Lloyds Engineering Works has announced a strategic partnership with US-based The Material Works to develop and implement eco-friendly EPS Gen 4 steel technology. This collaboration marks a significant step forward in the company's commitment to sustainable manufacturing practices and environmental responsibility.

Partnership Details

The deal between Lloyds Engineering Works and The Material Works focuses on the development and deployment of EPS Gen 4 steel technology, which emphasizes eco-friendly manufacturing processes. This partnership brings together Indian engineering expertise with American technological innovation to create more sustainable steel production methods.

Technology Innovation

The EPS Gen 4 steel technology represents an advancement in environmentally conscious steel manufacturing. This technology is designed to reduce the environmental impact of steel production while maintaining the quality and performance standards required for industrial applications. The collaboration aims to integrate sustainable practices into traditional steel manufacturing processes.

Strategic Implications

This partnership positions Lloyds Engineering Works at the forefront of sustainable steel technology development. By collaborating with The Material Works, the company demonstrates its commitment to:

• Environmental sustainability in manufacturing
• International technology partnerships
• Innovation in steel production processes
• Meeting evolving industry standards for eco-friendly practices

Market Impact

The introduction of eco-friendly EPS Gen 4 steel technology through this partnership could influence the broader steel industry's approach to sustainable manufacturing. This collaboration reflects the growing emphasis on environmental responsibility in industrial sectors and the increasing demand for cleaner production technologies.

Lloyds Engineering Works Limited has successfully completed its strategic merger by absorption of three group companies, creating a unified engineering and infrastructure solutions provider with a combined order book of ₹6,150 crore. The merger, effective from April 1, transforms the company from a premium equipment manufacturer into a complete design-to-execution solutions provider.

Merger Structure and Entity Integration

The board approved merger involves the absorption of Lloyds Infrastructure & Construction Limited (LICL), Metalfab Hightech Private Limited, and Techno Industries Private Limited into Lloyds Engineering Works Limited as the absorbing entity. The transaction has been structured under Sections 230 to 232 of the Companies Act, 2013, with regulatory compliance under SEBI Listing Regulations.

Combined Financial Performance

The merged entity demonstrates strong operational performance with consolidated financials showing significant scale and profitability. The combined performance for H1FY26 reflects the power of integration across manufacturing and infrastructure execution capabilities.

Strategic Business Integration

The merger creates vertical integration across the entire industrial value chain, combining design capabilities through Lloyds Consulting Engineers, manufacturing precision of LEWL and Metalfab, and execution strength of LICL. This integration eliminates operational silos and enables the company to bid for larger, multi-disciplinary contracts while capturing value at every project stage.

Major Order Wins and Market Position

The combined entity has secured significant contracts demonstrating enhanced market competitiveness. LEWL standalone achieved a landmark consortium deal with Primetals worth ₹613 crore plus €18 million from SAIL-IISCO Steel Plant, while LICL expanded its portfolio with a road project exceeding ₹350 crore, diversifying beyond industrial EPC.

Shareholding Structure Post-Merger

The merger expands the total equity base to 185.52 crore shares from the pre-merger base of 147.42 crore shares. Mr. B Prabhakaran and family, along with controlled entities, will hold 21.03% stake in the expanded entity, reinforcing long-term promoter commitment to the company's growth trajectory.

Regulatory Approvals and Implementation

The merger requires approvals from the National Company Law Tribunal (NCLT), Competition Commission of India (CCI), and other regulatory authorities. The transaction qualifies as a related party transaction conducted on an arm's length basis, with professional valuation and fairness opinions obtained to ensure compliance with regulatory requirements.