THEY ALSO WANT TO MAKE STEEL

India's steel sector is dominated by five companies. Now, half a dozen more are making serious investments

- Dipali Banka & Nehal Chaliawala

Experts say the new entities coming in could be the first signs of the steel sector becoming more diversified. However, they add that the tight grip of the leading steel mills will not end anytime soon.

At the beginning of 2025, Maharashtra-based mining company Lloyds Metals and Energy Ltd made headlines for granting stock options to its blue-collar workers, including some former Maoists, as it sought to foster a sense of ownership in its workforce.

The company's gesture made for a heartwarming story. But what didn't garner as much attention was the news that Lloyds Metals and Energy is one of the few companies to have entered the steel sector in the last two decades. The company is setting up steel plants in Gadchiroli and Chandrapur districts in Maharashtra at a cost of ₹20,000-25,000 crore.

Lloyds is not alone; many other companies have entered the steel sector, lured by the prospects of a rapidly growing India needing the alloy to make roads, railways, infrastructure and houses for millions. They include ACME Group, a renewable energy company; Synergy Capital, which is backed by former ArcelorMittal dealmaker Sudhir Maheshwari; and Nithia Capital, which is headed by former Mittal Steel executive Jai Saraf.

Mint's analysis reveals that the four companies have announced plans to invest upwards of ₹37,000 crore over the next few years either in primary steel manufacturing or elsewhere in the supply chain. In addition, two existing smaller companies, Shyam Metalics and Energy Ltd and Rashmi Group, have committed to invest ₹10,000 crore each to bolster their operations.

Existing large steelmakers, too, are betting aggressively on the market expanding. India's five largest steelmakers are expected to add upwards of 60 million tonnes per annum (mtpa) of capacity by 2030. This compares to installed capacity of about 100 mtpa as of 2024-25.