Shyam Metalics’ ₹2,700 Cr Bet on Value-Added Steel

Shyam Metalics and Energy Limited has announced a major capital expenditure programme of ₹2,700 crore to expand its operations in the long steel and stainless steel segments. The investment will be made across its Kharagpur and Sambalpur facilities, with project completion targeted by early 2029.

The company said the expansion initiative is aimed at diversifying its product portfolio and significantly increasing production capacity across value-added steel segments.

At Kharagpur, Shyam Metalics will invest ₹900 crore to establish a new Wire Rod and Bar Mill (SBQ Mill) along with a furnace. The project will add production capacity of 8,00,000 tonnes per annum (TPA) and is expected to be commissioned by March 31, 2029. The company said the facility will strengthen its presence in high-value specialty steel products and support its move further up the steel value chain.

A larger investment of ₹1,800 crore has been earmarked for the expansion of stainless steel and downstream operations at Sambalpur. The project will increase stainless steel production capacity from 0.50 million tonnes per annum (MTPA) to 0.60 MTPA.

The Sambalpur expansion will include the installation of advanced facilities such as a stainless steel cold rolling mill, precision cold rolling mill, hot rolling annealing and pickling line, and a bright annealing line, aimed at enhancing product quality, processing efficiency, and finishing capabilities.

The overall ₹2,700 crore capex programme is planned to be funded through a mix of internal accruals and borrowings. According to the company, the expansion reflects its long-term strategy to scale operations, improve product mix, and capitalise on rising demand for value-added steel products.

News by Rahul Yelligetti.