The company said that the expansion plan was already approved by its board the meeting held on 27 July 2023. The firm is strategically positioning itself for accelerated growth and expansion in the stainless steel market, it added.

The metal producer stated that the new facility, boasting a capacity of 0.3 million metric tons per annum (MTPA), will specialize in the production of 200 and 400 series stainless steel HRC by utilizing captive raw materials such as direct-reduced iron (DRI), power and ferroalloys in a reliable and efficient supply chain, while maintaining uncompromising quality standards throughout the manufacturing process.

To bolster its capabilities in the long products sector, the company 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 wholly owned subsidiary Shyam Sel and Power, dedicated to downstream products from its wire rod division. This expansion initiative includes plans to establish a stainless steel bright bars capacity of 25,000 metric tons per annum (MTPA) and an SS wires division with a capacity of 18,000 MTPA, Shyam Metalics stated in the press release.

The project is expected to be commissioned by mid of financial year 2026-27. The estimated cost is expected to be in the range of Rs 650 crore to Rs 750 crore.

Together, these expansion ventures are anticipated to generate approximately 1500 new employment opportunities, underscoring Shyam Metalics' unwavering commitment to fostering innovation and sustained growth with an integrated supply chain, said the firm.

Further, the company added, “The planned expansion into stainless steel flat products is poised to play a crucial role in supporting India's burgeoning automotive, construction, infrastructure, and consumer goods sectors. By providing high-quality stainless steel products, Shyam Metalics aims to contribute significantly to the nation's economic growth and development.”

Sanjay Agarwal, joint managing director at Shyam Metalics and Energy, said, “With our aggressive expansions into both stainless steel long and flat products, we are well-positioned to capitalize on emerging opportunities in the sector, both domestically as well as internationally.”

Dr. Deepak Kumar Gaur, chief operating officer of Shyam Metalics and Energy, said, “Due to our strong supply chain and unwavering commitment to quality, our company is well-positioned to precisely and effectively meet the ever-evolving demands of the stainless steel market. By diversifying into flat stainless steel products, we will be able to drive growth in important industries like consumer goods, construction, automotive, and infrastructure.

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

The company’s consolidated net profit jumped 89.2% to Rs 127.30 crore in Q3 FY24 as against with Rs 67.27 crore posted in Q3 FY23. Net sales stood at Rs 3,315.29 crore in Q3 FY24, registering a growth of 13.5% year on year.