Shyam Metalics and Energy Ltd (SMEL) is looking to undertake an all-round boost in the production capacity of pellets, sponge iron, billet, and finished steel at an estimated investment of Rs 3,900 crore.
It is also looking to increase the integrated steel production capacity from the existing 8.85 million tonne (mt) per annum to 14.45 mt of which value-added long steel capacity will be enhanced to 2 mt from the present 1.47 mt.
According to Brij Bhushan Agarwal, Vice Chairman, and MD, SMEL, the company will be investing more in the B2C market on the finished steel side and this segment will contribute towards a majority of its revenue growth. The company has already invested close to Rs 2,400 crore out of the Rs 3,950 crore existing Capex plan in the last two years.
“We are adding around 1 mt iron making capacity, 0.5 mt of coke oven capacity and 0.5 mt of long product facilities apart from 2.4 mt palletisation plant of which 1.2 mt would be in West Bengal and 1.2 mt in Odisha,” Agarwal said.
Post expansion, the pellet capacity will go up to 6 mt from the current 3.6 mt; sponge capacity will increase to 2.9 mt (2.10 mt); billet capacity to 2 mt (1.47 mt) and finished steel capacity would go up to 2 mt (1.47 mt).