Shyam Metalics is on four fold expansion mode; Signed Salman Khan as its Brand Ambassador

• To increase the INTEGRATED STEEL production capacity from existing 5.71 MTPA to 11.54 MTPA of which value-added Long Steel capacity shall enhance to 2 MTPA from present 0.89 MTPA
• To expand its Brand Reach and Distributor/Dealer network
Bhubaneswar : Shyam Metalics a leading integrated metal producing company having manufacturing facility in Odisha and west Bengal announced the signing of leading Bollywood actor Salman Khan as its Brand Ambassador. Salman Khan will endorse its SEL TMT rebars and rods and structural products.
Shyam Metallics operates three manufacturing plants in strategic locations on the bed of raw materials, one in Sambalpur in the state of Odisha and other two plants on in Jamuria and the other in Mangalpur in the state of West Bengal. The plants of Sambalpur and Jamuria are equipped with world class infrastructure with their own Captive Railway Sidings, Captive Power Plants with Waste Heat Recovery Boilers and Captive Water Reservoirs. The company employs more than 12300 people and the expansion would add another 5000 people to their workforce.
Speaking on this development, Mr. Sanjay Agarwal, Joint Managing Director, Shyam Metalics said, our continued focus on making high quality products and ensuring it reaches the last mile lets us participate in building a modern India. We believe in manufacturing real steel with real strength and investing in real people. Our products like SEL TMT rebars wire rods and structural products are sold under the brand name SEL that delivers attributes of Strength, Elasticity and Longevity. These attributes are synonymous with Bollywood actor Salman Khan and makes him a perfect fit for this brand. This association will strengthen our unique brand recall and position our unique offering both to our customers and end users. We believe the key to our brand journey is to stay relevant to the emergent needs of the consumer at every point of the construction point.
The idea of roping in Mr. Salman Khan is to promote the TMT, a part of company’s four fold expansion plan in metal capacity comprising intermediate and final product. Shyam Metalics is ramping capacities across its manufacturing plants and captive power plant. From the sale of 1.07 lakh tons of long steel products in FY 2016-17 it has grown to sale 6.37 lakh tons in FY 2020-21 and after the proposed expansion it targets to ramp up this capacity to 20 lakh tons of branded value added products. Shyam Metalics also announced its plans to increase the integrated production capacities of steel making and Ferro Alloys from existing 5.71 MTPA to 11.54 MTPA. By Fiscal 2023 mostly 75% of the expansion shall be completed and the remaining 25 % shall be implemented by fiscal 2025. The total capex cost would be aggregating to 2960 crores of which the company has already spent Rs. 736 Crores till fiscal 2021. The company plans to incur Capex of 850 crores during the FY22 itself.
This expansion plan also includes Shyam Metallics foray to enter into another metal business of producing Aluminum foils involving metal rolling expertise.
We got an over whelming response from the investors in stock markets in our maiden IPO. It was subscribed more than 121 times. The current market capitalization of the company is approximately 10800 crore making it among the top 7 steel players in the country in the listed space. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of in the sponge iron industry. We always believed in steady growth and it is being executed in a planned phased manner. In spite of pandemic situation in the last 3 years we have grown our capacities at CAGR as of 23.94%, added Mr Sanjay Agarwal.
As a part of its business expansion, the company is planning to recruit new dealers and distributors across all key places of India.
Expansion plans
We are now ready to grow both organically through a combination of increasing capacities in both upstream and downstream business and diversify our product portfolio by also getting into another metal business of Aluminum foils. We also have planned to implement pig iron capacities as backward integration to feed and meet our SMS plant requirements and also meet the requirements of DI pipes’ – added Mr. Agarwal.
Steel Plant and Captive Power Plant
The company is in the process of increasing the capacities of their existing manufacturing plants and captive power plants, which is expected to increase the aggregate installed metal capacity (comprising of intermediate and final products) from 5.71 MTPA, as of December 31, 2020, to 11.60 MTPA and captive power plants aggregate installed capacity from 227 MW, as of December 31, 2020, to 357 MW. These proposed expansions are expected to become operational between Fiscal 2022 and Fiscal 2025.
Aluminum Foil Rolling Mill
With their planning for expansions SHYAM METALICS is also setting up Aluminum Foil Rolling mill complex to manufacture Quality Products with an annual rolling capacity of 40000 MT per annum with a product mix to cater the requirement of the market related to (Pharmaceuticals / House hold Foil / Contraceptive / FMCG / Electronics / Electricals / Automotive / Dairy / Confectionery / Flexible Packaging Industries and many other fields. This shall be a B2B business and the plant is being set up in Pakuria, about 40 kms from Kolkata in West Bengal.