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Hzl Business Marketing

In: Business and Management

Submitted By chandan11
Words 4761
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Prof. Murali Murti Chandan Kumar Chand (1PI11MBA41) CONTENT

1. Introduction to the Company: a. History b. Present status in industry c. Summary of business areas and products / services d. Organization structure e. Marketing & Sales Organizational Structure

2. Structure of the industry: f. Size and growth rates g. Major players

3. Buyer behavior in the industry: h. Typical buying centre and characteristics for the industry i. Zinc Users around the world

4. Market segments and positioning: j. Market segments in the industry k. Segments addressed by the subject company l. Positioning adopted in each segment

5. Products / Services strategies

6. Channel and Distribution strategies

7. Pricing Strategies: m. Pricing determinants for industry n. Pricing strategies of company

8. Place

9. Consolidated SWOT analysis of company’s marketing operations

10. Financial Scorecard

11. Operational Scorecard 12. Recommendations for the future

1. Introduction to the Company

History * An integrated mining and resources producer of zinc, lead, silver and cadmium. * Hindustan Zinc (HZL) was incorporated from the erstwhile Metal Corporation of India on January 10, 1966 as a Public Sector Undertaking. * A subsidiary of Vedanta Resources PLC.
The world's the world's largest integrated producer of zinc and second largest zinc producer and the third largest Zinc smelter in the world and are on the verge of breaking into the top 10 global Silver producers..

Present Status in Industry
Vedanta an over US $ 8.2 billion, Vedanta Resources plc (“Vedanta”) is a London listed FTSE 100 diversified metals and mining major. The group produces aluminium, copper, zinc, lead and iron ore and also commercial energy. Vedanta has operations in India, Zambia and Australia and a strong organic growth pipeline of projects. With an empowered talent pool of
30,000 employees globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth.

National presence * Hindustan Zinc Limited (HZL) * Sterlite Industries (India) Ltd (SIIL) * Bharat Aluminum Company Ltd (BALCO) * The Madras Aluminum Company Ltd (MALCO) * Vedanta Aluminum Ltd. (VAL) Lanjigarh * Sesa Goa Limited * Sterlite Energy Limited * Global presence * Copper Mines of Tasmania, Tasmania * Konkola Copper Mines, Zambia

Vision * “Be a world-class zinc company, creating value, leveraging mineral resources and related core competencies” * Change environment in India and the rapid development in the world we have Profound implications on Hal’s operations and future growth, requiring adoption of pro-acting strategies. The corporate planning group (CPG) in the process of formulation of the corporate plan for the period 2007– 2012 conducted situation analysis be scanning socio – political economy and technology environment and adopted the VISION as: - * Be a major natural resources company with diversified businesses leveraging the competitive advantage offered by its mineral resource portfolio and competencies, including best management practices based on efficiency. TQM concept and trust” * Be a world class Zinc Company, creating value, leveraging mineral and core competencies. * To put India on the world metals and mining map by becoming a fortune 500 company. * To build an organization having world class capabilities and high performance culture by attracting, developing and retaining talented people. * To have relentless focus on execution using best in class processes. * Explore and develop additional mining resources
* To produce 1 Million MT p.a. of Zinc metal and 200,000 MT p.a. of Lead metal by 2012 * Be a lowest zinc producer on a global scale, maintaining market leadership * To double per capita consumption of copper, aluminium and zinc through application * To explore and develop mineral reserves by 2011, for the subsequent 15 years in * To set up CPPs/ captive sources for entire power requirement. * To develop value and added products such as CGG alloys, zinc sheet etc. * To become a significant global producer of Zinc and to remain as the dominant market leader of zinc and lad in India. * To avail opportunity to diversify into other businesses, synergy with its competencies. * To maximize satisfaction of its stakeholders.
* Entrepreneurship * Growth * Excellence * Trust * Sustainability

Key Objective * To increase smelting capacity so as to maintain and enhance market. * To locate world-class lead and zinc deposits by grass-root exploration either independently or through joint venture. * To diversify, into other mineral based industries and precious metals and important infrastructure sector like power. * To attain international levels of productivity and quality standard through HRD efforts and intense R&D and technology up gradation in mining, beneficiation, and smelting. * To utilize technologies for optimizing energy consumption. * To adopt the best international practices for environment protection and safety. * To maximize generation of nitration of internal resources for financing its expansion and diversification activities. * To strengthen the image as the organization with commitment to excellent amongst all concerned.

Summary of business areas and products / services

Main products:
1. ZINC INGOTS: * Special high grade-99.99% * High grade -99.95% * Premium grade-99%
3. LEAD:
4. CADIUM; 99%

Intermediate products:

Organization structure

Today HZL is operating three mines and three smelters in two states (Rajasthan, Andhra Pradesh) as under:


← Zawar group of mines, located some 40 Kms. South of Udaipur, Rajasthan comprises of four operating underground mines viz Mochia, Balaria, Zawarmala & Baroi. The lead Zinc is mineralization, extending over a strike length of 20kms. These million tones as on march duction of 4000 tpd.

Rajpura dariba lead Zinc mines is located some 90kms north east of Udaipur, Raj. This underground currently produces 2400 tpd ore.

The Rampura Agucha lead-zinc mine is the third largest in the world. It counts among the lowest-cost zinc mines in the world. It contains high-grade reserves- about 13% zinc and 2% lead- with a resource base of 96.7 million tonnes as on March 31, 2009.


Debari Zinc smelter: (ZSD) ZSD is some 14 km away from Udaipur, Raj. Electrolytic extraction process is adopted to produce Zinc cadmium, sulphuric acid etc.

In the Zinc lead smelter at in Andhra state, electrolytic extraction process is adopted to produce Zinc, cadmium, sulphuric acid etc.

Chanderiya Zinc – lead smelter is located 12 km away from chittorgarh in Raj. Imperial smelting furnace (ISP) Technology is being adopted for extraction of Zinc, lead & other by products.

Marketing and Sales Organisation Structure

Size and growth rate
In 2010, the global zinc ore deposits were estimated to have 480 million tonnes of contained zinc metal. Of this resource base, 250 million tonnes of zinc metal is recoverable. Australia has the largest reserve of zinc (21% of world reserves), followed by China (17%) and the US (5%). India has an estimated reserve of 11 million tonnes of contained zinc metal (up from 24 million tonnes). Lead, which is often found to be naturally occurring with zinc, has an estimated 180 million tonnes of contained lead metal of reserve base globally of which 80 million tonnes can be currently economically extracted. Australia has the largest share globally of extractable lead reserves at 34%, followed by 16% in China and 9% in the US. India tonnes of contained lead metal,of which 2.6 million tonnes can be economically extracted.

Lead and zinc ore
The recoverable resources bearing the twin minerals in the country were 176 million tonnes as on 1.4.1995. These reserves contain 2.2 million tonnes of lead metal and 9.81 million tonnes of zinc metal. The reserves under proved category are 39 per cent whereas probable category has 27 per cent and possible has 34 per cent. As much as 87 per cent reserves are located in the State of Rajasthan with much smaller quantities in Andhra Pradesh, Bihar, Gujarat, Maharashtra, Sikkim, Tamil Nadu and Uttar Pradesh. The total production in the year 1999-2000 was 2.74 million tonnes with overall 10.70 per cent total metal content comprising 2.06 per cent lead and 8.64 per cent zinc. The entire quantity is produced in the public sector by Hindustan Zinc Ltd. HZL consumes this ore in its smelters having capacity of 1, 52,000 zinc metal and 65,000 lead metal. Cadmium, silver, sulphuric acid and phosphoric acid are obtained as by-products in these smelters. Binani in the private sector operates a smelter of 30,000 t capacity based on imported concentrates. Two small lead-smelting plants have been set up in West Bengal and Maharashtra with a total capacity of 24,000 t per annum.
The mines at Zawar, Rajpura-Dariba and Rampura- Agucha are highly mechanised. The first two are underground mines. Rampura-Agucha is an open cast mine of 3000 tad production capacity which is raised to 4, 500 tad. The mine was commissioned in May 1991 together with a smelter at Chandeliya which proved to be a significant step in reducing dependence on imports in the case of both the metals. There are small lead mines at Sargipalli and Agnigundala. Total employment in the mines is approximately 5,000. Small quantity of polymetallic ore bearing copper, lead and zinc is also produced in Sikkim at the rate of100 tad.

Market overview
The metals and mining sector* was valued at US$ 79.9 billion (INR 3,835.4 billion) in 2008, registering a year-on-year growth rate of 32.7 per cent in 2007 and a compound annual growth rate (CAGR) of 22.9 per cent from 2004 to 2008.


3. Buyer behaviour in the industry
Industrial Consumption
INDUSTRY % * Galvanizing 47 * Alloy 14 * Brass and bronze 19 * Chemicals 9 * Die casting 8 * Other 3

Zinc User Around The World
Continuous Galvanizers * Arcelor Mittal * Severstal NA Inc. * Siderar * POSCO Industries * Blue Scope Steel * Nucor Steel * Sorevco * Corus * Spartan Steel (Worthington) * SSAB * Dofasco Inc. * SZFG * Hyundai Steel Co. & Research * Tunnplat AB * Steelscape, Inc. * ThyssenKrupp * Mittal Steel Group * Rautaruukki (R&D) * Mittal Steel USA – Indiana Harbor * Voest Alpine Stahl Linz GmbH

Zinc Alloyers * Dingxin (Ningbo) Metal Alloy Co., Ltd. Metallwerk Dinslaken * Eastern Alloys, Inc. * Midland Industries, Inc. * Genesis Alloys (Ningbo) Ltd. * Semco Enterprises, Inc. * Industrias Electroquimicas S.A. * Zinc Industrias Nacionales S.A. – ZINSA * Mazak Limited * Zinchem (A Division of Zimco, Pty Ltd.)
Zinc Chemicals * Arch Chemicals Inc. * Umicore * Hakusui Tech Co. Ltd * Zinc Industrias Nacionales S.A. - ZINSA * Industrias Electroquimicas S.A. * Zinchem (A Division of Zimco, Pty Ltd.) * Mazak Limited

Zinc Die Casters * Cast Products Inc. * Foehl China Co. Ltd * Dingxin (Ningbo) Metal Alloy Co. * Lakeside Casting Solution * Dynacast Inc. * Stroh Die Casting/Stroh Controls

Zinc Energy Storage/Batteries * Eveready (Pty) Ltd * Power Air Corporation * Zinc Metal Suppliers * ANI Metal and Chemicals * Richker Metals, Inc. * JAM Industrial Group * Shanghai Jingsheng Metals Co., Ltd. * Metallwerk Dinslaken * Zinchem (A Division of Zimco, Pty Ltd.) * Rezinal n.v. * Zinc Ox Resources plc

4. Market segments, targeting and positioning

VEDANTA IS KNOWN AS OPPORTUNITY SEEKER PLAYER IN MARKET * Only player in india who have mines and smelters too. * Produce 85% of indian consumption * Exports is 33% of total production(2009-10 estimated) * Biggest threat for international zinc market as a * Mines producer(agucha is second largest in world) * Chanderiya is biggest in asia second in world * HZL will be no. 1 by 2010 as a lead-zinc * Producer (combined) * Major Markets : Australia/NZ, Caribbean, East/Middle Africa, North Africa, South/West Africa, East Europe, East Asia, Central America, North Europe, Middle East, South America, South/West Europe, South East Asia and North America
Market segments in the industry This is key part for any industry where we define and analysis the segments on which we have to concentrate more.

Geographic:-They have to cover the whole country as their target areas. * For location specification they have concentrated more on industrial rich states (domestic) and country (international).They have to focus on developing nations more. * Density of their sites will be urban and semi urban

Demographic:-Their targeted customers * Income will be more than 30 laces other than that none of demographic factor can affect their market
Psychographic:-This factor hardly affects the metal / commodity market so they don’t consider it as a core point for segmentation

Behavioural:- * Occasions= Regular * Benefits = Quality, economy, speed * User status =ex-user, regular user * Usage rate= medium user, heavy user * Loyalty status = None, medium, strong * Readiness stage =aware, informed, intending to buy * Attitude toward product = positive, indifferent
Segments addressed by the subject company
Their targeted customers have “DISSONANCE REDUCING BUYING BEHAVIOR “
← Pre purchase research is high
← Few different among brands
← Price and quantity sensitive market
← High involvement
Using Market Segmentation

Customer preference
← For domestic they have “Homogeneous preference”
← For international they have “cluster preference

Positioning adopted in each segment

Basically it tells where they sustain in mind of their customers and then design the strategy to find out space out there. * Over positioning in domestic market * Concentrate more on threats like * import substitution * Binani zinc expansion plan * traders mentality and approaches

For international market they have adopted:- 1. User positioning: It is a positioning in which they concerned on the user’s demand

2. Competitor positioning: * In it they are concerned with competitors product and prices according to that they positioning their product.

3. Product category positioning * According to the demand of the product they positioned and divide into the category.

5. Product Strategies:
As the products of Hindustan Zinc Limited for example, Zinc Ingots(Special high grade-99.99%,High grade -99.95%, Premium grade-99%), Zinc Unwrought, Lead, Cadmium 99%, Silver, Sulphuric Acid 98%
Intermediate products: Calcine, Zinc Sulphate, Zinc Dust are very stable in nature without much of innovations or new product development, hence the product life cycles of such products is huge. Also the cost of new product is enormous hence the scope of new product is very less.

6. Channel and Distribution strategies:
Requirement of customers like Product, Quantity, delivery period and destination etc. are received from various Marketing Offices in the form of Delivery Orders. The Zinc Ingots (finished) is received from the Zinc Electrolysis Plant with proper heat numbers and stacked in Zinc Yard. Zinc Ingots for dispatches /internal consumption are stacked separately. * Dispatch of finished goods to customers is done through their authorized representative or authorized transporter. In case of dispatches to stock points, transporter authorized by Materials and Contracts department at Head Office does it. * For the international market Hindustan Zinc Limited do the frequent export through JNPT port and Mundra port. Hindustan Zinc has its own transport system for import and export purpose. * China is hub for metal market and Chinese are highest importer of Zinc and lead around the world. China has 52% shares in total zinc consumption around world. Hindustan zinc has a long-term relationship with some Chinese traders. * Mainly, Hindustan zinc targeted the developing nations for export and expansion of export programme. Most of Asian countries are in developing phase so they get good opportunities in Asian market. Asia itself is major consumer of zinc. Company to perform and coordinate its marketing functions effectively and also to enhance convenience to customer. * NORTH ZONE: - * For this zone the regional are in the state of Haryana, UP, Punjab, Hibachi Pradesh, and Delhi. The stock points in the region are Gaziabad, Sahibabad, Faribabad, and jagadhari, Chandigarh. Delivery orders through Delhi office. * CENTRL ZONE the regional marketing offices are located at New Delhi, Hyderabad, Kolkata, Mumbai, Bangalore, Jaipur and Udaipur.
HZL has opened a large number of stock points spread all over the country: - * KOLKATA * JAMSHEDPUR * MUMBAI * DAMAN * SILVASSA * GAZIABAD * FIRIDABAD * NAGPUR * PUNE * CHENNAI * CHANDIGARH * AHMEDABAD * HYDERABAD

7. Pricing Strategy
Hindustan Zinc uses different pricing strategy for better grip on the market and to face stiff competition and also to achieve maximum net sales realization multi dimensional pricing approach helps Hindustan zinc to stand in market different types of pricing strategies are elaborated and supported by graph wherever required.

Competitors’ parity Pricing: * Hindustan Zinc mainly price the product with the strategy of competitors price parity prices of the competitors play the major role in the strategy price of the zinc ingots is kept near to the price of the competitors

End use pricing: * End use pricing is that pricing method in which prices are decided by company not by the LME because the prices of LME are higher ,if the customer wants to buy capital goods then he prefer this policy * Day Settlement pricing
Sometime the customer needs to buy the product according to the day to day price, in that case LME decides the price according to the day to day settlement.

Monday to Thursday Pricing Policies: * LME decides the average price weekly from Monday to Thursday and also from Monday to Saturday.

Contract pricing:
← Hindustan Zinc follows the contract pricing policy for long term contract in order to achieve the continuous selling of sulphuric acid since sulfuric acid is the by product in preparation of ZINC and is produced in large quantity as compared to the production of ZINC also being a hazardous waste makes it necessary to sell off sulfuric acid. Sometimes the prices are lower than the production cost that is when the demand is very less so to avoid this loss company goes in for the long term contract of duration from 6 months to 1 year. Although nowadays there is a huge demand in the market therefore prices are high but when prices are low revenue generated from these long- term contract keep the boat on water.

Short Term Contract Pricing:
←Too much dependency on long-term contract cannot be done, as there are some drawbacks of long-term contract like mostly keeping the prices lower than the average market price due to the bulk buying of sulfuric acid. Also too much market volatility may cause the uncertainty in revenue generation therefore Hindustan Zinc has undergone the shorter format for the contract viz. short term contract under this contract scheme customers or the retailers are covered for contract under 15to 30 days for a fixed prices this not only dilutes the effect of market volatility but also makes a good will among the customer as prices may change too much during a fortnight or a month. This pricing was started from June 2008 by Hindustan zinc.

Spot pricing:
← Many a times the customer approach the firm for urgent requirement for the product Hindustan Zinc facilitates these customers with pricing method of spot pricing customer are allowed to fill in a form through e-sales mate programme on company website where they can fill in the required quantity the product major advantage of this method are fast execution of the trade and pricing irrespective of the constraints of future demand the days price are then given by the company if the customer agree on the price the he can take the product from any of the plant location of the firm.

8. Place
Hindustan Zinc supplies zinc from its three plant locations Viz. Debari Zinc Smelter Udaipur, Rajasthan, Chanderiya Lead Zinc Smelter Chittorgarh, Rajasthan, and Vishakhapatnam Zinc Smelter, Vishakhapatnam, Andhra Pradesh. Although the positions are not spread all over the country but strong logistic department facilitates Hindustan Zinc Limited to penetrate to every part of the country ← Strong logistic operation makes it possible for Hindustan Zinc Limited to deliver the goods to every part of the country. * So for trade purposes our main places for businesses are: * China * Taiwan * Singapore * UAE * Belgium
We already have a good relationship with our custom house agent and we have long term contract with some of big shipping lines so do export threw that.
←For the domestic market we have customers threw all over India and we have 13 depots around country and we manage our logistic and supply system. Their depots are: -

Through these depots they manage their business network and it help them to overcome the problem of geographical barrier.


STRENGTH * HUGE RESOURCE * Well established infrastructure Established in 10 January 1966 * HZL have mines and smelters which are more than 20 year old. * They upgrade their technical concern of plant with the time like, * energy conservation system * exchange the technology with foreign player * establishing new plant and machinery and using them with existing plant for better production(Ex. Roaster 3 in Debari plant) * Expanding the process and mine production capacity (Chanderiya and Dariba plant) * Promoters holding (Vedanta) * Vedanta is in top companies of LME * ANIL AGRAWAL, rewarded as entrepreneur of year 2008 * Vedanta did number of Mergers & Aquisitions from last five year like, * ARARCLO in Canada (latest and done in financial crisis period) * Mines in Australia and Zambia * Acquisition of HZL, SESA GOA,NALCO, BALCO etc. * Market leadership * Only player in India who have mines and smelters too. * Produce 85% of Indian consumption * Exports is 33% of total production(2009-10 estimated) * Biggest threat for international zinc market as a Mines producer(Agucha is second largest in world) Chanderiya is biggest in Asia second in world HZL will be no. 1 by 2010 as a lead-zinc producer(combined) * Large network * SEA CONNECTION : they do regular export through * Candla * JNPT * Mundra port

* They have their customers from EUROPE, USA and various part of Asia other than that HZL is planning for opening INLAND CONTAINER DEPO in bhilwara. * Excellent financial condition * They haven’t face lose from the year of establishment. Although there is decline in their profit due to financial collapse and price pressure in LME but market targeted us as a good midcap company with better dividend and good reserves also * Their last year financial result was good compare with other companies in their sector good in CSR And HR practices * In their annual report of year 2009-10 they declared and defined the work that they did for society and for the area’s where they operated * Even mewar region (where their major location are located) accept as a good company who is serious about social issue too(data through public survey)

WEAKNESS * Formal PSU culture * Less effective supply chain management system * Improper utilization of resources * Conventional approach in market field * Largely Dependency on domestic market * HR issues

OPPORTUNITIES * Asian market demand of zinc * Developing countries demand * Cost reduction programme * Worldwide place in zinc sector * Expansion plan for international market

THREATS * Import substitution in domestic market * Current premium policies * Asian low cost zinc producers Ex. Chinese,Korean etc * Domestic Demand pattern




Since the last few years, the mining sector has been a key contributor to India’s GDP. While the approximately 2% during the last 15 years, the sector’s base has grown in line with the GDP growth of the country. The Indian mining sector has performed reasonably well in the last few years and the same has been captured in the volume companies listed on the Indian bourses, namely Coal India, NMDC (National Mineral Development Corporation) and Sesa Goa. During 2010, Coal India, the world’s largest coal company, raised more than INR150 billion through an IPO, for its future expansion plans. It was the largest and one of the most successful IPOs in the Indian capital market history and is the largest Indian company by market-cap today. In addition, other mining companies such as MOIL (Manganese Ore India Ltd) and NMDC have also successfully raised capital to accelerate their future expansion states such as Orissa have witnessed GSDP grow at a faster pace, riding on the mining boom. However, there is a need to increase exploration and expand focus on minerals beyond coal and iron ore.
Up until now, both the lack of funds and relatively stringent mining policies have restricted the growth of the Indian exploration industry. However, “resource nationalism,” which is picking up across the globe, may actually turn out be a silver lining for the domestic exploration industry. India is largely unexplored and, therefore, it offers good opportunities for mining exploration companies to set up their facilities and be a part of the Indian growth story for the next decade. To reveal the actual value of the underlying minerals, all the stakeholders in the Indian mining sector need to consider, inter alia, the following:

Changes required in mining exploration models
The mining exploration model in the country needs to be changed. For several decades, GSI into exploration issues at the national level. As a result, India has till now explored only 2%–3% of the mineral reserves as against almost 100% geophysical and geochemical surveys in countries such as Australia. Basically, the Central Government and the respective state governments in India have different legislature and policies to deal with for different minerals. It is time for state governments to proactively plan and equip themselves with technologies to establish the mineral reserves in their respective states.

Increase funds allocated to the exploration agencies
There is an urgent need to increase the funds allocated to Indian exploration agencies such as GSI and MECL. An investment of US$1 in exploration is estimated to give a return of around US$15. While in Canada, more than US$2 billion was invested for mineral exploration during 2010, the corresponding increase in budget will help these agencies to strengthen their exploration base, which will bring more reserves into the public domain, further boosting investment in the extraction sector in India.

Frequent assessment of mining reserves in the country
There is not much clarity about the exact quantum, quality and location of resources/reserves. While
GSI, Mineral Exploration Corporation, National Remote Sensing Agency, Indian Bureau of Mines and
National Geophysical Research Institute maintain geological databases, there is a need to assess and update data more frequently for a more recent and comprehensive picture of our mineable resources.

Promote contract mining
In the last few years, India has largely focused only on coal and iron ore mining in the country. Currently, most of the mines under operation are the open cast mines as the country lacks technology and expertise required for underground mining. There is a need to attract foreign players in the form of other mineral resources, especially the underground prices, moving exchange rates and increasing mining costs, as a mine owner can choose a contract, the contract at a very short notice. Recently, some contract mining agreements have taken place in the coal sector, but such agreements need to be expanded aggressively to minerals such as diamond, gold and base metals. Australia, the hub of contract mining activities, is at a much advanced stage in the exploration of these minerals. While giving lucrative contract mining propositions to the contract mining companies in
Australia is a good way to proceed further in the JVs will not only equip Indian players with foreign technologies, especially in underground mining, but will also help Indian workers to learn about the operations of heavy mining equipment.

Promote transparency in mining operations
According to the Fraser Institute 2010–11 Survey, India is ranked very low on the “attractiveness of the government mining policies” and that is the reason committing large capital to the Indian mining industry.
India needs to present a more transparent picture of mineral tenement information, close to a real-time basis, for potential investors. A separate agency should report the progress and status of every mining lease provided in the country. It should be ensured that every at a particular interval and information is reported from the start of mining operations right to the mine-closing operations.

Raise risk capital for exploration business
The Government of India can also consider the launch of exploration bonds in lines of infrastructure bonds to create a central cash reserve, which can only be used for mining exploration in the country. All new companies or JVs formed in the exploration sector should be given some relaxation to get listed on the country’s stock exchanges.This well as the exploration companies. For example, it can be easily done through exchanges. It will not only heighten the interest of investors in the Indian exploration business, but will also enable the local public to understand the true value of underlying minerals. Kolar Gold Mines recently got listed on AIM and has further exploration for new resources. It provides a new window or avenue to exploration companies, which are planning to enter India, but cannot their operations. In addition, further reforms such as allowing accelerated depreciation on exploration equipment and providing deemed taxation regime for mining service providers (as available to oil and gas service providers) will also promote mineral exploration in the country.…...

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