and overseas. The Research & Development area involves key value drivers to the business mainly pertaining to improvement in product quality and production processes to enhance metal recovery, reduce specific consumptions, waste management and metal recovery from by-products or intermediates. Six-sigma practices are being used for faster high quality outcomes in the research projects. CRDL is recognized from Department of Scientific and Industrial Research (DSIR) and listed in on- line directory of testing laboratories of American Society for Testing and Materials (ASTM). The management system of CRDL comprises of three international standards: the Quality System ISO 9001:2008, the Environmental System ISO 14001:2004, Occupational Health Safety and Assessment Series OHSAS 18001:2007. It is also a 5 - S workplace management certified unit.

MINERAL PROCESSING :Batch Testing Facilities & Continuous Testing Facility Crushing, Grinding, Sizing, Gravity Separation, Froth-Flotation Portable continuous stage-flotation testing (Mini Flotation) unit along with slurry pumping and reagent dosing systems Mineral Processing Pilot Plant Continuous basis, 2 TPD capacity, Stage-Crushing & Wet Grinding, Froth Flotation, Wet / dry grinding ball mill 4 MT /day

EXTRACTIVE METALLURGY :Pyrometallurgy & Hydrometallurgy Furnaces: Pit furnace, High temperature furnace . Lab scale leaching and downstream facilities, Pilot scale leaching plant (200 L & 1.5 m3 capacity) Bioleaching : Laminar flow work-station, Autoclave, Incubators (Stationary and shaking), Cooling centrifuge (Normal and high speed cooling), Bioleaching Reactors, Bioleaching columns for bench scale testing. MATERIAL CHARACTERIZATION/ ANALYTICAL :Petromineralogy facilities with Image Analyzer software, X-Ray Diffraction, X-Ray Fluorescence, Atomic Absorption Spectrophotometer (with GTF and vapor generation unit), UV-vis Spectrophotometer, Mercury Analyzer, Karl Fischer Apparatus for Moisture determination, Wet Chemical Analysis. Recovery improvement through production of bulk concentrate in place of separate Lead and Zinc concentrates. The in-house process to produce bulk concentrate was developed at laboratory scale with an objective to improve metal recoveries at mines. The project was scaled up and implemented at mines seamlessly without any shutdown. Significant improvement in recoveries of Pb, Zn and Ag is obtained at Zawar & RD Mines. About 3 Cr/annum & 10 Cr/annum revenue generation is achieved at Zawar & RD Mines respectively. Modeling and simulation of grinding circuits for better parameter controls, reduction in milling power and increment in plant throughput. This was implemented at Dariba and Zawar Mines. Recovery of low grade Pb-Ag concentrate in Hydro-I, CLZS. A process to recover Pb & Ag values (being lost in Jarosite) was validated and commissioned. About 75-90 MT of residue is being produced daily. This has also resulted in reduction of Jarosite volume generation with direct impact on reduction in solid waste generation. Flowsheet to recover Cadmium metal from the Cu-Cd cake A common plant for Hydro, CLZS and Dariba Zinc smelter is to be installed for production of cadmium metal of about 1600 MT/ annum. Feasibility studies for the project are being carried out. Use of Cupric chloride in RAM as a replacement for copper sulphate in zinc flotation in RAM leading to saving in 50% of reagent cost and with increase in zinc

recovery by 0.5-1.0%. This was tried for the first time in the world in any beneficiation plant with expected revenue of INR 15 Cr/annum. The initial Plant trials over a period of 21 days with respect to consumption and recovery were successful and the lab results were validated . Quality improvement of RD concentrate by graphite elimination using pre-graphite flotation before bulk flotation circuit. This will increase internal consumption of RD concentrate. This will also lead to increased metal recovery (Pb, Zn, and Ag) by enhanced process performance with increased revenue generation of INR 40 Cr/annum. Silica in RAM zinc concentrate is in the upward trend. This affects leaching operation. Optimization of process parameters in neutral leaching circuit was done and necessary modifications have been incorporated in CLZS. Same with additional improvements are suggested for VZS and project is in progress Maximize bleed of Mg and Mn from hydro smelters by efficient operation of removal section. It is important to bleed these heavy impurities which have an adverse impact on current efficiency in cellhouse. Optimization of parameters was done to maximize bleed of these impurities from the system. Study of size distribution of RA Zn concentrate, which is getting finer causing increased flyover losses and variation in furnace bed temperature in Roasters. It is important to blend RA zinc concentrates processed from different ores to optimize the fines reduction. Studies for the same are being done leading to performance improvement of Roasters. Kinetic studies were performed and model was simulated to iron levels in Jarosite overflow for different operating temperatures. This was implemented in Hydro - I, CLZS to bring down the iron levels in Jarosite overflow within permissible limits. This has mitigated the requirement of additional retention time for Jarosite precipitation thus avoiding further CAPEX involvement. Development of a fast and reliable purity analysis method for the Nigrosine reagent Critical and extensively used reagent for eliminating graphitic carbon contamination in the lead and zinc concentrates; has facilitated in avoiding cumbersome and time-consuming testing procedures

RESERVES and RESOURCES

Our exploration efforts have resulted in gross addition of 158.3 million tonnes of reserves and resources, before depletion of 30 million tonnes, in the period from April 2003 to March 2009. In FY2009, our ongoing exploration activities have yielded significant success with an increase of 46.3 million tonnes to its reserves and resources, prior to a depletion of 6.7 million tonnes. Contained zinc-lead metal has increased by 4.7 million tonnes, prior to a depletion of 0.7 million tonnes in FY 2009. Total reserves and resources as at 31 March 2009 were 272 million tonnes, containing 31.5 million tonnes of zinc-lead metal. The reserves and resources position has been independently reviewed and certified as per Australian Joint Ore Reserves Committee (JORC) standard. The success of our exploration efforts has primarily been at Rampura Agucha and Sindesar Khurd mines, signified by reserve and resource base of 118.7 million tonnes containing 19.1 million tonnes of zinc-lead metal at Rampura Agucha; and 56.6 million tonnes containing 4.8 million tonnes of zinc- lead metal at Sindesar Khurd respectively.

PRODUCTS
We are India's largest and the world's second largest integrated zinc-lead producer; and also one of the lowest cost zinc-lead producers in the world. We have mining, smelting and power operations in multiple locations throughout India. Our principal products are refined zinc metal and refined lead metal. In addition we also recover silver and cadmium as by products. Zinc and lead metal produced at our world class Chanderiya Smelting complex are registered brands on the London Metal Exchange (LME). The LME brands are recognized worldwide as one of the most demanding standards, signifying highest product quality, uniform physical characteristics and consistency of ingots. This reemphasizes our capability and commitment to meet the world class standards. We also have Quality Management Systems in place for all our products which complies with the requirements of ISO 9001:2008 standards. Our principle products are zinc and lead

ZINC:
We produce refined zinc metal which is used in a number of applications including glavanising, oxides, die castings and alloys. We produce zinc in a variety of grades

Special High Grade (SHG) High Grade (HG) Prime Western (PW)

Our Special High Grade zinc products are LME registered products under the brand names HZL SHG 99.995

Vedanta SHG 99.995

Special high grade and high grade zinc are available in standard ingots of 25 kgs and Jumbo ingots of 1,000 kgs each.. Prime Western is also available in the standard ingots form of 25 kgs.

APPLICATIONS OF ZINC:
Over 11 million tonnes of zinc is produced annually worldwide. Around 48% of the amount is used for galvanizing to protect steel from corrosion. Approximately 17% is used the production of zinc base alloys like die castings etc. Nearly 10% of the zinc is also utilized for compounds such as zinc oxide and zinc sulfate and about 11% is used in the alloys especially brass.

GALVANIZING
Zinc is one of the best forms of protection against corrosion and is used extensively in building, construction, infrastructure, household appliances, automobiles, steel furniture, and more. Galvanising accounts for around 48% of global zinc usage.

ZINC OXIDE
The most widely used zinc compound, zinc oxide is used in the vulcanisation of rubber, as well as in ceramics, paints, animal feed, pharmaceuticals, and several other products and processes. A special grade of zinc oxide has long been used in photocopiers. 10% of global zinc usage is in this segment.

DIE CASTING
Zinc is an ideal material for die casting and is extensively used in hardware, electrical equipments, automotive and electronic components. 17% of zinc used in the word is through Die Castings. ALLOY Zinc is extensively used in making alloys, especially brass, which is an alloy of copper and zinc. Alloy accounts for around 11% of global zinc usage.

ROLLED ZINC
Zinc sheets are used extensively in the building industry for roofing, flashing and weathering applications. These are also used in graphic art to make plates and blocks, as well as battery callouts and coinage.

LEAD
We produce refined lead at our Chanderiya Smelting Complex, which is LME registered under the brand name of "Vedanta 99.99 Lead metal is used in a number of applications including battery segment, lead-based pigments, and cathode ray tubes. Our refined lead metal is available in standard 24 kgs ingots. APPLICATIONS OF LEAD: The battery sector is the single largest consumer of lead, accounting for around threequarters of the demand. It can be sub-divided into the following groups: SLI (Starting-Lighting-Ignition) batteries, which currently accounts for around half of the total lead demand. These are mainly used in cars and light vehicles, but are also found in other applications such as golf carts and boats. SLI battery demand in turn can be split into original equipment and replacement, with replacement demand outstripping original equipment demand by about 4:1 in mature markets. Industrial batteries, which currently consumes around a quarter of the total lead produced. This sector can be split roughly 50:50 into stationary and traction batteries. Stationary batteries are principally used in back up power supply systems; traction batteries are used for motive power in equipment such as forklift trucks and motorised wheelchairs. The remainder is used in non-battery applications. The second largest current end use of lead for non- batteryapplications, accounting for around 8% of lead consumption, is the chemical industry, in the form of lead-based pigments and other compounds. Principal markets are for cathode ray tubes used in television screens and computer monitors, and for Poly Vinyl Chloride

(PVC) stabilisers SILVER We are India's largest and one of the world's leading primary silver producer. We produce refined silver at Chanderiya Smelting Complex; it is recovered as a byproduct of lead metal. We produce high quality silver bullion having a minimum purity of 98.5% to 99.5% of silver; it is casted in the form of bricks weighing 30 kgs. APPLICATIONS OF SILVER: Silver is used in a number of varied applications like the most important uses of silver being the industrial and decorative uses, photography, and jewelry & silverware; together, these three categories represent more than 95 percent of annual silver consumption. Silver's unique properties restrict its substitution in most applications. Industrial applications: brazing alloys, electrical contacts, high capacity silver-zinc or silver-cadmium batteries, printed circuits and other electronic applications. Other applications: Silverware, jewellery, Silver plating, photography, Dental alloys and more.

CADMIUM

We are India's largest cadmium producer. We recover cadmium from our zinc smelting process as cadmium is mainly found in association with zinc ores. We produce high quality cadmium pencils having a minimum purity of 99.95% to 99.99% of cadmium; it is casted in the form of pencils weighing from 250 gms to 500 gms. APPLICATIONS OF CADMIUM: The single most important use of cadmium is in the production of nickel-cadmium ("Ni-Cad") batteries. About three quarters of the cadmium consumed annually is used to make batteries. Cadmium is also useful in a number of other applications as paint pigments, low-temperature melting alloys, etc.

PLANNED PROJECTS:
In order to accomplish the mission of producing one million tonnes of metal by 2010, we have announced new projects (Phase III), post completion of which, we will become the largest integrated Zinc-Lead producer in the world having Zinc & Lead metal production capacity of 1064,000 tonnes per annum.

210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Rajpura Dariba 100,000 tonnes per annum Lead Smelter at Rajpura Dariba Rampura Agucha Mine expansion from 5.00 million tonnes per annum to 6.00 million tonnes per annum Sindesar Khurd Mine expansion from 0.30 million tonnes per annum to 1.50 million tonnes per annum Opening of a new mine at Kayar with an initial capacity of 0.30 million tonnes per annum. 2 x 80 MW Coal based Captive Power Plant at Rajpura Dariba Increase in silver production capacity from 150 tonnes per annum to 500 tonnes per annum. Of the above projects, we have successfully commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Rajpura Dariba and the 1.00 million tonnes per annum concentrator in Rampura Agucha, in March 2010. Our current metal production capacity is 964,000 tonnes per annum (879,000 tonnes of zinc and 85,000 tonnes of lead). The ore production capacity currently stands at 8.40 million tonnes per annum.

CHAPTER -4

PHYSICAL DISTRIBUTION
Supply chain is composed of a series of suppliers and customers linked together by a physical distribution system. Physical distribution is the movement of materials from the producer to the consumer. It is the responsibility of the distribution department, which is part of an integrated materials management or logistics system. Physical distribution is the movement and storage of finished goods from the end of production to the customer.

CHANNELS OF DISTRIBUTION
A channel of distribution is one or more companies or individuals who participate in the flow of goods and/or services from the producer to the final user or consumer. Sometimes a company delivers directly to the customers , but often it uses other companies or individuals to distribute some or all of its products to the final consumer and are called intermediaries like wholesalers, agents, transportation companies, and warehouses.

There are two channels involved 1. The transaction channel: concerned with transfer of ownership and its function is to negotiate, sell, and contract. 2. The distribution channel: concerned with transfer or delivery of the goods or services. One firms physical supply (movement and storage of goods from suppliers to manufacturing) is another firms physical distribution. To extend markets requires a well-run distribution system. The specific way in which materials move depends upon many factors. These are: The channels of distribution that the firm is using. The types of markets served. The characteristics of the product. The type of transportation available to move the material.

PHYSICAL DISTRIBUTION SYSTEM :

Physical distribution system is responsible for delivering to the customer what is wanted on time and at minimum cost. The objective of Physical Distribution is to design and operate a distribution system that attains the required level of customer service and does so at least cost. In physical distribution there are certain activities that interact with each other which affect customer service and cost of providing it. These are: 1. 2. 3. 4. 5. 6. Transportation Distribution inventory Warehouses(distribution centers) Materials handling Protective packaging Order processing and communication

Global distribution: It is the movement of goods to and from locations around the world. Global distribution is a very small term but plays a very big role in an organization. It is affected by many factors. Fluctuations in currencies can change costs dramatically and must be taken into account when assessing the risks involved in deciding where to source goods. Transportation: Transportation is an essential ingredient in the economic development of any area. It brings together raw materials for production of marketable commodities and distributes the products of industry to the marketplace. The carriers of transportation can be divided into five basic modes. 1. Rail 2. Road, including trucks, buses, and automobiles 3. Air 4. Water, including oceangoing, inland, and coastal ships 5. Pipelines Each mode has different cost and service characteristics that determine which method is appropriate for the types of goods to be moved. Any carrier whatever mode, must have certain basic elements like ways, terminals and vehicles. Legal types of carriage: Carriers are legally classified as public (for hire) or private (not for hire). Public carriers may carry goods for the public as a common carrier or under contract to a specified shipper.

Common carriers make a standing offer to serve the public. This means that whatever products they offer to carry will be carried for anyone wanting their service. With some minor exceptions, they can carry only those commodities they are licensed to carry. For instance, a household mover cannot carry gravel or fresh vegetables. Common carriers provide the following: Service available to the public. Service to designated points or in designated areas. Scheduled service. Service of a given class of movement or commodity Contract carriers haul only for those with whom they have a specific formal contract of service, not the general public. Contract carriers offer a service according to a contractual agreement signed with a specific shipper. The contract specifies the character of the service, performance, and charges. Private carriers Private carriers own or lease their equipment and operate it themselves. A company normally only considers operating its own fleet if the volume of transport is high enough to justify the capital expense. Transportation cost elements : There are four basic cost elements in transportation. Knowledge of these costs enables a shiper to get a better price by selecting the shipping mode. The four basic costs are as follows: 1. 2. 3. 4. Line Haul Pickup and delivery Terminal handling Billing and collecting

WAREHOUSING
Warehouses include plant warehouses, regional warehouse, and local warehouses. They may be owned and operated by the supplier or intermediaries such as wholesalers, or they may be public warehouses. The service function that warehouses perform can be classified into two kinds : 1. The general warehouse where goods are stored for long periods and where the prime purpose is to protect goods until they are needed. There is minimal handling, movement and relationship to transportation. 2. The distribution warehouse has a dynamic purpose of movement and mixing. Goods are

received in large-volume uniform lots, stored briefly, and then broken down into small individual orders of different items required by the customer in the marketplace. The emphasis is on movement and handling rather than on storage.

Roles of warehouses:
Warehouses serve three important roles: transportation consolidation, product mixing and service. Transportation consolidation : It is concerned with reduction of transportation costs. This can be done by consolidating small(LTL) shipments into large (TL) shipments. In physical distribution, TL shipments can be made to a distant warehouse and LTL shipments made to local users. Transportation consolidation in physical distribution is sometimes called breakbulk, which means the bulk (TL) shipments from factories to distribution centers are divided into small shipments going to local markets. Product mixing : It deals with the grouping of different items into an order and the economies that warehouses can provide in doing this. Service: distribution centers improve customer service by providing place utility. Goods are positioned close to markets do the markets can be served more quickly.

PACKAGING:
The basic role of packaging in any industrial organization is to carry the goods safely through a distribution system to the customer. The package must do the following: Identify the product Contain and protect the product. Contribute to physical distribution efficiency.

Unitization
Unitization is the consolidation of several units into large units, called unit loads, so there is less handling. A unit load is a load made up of a number of items, or bulky material, arranged or constrained so the mass can be picked up or moved as a single unit too large for manual handling. Material handling costs decrease as the size of the unit load increases.

MATERIALS HANDLING :
Material handling is the short-distance movement that takes place in or around a building such as a plant or distribution center. For a distribution center, this means the unloading and loading of transport vehicles and the dispatch and recall of goods to and from storage. In addition, the racking systems used in distribution centers are usually considered to be part of material handling.

Some objectives of materials handling are as follows: 1. To increase cube utilizastion by using the height of the building and by reducing the need for aisle space as much as possible. 2. To improve operating efficiency by reducing handling. Increasing the load per move will result in fewer moves. 3. To improve the service level by increasing the speed of response to customer needs. There are many types of material handling equipment. For convenience, they can be grouped into three categories: conveyers, industrial trucks, and cranes and hoists.

CHAPTER - 5

OBJECTIVES

TO UNDERSTAND HOW THE LEED IS GENERATED FOR THE PRODUCT LIKE ZINC. TO UNDERSTAND DIFFERENT TYPERS OF TRANSPORTATION MODES ADOPTED BY THE COMPANY (HINDUSTAN ZINC LIMITED). TO UNDERSTAND THE REQUIREMENT OF ZINC IN LARGE QUANTITIES BY MAJOR INDUSTRIES. TO UNDERSTAND THE CHALLENGES WHICH ARE FACED BY THE SALES PERSONNEL FOR SLLING THE PRODUCT LIKE ZINC. TO FIND OUT SALES PROFESSIONALS PERCEPTION ABOUT THE MARKET OF ZINC. TO UNDERSTAND THE VARIOUS BIPRODUCTS OF HINDUSTAN ZINC LIMITED. TO FIND OUT WHETHER COMPANY HAVE ANY TRACKING SYSTEM TO TRACE THE PRODUCT WHILE TRANSPORTING.

CHAPTER-6

WHAT IS RESEARCH? RESEARCH IS THE COMMAN PARLANCE REFERS TO A SEARCH FOR THE KNOWLEDGE. ONE CAN ALSO DEFINE RESEARCH AS SCIENTIFIC AND SYSTEMATIC SEARCH FOR THE PERTINENT INFORMATION ON A SPECIFIC TOPIC. IT IS ACTUALLY A VOYAGE OF DISCOVERY.

IT IS AN ACADEMIC ACTIVITY WHICH COMOPRISES DEFINING AND REDEFINING PROBLEMS, FORMULATING HYPOTHESIS OR SUGGESTING SOLUTIONS, COLLECTING, ORGANISING AND EVALUATING DATA, MAKING DEDUCTIONS AND REACHING CONCLUSIONS AND AT LAST CAREFULLY TESTING CONCLUSIONS TO DETRMINE WHETER THEY FIT THE FORMULATING HYPOTHESIS.

TYPES OF RESEARCH DESCRIPTIVE RESEARCH MY RESEARCH IS BASED ON THE PHYSICAL DISTRIBUTION OF THE ZINC IN THE DOMESTIC MARKET AND FACT FINDING ENQUIRIES AND GIVES A DESCRIPTION OF THE STATE OF AFFAIRS AS IT EXIXTS AT PRESENT. QUALITATIVE RESEARCH- THE OTHER FORM OF RESEARCH IS CONCERNED WITH QUALITATIVE PHENOMENON I.E. PHENOMENON RELATING TO OT INVOLVING QUALITY OR KIND AS WE ARE INTRESTED IN INVESTIGATING THE DISTRIBUTION OF THE PRODUCT IN THE MARKET AND ALSO THE BEHAVIOUR OF THE SALES PERSON ABOUT THE SELLING OF THE PRODUCT LIKE ZINC.

FORMULATING RESEARCH PROBLEM

EXTENSIVE LITRETURE SURVEY

CHOOSE THE RESEARCH DESIGN

DETERMINING SAMPLING DESIGN AND SIZE

DEFINE THE SOURCE OF DATA

PROCESSING AND ANALYZING THE COLLECTED DATA

INTERPRETATION OF DATA

PREPARING THE RESEARCH REPORT

RESEARCH DESIGN: This calls for developing the most efficient plan for gathering the necessary information, design a research plan, design on data sources, research approaches, research instruments, sampling plan and contact methods. A research design is the specification of the method and procedure for acquiring the information needed. According to my research design I have performed the following steps in the project.

Types of data

Primary data: The collected data is a fresh data and collected for the first time and thus happens to be original in character hence it is primary data. Primary data is collected through survey method by distributing. The questionnaire is carefully designed by taking into account the parameters of my study. Secondary data: data wad collected from books, magazines, web sites, going through the records f the organizations, etc. secondary data is the data that has been collected by an individual or someone else for the purpose of other than those of our particular research study. Or in other words we can say that secondary data is that data used previously for the analysis and the results are undertaken for the next process. In my research the data was collected by both the methods primary as well as the secondary method.

DATA COLLECTION

INTRODUCTION The instruments that are employed to collect new facts or to explore new fields are called tools. It is of vital importance to select suitable instruments and tools. Different tools are used to collect different types of data. The use of a particular research tool depends upon the type of research proposal. The researcher may use one or more of the tools in combination for this purpose. Such tools or methods of data collection include tests, interviews, questionnaire, observation etc. SIGNIFICANCE The progress of any educational program very much depends upon well conduction research. It postulates sufficient, reliable and valid facts. Such facts are normally obtained through a systematic procedure which involves various devices. Each research tool is appropriate in a given situation to accomplish a specific purpose. These tools should be used together or in combination as they supplement the work of each other. Jhon W. Best (1992, P.159) commented that like the tools in the carpenter box, each is appropriate in a given situation, to accomplish a particular purpose. Each data collecting device has both merits and limitations. However, for effective result each tool has its own significance. It must be used according to the required situation.

TYPES OF RESEARCH TOOLS There are varieties of tools of research used in collecting data .These include: Tests Questionnaires Opinionative or attitude scale Quantitative interviews Qualitative interviews Focus groups Observations Quantitative observations

TESTS TESTS As data gathering devices, tests are among the most useful tools of educational research, for they provide the data for most experimental and descriptive studies in education. The instruments have been designed to describe and measure sample of aspects of human behavior. These instruments assess variety of human abilities, potentials achievements and behavior tendencies. They possess different degrees of validity reliability and applicability. QUESTIONNAIRE Questionnaire is a self report data collection instrument that each research participant fills out as part of a research study. Researchers use questionnaire to obtain information about the thoughts, feelings, attitudes beliefs, values, perceptions, personality and behavioral intentions of research participants. According to John W. Best (1992) a questionnaire is used when factual information is desired, when opinion rather than facts are desired, an opinionnaire or Attitude scale is used.

INTERVIEW The interview is in a sense, an oral questionnaire. Instead of writing the response, the subject or interviewee gives the needed information verbally in a face to face relationship. Interview that are done face to face are called in person interviews; interviews conducted over the telephone are called telephone interviews. FOCUS GROUPS A focus group is a type of group interview in which a moderator (working for the researcher) leads a discussion with a small group of individuals (e.g., students, teachers, teenagers) to examine, in detail, how the group members think and feel about a topic. It is called a focus group because the moderator keeps the individuals in the group focused on the topic being discussed. The moderator generates group discussion through the use of open ended questions, and he or she acts as a facilitator of group process. Focus groups are used to collect qualitative data that are in the words of the group participants. A focus group is composed of 6 to 12 participants who are purposively selected because they can provide the kind of information of interest to the researcher. A focus group is usually homogeneous, (composed of similar kinds of people) because the use of a homogeneous group promotes discussion. The group moderator (The person leading the focus group discussion) must have good interpersonal skills and he or she must know how to facilitate group discussion. He or she needs to get everyone involved in discussing the researchers questions and not allow one or two people to dominate the discussion. OBSERVATION The next method of data collection involves something that we do most of our waking hours: observe things. Researchers are also observers of things in the world. In research, observation is defined as the watching of behavioral patterns of people in certain situations to obtain information about the phenomenon of interest. Observation is an important way of collecting information about people because people do not always do what they say they do. It is a maxim in the social and behavioral sciences that attitudes and behavior are not always congruent.

In my research project I have selected the questionnaire and the telephonic interview as the data collection tool.

Sampling plan
A sampling plan is a detailed outline of which measurements will be taken at what times, on which material, in what manner, and by whom. Sampling plans should be designed in such a way that the resulting data will contain a representative sample of the parameters of interest and allow for all questions, as stated in the goals, to be answered.

Sample size
10 sales persons

Sample area
Hindustan Zinc Limited (Sales department)

CHAPTER-7

How they approach to the customer to pursue the selling process?

As per the analysis most of the customer leeds are generated through the website. The customer directly approaches to the company website where after filling all the details which are required by the company. Then the company get in touch with the customer and then most of the deals are to be performed online basis only like placing the order details to the customer, providing the transporter name, transportation details that when will be the product is reached to the customer. After that the final payment will also be performed by the same online process. As we talk about the customers they directly deal or we can say that they directly make the contact with the company online, or by the reference of old customers or by the local contacts. Company also refers to the old customers reference for selling the product. But in that condition also the new customer has to be registered with the company. The registration process for the customer is necessary because as per the rules and regulations of the company Below are some figures which shows how the customer can make contact with the company.

REMARKS: It is very easy for the customers to contact the company for the product as per there requirement. Company doesnt require approaching the customer for the product. What are the challenges sales personnel face towards the selling of product like Zinc?
From the research I found that there are so many different views about the challenges regarding the selling of the industrial product like zinc. Some of the sales person said that they do not have any challenges regarding the selling of zinc because as per there thought zinc is an industrial product and only required by the industries so they do not have to convince the customer about it like some other regular products like FMCG and FMCD. That kind of product requires the convincing the customer for purchasing there product. On the other hand some of the sales people think that selling zinc is a challenging factor for them because they do not have to sell this product in the local market like any retail market. As per my knowledge zinc is that kind of product that cant be sold individually to an indiv idual customer. So it is like the challenge for the sales personnel.

But on the other hand as the data says that Hindustan Zinc Ltd is the company which provides 70% or above the product to the whole country, is not having any challenges to provide the product to the customers. As per the results of the questionnaire sales person doesnt requires to convince the customer for selling the product because the customer doesnt requires the product(zinc) on regular basis. It is that kind of product that is required by the industries only. On the part of industries as we know that all the industries purchase their product on bulk basis to save money.

REMARKS: As per the analysis there is no need to convince the customer for purchasing the product because as it is an industrial product it is not possible for the customer to purchase a single commodity or if the industrial customer needs it than they have to adopt the process which is managed by the company.

How zinc is transported in the market?

The transportation of the zinc is generally performed by the trucks, trains, trailers it depends upon that where the product is to be reached. The HZL customers are classified in four zones i.e. north, west, south, east. There are 10 ports of HZL from where distribution can take place. North 3 ports West 3 ports South 3 ports East one port.

Fixing a transporter and making a contract: Every transporter has to sign a work order in which terms and conditions are written and is signed by both the parties i.e. HZL and transporter. The various headings included in the work order given to transporters by HZL are 1. SCOPE OF WORK 2. WEIGHMENT 3. PLACEMENT OF PARRALLEL CONTRACT 4. ASSIGNING / SUB LETTING CONTRACT 5. TENURE

6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

TERMINATION SECURITY DEPOSIT FREIGHT DIESEL ESCALTION PAYMENT TERMS SERVICE INSTRUCTIONS, FAILURE TO PLACE VEHICLES AND PENALTY THEREOF SAFETY OF MATERIALS TRANSIT TIME TRANSHIPMENT/ CLUBBING OF GOODS IN TRANSIT VEHICLE DETENTION CHARGES FAILURE/REFUSAL TO EXECUTE JOBS ASSIGNED/ ENTRUSTED SERVICE PROVIDER TO COMPLY ALL LAWS ETC FORCE MAJEURE ARBITATION JURISDICATION GOVERNING LAW

Annexure
Different location is having different rates for transportation based on their distance. This annexure says the rates fixed by both transporter and HZL according to the contract. It covers following points. Destination Approx distance (in kms.) Transit days Quantity/ indent (48 hrs) (MT) Freight in Rs./ MT

The days of delivery are different for different cities. The day for loading and unloading is not included in these days. For different locations different transporters are used and a minimum quantity is set. Now if the delivery by any transporter is not done at time as stated in the WORKORDER then strict fine is taken from them which is as follows. Late by 1 day :- 1000/Late by 2 day :- 2000/Late by 3 day :- 4000/Late by 4 day :- 8000/Late by 5 day :- 15000/1 week time :- value of the good + 10 %

Because of these strict fine policy transporter always tries to deliver the product to the customer on time.

Remarks: AS PER MY VIEWS ABOUT THE TRANSPORTATION OF THE PRODUCT BY THE COMPANY IS PERFORMING BY TRACING ALL THEIR PRODUCTS WHILE TRANSPORTATION. COMPANY IS USING THE BEST TECHNOLOGIES FOR TRACKING THEIR PRODUCTS IN THE MARKET.

What are the byproducts off the company? Do you sell them?
Sliver Cadmium Lead Sulphuric acid These are the byproducts of the Hindustan Zinc limited which are generated through the processing of the zinc by the raw material of zinc.

Lead:
They produce refined lead at chanderiya smelting complex, which is LME registered under the brand name of VEDANTA 99.99. Lead metal is used in a number of application including battery segment, lead-based pigments, and cathode rays tubes.

Silver:
They are Indias largest and one of the worlds leading primary silver producer. We produce refined silver at Chanderiya Smelting Complex; it is recovered as a byproduct of lead metal. Company produce high quality silver bullion having minimum purity of 98.5% to 99.5% of silver, it is castes in the form of bricks weighing 30kgs.

Cadmium:
They are Indias largest cadmium producer. They recover cadmium from their zinc smelting process as cadmium is mainly found in association with zinc ores. They produce high quality cadmium pencils having a minimum purity of 99.95% to 99.99% of cadmium; it is casted in the form of pencils weighing from 250gms to 500gms.

CADMIUIM 99.95 CUTOMERS ARE AS FOLOWS

ASSOCIATED STABPLAST & CHEM., INDIA TRADE LINK PVT. LTD. KRISHNA TRADING COMPANY, LAXMI NARAYAN & SONS MET TRADE (INDIA) LTD. MILLENIUM METALS NICHROME INDUSTRIES R.S. METALS PVT. LTD. RISE CHEMICAL INDUSTRIES

Sulphuric acid Sulphuric acid is one of the major industrial raw materials. It is one of the key ingredients for manufacturing single super phosphate (SSP) and also widely used in detergents, chemicals, steel and other various industries. SULPHURIC ACID MIN 98% CLEAR (GRADE A) CUSTOMERS
A. R. SULPHONATES PVT LTD, AARTI DRUGS LTD Advance Surfactants India Ltd ALWAR ZILA DUDGH UTPADAK ANMOL CHEMICALS ANSHUL CHEMICALS AONE CHEMICALS AQUAGEL CHEMICALS PVT LTD, ARIHANT DERERGENT PVT LTD Aromatics India Pvt Ltd Bajaj Chemicals Binani Cement Ltd. BOHRA INDUSTRIES LTD. CHEM MAG INDUSTRIES CHEMIEORGANIC CHEMICAL (INDIA) P. L CHURU ZILA SAHKARI DUGDH UTPADAK S. D.J. DYE CHEM D.J.Dye Chem DEEP CHEM DEEPAK ACID CHEMICALS INDUSTRIES Devyani Phosphate Private Ltd Evermag Industries GAYATRI CHEMICALS, Gujarat Fluro Chemicals Ltd GUJARAT STATE FERTILIZERS &CHEMICAL GUJRAT PAGUTHAN ENERGY COPORATION HINDUSTAN CHEMICAL INDUSTRIES INDIAN PHOSPHATE LIMITED

Indian Phosphate Limited(Unit-2) JAI JEEWAN CHEMICALS JAIPUR ZILA DUGDH UTPADAK S.S. LTD Jaydip Chemicals JUBILANT ORGANOSYS LTD KAY BEE ALUM LAXMI AGRO INDUSTRIAL CONSULTANTS LIBERTY PHOSPHATES LTD.(UDAIPUR) LUNA CHEMICAL IND. PVT. LTD. Lupin Limited M/s Ideal Chemicals (I) Pvt. Ltd. MADHU SILICA PVT LTD - UNIT- II MADHU SILICA PVT LTD ( E.O.U.) Madhu Silica Pvt Ltd, DU-III MADHU SILICA PVT LTD. MAHAVIR CHEM TECH , Mithila Drugs Pvt Ltd MOTI CHEMICALS NEW INDIA ACID (BARODA) PVT LTD NIKEN CHEMICALS CO., P.R. ENTERPRISES Phosphate India Pvt Ltd POOJA ENTERPRISES PORWAL INSTRUMENTS&CHEM. P. LTD, PREM SAKHI FERTILIZER LTD RAJASTHAN STATE MINES & MIN.LT RAMA PHOSPHATES LIMITED, RELIANCE INDUSTRIES LTD, ROSE ZINC LIMITED RSWM LTD RUPALI CHEMICALS S.K. CHEMICAL SADHANA PHOSPHATE & CHEMICALS Ltd Shiva Acid & Chemicals SHREE CHEMICALS SHRI KRISHNA DETCHEM (P) lTD. SHRILAXMI CHEMICALS , SHRINATH CHEMICALS SHUBHLAXMI CHEMICALS SINGHVI CHEMICALS & MARBLES SR. MANAGER(STORE) IFFCO LTD SULUX PHOSPHATES, Swastik Zinc P Ltd THE DHARAMSI MORARJI CHEM.CO. TRIPURA CHEMICALS, TRUCHEM ENTERPRISES UDAIPUR DUGDH UTPADAK S.S.LTD, UNITED PHOSPHORUS LIMITED

Vaishali Chemicals VAPI ACID & CHEMICAL Co. Vardhaman Pharma WANKSON CHEMICALS INDUSTRIES LTD, WEST INDIA CHMICALS

REMARKS: AS PER THE RESEARCH THERE ARE FOUR BYPRODUCTS OF THE COMPANYFROM WHICH SAOME ARE FOR SELLING AND SOME ARE NOT.

What is Sales professional perception about the market of zinc?

Sales professional perceptions about the market of zinc are that the zinc is that product which is used in different fields: i. ii. iii. iv. v. Galvanizing Zinc oxide Die castings Alloys Rolled Zinc

As the industrial use is more it is estimated according to the sales professionals approx. 70% of the zinc market is covered in India by the company also includes 10.4 million batteries per year, 2.2 billion pieces for dry cell batteries. REMARK: As per the details we conclude that the demand of zinc is increased in last 5 years because of the termination of the Chinese company in Beijing. After that all the zinc market was captured by the Hindustan zinc limited.

CHAPTER-8

Observations and findings of the Report

While perusing the report generation I observed some finding about the company:

The generation of the leed or we can say that the approaching to the customer company doesnt do as such like the other products because this company has its own customer approaching services. Here, customer reaches to the web site of the company then register himself with his company because it is not possible for the individual to purchase the product like zinc as it is an industrial product. Once the customer is registered with the company through website or we can the procedure of the company then all the main transections are performed online only. On the other hand after performing all the formalities by the customer company starts transporting their product to the ultimate customer. The transportation of the product is to be done by different modes like trucks and railways. Because these are the best ways for transporting industrial product. The transportation of the product should be done after the completion of the contract which is to be made between the customer and the company.(see annexure) It is also observed that zinc is that product which is generally purchased by the customer on the large amount or we can purchase in bulk. Because this product cant be purchase by the normal consumer as it is not required. There are some major industries in the country which are purchasing the product in large quantities from the HZL o Because it is required in batteries o Galvanizing o Making alloys etc. This is also observed that some of the sales person rates this as a challenge to sell the product like zinc as it is a industrial product. And on the other hand some of the sales person says that it is not a challenge to sale the product as its industrial nature. After all they concluded that is it more easy to sale that kind of product as they did not required to convince the customer.

It is to be observed that the perceptions of the sales personnel about the market of zinc rises in last few years or we can say in last 5 years. This increase in the zinc market is arises due to the termination of a china based zinc company in Beijing at the time of Beijing Olympics. Due to that the demand of zinc is increased as one competitor is no more in the market. This leads increase in the zinc market from the last five years There are some byproducts of the company and it is observed that from these byproducts company is using some of them and some of them are to be sold in the local market. It is also observed that this company has its own tracking system to trace the product in the market or else we said that while transporting the product to the customer the sales department keep traces the product that where should it reaches for the safety purpose.

CHAPTER- 9

CONCLUSION OF THE REPORT

IT IS TO BE CONCLUDED THAT THE TRANSPORTATION OF THE PRODUCT IS SECURY PERFORMES SELLING OF ZINC IS LITTLE CHALLENGING ASIT A INDUSTRIAL PRODUCT, BUT WE CAN ALSO INCLUDE THAT AS IT IS A INDUSTRIAL PRODUCTIT IS NOT A CHALLENGE TO SELL THIS PRODUCT. TRACKING SYSTEM OF THE COMPANY IS SECURE SO IT IS SURED THAT THE CUSTOMERS WILL GET THERE PRODUCT SAFELY THE BYPRODUCTS OF THE COMPANY ARE ALSO PROFITABLE FOR THE COMPANY BECAUSE ALL THE BYPRODUCTS ARE ALSO COSTLY AND VERY USEFULL BY THE DIFFERENT INDUSTRIES.

CHAPTER- 10

SUGGESTIONS
1. We can also use the same truck to deliver to two customers to decrease the cost of the transportation. 2. Company should start selling all the byproducts so that it get benefited to the company itself. 3. The tracking system should be improved by tracing the product online. 4. GPS systems should be installed in the delivery vehicles so that the company should know each and every movement of the vehicle. 5. This will leads improvement in the delay of the delivery of the product to the customer. 6. There should be a process from which the more customers are to be generated with the help of old customers reference. 7. To make company visible online the international traders also so that the use of zinc with the purchasing and selling should also be started more in foreign countries. 8. This is important because zinc is used by all the battery manufacturers, steel manufacturers etc.

Annual reports Google.com Hzlindia.com

Contract with the customer

1. SCOPE OF WORK : a. It includes what are the products to be transported i.e Zinc, lead, cadmium, sulphuric acid, calcine. It says that loading, transit insurance of material loaded and unloading will be done/arranged by HZL b. The service provider shall transport the material as per the programme given by the office incharge of Sales and Dispatch Department of the Dispatching unit and Regional Manager. c. The vehicles of transporter shall have valid registration certificate, road permits and insurance to cover third party risk at all times during the subsistence of contract. Proper submission of certificates is necessary d. Security of material from rain and dust e. Transporter shall ensure total compliance of Indian motor vehicle Act and amendments thereof as made from time to time. To follow state Govt. rules under M.V. Act. HZL shall not be responsible for any breach/es. 2. WEIGHMENT a. Transporter to verify all dispatched weigh, no. of ingots, pieces and bundles. b. Checking of loading limit specified in the Registration Certificate of the vehicle. c. Transporters responsibility to for the penalty/damages/consequences arising out of any violation of rules. d. For the purpose of payment of freight the weight recorded in the LR at dispatching unit prior to dispatch shall be the basis of verification e. The material will be handed over to the authorized representative of the transporter on submission of clear LR. f. Bundles with broken strap will result to repacking and the cost to be bear by transporter. g. Transporters responsibility for delivering original and duplicate copy of invoice at stock point/s along with the consignment. Lose of duplicate copy will result in submission of affidavit or FIR at the time of delivery of material. h. Any loss arising out of non delivery of Excise documents is liable to be recovered from the transporters bill i. Service provider to provide the bank approved LR to the Sales and Dispatch Dept. of HZL.

3. PLACEMENT OF PARRALLEL CONTRACT a. HZL reserves the right to give parallel contract simultaneously to any other party or at any time during the period of contract 4. ASSIGNING / SUB LETTING CONTRACT a. The service provider shall not assign or sublet the contract or any part thereof or allow any person interested therein in any manner whatsoever without permission of HZL. b. If done so HZL will have the right to repudiate/rescind the contract. 5. TENURE a. Duration and date of contract. b. HZL can extend the period by one month on the basis of month. 6. TERMINATION a. HZL shall be at liberty to terminate this agreement without any notice to the supplier or payment of compensation in lieu thereof, if any Statute or order or rule or regulations, award, or judgment materially affects this agreement. b. HZL can do this if In HZLs opinion the service provider failed or refused to implement this agreement to companys satisfaction. The service provider cannot challenge the HZL. Commitment of breach of contract Service provider is adjudged an insolvent Service provider become disentitled in law to perform its obligation under this agreement There is any variation in service providers constitution or its business without the prior approval in writing by HZL 7. SECURITY DEPOSIT a. Security cover in the form of Bank Guarantee from any Nationalized /Scheduled Bank of Rs. shall be furnished by the service provider. b. The bank guarantee should be valid for a period of three months in excess of validity period of contract c. Failure to furnish the bank guarantee shall be treated as failure to discharge its obligations under this contract and shall result in termination of this contract. 8. FREIGHT a. Applicable as per annexure. It is fixed and firm till the end of contract.

b.

Freight shall be inclusive of all expenses including but not limited to road taxes, toll taxes, vehicle insurance, vehicle permit expenses, mathadi union/Varai charges as applicable and all local / statutory levies / customary levies etc.

9. DIESEL ESCALTION a. HZL shall increase/decrease its basic rate by % or proportionate for every % change in diesel price for through carriage by road.

10. PAYMENT TERMS a. Submission of Frieght Bills with all relevant documents with proof of delivery once in 15 days to dispatching units for dispatches from smelters and Regional Manager offices for dispatches made from Depots. b. Finance dept to release payment within 15 days from the submission of bills. c. Late in payment will not affect the contract 11. SERVICE INSTRUCTIONS, FAILURE TO PLACE VEHICLES AND PENALTY THEREOF a. Service instructions to be issued by HZL periodically. b. Programme to be given 1 day in advance to transporter so that it can do arrangements so that transport at right time otherwise penalty will be charged. c. Service provider has to strictly adhere to indent quantity as mentioned in annexure. 12. SAFETY OF MATERIALS a. After all acknowledgment about the sound quality of product from HZL, the transporter to transmit that goods in that condition only. b. Transporter to take proper precautions to protect the goods from all losses, damage and deterioration. c. HZL will not provide any protective cover for protection d. Any damage, loss and deterioration will be considered as transporters responsibility. e. Transit insurance of material shall be in HZL account. The service provider to shall produce requisite documents and evidences as may be desired for lodging of claims by HZL against partial or complete loss. f. Loss due to improper handling has to be bear by service provider g. photo taking of crew with loaded material and should be produced whenever asked. 13. TRANSIT TIME a. The service provider shall ensure that the consignee within allowed transit time prescribed in enclosed annexure(s) b. Day of dispatch and reporting at destination are excluded. c. Holidays days (Sunday or national/state holiday) would not be

considered in transit period. But if depot is kept opened for expected delivery in special case, this norm would not be accepted. d. In case of if the vehicle instead of reporting before holiday (actual/theoretically reporting day) reports after holiday in such case for calculating Delay penalty holiday days will be counted. e. Penalty of Rs. 1000/-, 2000/-, 4000/- and 8000/- maximum will be imposed for 1st,2nd,3rd and 4th day penalty delivery in reporting of vehicle w.r.t. transit period prescribed in annexure given to transporter. f. Any delay beyond 4th day shall have penalty of Rs. 15000/- only irrespective of number of days up to a week. g. Delay in delivery can be condoned on valid ground such as vehicle breakdown or vehicle detained by some agency or natural calamity or force majeure situations for which information with proof has to be showed with the freight bill 14. TRANSHIPMENT/ CLUBBING OF GOODS IN TRANSIT a. Transshipment /Clubbing of goods is strictly not allowed en route unless warranted due to failure of vehicle to move further or accident occurred or vehicle detained by any agency for some reason or lorry for a particular destination is not available. b. In case of vehicle accident and vehicle detained, service provider to get approval first from dispatching department. c. In case of non availability of vehicle for a particular destination, decision to be taken by dispatch department for transshipment. d. Proof of accident/breakdown/detained to be submitted along with freight bills e. Transshipment without approval shall attract penalty. f. Transshipment is allowed without penalty on the last day of month. g. Clubbing of load in transit is strictly not permissible and shall attract penalty. 15. VEHICLE DETENTION CHARGES a. Vehicle charges at loading point will not be payable. b. Detention per lorry per day at unloading point is however payable @ Rs. 1000/-, Rs. 2000/-, Rs. 4000/- for the 1st, 2nd and 3rd day respectively. 16. FAILURE/REFUSAL TO EXECUTE JOBS ASSIGNED/ ENTRUSTED a. Under no circumstances the service provider can stop work specified in its contract. b. If the service provider fails to execute the job within the reasonable period or refuses to execute or arrange to execute for any reason, whatsoever, HZL reserves the right to get the job done by any other service providers at the risk and cost of the service provider besides recovery of all losses on

this contract through the security deposit or pending bills by the service provider. c. Sales & Dispatch dept. jointly with Logistics should exercise risk purchase option. 17. SERVICE PROVIDER TO COMPLY ALL LAWS ETC a. the service provider shall be responsible to secure compliance with all central and state laws/local laws as well as the rules, regulations, bye-laws / notifications and orders of the local authorities and statutory bodies as may be in force from time to time. b. Transporter to has to follow all applicable EHS regulations. 18. FORCE MAJEURE a. In case of any force majeure the period of it will be excluded provided notice of happening of any such eventuality is given by the service provider to the company with a request for extension of time. b. No compensation will be payable for the period of Force Majeure. 19. ARBITATION a. In the event of any dispute or difference arising out of relating to, under or in respect of this contract between the parties the same shall be referred at the written request of either party to the arbitral tribunal constituted for the adjudication of the dispute or difference as provided here under to a sole arbitrator to be nominated by the COO & Whole time Director of HZL, Udaipur (Rajasthan) b. The arbitration shall be subject to and in accordance with the provisions of The Indian Arbitration and Concilliation Act 1996 (No. 26 of 1996) and the Rules if any made there under and any statutory modification or reenactment thereof. c. The venue of arbitration proceedings shall be Udaipur, Rajasthan, India. d. I ) during the course of arbitration proceedings, the parties hereto shall continue to execute their respective obligations. II) The requirement of appointing Arbitrator to settle the dispute is not binding on the insurance company and it is free to take legal proceedings for realization of its claim against the service provider, if any. 20. JURISDICATION a. For the purpose of enforcing legal rights/ remedies in respect of this contract, court in the State of alone have exclusive jurisdication. 21. GOVERNING LAW a. This agreement shall be governed by and be interpreted in accordance with the laws of india. A n

n e x u r e : Different location is having different rates for transportation based on their distance. This annexure says the rates fixed by both transporter and HZL according to the contract. It covers following points. Destination Approx distance (in kms.) Transit days Quantity/ indent (48 hrs) (MT) Freight in Rs./ MT

The days of delivery are different for different cities. The day for loading and unloading is not included in these days. For different locations different transporters are used and a minimum quantity is set. Now if the delivery by any transporter is not done at time as stated in the WORKORDER then strict fine is taken from them which is as follows. Late by 1 day :- 1000/Late by 2 day :- 2000/Late by 3 day :- 4000/Late by 4 day :- 8000/Late by 5 day :- 15000/1 week time :- value of the good + 10 %

Questionnaire Format How you approach to the customer(leeds) to pursue the selling process?

What are the challenges you face towards selling a product like zinc in market?

How do you convince the customer to purchase your product?

Do you have bar code any other similar system for tracking the inventory or work in progress?

Which are the major industries that require zinc in large quantities?

What are the various medias you opt for the promotion of the product?

What are the byproducts of the company? Do you sale them?

Describe the changes in the zinc market in last 5 years in India?

Do you advertise your product? If yes give details?

Give estimated market of zinc?

How zinc is supplied in the market?