CCI Approves Lloyds Metals’ 49.99% Acquisition in Thriveni Pellets to Boost Iron Ore Value Chain

The Competition Commission of India (CCI) has granted its approval for Lloyds Metals and Energy Limited (LMEL) to acquire a 49.99% equity stake in Thriveni Pellets Private Limited (TPPL), a move expected to strengthen LMEL’s presence in India’s fast-growing iron ore and pellet manufacturing sector.

The transaction, described as the ‘Proposed Combination’, involves LMEL’s purchase of nearly half of TPPL’s equity share capital, marking a strategic partnership between two key players in India’s steel and mining value chain.

According to the CCI’s disclosure, the regulator examined the deal under Section 6(1) of the Competition Act, 2002, and concluded that it does not pose any adverse effect on market competition. The Commission’s detailed order on the approval will be published in due course.

Strengthening India’s Iron Ore and Steel Ecosystem

The acquisition represents a significant development in India’s iron ore beneficiation and pelletisation industry, which is witnessing rising investment as the country seeks to expand its domestic steel production capacity in line with the National Steel Policy 2017, targeting 300 million tonnes (MT) of annual capacity by 2030.

By acquiring a substantial stake in TPPL, Lloyds Metals and Energy aims to secure consistent pellet supply, enhance vertical integration, and reduce dependency on third-party raw materials. Pellets, which are produced from iron ore fines, serve as a crucial input in Direct Reduced Iron (DRI) and blast furnace steelmaking, making them vital for the growth of India’s metallurgical industries.

Profile: Lloyds Metals and Energy Limited

Lloyds Metals and Energy Limited (LMEL), incorporated as an iron ore mining company, has evolved into a diversified industrial entity with multiple business segments, including:

• Iron ore mining — the extraction and supply of iron ore fines and lumps from its operations in Maharashtra and Odisha;

• Direct Reduced Iron (DRI) production, also known as sponge iron, used in electric arc furnace steelmaking;

• Captive power generation to support its industrial operations; and

• Pellet trading, which involves both domestic and export markets.

LMEL’s strategic focus on sustainable mining practices and value-added iron products aligns with India’s broader objectives of self-sufficiency in raw material supply and carbon-efficient steelmaking.

The company has been expanding its footprint in the Vidarbha region of Maharashtra, where it operates a major iron ore mine and beneficiation plant, and has announced plans to increase pellet production capacity to meet growing domestic demand.

Profile: Thriveni Pellets Private Limited

Thriveni Pellets Private Limited (TPPL), the target company in the transaction, is primarily engaged in the sale of iron ore pellets across India. It plays a key role in the iron ore beneficiation and pelletisation segment, which converts low-grade iron ore into high-grade feedstock suitable for steel plants.

TPPL’s wholly owned subsidiary, Brahmani River Pellets Limited (BRPL), operates one of India’s prominent pellet production facilities, located in Jajpur, Odisha, with an annual capacity exceeding 4 million tonnes. BRPL’s operations are strategically positioned close to iron ore mines and port infrastructure, enabling cost-effective logistics for both domestic consumption and exports.

By leveraging BRPL’s production capabilities, TPPL has established itself as a reliable supplier of high-quality iron ore pellets to major Indian steel producers. The company is also known for adopting energy-efficient and environmentally sustainable production technologies.

Synergies and Strategic Implications

The acquisition is expected to yield strong operational synergies between LMEL and TPPL. By combining LMEL’s mining and DRI expertise with TPPL’s pelletisation and marketing network, the companies can achieve end-to-end integration — from iron ore extraction to pellet production and sales.

This structure is expected to:

• Ensure raw material security for LMEL’s DRI and steel operations;

• Enhance production efficiency and reduce logistics costs;

• Expand export opportunities through Singapore-based trading channels; and

• Boost capacity utilisation across both companies’ facilities.

Industry observers note that the deal reflects a broader trend in India’s metals and mining sector, where companies are pursuing backward and forward integration to stabilise input costs amid global price volatility.

CCI’s Role and Market Impact

The CCI’s approval confirms that the deal is unlikely to distort competition within India’s iron ore and steel supply chain. Given that both entities operate primarily in complementary segments — LMEL in mining and DRI, and TPPL in pelletisation — the combination is expected to enhance operational efficiency without reducing competitive intensity.

The CCI’s nod also signals regulatory support for consolidation and capacity building in core industries that underpin India’s manufacturing ambitions.

India’s Pellet Market on a Growth Trajectory

India’s iron ore pellet production has surged in recent years, driven by rising domestic steel demand and export opportunities, especially to China and Southeast Asia. The government’s focus on sustainable mining and reduction of raw material exports has encouraged value addition within India, spurring investments in beneficiation and pelletisation plants.

According to data from the Ministry of Steel, India produced over 100 million tonnes of iron ore pellets in FY2024, a figure projected to grow substantially as new plants come online.

Outlook: Vertical Integration for Sustainable Growth

The LMEL–TPPL partnership represents a strategic alignment with India’s industrial goals of resource efficiency and green manufacturing. With the steel industry responsible for nearly 2% of India’s GDP and employing millions, such integrations help stabilise input costs, improve energy efficiency, and reduce carbon emissions through optimised resource use.

As global steelmakers face increasing pressure to decarbonise, investments in efficient pellet production and renewable power integration will become vital components of India’s low-carbon industrial transition.

The detailed CCI order is expected to provide further insights into the transaction’s structure, valuation, and market assessment.

For now, the approval marks a key milestone in India’s evolving mining-to-metals value chain, with LMEL and TPPL poised to play a central role in shaping the future of sustainable iron ore processing and steel production.