Dear Shareholders,
I hope this message finds you all in the best of health. It gives me immense pleasure
to present to you the Company's first integrated annual report at the end of what was
undeniably a milestone year. LMEL's listing on the National Stock Exchange (NSE) in July
2023 marked a pivotal moment in our journey of excellence of the Company, which was
already listed on the Bombay Stock Exchange (BSE). This notable development was
underscored by several new and landmark achievements in both our operational and financial
trajectories. Encouraged by this performance,
I am happy to share that the Company has decided on a dividend @ 100% (Face Value - Rs.
1) for our shareholders for the year.
Driven by our deep-rooted resilience and resourcefulness,
FY 2023-24 underlined the success of our continuing efforts to remain relevant to our
customers and other stakeholders. Our remarkable display of operational excellence, as
manifested in the increase in our iron ore capacity from 3 MMTPA to 10 MMTPA, underpinned
our inherent capability to scale spectacular growth with agility. With its Board of
Directors approving further iron ore mining capacity expansion up to 55 MMTPA, including
BHQ mining, the Company has paved the way for charting new horizons of growth and
stakeholder value creation. This will make us a one-of-a-kind single-location mine
operating at this scale in India in the iron ore segment. More importantly, it will
redefine our industry standing as a leader par excellence.
The swift execution of the Konsari DRI plant in a period of just 13 months post-receipt
of EC marked another milestone achievement for the Company, which continues to move with
swift agility to drive impactful change. The commissioning of the plant has paved the way
for making Gadchiroli the steel city of India.
We are now focussed on lifting the economy of Gadchiroli by providing the much-needed
stimulus in terms of investment in the region. This is in line with our ambition to
transform the lives of the people we touch in any way through our business.
At LMEL, we have always believed in pioneering change as part of our endeavour to
partner with India's long-term and sustainable growth and remain committed to taking
proactive actions towards the same. Our investments in Gadchiroli, will set the course for
unprecedented development of the region. At the same time, this will help consolidate the
Company's position as a game- changer for the industry, propelled by its strategic aim to
become the lowest cost producer of steel in the country - a feat that will set LMEL apart
as a distinctive player. Our low cost production focus will also help us weather
unfavourable steel cycles effectively, enabling us to deliver on our profitable growth
promise to our stakeholders.
We articulated a comprehensive roadmap in FY 2023-24 to chart our course for the
future, and enable us to set new benchmarks in steel making in India. Our direction is
clear, and our execution team is fully dedicated to the realisation of our goals, with
specific timelines backed by diligent efforts to meet them. We are moving proactively
towards forward integration in our operation to become a value- added steel maker with a
4.2-million- tonne steel capacity in total. This includes a good mix of 3-million-tonne
flat products and 1.2 million tonnes of long products. Expanding our iron ore production
is central to our plans, with beneficiation playing a crucial role.
I am happy to share that our capex plans, including key facilities such as the
85-kilometre slurry pipeline and the 360-kilotonne DRI plant, are advancing swiftly,
giving us the confidence of a future filled with limitless possibilities for enhanced
growth.
We strongly believe that LMEL's strength and its ability to shine through any adversity
is driven by its stakeholders, be it the employees, suppliers, customers or investors.
It will be our focussed endeavour, going forward, to make the right strategic choices
to ensure their holistic progress, backed by sustained value creation for them. Our
efforts will be centred around negotiating every obstacle with dexterity to deliver growth
that is sustainable and allinclusive, giving every stakeholder a reason to be proud of
being associated with the Company.
LMEL remains stronger than ever, and with your continued support and trust, will power
ahead with greater momentum in the months and years ahead. On behalf of the Board and the
entire team at LMEL, I would like to thank you for being our partner in this scintillating
journey of excellence.
Regards
Mukesh Gupta
Chairman