### **Overview** Sandur Manganese & Iron Ores Limited (SMIORE), founded in 1954, is a leading private-sector metals and mining company in India. Originally a merchant miner of manganese and iron ores, SMIORE has undergone a strategic transformation into a **fully integrated, vertically aligned metals and mining enterprise** with operations spanning mining, ferroalloys, coke & energy, and specialty steel manufacturing. The company is headquartered in Sandur, Ballari district, Karnataka, and has evolved over seven decades into a high-ROCE, asset-light organization with a strong focus on sustainability and long-term value creation. --- ### **Strategic Transformation & Business Model** SMIORE has transitioned from a **pure-play merchant miner** to a **diversified and integrated commodity producer**, aiming to capture higher margins by moving up the value chain. The cornerstone of this transformation was the **acquisition of Arjas Steel Private Limited and its subsidiary Arjas Modern Steel**, completed on **11 November 2024**, which added a cumulative steel manufacturing capacity of **0.585 million tonnes per annum (MTPA)**. This acquisition enabled SMIORE to bypass the 2–3 year gestation period of a greenfield steel plant, allowing for immediate access to the **specialty steel market** and key automotive OEM supply chains. The company now operates under a **fully integrated value chain**, with synergies across: - **Mining (Manganese & Iron Ores)** - **Ferroalloys** - **Coke & Energy** - **Steel Manufacturing (through Arjas)** This integration enhances cost competitiveness, stabilizes earnings, and reduces exposure to commodity price volatility. --- ### **Production Capacity & Operations (as of Nov 2025)** | Segment | Capacity | |--------|---------| | **Manganese Ore (MPAP)** | 0.599 MTPA | | **Iron Ore (MPAP)** | 4.45 MTPA | | **Steel Manufacturing** | 0.585 MTPA | | **Coke Production** | 0.50 MTPA | | **Ferroalloys (SiMn/FeMn)** | 95,000–125,000 TPA | | **Captive Power (Coke & Steel Ops)** | ~73 MW (32 MW WHRB + 41 MW solar/waste-heat) | | **Renewable Energy (Hybrid)** | 42.9 MW (SMIORE); 20.4 MW (Arjas) | - **Mining Operations**: - Two mining leases in Sandur, Karnataka (~2,000 hectares, valid until 2033) - Reserves: ~114 million tonnes of manganese and iron ore - Fully mechanized iron ore mining (56–58% Fe grade) - Strategic proximity to railway sidings (Swamihalli & Sunderambencha) ensures cost-efficient logistics - Downhill conveyor system being developed for eco-friendly ore transport - **Steel & Downstream Manufacturing**: - **Arjas Steel** and **Arjas Modern Steel** operate integrated facilities in **Andhra Pradesh (BOF route)** and **Punjab (EAF route)** – enabling dual production technology - Focus on **high-margin Special Bar Quality (SBQ) steel**, primarily **auto-grade**, serving marquee OEMs in passenger, commercial, and two-wheelers segments - Produces **over 100 steel grades**, with downstream processing including billets, bars, bright bars, and trial production via commissioned **Garret Coiler** - Land bank of ~950 acres supports potential **brownfield expansion to 1 MTPA** - **Downstream Segments**: - **Ferroalloys**: Established in 1968, produces silicomanganese (SiMn) and ferromanganese (FeMn) using Italian & Norwegian submerged arc furnaces - **Coke & Energy**: 0.50 MTPA coke oven plant with waste heat recovery (32 MW power), reducing dependence on thermal coal - **Renewable Integration**: 42.9 MW hybrid (solar + wind) and 20.4 MW solar projects support sustainability and energy self-sufficiency --- ### **Financial & Strategic Strengths** - **High ROCE & Operating Margins**: Asset-light mining model generates strong free cash flows and high return on capital employed - **Robust Balance Sheet**: - Rated **CRISIL A+/Stable** and **ICRA A+/Stable** for term loans, cash credit, and debentures - Raised **₹450 crore** via maiden NCD issuance in FY25, reflecting market confidence - Self-financed growth supported by strong internal accruals - **Capital Discipline**: Guided by strong parent company oversight, with focus on long-term, high-ROCE investments - **Backward & Forward Integration**: - SMIORE now supplies **iron ore to Arjas Steel**, improving raw material cost stability and margins - Plans to use manganese ore for captive ferroalloy consumption --- ### **Market Position & Competitive Edge** - **Specialty Steel Leadership**: - Arjas is among the **top five players** in India’s SBQ steel market - Strong entry barriers due to **long-standing OEM empanelment** and rigorous qualification processes - SBQ steel commands **higher realizations and margins** vs. commodity steel - **Strategic Geographic Advantage**: - Plants in **Andhra Pradesh** (South) and **Punjab** (North) enable access to major **automotive clusters** across India - Rail connectivity ensures efficient distribution - **Diversification Beyond Automotive**: - Actively developing products for **non-automotive sectors** including: - **Railways** (RDSO-approved) - **Energy, EVs, Defense, Aerospace** - **Exports** - Aims to reduce auto-sector dependence and tap into high-growth industrial markets --- ### **Sustainability & Recognition** - **Sustainable Development**: - **10 consecutive years of 5-star SDF rating** (Govt. of India) - India’s **first 7-Star Rated Mine** under SDF - Downhill conveyor and renewable projects support green operations - Afforestation, rehabilitation, and scientific mining practices - **Energy Self-Sufficiency**: - Waste Heat Recovery Boilers (WHRB) generate 32 MW - Hybrid solar-wind (42.9 MW) and dedicated solar (20.4 MW) reduce carbon footprint