In an exclusive conversation, Rishi Raj Panda, Director of Operations, Nilachal Carbo Metalicks Limited, shares insights into the company’s growth strategy, IPO objectives, and long-term vision for India’s metallurgical coke industry.
Q1. What makes this the right time for NilachalCarbo Metalicks to come to the market, and why did you choose the BSE SME platform?
This is the right time because the Indian steel sector is on a robust growth trajectory. The Government of India has set a clear vision of achieving 300 million tons of steel production capacity by 2030, and metallurgical coke is a critical raw material in this value chain. With recent regulatory support — such as restrictions on coke imports — we see a strong opportunity for domestic producers like us to expand.
Through the IPO proceeds, we are increasing our capacity by about 30%, from 1,02,000 tons to 1,36,400 tons, allowing us to serve our customers better and align with their expansion.
As for the BSE SME platform, it was our merchant banker’s recommendation since it provides us with the right launchpad. We intend to migrate to the main board (NSE & BSE) within three years.
Q2. How will the IPO proceeds be deployed, and which part of your expansion plan will have the most immediate impact?
The fresh issue will primarily fund the installation of a new coke oven battery with 36 ovens, adding about 1,36,400 MTPA. This will directly result in a 30% increase in capacity.
In addition, we are undertaking modernisation of our existing plants — including introducing stamping technology and upgrading old facilities to enhance yield, efficiency, and capacity utilisation.
These initiatives will immediately strengthen our ability to serve both ferro-alloy and blast furnace coke markets, where demand is rising and profit realisations are strong.
Q3. With capacity set to reach 1,36,400 MTPA, how do you plan to capture rising demand from India’s ferrochrome and steel industries?
We already hold a 30–40% share in the ferro-alloy coke market in eastern India and have long-term supply relationships with key players such as Tata Steel, Jindal Stainless, Vedanta Group, etc. As these customers expand their capacities, we are well-positioned to grow alongside them.
On the steel side, the imposition of import restrictions on blast furnace coke has created a large demand–supply gap. We entered this segment in early 2025 and see a significant opportunity as India accelerates steel production. Both ferroalloys and steel will therefore contribute to organic growth for Nilachal in the years ahead.
Q4. Raw material volatility and environmental compliance are big industry challenges. How is Nilachal preparing to handle them?
Raw material volatility is managed through a disciplined strategy: we book finished product orders first and only then secure our raw material contracts. This ensures pricing stability. Over the past three years, we’ve brought raw material consumption costs down from 87% to 82%, directly strengthening our EBITDA margins.
We also hedge currency exposure and lock in INR-based contracts to avoid dollar volatility. On the compliance side, all our plants operate with valid environmental clearances, and we consistently pass annual audits.
We’ve adopted zero-waste discharge systems — with 40% of treated water reused in production — and our 10.3-acre facility is fully concreted to prevent soil contamination. These sustainability measures give us a unique edge, even compared to larger players.
Q5. What differentiates Nilachal’s LAM Coke quality from other coke producers in India?
Our strength lies in producing ferro-alloy grade coke — a niche and technically challenging product. Very few players in India operate in this segment, and our proximity to ferrochrome clusters in Odisha has given us an unmatched advantage.
Our coke is recognised for low ash and low phosphorus content, which enhances the efficiency and quality of ferrochrome and steel production. That’s why we have been the trusted partner for leading manufacturers for over two decades.
Q6. Why should retail investors trust Nilachal’s growth story, and what can they realistically expect?
Our track record speaks for itself. We’ve been in business for 22 years, built enduring client relationships, reduced input costs through strong procurement strategies, and maintained steady profitability.
With the IPO, we are not only expanding capacity but also modernising to capture high-margin opportunities. Investors can expect sustainable growth, improved financial performance, and long-term value creation as India’s steel and ferro alloys sectors continue to expand.
Q7. Looking five years ahead, where do you see Nilachal Carbo Metalicks positioned in India’s metallurgical coke industry?
In five years, we aim to be among the top three metallurgical coke producers in India, with a stronghold in both ferro-alloy grade and blast furnace grade coke. Our goal is to scale capacity further, deepen relationships with domestic steel giants, and potentially explore international opportunities once domestic expansion is stabilised. The IPO is a crucial step in this journey — giving us the resources to strengthen our market position and deliver consistent returns to stakeholders.
Nilachal Carbo Metalicks’ IPO marks not just a fundraising milestone but also a strategic move to consolidate its leadership in India’s metallurgical coke industry. With a clear focus on capacity expansion, modernisation, and sustainability, the company is well-positioned to capitalise on the rising demand from India’s ferrochrome and steel sectors — offering investors a chance to participate in a compelling growth story.
