India: Lloyds Metals commissions 4 mnt pellet plant, consolidates market presence

• Company now has 8 mnt pellet plants in operation
  
  
• Iron ore production reaches record 22 mnt in FY'26
  
  

Lloyds Metals and Energy (LMEL) has commissioned its second 4-million tonne (mnt) pellet plant at Konsari, Maharashtra, taking its total in-house pellet capacity to 8 mnt/year. Completed in a record 16 months, the project highlights the company's strong execution capabilities and rapid scale-up in downstream integration. With the first unit already operating at 100% utilization, the additional capacity is expected to drive a notable increase in pellet availability in the near term.

The expansion is supported by Lloyds's integrated operations, with captive iron ore from Surjagarh mines and a dedicated 85-km slurry pipeline ensuring efficient raw material linkage and cost optimization. The low-alumina nature of its ore enables the production of premium-grade pellets (Fe 64%), supporting better realizations.

Operational highlights
Pellet production stood at 3.03 mnt in FY'26, reflecting 100% capacity utilization of the earlier existing plant. DRI output reached 0.48 mnt, up 57% y-o-y, supported by the commissioning of a new 0.36 mnt facility. On the upstream side, iron ore output rose to 21.96 mnt in FY'26 (up 119% y-o-y), with a guidance of 26 mnt for FY'27, ensuring adequate feedstock to sustain higher pellet run rates.

Market scenario
The capacity addition comes amid moderate domestic pellet demand, which is likely to heighten competitive intensity. Lloyds has already begun offering pellets and iron ore lumps at competitive prices in key regional markets such as to central India-based plants and nearby regions.

The company actively concluded shipments in pellet exports, having concluded several deals in the last fiscal year, offering competitive prices for its Fe 64% grade pellets.

Outlook:
With capacity doubling to 8 mnt and strong backward integration, the company is well-positioned to scale up dispatches rapidly. Its combination of higher volumes, cost efficiency, and logistical advantage is expected to strengthen its foothold in central and southern India, with the potential to influence regional pricing trends and trade flows in the coming quarters.