Shyam Metaliks & Energy Limited (SMEL) is looking for all-round expansion in production capacity of pellets, sponge iron, billets and finished steel at an estimated investment of ₹3,900 crore.
It is also looking to increase the integrated steel production capacity to 14.45 million tonnes from the current 8.85 million tonnes (mt) per annum, of which the value-added long steel capacity will be raised to 2 million tonnes from the current 1.47 million tonnes.
According to Brij Bhushan Agarwal, Vice Chairman and MD, SMEL, the company will invest more in the B2C market on the finished steel side and this segment will contribute most of its revenue growth. The company has invested around ₹2,400 crore in the last two years out of the existing capex plan of ₹3,950 crore.
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“We are adding about 1 million tonne iron making capacity, 0.5 million tonne coke oven capacity and 0.5 million long product facilities, apart from a 2.4 million tonne palletisation plant, of which 1.2 million tonne will be in West Bengal and 1.2 million tonnes will be in Odisha.” business Line,
Brij Bhushan Agarwal, Vice Chairman & MD, Shyam Metaliks & Energy Ltd.
The pellet capacity will increase to 6 million tonnes from the existing 3.6 million tonnes after the expansion; Sponge capacity will increase to 2.9 million tonnes (2.10 million tonnes); Billet capacity will go up to 2 million tonnes (1.47 million tonnes) and finished steel capacity up to 2 million tonnes (1.47 million tonnes).
SMEL is one of the largest producers of coal fired sponge iron in the country with a current capacity of 2.1 million tonnes. The capacity will increase to 3 million tonnes of iron making after the planned expansion. The new investment will also help the company bet bigger on its exports and expand its geographies into new markets. Exports currently account for about 16 per cent of its total turnover.
“India will play a major role in supplying ferroalloys and steel to the world. Although the geopolitical situation at present is a bit challenging, it is not likely to remain so for much longer. We expect good growth in exports.
SMEL, which manufactures specialty alloys and ferro products, has recently commissioned a highly specialized 14,000 TPA low carbon ferro chrome plant, adding to its diversified product basket.
The company has a vast basket of metal products including Pellets, Sponge Iron, Billets, TMT Rods, Wire Rods, Angles, Channels, Beams, Ferro Chrome, Ferro Silicon, Silico Manganese and Aluminum foil products. it The recently completed acquisition of Mittal Corp Ltd. To strengthen metal portfolio by foraying into Stainless Steel/Wire Rod & Bar Mill.