Lloyds Engineering Works Limited (LEWL) has announced securing orders worth over ₹59 crore, comprising ₹50 crore for Steel Eco-Pickling systems and ₹9.3 crore for Marine Loading Arms. These new contracts mark a significant milestone for LEWL, reinforcing the company’s position in specialized engineering products with enhanced margins driven by technological advancements and a ‘Make in India’ strategy.
Strategic Impact and Market Advantage
The Steel Eco-Pickling systems are part of LEWL’s approach to target niche markets with high technological demand, offering a first-mover advantage within India. The Eco-Pickled Steel (EPS) technology eliminates the need for environmentally harmful acids in steel pickling, which traditionally have been both expensive and damaging to the environment. EPS is expected to revolutionize the industry by providing a more cost-effective setup, improved operational model, and higher-quality pickled steel. Given that 15-20% of all steel produced undergoes pickling, the potential market demand for this technology is vast.
Additionally, the Marine Loading Arms leverage Japanese technology and expertise but are manufactured within India. This approach aligns with LEWL’s commitment to the ‘Make in India’ initiative, providing a competitive edge in both cost efficiency and market reach.
Strategic Technology Agreements
Earlier in FY24, LEWL signed significant technology agreements that have boosted its market capabilities:
- Partnership with The Material Works, Ltd. (TMW): This agreement enables LEWL to adopt the latest Eco Pickled Surface (EPS Gen 4) technology, a cutting-edge solution for environmentally friendly steel pickling.
- Agreement with TB Global Technologies Ltd (TBG): LEWL will supply Marine Loading Arms and Swivel Joints, innovative engineering products being introduced for the first time in the Indian market.
Leadership Perspective
Commenting on the new orders, Mr. Shreekrishna Gupta, Whole-Time Director of LEWL, stated, “These orders underscore our strategy of aligning our product offerings with niche, technologically advanced solutions. EPS technology will cater to a wide range of end-user markets, providing an environmentally friendly and cost-effective approach to steel pickling. Additionally, our loading arms, developed using Japanese technology and manufactured in India, will greatly enhance our competitive advantage.”
With these new contracts and technological developments, Lloyds Engineering Works Limited is poised for a significant growth trajectory and market expansion in the years to come.
