Cheerful news for Shyam Metalics!

The stock of Shyam Metalics climbed over half a per cent on Thursday and also, delivered more than 6 per cent return on a WTD basis.   

Shyam Metalics, a leading integrated metal producing company based in India with a focus on long steel products & ferroalloys, announced a capacity expansion as outlined in the Capex plans for the financial year 2021-22. The company has made significant progress in its endeavour to increase the existing integrated installed facility from 5.7 million tonnes to 11.6 million tonnes by 2025.   

Furthermore, the company and its material wholly-owned subsidiary i.e Shyam SEL & Power Ltd have received ‘consent to operate’ from State Pollution Control Board, Odisha as well as West Bengal Pollution Control Board, respectively. Following the clearances, the total installed capacity for sponge iron products will increase by 20 per cent from 1.39 million tonnes per annum (MTPA) to 1.67 MTPA.   

The incremental capacities to commence operations will kickstart in December 2021. Furthermore, the company is also expecting to receive similar clearances for commissioning an aluminum foil plant in West Bengal. The proposed installed capacity of 0.03 MTPA is also expected to start commercial operations in December 2021.  

Commenting on the developments, Brij Bhushan Agarwal, Vice Chairman & Managing Director said, “The capacity expansion at our Sambalpur & Jamuria plants comes at an opportune time as the steel industry continues to expand and the demand for our product remains high. We are committed to our expansion plans and have already invested Rs 464 crore from the total budget of Rs 850 crore earmarked towards capital expenditure from internal accruals in the financial year 2022. We also look forward to further expansions in our captive power projects. We are optimistic about achieving our goals and generating value for all our stakeholders.”