The Business Bytes
KOLKATA, APRIL 09, 2024 (TBB BUREAU): Shyam Metalics and Energy Ltd on Tuesday announced a significant investment ranging between Rs 650 to Rs 750 crore in its stainless steel business, signalling a bold step towards expansion and market dominance in the coming years.
The company revealed plans to establish a cutting-edge stainless steel hot rolled coils (HRC) facility at its existing plant in Sambalpur, Odisha. This state-of-the-art facility, boasting a capacity of 0.3 million tonnes per year, will specialize in producing high-quality 200 and 400 series stainless steel hot rolled coils, underscoring Shyam Metalics’ commitment to excellence.
Emphasizing its strategic advantage, Shyam Metalics highlighted its plan to leverage captive raw materials such as direct-reduced iron (DRI), power, and ferro alloys for the project, ensuring operational efficiency and sustainability.
In a move to bolster its long products sector, the company also disclosed its intention to acquire a 20-acre land parcel at the newly merged Mittal Corp, now under its wholly-owned subsidiary Shyam Sel and Power Limited. This acquisition aligns seamlessly with the company’s broader vision of expansion, including the proposed additions of a Stainless Steel (SS) bright bars capacity of 25,000 MTPA and an SS wires division with a capacity of 18,000 MTPA.
Sanjay Agarwal, Joint Managing Director of Shyam Metalics, expressed confidence in the project’s potential, stating, “The entire project, expected to be commissioned by mid-FY 2026-27, will require a substantial capital outlay estimated to be in the range of Rs 650–750 crores.”
These initiatives are strategically poised to capitalize on emerging opportunities in the stainless steel market, both domestically and internationally, driving growth and solidifying Shyam Metalics’ position as an industry leader.
Moreover, the expansion is expected to create approximately 1500 new employment opportunities, contributing to economic development and prosperity in the region.
