"The development marks the company's foray into stainless-steel sector, expanding its operations and solidifying its position as a diversified steel and power conglomerate,” Shyam Metalics said in a statement.

The acquisition will expand the manufacturing footprints of the company in the state of Madhya Pradesh, with the creation of two key manufacturing facilities, Unit-I and Unit-II.

Unit-I, with an installed capacity of 1,00,000 TPA, sprawled over 17 acres of land, is dedicated to the production of stainless-steel products, including stainless steel billets and mild steel billets. Unit-II boasts an installed capacity of 1,50,000 TPA for manufacturing wire rods and bars of various thickness, equipped with technology from Danieli Morgardshammar, Sweden/Italy.

This strategic acquisition positions Shyam Metalics as a comprehensive solution provider for stainless steel requirements, catering to diverse industries such as construction, architecture, infrastructure, railways, defense, automotive, and more.

Brij Bhushan Agarwal, vice chairman and managing director, said: “With a focus on achieving operational excellence, adopting capital prudence, and leveraging our expertise and capabilities, Shyam Metalics has demonstrated stable growth over the past two decades. The current investments across multiple portfolios will take the company to the next level of diversification and business excellence, further strengthening its domestic and global market position.

We expect the stainless steel business — both Mittal Corp and our upcoming stainless flat steel facility in Odisha — to contribute meaningfully towards future growth of the company. In Odisha plant, we plan to manufacture stainless steel through the primary route and will have minimal dependence on stainless scrap. We will have backward integration of around 80% for the raw materials required for the grades of stainless steel we plan to produce there.

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 reported 43.2% fall in consolidated net profit to Rs 235.2 crore in Q1 FY24 from Rs 413.8 crore in Q1 FY23. Revenue from operations rose by 2.6% YoY to Rs 3,306.8 in the first quarter of FY24.

The scrip fell 1.76% to currently trade at Rs 462 on the BSE.