In a major strategic move towards diversifying its natural resources portfolio, Lloyds Enterprises Ltd has announced that it will acquire over 31% stake in Geomysore Services India Private Limited for approximately ₹140 crore. The proposed acquisition aims to mark Lloyds’ formal entry into the gold mining sector, leveraging Geomysore’s exploration and mining expertise to build robust value chains in India’s mineral and metals ecosystem.
Deal Details
As per the regulatory filing, Lloyds Enterprises will:
- Acquire 31.24% equity stake in Geomysore Services India Private Limited.
- Invest approximately ₹140 crore as part of the equity purchase deal.
- Complete the transaction upon fulfilling necessary regulatory approvals.
The acquisition will be routed via a share purchase agreement and is expected to be completed within the next 60-90 days.
About Geomysore Services India
Geomysore Services is one of India’s prominent gold exploration and mining companies with significant presence in Karnataka and Andhra Pradesh.
| Particulars | Details |
|---|---|
| Founded | 1994 |
| Sector | Gold exploration & mining |
| Key Projects | Jonnagiri Gold Project (AP), Ganajur Gold Project (Karnataka) |
| Annual Gold Potential | Over 2 tonnes (combined projects, once operational) |
| Promoter | Thriveni Earthmovers (major stakeholder) |
The company has achieved advanced stages of mining clearances for its flagship Jonnagiri project in Andhra Pradesh, considered India’s first private sector gold mining project to reach production approvals in recent decades.
Strategic Rationale for Lloyds Enterprises
Lloyds Enterprises, part of the Lloyds Group with interests in steel, mining, and infrastructure, is betting on the following strategic benefits through this acquisition:
- Diversification into gold mining: Reducing over-dependence on ferrous metals.
- Entry into high-margin business: Gold has significantly higher EBITDA margins compared to bulk metals.
- Leveraging Geomysore’s licenses and expertise: To integrate mining, refining, and value addition.
- Strengthening raw material security: For potential expansion into precious metal processing in future.
Board Statement
A senior Lloyds Enterprises board member stated,
“India imports 700-800 tonnes of gold annually. Our strategic entry into gold mining through Geomysore creates a long-term value chain play. This acquisition aligns with our focus to build a robust, diversified natural resources portfolio.”
Recent Developments at Geomysore
- Jonnagiri Gold Project has received mining lease approvals from the Andhra Pradesh government.
- The plant construction and site development works are ongoing, with trial production targeted within 2025-26.
- Ganajur Project (Karnataka) is awaiting final environmental clearances and Supreme Court-mandated approvals before mine development.
Competitive Landscape
| Company | Key Project | Estimated Reserves | Current Status |
|---|---|---|---|
| Hutti Gold Mines | Hutti Mine, Karnataka | ~50 tonnes | Operational |
| Geomysore Services | Jonnagiri (AP), Ganajur (Karnataka) | ~20 tonnes combined | Under development |
| Deccan Gold Mines | Ganajur Gold Project | ~15 tonnes | Clearance pending |
India’s annual gold production remains under 2 tonnes, with Hutti Gold Mines being the only operational producer. Geomysore’s projects are expected to double domestic gold output once operational, reducing import dependence marginally.
Indian Gold Mining Sector Opportunity
India ranks among the world’s top gold-consuming nations, yet domestic mining is minimal. The government has recently amended mining policies to attract private investment and global technology players.
| Metric | India | China | Australia |
|---|---|---|---|
| Annual Gold Production | <2 tonnes | 375 tonnes | 330 tonnes |
| Annual Gold Demand | 700-800 tonnes | 950 tonnes | 250 tonnes |
| Import Dependency | ~98% | ~60% | <20% |
Financials of Geomysore Services (FY23)
| Particulars | FY23 (₹ crore) |
|---|---|
| Revenue | 5 (exploration income) |
| EBITDA | -12 |
| Net Loss | -18 |
| Net Worth | 210 |
Losses are typical of exploration-phase companies prior to commercial production. Post mining commencement, revenue and profitability are expected to scale up rapidly, based on current feasibility reports.
Future Plans
Post-acquisition, Lloyds Enterprises aims to:
- Support faster operationalisation of Jonnagiri and Ganajur projects.
- Explore additional joint ventures in mineral exploration.
- Evaluate setting up a gold refinery to integrate value chains within the group.
Analyst Views
Mining analysts see the Lloyds-Geomysore deal as a milestone in India’s private gold mining ecosystem.
- Rajiv Kumar, Metals & Mining Consultant: “Lloyds gains early mover advantage in private gold mining. Successful operationalisation of Jonnagiri can make them a strategic domestic gold producer, marginally reducing India’s gold trade deficit.”
However, they caution about regulatory, environmental clearance, and local rehabilitation challenges, typical of mining projects in India.
Broader Impact on India’s Gold Mining Policy
The transaction signifies private sector confidence in the government’s mining liberalisation initiatives. With increasing focus on import substitution, such deals could catalyse further investments in mineral exploration and mining production.
Conclusion
Lloyds Enterprises’ acquisition of over 31% stake in Geomysore Services India for ₹140 crore marks its aggressive foray into the gold mining business. While it diversifies Lloyds’ portfolio beyond steel and iron ore, success will depend on the timely operationalisation of Geomysore’s mines and navigating India’s complex mining regulatory landscape.
Disclaimer: This news report is for informational purposes only and does not constitute investment advice, recommendation, or an offer to buy or sell any securities. Readers must consult certified financial advisors and refer to official company filings before making investment decisions. The publication is not responsible for any investment or business decisions based on this report.
