Lloyds Metals Doubles Pellet Capacity with New Konsari Plant, Strengthens Integrated Steel Value Chain

Lloyds Metals and Energy has taken a significant step in strengthening its position in the steel value chain by commissioning its second pellet plant at Konsari in Maharashtra. The newly operational facility has a capacity of four million tonnes per annum, effectively doubling the company’s total pellet production capacity at the site to eight million tonnes per annum.

What stands out is the speed of execution. The plant was completed within just 16 months from the start of construction, reflecting strong project management capabilities and operational efficiency. This rapid commissioning also comes at a time when demand for high-quality raw materials in steel production continues to remain strong across both domestic and export markets.

The Konsari complex benefits from a well-integrated ecosystem. It is closely linked to the company’s captive iron ore mines located in Surjagarh, ensuring a steady and cost-effective supply of raw materials. A key enabler of this integration is the 85-kilometre slurry pipeline, commissioned in June 2025, which facilitates seamless transportation of iron ore. This significantly reduces logistics costs and enhances supply reliability.

The first pellet plant at Konsari is already operating at full capacity, which is expected to support a smooth ramp-up of the second unit. This operational synergy will help Lloyds Metals maintain consistent output levels while optimizing production efficiency.

More importantly, the company’s focus on backward integration across mining, logistics and processing gives it a competitive advantage. This setup allows the production of low-alumina pellets, which typically command better pricing due to their superior quality. As a result, the company is well positioned to improve margins while enhancing its presence in both domestic and global markets.

With this expansion, Lloyds Metals is not just increasing capacity but also reinforcing its long-term strategy of building an efficient and fully integrated steel ecosystem.