Shyam Metalics and Energy Ltd. is looking to ramp up its capacity to boost profitability.
The company has earmarked a total Capex of Rs 2,960 crore over the next two to three years to scale up its integrated production capacities of steel and ferro alloys to 11.54 million tonne per annum (mtpa) from the existing 5.71 mtpa.
It also plans to add an additional 130 MW captive power capacity. The expansion plan includes its foray into the production of aluminium foils involving metal rolling expertise.
According to Sanjay Agarwal, Joint Managing Director, Shyam Metalics, nearly 75% of the expansion would be complete by FY23 and the remaining 25% is expected to be implemented by FY25.
There has been a steady growth in the sale of long steel products from around 1.07 lakh tonnes in FY17 to 6.37 lakh tonnes in FY21. This is further expected to increase to 20 lakh tonnes after the proposed expansion comes on stream.
Shyam Metalics currently operates three manufacturing plants that are located at Sambalpur in Odisha and Jamuria and Mangalpur in West Bengal. The plants of Sambalpur and Jamuria are equipped with their own captive railway sidings, captive power plants with waste heat recovery boilers, and captive water reservoirs.
As a part of its expansion plans, the company is planning to recruit new dealers and distributors across India. The company is in the process of setting up an aluminium foil rolling mill complex at Pakuria, about 40 km from Kolkata.
It will have an annual rolling capacity of 40,000 tonne per annum with a product mix to cater to the requirement of the market related to pharmaceuticals, household foil, FMCG, electronics, automotive, dairy, and confectionery, among others.