BUSINESS OVERVIEW

Nilachal Carbo Metalicks Limited was originally incorporated as a private limited company in February 2003 and subsequently converted into a public limited company in February 2024. The company is engaged in the manufacturing of Low Ash Metallurgical (LAM) Coke, with a specialized focus on producing Ferro Alloy Grade Coke. Over the years, the company has established long-term relationships with leading ferro chrome manufacturers across India, positioning itself as a key player in the metallurgical industry.

The company operates an owned manufacturing plant at Baramana, Jajpur, Odisha, comprising 3 batteries with 32 ovens each (total 96 ovens) and an annual capacity of 60,000 MTPA. In addition, it operates a second plant on a leased basis from Srinivasa Coke Private Limited in Visakhapatnam, Andhra Pradesh, equipped with one battery of 18 ovens and a capacity of 18,000 MTPA. The combined aggregate capacity of owned and leased facilities stands at 78,000 MTPA. Beyond in-house and leased operations, Nilachal Carbo Metalicks has a contract manufacturing arrangement with Om Avi Carbon Resources Private Limited, utilizing an additional 24,000 MTPA capacity.

To strengthen capacity, the company is proposing an expansion at the Baramana, Jajpur plant, with the installation of one additional battery comprising 36 ovens, adding 34,400 MTPA. Post-expansion, the owned capacity will rise to 94,400 MTPA, while the total capacity, including leased operations, will reach 1,12,400 MTPA.

The company specializes in the production of specific metallurgical coke sizes, particularly 10–30 mm and 10–40 mm, characterized by low phosphorus and ash content. Its coke is widely recognized for a high Coke Reactivity Index (CRI), making it highly suitable for ferro alloy producers seeking optimal furnace operating efficiency. Over time, the company has developed a robust supply chain network with all major ferro chrome manufacturers in the region.

In addition to core operations, Nilachal Carbo Metalicks has optimized the handling of by-products, including Low Phosphorus Coke Fines and Coke Breeze, ensuring sustainable utilization and building steady supply chains with iron ore pellet manufacturers. The product portfolio includes LAM Coke, Low Phosphorus Nut Coke, Ultra Low Phosphorus Nut Coke, and High-Grade Coke Fines.

The manufacturing facilities enjoy strategic locational advantages, being situated near Paradip Port in Odisha and Vizag Port in Andhra Pradesh, ensuring smooth logistics and transportation. Furthermore, the proximity to ferro chrome producers within a 150–200 km radius, including the Kalinga Nagar Industrial Complex (just 25 km away), provides strong market access.

To maintain quality leadership, Nilachal Carbo Metalicks operates a dedicated quality control laboratory at Baramana, Jajpur, designed to ensure compliance with customer specifications. The lab monitors chemical parameters such as ash content, volatile matter, phosphorus, sulfur, and moisture, along with physical parameters like undersize/oversize percentages and coke strength. Testing is conducted across all production stages—from raw material input to final output—ensuring defect prevention and consistent product quality.

The plants are equipped with modern machinery, movable vehicles, and specialized equipment to facilitate material handling, transportation of raw materials and finished goods, and coke removal. Features such as concrete-based flooring across the facilities help minimize by-product generation, reduce handling losses, and promote efficient, sustainable, and cost-effective operations.

Through a combination of capacity expansion, specialized focus on Ferro Alloy Grade Coke, and strong supply chain integration, Nilachal Carbo Metalicks Limited continues to position itself as a reliable supplier of high-quality metallurgical coke for the ferro alloys and steel industry.

As of July 5, 2025, the company have 65 employees on the payroll. The Banker to the company is Indian Bank.

INDUSTRY ANALYSIS

Indian Coal Market

India recorded its highest-ever coal production in FY 2023-24, reaching 997.25 MT (Provisional), an increase of 11.65% compared to 893.19 MT in FY 2022-23. Coal India Limited (CIL) contributed 773.64 MT, including custodian mines, against its annual target of 780 MT, while Singareni Collieries Company Limited (SCCL) produced 70.02 MT, meeting its target of 70 MT.

The overall coal demand for FY 2023-24 was estimated at 1196.60 MT, while total supply stood at 972.65 MT (Provisional), marking a 10.88% growth over 877.36 MT in the previous fiscal. A majority of this requirement continues to be fulfilled through indigenous production, in line with the Government’s focus on reducing coal imports and boosting domestic output.

To further cut import dependence, several measures have been implemented. These include:

• Increasing the Annual Contracted Quantity (ACQ) to 100% of the normative requirement, ensuring greater domestic coal availability.

• Providing coal linkages under the SHAKTI Policy for short-term power generation sales via power exchanges or bidding platforms. Additionally, the tenure of coking coal linkages under the Non-Regulated Sector (NRS) auction policy has been extended up to 30 years.

• Ensuring that coal companies meet the entire PPA requirement of power sector linkage holders, regardless of trigger levels or ACQ, thereby further reducing reliance on imports.

Indian Coking Coal Market

To strengthen self-reliance, the Government launched ‘Mission Coking Coal’ in August 2021, outlining a roadmap to increase domestic production and utilization by 2030. Domestic raw coking coal output is projected to reach 140 MT by 2030 (105 MT from CIL and 35 MT from allocated blocks).

Under the Atmanirbhar Bharat initiative, several measures are being pursued:

• CIL aims to enhance production by 26 MT from existing mines and develop 10 new mines with an additional capacity of 22 MT by FY 2025. It has also offered eight discontinued mines to private players on a revenue-sharing model.

• Nine new coking coal washeries are being set up, along with modernization of existing facilities.

• The Ministry of Coal has already auctioned 10 coking coal blocks with a cumulative capacity of 22.5 MT, most of which are expected to commence production by 2025.

Further, with the government’s push to increase domestic blending in steelmaking from the current 10–12% to 30% by 2030, import reliance is expected to decline.

Low Ash Metallurgical Coke

Low Ash Met Coke (LAMC), derived from destructive distillation of coking coal at high temperatures, serves as a crucial fuel and reducing agent in industries such as steel, pig iron, foundries, ferro alloys, and chemicals. While it is classified under Custom Heading 27040030, imports are also recorded under other headings.

The Indian authorities have emphasized that anti-dumping duties on met coke are necessary to protect domestic producers from unfair trade practices. Such measures aim to ensure fair competition, prevent injury to domestic industry, and maintain multiple sources of supply for consumers without restricting imports.

Low Ash Metallurgical Coke Fines

Produced as a by-product in coke ovens, low ash metallurgical coke fines hold significant importance in:

• Steel plants, where they act as a reducing agent in blast furnaces.

• Foundries, used in cupola furnaces for high-quality castings.

• Chemical industries, particularly in calcium carbide production.

• Sinter plants, where they aid in agglomerating iron ore fines.

Agglomerated products such as sinter and pellets are widely used, with sinter being the preferred blast furnace feedstock. Currently, over 70% of global hot metal (and about 50% in India) is produced using sinter.

Ferro Alloys Market

Ferro alloys are vital in steelmaking, acting as deoxidizers and alloying agents to enhance properties like strength, corrosion resistance, and wear resistance. The sector is closely linked with the growth of the iron and steel industry, foundries, and electrode manufacturing.

India produces a wide range of alloys, including ferromanganese, silicomanganese, ferrosilicon, and ferrochrome. These are classified into bulk ferro alloys, used mainly in stainless and carbon steel, and noble ferro alloys, which are more expensive due to rare-earth inputs.

Despite abundant potential, the industry faces challenges due to high power costs, which account for 40–70% of production expenses. Nevertheless, India has a total installed capacity of 5.1 million tonnes for bulk ferro alloys and 50,000 tonnes for noble alloys, with exports forming a significant share of output.

Outlook

India’s National Steel Policy 2017 targets a 300 MT annual steelmaking capacity by FY 2030-31, with per capita consumption of 158 kg. To achieve this, demand for coking coal is expected to rise significantly. For producing 181 MT steel through the blast furnace route by FY 2030, about 161 MT of coking coal will be required, with actual demand depending on whether stamp charging technology is deployed.

The ferroalloys industry also stands to benefit from rising steel demand, which is projected to grow at a CAGR of 5.9% between 2017–2025, reaching a valuation of US$188.7 billion by 2025. According to the Indian Steel Association, domestic steel demand is expected to grow 7.5% in FY 2023-24 and 6.3% in FY 2024-25, reaching 136.97 MT.

With robust economic growth, increasing steel consumption, and government initiatives to reduce import dependence, the outlook for India’s coal, coking coal, met coke, and ferroalloys industries remains strong and highly promising.

BUSINESS STRENGTHS

1. Strategic Location of Manufacturing Facilities
The manufacturing plants are strategically located near Paradip Port in Odisha and Vizag Port in Visakhapatnam, providing a logistical advantage for efficient transportation. In addition, the proximity to Ferro Chrome producers within a 150–200 km radius, including the Kalinga Nagar Industrial Complex—India’s largest steel hub, just 25 km from the Baramana, Jajpur facility—enhances market access. The manufactured coke is directly supplied to Ferro Alloy Producers, ensuring a readily available market, while expansion plans focus on increasing production capacity.

2. Experienced Promoter and Management Team
The company is led by an experienced management team with proven expertise in the coal and coke industry. Promoter and Managing Director, Mr. Bibhu Datta Panda, brings over 20 years of industry experience, driving strategic business operations and long-term growth. The leadership’s entrepreneurial vision, supported by skilled managerial personnel, has been instrumental in strengthening operations, financial performance, and customer satisfaction.

3. Excellence in Producing High-Quality LAM Coke
Nilachal Carbo Metalicks has established a strong reputation for consistently producing high-quality Low Ash Metallurgical (LAM) Coke, meeting the stringent requirements of the ferro-alloy and metallurgical industries. A dedicated quality control laboratory within the Baramana, Jajpur unit ensures strict adherence to product design specifications, size requirements, and quality benchmarks. The in-house lab enables proactive defect prevention, guaranteeing that every batch of LAM Coke meets high-performance standards.

4. Established Customer Base for By-Products
The company has developed a reliable customer base for its by-product, Coke Fines (Coke Breeze). These fines, rich in fixed carbon and low in phosphorus, are widely used in iron ore pellet production, sintering plants, and as carbon additives in steel melting shops (SMS). The rising demand from large steel and iron plants in the vicinity ensures sustained market traction, allowing the company to achieve competitive pricing for its coke fines through efficient handling and management.

5. Dedicated Fleet for Just-in-Time (JIT) Delivery
To strengthen supply chain efficiency, Nilachal Carbo Metalicks operates its own fleet of Ashok Leyland tippers and other transportation vehicles. This in-house logistics capability ensures Just-in-Time (JIT) delivery, maintaining strict control over the distribution process. The fleet reduces lead times, minimizes delays, and enhances overall customer satisfaction by aligning deliveries with production schedules and client requirements.

6. Flexible Operations for Customer-Specific Requirements
Operational flexibility enables the company to cater to the precise requirements of customers, particularly in the ferro-alloy sector. Expertise in producing metallurgical coke in specific size ranges, such as 10–30 mm and 10–40 mm, with low phosphorus and ash content, ensures superior performance in smelting processes. High Coke Reactivity Index (CRI) further enhances furnace efficiency for Ferro Alloy Producers. This adaptability in production allows customers to achieve optimal operational KPIs during reduction processes, distinguishing Nilachal Carbo Metalicks as a reliable and performance-driven supplier in the metallurgical coke industry.

BUSINESS STRATEGIES

1. Enhancing the Current Production Facility
The strategic plan focuses on enhancing the existing production facility to meet rising customer demand and improve operational efficiency. An additional battery comprising 36 ovens is set to be installed, expanding production capacity by 34,400 MTPA. Investments in modern equipment, automation technologies, and lean manufacturing practices will streamline processes, minimize waste, and elevate product quality. The strategy also emphasizes energy efficiency and sustainability through energy-saving technologies and reduced emissions. Centralized deployment of production, maintenance, accounting, and support functions will help realize economies of scale, strengthen procurement capabilities, and achieve long-term cost savings.

2. Continuous Improvement in Operational Efficiency
Operational efficiency remains a core priority, with emphasis on optimizing supply chain management and refining manufacturing processes to improve yield and output quality. Ongoing process modifications and parameter optimization are directed toward cost reduction and better productivity. Strategic initiatives, including the adoption of advanced automation, modern equipment, and technology upgrades, will support the delivery of superior products that align with evolving customer requirements while ensuring sustained cost efficiency.

3. Sales and Marketing Strategy
The sales strategy centers on expanding manufacturing capacity to address the increasing demand for Low Ash Metallurgical (LAM) Coke, particularly in steel and ferro-alloy sectors. Production expansion through new plant and machinery at the Jajpur manufacturing unit will strengthen the ability to serve larger orders and access new customer segments. The streamlined sales approach, currently managed by a focused team under the guidance of the Managing Director, ensures responsiveness to market growth opportunities and customer needs.

4. Fixed Operating Cost Management
Post-expansion, fixed operating costs are expected to remain stable or only marginally higher despite the increase in production. Round-the-clock operations, supported by the existing team and management structure, will allow higher output without material cost escalation. This approach ensures a reduction in per-unit (MTPA) fixed operating costs, enabling the company to maximize the advantages of expanded capacity while maintaining cost efficiency.

5. Sustainability Initiatives
Strong and long-term supplier relationships continue to provide a reliable supply of raw materials, supporting uninterrupted production and enabling the company to meet rising market demand. With growing demand for ultra-low phosphorus coke, strategic alignment with sustainability goals positions the company to deliver environmentally responsible products. The focus on producing high-quality, eco-friendly coke strengthens both operational resilience and market competitiveness, ensuring sustainable growth.

BUSINESS RISK FACTORS & CONCERNS

1. Dependence on Lease Agreement for Vishakhapatnam Unit
A significant portion of production capacity relies on the leased manufacturing unit at Vishakhapatnam, owned by a third party. This facility, comprising one battery with 18 furnaces/ovens and a capacity of 18,000 MTPA of Low Ash Metallurgical (LAM) Coke, is critical for meeting customer demand in nearby regions. Any inability to maintain or renew this lease agreement may disrupt operations, reduce overall capacity, and adversely impact revenue generation and distribution efficiency.

2. Exposure to Cyclical Ferro-Alloy Industry
Revenue generation is closely tied to the performance of the ferro-alloy sector, where LAM Coke serves as a vital input. The ferro-alloy and steel industries are inherently cyclical and highly sensitive to broader economic trends. Any downturn in these sectors can materially impact business operations, profitability, and financial health. Furthermore, a significant portion of revenue is concentrated among a limited number of customers, exposing the company to risks arising from the potential loss of key clients.

3. Reliance on Domestic Market
Revenue is entirely derived from the domestic market, with no presence in exports or international markets. Products such as LAM Coke, Nut Coke, Blast Furnace Grade Coke, and Coke Fines are sold exclusively within India. Any slowdown or adverse developments in domestic demand, pricing, or industry conditions could have a direct and material effect on business performance. Lack of geographic diversification further heightens dependence on domestic market dynamics.

4. Dependence on Sukinda Mining Belt for Chrome Ore Supply
Supply chain stability is vulnerable due to reliance on the Sukinda mining belt for chrome ore, a critical raw material for ferro-chrome manufacturers. Any disruption in chrome ore availability may affect downstream industries, particularly stainless steel and ferro-alloys, which in turn could significantly reduce demand for LAM Coke and negatively influence revenue and operations.

Summary 
Nilachal Carbo Metalicks Company faces material risks stemming from dependence on leased facilities, exposure to cyclical ferro-alloy industries, complete reliance on the domestic market, and dependence on the Sukinda mining belt for chrome ore supply. Each of these factors could adversely affect operational stability, revenue generation, and long-term financial performance.