Mumbai, Oct. 1 -- India is set to get its second primary steel company in 15 years as Lloyds Metals and Energy Ltd prepares to launch primary steel manufacturing operations in Maharashtra. However, challenges for the metals and mining company are many.

Lloyds Metals has to invest Rs.20,000-25,000 crore into a product for which demand has hit a low globally and prices are crashing. A primary steel company produces steel from raw materials such as iron ore rather than from scrap metal, making its operations more price-sensitive.

Lloyds will also have to overcome high logistics costs as its eastern operations are located far from the coast and from steel consumers, according to industry experts.

That's not all-the company will also have t...