Lloyds Metals’ ₹25,000 crore steel plan for 2030

Why Lloyds Metals’ new plan matters

Lloyds Metals & Energy Ltd (LMEL), described as India’s largest listed iron ore miner by market capitalisation, is preparing a large expansion that changes the company’s profile. The company has outlined a ₹25,000 crore programme to move from being primarily a miner to becoming a fully integrated steelmaker. The target is to build 6 million tonnes (6 mn tonnes) of steel capacity by 2030. The build-out is centred on Maharashtra, with Gadchiroli and Chandrapur as key locations. The company’s plans also link to local development projects and job creation in Gadchiroli.

Company background and operating footprint

LMEL was incorporated in 1977 as a steel manufacturing company. In 1994, it commissioned the first part of the Ghugus Unit (Unit 1) and started production with an annual capacity of 150 thousand metric tonnes. In 2023, LMEL began operations of the Konsari steel plant with an annual capacity of 72 thousand tonnes per annum (ttpa). These legacy and newer assets provide context for the much larger capacities now being planned.

The ₹25,000 crore expansion: shift to integrated steel

LMEL’s stated objective is to become a fully integrated steelmaker with 6 mn tonnes of capacity by 2030. The centrepiece is a 4.5 mn tonne blast furnace in Gadchiroli, scheduled for completion by late 2027 or early 2028. This is to be followed by a 1.2 mn tonne furnace in Chandrapur by 2029–30. The company’s integrated steel complex is planned to initially focus on 3 mn tonnes of hot-rolled coils and 1.2 mn tonnes of wire rods. These products are aimed at sectors ranging from construction to automotive manufacturing.

Pellet capacity build-out and logistics assets

Pellet capacity is a core part of the expansion blueprint described in the provided material. LMEL commissioned a pellet plant of 4 million tonnes per annum (4 mtpa) at the Konsari plant in June 2025. The company also said it has successfully commissioned a pipeline and a 4 million ton pellet plant, and positioned both as fast executions.

In addition, LMEL said it has invested in two pellet plants: Mandobi River Pellets Private Limited (west coast near Goa) and Damani River Pellets Limited (east coast in Odisha). The company framed this as building access to pellet markets across east, west, and central India, with an eye on both domestic and export markets. Separately, another part of the provided text states LMEL is commissioning a 5 mn tonne pellet plant in the current financial year as part of a phased plan to expand pellet capacity to 12 mn tonnes.

Blast furnace investment signals the steel pivot

In October 2025, the company announced an investment of INR 250 million (₹25 crore) to set up a 4.5 mtpa blast furnace at the Konsari plant by 2027–28. In the larger expansion narrative, the 4.5 mn tonne blast furnace in Gadchiroli is described as the centrepiece, with completion targeted for late 2027 or early 2028. While the figures are presented in different sections, both point to the same strategic direction: moving from mining and intermediates into primary steelmaking scale.

Funding approach: internal accruals and cash flows

LMEL has indicated it plans to rely largely on internal accruals rather than aggressive leverage. The company expects annual cash flows of ₹3,000–5,000 crore from fiscal 2026, supporting its capital expenditure programme. It has also said it plans to rely on internal accruals from its 25 mn tonne annual iron ore production. The company has already invested ₹5,000 crore and intends to keep debt conservative.

Managing director B Prabhakaran was quoted saying, “We are not debt averse but would like to be very calibrated in debt raising,” and added that he would like net debt to be lower than EBITDA. LMEL reported consolidated EBITDA of ₹808.7 crore in the June quarter.

Mining scale-up and the Thriveni Earthmovers acquisition

Alongside steelmaking capacity additions, LMEL has highlighted mining expansion. It said it received environmental clearance to expand mining to 26 to 55 million tons per annum, up from 10 million tons. Separately, the company completed the acquisition of a 79.8 per cent stake in Thriveni Earthmovers, described as a large mining developer-operator. The acquisition brought an order book worth ₹70,000 crore over the next 15–18 years.

These steps are positioned as strengthening the mining business, improving cost efficiency, and supporting margins, particularly as the company attempts to fund a capital-heavy steel build-out.

Gadchiroli: industrialisation and local projects

The expansion narrative is closely tied to Gadchiroli’s changing investment climate. Maharashtra Chief Minister Devendra Fadnavis has positioned Gadchiroli as a future steel hub. In July, he inaugurated a 5 mn tonne iron ore grinding unit and a 10 mn tonne slurry pipeline at Hedri, described as the first in the state. The same event also included the foundation stone for LMEL’s 4.5 mn tonne steel plant, along with a 100-bed hospital, a CBSE school, and a 116-acre township.

LMEL has already created 12,000 jobs in the district and expects the new steel plant to add 20,000 more. More than 10,000 employees have been given shares under a stock option plan, according to the provided material.

Market backdrop: steel demand and global context

LMEL’s timing is linked in the text to strong steel demand and capacity additions across India. One section states steel demand continues to remain at 8.9 percent growth. The broader global context cited includes a Verified Market Research estimate that the global steel market, valued at $1.25 trillion in 2024, will reach $1.08 trillion by 2032, with a compound annual growth rate of 2.25 per cent from 2026.

Key facts at a glance

What investors will track next

The stated milestones are clear: the 4.5 mn tonne blast furnace targeted for late 2027 or early 2028, followed by the 1.2 mn tonne furnace by 2029–30. Investors will also watch progress on pellet capacity additions, including the 5 mn tonne pellet plant described as being commissioned in the current financial year. LMEL has linked its funding strategy to internal cash generation from mining and expects annual cash flows of ₹3,000–5,000 crore from fiscal 2026. The company’s ability to execute simultaneously across locations, while keeping net debt below EBITDA as articulated by management, will remain central to how the market evaluates this transition.