The company has established a cutting-edge facility at its existing plant in Sambalpur of Odisha having capacity of 3 lakh MTPA, which will produce high-quality 200 and 400 series stainless steel hot rolled coils (HRC).
Apr 11, 2024
Leading producers of integrated metal Shyam Metalics and Energy Limited (SMEL), has established a state-of-the-art facility at its existing plant in Sambalpur of Odisha having capacity of 3 lakh metric tonnes per year, which would specialise in producing high-quality 200 and 400 series stainless steel hot rolled coils (HRC).
SMEL said in a statement that its plan to invest INR 650-750 crore in its stainless steel business over the next few years got approval from the Board of Directors during its meeting on July 27, 2023.
The strategic move aimed at positioning the Kolkata-based company for heightened growth and expansion within the stainless steel market. The integrated metal producer underlined its intention to leverage captive raw materials such as direct-reduced iron (DRI), power, and ferro alloys for the project in a reliable and efficient supply chain, while maintaining uncompromising quality standards throughout the manufacturing process.
It further revealed its plans to acquire a 20-acre land parcel at the newly merged Mittal Corp, now under its wholly-owned subsidiary Shyam Sel and Power Limited.
As per the statement, the acquisition aligned with Shyam Metalics’ broader vision to bolster its presence in the long products sector, with proposed expansions including a Stainless Steel (SS) bright bars capacity of 25,000 MTPA and an SS wires division with a capacity of 18,000 MTPA.
It said the proposed expansions would create employment opportunities for around 1500 people. These initiatives were aimed at capitalising on emerging opportunities in the stainless steel market, both domestically and internationally, added the statement.
Speaking on the development, Mr. Sanjay Agarwal, Joint Managing Director of Shyam Metalics, said the entire project, expected to be commissioned by mid-FY 2026-27, would require a substantial capital outlay estimated to be in the range of INR 650-750 crore.
Mr. Deepak Kumar Gaur, COO of SMEL, said the company was targeting incremental revenue of INR 5,000 crore to INR 6,000 crore from the ongoing stainless steel capacity expansion. Speaking to a leading business channel, Mr. Gaur said the expansion would add around INR 7,000 in EBITDA (earnings before interest, tax, depreciation, and amortisation) per metric tonne.
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He said the company was well-positioned to precisely and effectively meet the ever-evolving demands of the stainless steel market. By diversifying into flat stainless steel products, SMEL would be able to drive growth in important industries like consumer goods, construction, automotive, and infrastructure.
The company said the planned expansion into stainless steel flat products was poised to play a crucial role in supporting India’s burgeoning automotive, construction, infrastructure and consumer goods sectors. By providing high-quality stainless steel products, Shyam Metalics aimed to contribute significantly to the nation’s economic growth and development. With a steadfast focus on innovation and sustainability, the company was set to become a key player in shaping India’s industrial landscape for years to come, it added.
