Visakhapatnam (Andhra Pradesh) [India], September 9: Steel Exchange India Limited (NSE: STEELXIND | BSE: 534748) one of Eastern India’s leading integrated steel manufacturers, has entered into a strategic Memorandum of Understanding (MoU) with NMDC Limited, India’s premier government-owned iron ore producer.
The MoU establishes a commercial and operational framework for the supply and procurement of consistent-grade Iron Ore Fines (Fe 61–63% and above) sourced from NMDC’s upcoming Buffer Stockpile & Blending Yard at Visakhapatnam, Andhra Pradesh. This agreement significantly enhances SEIL’s raw material security, providing direct conveyor, FOB, FOR, FOT, or Ex-Stockpile supply access to consistent-grade iron ore right in its proximity.
KEY STRATEGIC HIGHLIGHTS OF THE MOU:
- Raw Material Security: Long-term access to consistent grade Iron Ore Fines (Fe 61–63%+) tailored for SEIL’s integrated steel manufacturing needs.
- Strategic Location Synergy: Direct procurement from NMDC’s upcoming Visakhapatnam Buffer Hub ensures seamless logistics, lower freight costs, and minimal transit times for SEIL’s plant operations in Vizianagaram.
- Long-Term Strategic Alignment: The MoU encompasses a primary 4-year term, establishing the operational blueprint for upcoming Long-Term Agreements (LTAs).
- Operational Synergy with Capacity Expansion: Complements SEIL’s recent production milestones, including the successful operationalization of its Reheating Furnace (RHF), driving higher mill utilization.
Strategic Rationale & Industry Impact
Following SEIL’s recent achievement of recording its highest-ever monthly Re-Bar output of 24,823.509 MT (driven by the operationalisation of its new Reheating Furnace), securing a steady stream of premium iron ore becomes paramount.
The proximity of NMDC’s Visakhapatnam hub to SEIL’s integrated production facilities near Visakhapatnam yields substantial logistics cost advantages and operational agility. This strategic tie-up reinforces SEIL’s backward integration strategy, mitigating supply volatility and empowering the company to consistently cater to growing infrastructure demand under its flagship SIMHADRI TMT brand.
This MoU is expected to support SEIL’s expansion plans in the near future.
Commenting on the development, the management of Steel Exchange India Limited said: “Signing this strategic MoU with NMDC Limited marks a significant operational milestone in our journey toward long-term operational resilience and sustainable growth. Having recently expanded our Re-Bar manufacturing capability through our new Reheating Furnace, securing consistent grade iron ore from NMDC’s Visakhapatnam Buffer Hub solidifies our raw material pipeline. This partnership will optimize our input logistics, drive cost efficiencies, and support our commitment to expanding our market leadership in quality long steel products.”
About Steel Exchange India Limited
Steel Exchange India Limited (SEIL), part of the Vizag Profiles Group, is a leading manufacturer of TMT rebars under the brand ‘SIMHADRI TMT’. Founded in 1999, the Company has grown from a steel trading and online platform into one of the most trusted integrated steel manufacturers in Andhra Pradesh and Telangana.
SEIL operates an Integrated Steel Plant & Power Unit in Vizianagaram Dist, Near Visakhapatnam. These facilities house sponge iron, billet, rolling mill, and power generation capacities, enabling complete backward and forward integration for long steel production.
With a strong brand presence and supply track record to the Armed Forces and critical infrastructure projects, SEIL is known for quality and reliability. In line with the ‘Atmanirbhar Bharat’ vision, the Company is diversifying into specialty steels under the PLI scheme to support import substitution and expand its value-added offerings.
