Shyam Metallics Growing Operational Capabilities With Significant CAPEX

One of the leading and fastest-growing metals manufacturing companies, Shyam Metalics and Energy Ltd, recently announced the establishment of a new Stainless Steel Hot-Rolled Coil (HRC) facility at its existing plant in Sambalpur, Odisha. This development is part of its expansion plan, which was approved by the Board of Directors on July 27, 2023.

The company also stated that it is putting the company in a strategic position to grow and expand faster in the stainless steel sector. Using captive raw materials like direct-reduced iron (DRI), power, and ferroalloys in a dependable and effective supply chain, the new facility, with a capacity of 0.3 million metric tonnes per annum (MTPA), will specialise in the production of 200 and 400 series stainless steel hot rolled coils while upholding unwavering quality standards throughout the manufacturing process.

In another development, the company has applied for the acquisition of a new 20-acre land parcel at the newly acquired Mittal Corp to strengthen its capabilities in the long products sector. Mittal Corp is now merged with its Material wholly owned subsidiary Shyam Sel and Power Limited, which is focused on downstream products from its wire rod division.

This expansion initiative includes plans to establish a Stainless Steel (SS) bright bars capacity of 25,000 Metric Tons Per Annum (MTPA) and an SS wires division with a capacity of 18,000 Metric Tons Per Annum (MTPA). The Project is likely to be commissioned by mid-FY 2026-27, and the estimated capital outlay is expected to be ₹650 -₹750 crore.

“We are excited about the prospects that stainless steel brings to Shyam Metalics. With our aggressive expansions into both stainless steel long and flat products, we are well-positioned to capitalize on emerging opportunities in the sector, both domestically as well as internationally,” said Sanjay Agarwal, Joint Managing Director at Shyam Metalics and Energy Ltd.

Looking Ahead

The company believes that its planned expansion into stainless steel flat products will be crucial in supporting India’s burgeoning automotive, construction, infrastructure, and consumer goods sectors. Shyam Metalics is targeting to contribute significantly to the nation’s economic growth and development by providing high-quality stainless steel products. On April 10, 2024, the shyam metalics & energy share price opened at ₹635.00 and touched the day high of ₹658.00 at 09:35 AM.

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