Shyam Metalics and Energy increases Sambalpur plant capacity by 0.3 MTPA aiming accelerated growth
Upstox
2 min read • Updated: April 10, 2024, 11:10 AM
Summary
Shyam Metalics and Energy’s new facility will specialise in the production of 200 and 400 series stainless steel hot rolled coils by utilising captive raw materials such as direct-reduced iron (DRI), power and ferro-alloys in a reliable and efficient supply chain. The company said it has also applied for the acquisition of a new 20-acre land parcel at the newly acquired Mittal Corp.
Shyam Metalics and Energy announced on Wednesday it has established a new stainless steel hot rolled coils (HRC) facility at its existing plant in Sambalpur, Odisha as a part of its expansion plan which was approved by the board of directors in July, 2023. The company said it is strategically positioning itself for accelerated growth and expansion in the stainless steel market.
The new facility, which has a capacity of 0.3 million metric tons per annum (MTPA), will specialise in the production of 200 and 400 series stainless steel hot rolled coils by utilising captive raw materials such as direct-reduced iron (DRI), power and ferro-alloys in a reliable and efficient supply chain.
Shyam Metalics said it has also applied for the acquisition of a new 20-acre land parcel at the newly acquired Mittal Corp. which is now merged with its material wholly-owned subsidiary Shyam Sel and Power, dedicated to downstream products from its wire rod division.
The expansion initiative includes plans to establish a stainless steel bright bars capacity of 25,000 MTPA and a stainless steel wires division with a capacity of 18,000 MTPA.
The project is expected to be commissioned by the middle of fiscal year 2027. The estimated capital outlay for the project is slated to be in the range of ₹650-750 crore approximately, the company said.
Earlier, the company reported a 44.9% in sales volume of sponge iron on a full year basis but said realisations were down by 15.5%. Steel billets witnessed a drop in volume of sales by 23.9% on a full year basis while realisations were down by 12.7%. Steel volumes increased by 22% while realisations were down by 14.5%, it said.
Shares of Shyam Metalics were trading over 1.7% higher at ₹630 apiece on the NSE. The stock has lost over 2% since the beginning of the year but has gained over 122% in last one year.