THEBUSINESSBYTES
BUREAU
BHUBANESWAR,
JULY 16, 2026
Shyam Metalics and
Energy Limited (SMEL) has strengthened its downstream aluminium business with
the commencement of commercial production at its Aluminium Foil facility at
Sambalpur in Odisha, while confirming that its Aluminium Flat Rolled Products
(FRP) plant is in the final stage of readiness and remains on track for
commercial operations by the end of September 2026.
The aluminium foil
facility, operated by SMEL Steel Structural Pvt. Ltd., a step-down subsidiary
of Shyam Metalics, has an installed production capacity of 18,000 tonnes per
annum (TPA) and is designed to manufacture premium-grade foils in the thickness
range of 6 to 40 microns. The upcoming FRP facility will add another 60,000 TPA
of installed capacity, producing flat rolled aluminium products with
thicknesses ranging from 0.3 mm to 4.0 mm.
The company has
invested around ₹800
crore in developing the aluminium facilities at Sambalpur,
underscoring its commitment to expanding its presence in the value-added
aluminium segment. The twin facilities mark a significant milestone in SMEL’s
strategy to diversify its product portfolio and cater to the growing domestic
and global demand for precision-engineered aluminium products.
With the
commissioning of the foil plant and the imminent launch of the FRP facility,
the company expects to significantly improve its financial performance. SMEL
estimates that the enhanced product mix and higher product realisations will
boost operating margins by approximately 40–50%, while expanding its topline by
2x to 2.5x through stronger penetration in domestic and international markets.
The expansion is also expected to reduce India's dependence on imported value-added aluminium products while supporting the government's Atmanirbhar Bharat and Make in India initiatives. The facilities are positioned to serve high-growth sectors requiring specialised aluminium solutions, reinforcing India's manufacturing capabilities in downstream aluminium products.
Commenting on the development, Shyam Metalics and Energy Ltd. Chairman and Managing Director Brij Bhushan Agarwal said, "The commencement of commercial foil production at our Sambalpur plant marks a pivotal operational milestone in building a world-class downstream aluminium ecosystem. By delivering high-quality, specialized products, we are well-positioned to serve high-growth economic segments, unlock new revenue streams, and simultaneously foster localized socio-economic and employment growth in Odisha. We look forward to completing our ecosystem with the launch of the Flat Rolled Products line by September's end."
