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Shyam Metalics and Energy Ltd’s Vision for Growth with Rail Infrastructure Expansion and Beyond

28 May 20243 mins read by Angel One
Shyam Metalics and Energy Ltd expands its rail infrastructure to boost efficiency and plans wagon tippler for increased operations by 2028, ensuring growth.
Shyam Metalics and Energy Ltd’s Vision for Growth with Rail Infrastructure Expansion and Beyond
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On May 27, 2024, Shyam Metalics and Energy Limited (SMEL) announced in an exchange filing its plan to expand its rail infrastructure at its integrated steel plant in Pandloi village near Rengali, Sambalpur district, Odisha. This initiative aligns with the company’s long-term objective of ongoing expansion and achieving sustainable growth.

Shyam Metalics and Energy Limited’s integrated steel plant, which includes a coal washery and power plant, has experienced substantial growth in recent times. Recognising the requirements of this expanded capacity, the company has identified the necessity of enhancing its rail infrastructure to ensure efficient handling of incoming raw materials and outgoing finished goods.

Previously, the plant operated with two exclusive railway lines for handling raw material intake and dispatch of finished goods. In line with the expansion project concluded in 2023, the company has increased the number of lines to four. This comprises a primary line branching from Rengali station, along with three subsidiary lines and an engine escape line. Approved by the Indian Railway based on a Detailed Project Report in 2015, this upgraded infrastructure is now fully functional, with overhead electrification successfully completed and commissioned. This enhancement will enable their plant to accommodate over 110 rakes per month.

The company stated that while expanding to four lines will further enhance operational efficiency, the existing infrastructure can only manage about 60% of the increased volume of raw materials and finished goods. To bridge this gap and unlock the plant’s full potential, they plan to introduce a wagon tippler by 2028.

Adding a wagon tippler will considerably enhance the pace and efficiency of rail operations at the plant. This essential equipment will enable faster turnaround times for wagons, allowing SMEL to achieve a 100% increase in rail operations. This will ensure a smooth flow of raw materials and finished goods, further helping the company’s growth trajectory.

Speaking on the development, the Vice Chairman and Managing Director of Shyam Metalics and Energy Limited, Mr B Bhushan, said, “Shyam Metalics and Energy Limited remains committed to continuous improvement and operational excellence. The expansion of the rail infrastructure is a testament to this commitment, and the planned addition of a wagon tippler by 2028 will further solidify SMEL’s position as a leading player in the steel industry.”

He further added, “The plant’s expansion has significantly boosted its capacity, necessitating more efficient rail operations. Previously, the infrastructure managed an average of two incoming rakes daily, which was sufficient for the earlier plant capacity. However, with the plant’s enhanced capacity, the current rail infrastructure can handle approximately 60% of the increased volume of inward raw materials and outward rakes for finished goods. To fully realise the plant’s potential and improve operational efficiency, SMEL plans to introduce a wagon tippler by 2028. This critical addition will streamline rail operations, facilitating faster turnaround times and increasing rail handling capacity by 100%.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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