The firm stated that this strategic move will allow it to diversify within the mining sector to reach the overall objective of optimizing reductions in input costs for integrated steel business.
The new line of business, MDO, falls under the Metals and Mining Industry. More specifically, it falls under the sub-sector of Mineral Extraction and Resource Development, which involves the exploration, development, and operation of mines for the extraction of various minerals and other natural resources.
The adoption will provide benefits such as cost reduction in integrated steel operations, improved supply chain efficiency, optimise operational costs, enhanced profitability, enhanced market position and provide access to valuable resources.
The company said that this move will allow to expand offerings in the MDO segment, with the expertise and experience gained being exclusively accredited to and utilized by the company.
Additionally, it will provide stability over a longer period of time through sustainable mining practices, and the opportunity to build a strong, competitive presence in the industry, the firm added.
The investment amount depends on various factors, including scale of operations, research and development costs, technologies and equipment, regulatory compliance, etc.
Lloyds Metals and Energy is a metals and mining company engaged in mining iron ore, manufacturing sponge iron and generating power.
The company had reported a 30.3% jump in consolidated net profit to Rs 301.32 crore on a 25% increase in net sales to Rs 1,364.43 crore in Q2 FY25 as compared with Q2 FY24.
The counter hit an all-time high of Rs 1,100.80 in intraday today.