The company will increase the Ghugus plant’s capacity by 1.85 lakh
million tonnes per annum to 8.15 lakh million tonnes per annum from 6.30 lakh million tonnes per annum. The Konsari plant’s capacity will rise by 22,400
million tonnes per annum to 92,400 million tonnes per annum from 70,000 million tonnes per annum.
The company will invest ₹140 crore at the Ghugus plant and ₹50 crore at the Konsari plant. Both expansions will be financed through internal accruals and are planned to be completed within one year.
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Lloyds Metals said the capacity enhancement will be achieved through debottlenecking measures and optimisation of process and technological parameters.
Company approves ₹1,550 crore NCD issuance
The board also approved the issuance of two separate non-convertible debentures (NCDs) aggregating up to ₹600 crore and ₹950 crore, respectively, through private placement.
The proposed issuance, totalling up to ₹1,550 crore, is subject to applicable regulatory and statutory approvals and falls within the overall limits previously approved by the board.
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Expansion to improve utilisation of existing facilities
The company said the capacity expansion is aimed at improving operational efficiency and utilisation of the existing kiln facilities at both plants.
It said the expansion aligns with its strategy of strengthening its presence across the complete steel-making value chain, enabling efficient utilisation of available iron ore reserves and value addition through forward integration with existing sponge iron facilities.
Shares of Lloyds Metals and Energy Ltd ended at ₹1,826.20, down by ₹1.75, or 0.096%, on the BSE.
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