In a significant development in India’s mining and steel sector consolidation, Lloyds Metals and Energy Ltd (LMEL) has acquired nearly 80% stake in Thriveni Earthmovers Private Limited (TEPL), one of India’s largest mining services companies. The acquisition marks a major strategic step to expand Lloyds’ integrated mining-to-steel operations and strengthen raw material security amid rising domestic steel demand.
Transaction Highlights
- Acquirer: Lloyds Metals and Energy Ltd (LMEL)
- Target Company: Thriveni Earthmovers Private Limited (TEPL)
- Stake Acquired: 79.93%
- Deal Value: Estimated around Rs 3,500 crore (as per market sources)
- Deal Type: Cash and equity swap combination
- Completion: Subject to regulatory and shareholder approvals
About Thriveni Earthmovers
| Particulars | Details |
|---|---|
| Founded | 1991 |
| Headquarters | Keonjhar, Odisha |
| Business | Mining development & operations, mineral logistics, infra |
| Revenue (FY24) | Rs 4,300 crore |
| EBITDA (FY24) | Rs 1,050 crore |
| Key Clients | NMDC, Tata Steel, JSW, Vedanta |
| Fleet | 4,800+ mining and infra equipment units |
| Employee Strength | Over 25,000 |
Thriveni is known for large-scale iron ore, coal, bauxite, and limestone mining contracts across India with operations in Odisha, Chhattisgarh, Jharkhand, and abroad.
Strategic Rationale Behind The Deal
- Vertical Integration Synergy
- Lloyds Metals, engaged in iron ore mining, sponge iron, and steel manufacturing, will gain direct access to India’s largest private mining services fleet, ensuring efficient raw material extraction and logistics.
- Cost Efficiency & Scale
- Thriveni’s mechanised fleet and operational expertise will reduce Lloyds’ mining costs by an estimated 12-15%, improving steel plant profitability.
- Expansion Into New Minerals
- Thriveni’s diverse mineral portfolio, including coal and bauxite, will support Lloyds’ backward integration strategy for future aluminium and power ventures.
- Strengthened Balance Sheet
- Post-acquisition, Lloyds’ consolidated revenue is projected to cross Rs 10,000 crore in FY26, positioning it among India’s fastest-growing mid-tier steel and mining conglomerates.
Management Commentary
Baba Kalyani, Chairman, Lloyds Metals, stated:
“This acquisition of Thriveni Earthmovers is transformative. It significantly enhances our mining capabilities, ensures iron ore security for our expansion projects, and provides us with a national footprint in mining services and infrastructure development.”
B. Prabhakaran, MD, Thriveni Earthmovers, said:
“We are proud to join hands with Lloyds Metals. Together, we will drive innovation and sustainable mining practices to meet India’s steel and infra growth targets under Make in India.”
Deal Financing Structure
| Particulars | Amount (Rs crore) | Mode |
|---|---|---|
| Equity Swap | 1,500 | Lloyds shares issued to Thriveni promoters |
| Cash Payment | 2,000 | Through internal accruals and debt |
| Total Deal Value | ~3,500 |
Impact On Lloyds Metals’ Financials (Pro Forma)
| Particulars | FY24 (Standalone) | FY24 (Consolidated Post-Acquisition) |
|---|---|---|
| Revenue | 5,200 crore | 9,500 crore |
| EBITDA | 1,250 crore | 2,200 crore |
| Net Profit | 780 crore | 1,400 crore |
| EBITDA Margin (%) | 24.0 | 23.2 |
| Net Debt/EBITDA | 1.3x | 2.1x |
(Source: Company filings, market estimates)
Thriveni Earthmovers’ Recent Key Projects
| Project Name | Location | Client | Commodity | Capacity (MTPA) |
|---|---|---|---|---|
| Bailadila Iron Ore | Chhattisgarh | NMDC | Iron Ore | 12 |
| Gandhamardan Mines | Odisha | OMC | Iron Ore | 8 |
| Joda East Expansion | Odisha | Tata Steel | Iron Ore | 6 |
| Jharsuguda Block | Odisha | Vedanta | Coal | 5 |
Industry Outlook: Mining Consolidation In India
Analysts see this deal as a reflection of the ongoing consolidation in India’s mining sector, driven by:
- Government push for higher mineral output under Atmanirbhar Bharat.
- Private sector expansion into mining services and mineral processing.
- Entry of steelmakers into mining to ensure raw material security amid rising iron ore prices.
Peer Comparison
| Company | FY24 Revenue (Rs crore) | EBITDA Margin (%) | Key Strengths |
|---|---|---|---|
| Lloyds Metals (post acquisition) | 9,500 | 23.2 | Integrated mining-to-steel with mining services |
| NMDC | 17,600 | 49.0 | Largest iron ore miner with PSUs clients |
| Vedanta Mining | 12,800 | 28.0 | Diverse mineral portfolio – coal, bauxite, zinc |
| Thriveni Earthmovers | 4,300 | 24.4 | Largest private mining contractor |
Stock Market Reaction
Lloyds Metals’ shares surged 4.6% intraday post announcement, with analysts citing:
- Positive integration synergies
- Enhanced revenue visibility
- Improved mining cost efficiencies
However, some expressed concerns over the rise in consolidated debt, which will need prudent management to maintain healthy credit ratings.
Analyst Views
- Motilal Oswal: Maintains BUY rating with revised target price of Rs 1,050 citing strong revenue growth prospects.
- ICICI Securities: Notes potential integration challenges but sees long-term strategic merit.
- HDFC Securities: Sees the acquisition boosting Lloyds’ market position in mining and steel, recommends ADD.
Future Plans Post Acquisition
- Enhance Mining Output: Expand Thriveni’s iron ore and coal mining contracts to support steel plant raw material requirements.
- Sustainable Mining: Deploy electric mining equipment and AI-based fleet management for carbon reduction.
- International Expansion: Evaluate mineral opportunities in Africa and Southeast Asia through Thriveni’s overseas arms.
- Steel Capacity Expansion: Double steel production capacity to 3 MTPA by FY28 leveraging secure iron ore supplies.
Disclaimer:
This article is for informational purposes only, based on public filings, analyst reports, and company statements. It does not constitute investment advice. Readers are advised to consult certified financial advisors before making any investment decisions.
