Shyam Metalics and Energy Limited announced on Friday the successful commissioning of Phase II of its Cold Rolling Mill facility for colour coated sheets at its Jamuria plant in West Bengal, with commercial production having commenced on April 16, 2026. The expansion, operated through its wholly owned subsidiary Shyam Sel and Power Limited, adds 0.15 million tonnes per annum of capacity through an advanced Dual Pot GI cum Galvalume processing line, taking the total installed CRM capacity at Jamuria to 0.40 MTPA from the existing Phase I base of 0.25 MTPA.
What the Phase II Expansion Adds
The Dual Pot GI cum Galvalume line commissioned in Phase II represents a meaningful upgrade in the technical complexity and application range of Shyam Metalics’ flat steel output. Galvalume coated steel, which combines zinc and aluminium in its coating composition, offers superior corrosion resistance and heat reflectivity compared to standard galvanised products and commands premium pricing across applications in roofing, solar panel mounting structures, automotive components and consumer durables.
The timing of this capacity addition is strategically significant. Solar panel mounting structures — one of the primary target markets for the new capacity — have until recently been heavily import dependent in India, with domestic supply failing to keep pace with the rapid expansion of India’s solar installation programme. Shyam Metalics is positioning the Phase II output to directly address this import substitution opportunity, aligning the expansion with the government’s broader Atmanirbhar Bharat push in the renewable energy supply chain.
The Phase II expansion has also been structured to qualify under the Government of India’s Production Linked Incentive Scheme — specifically PLI 2 — which provides financial incentives for advanced manufacturing in specialty steel and downstream products, improving the overall return profile of the capital deployed in this phase.
Automotive and Consumer Durables as Additional Demand Drivers
Beyond solar, the company has identified automotive and consumer durables as the other high-growth, high-margin segments for the expanded CRM output. Both sectors have been running significant import dependency for precision-engineered, coated flat steel products of the kind that the Phase II Galvalume line is designed to produce. Penetrating these segments allows Shyam Metalics to move further up the steel value chain, improving realisations per tonne relative to its upstream sponge iron and billet business.
The Jamuria facility’s location in eastern India provides logistical advantages for serving both the Bengal industrial corridor and the broader eastern and central Indian markets, while also reducing freight costs relative to flat steel sourced from western India’s dominant steel belt.
Management Commentary
Chairman and Managing Director Brij Bhushan Aggarwal said the Phase II commissioning would drive a better product mix, support margin expansion and contribute meaningfully to incremental EBITDA over the medium term. He added that the PLI inclusion further enhances the return profile of the project and that the company expects optimal ramp-up within the next 10 to 12 months, while maintaining its focus on disciplined capital allocation with a pipeline of further value-accretive expansions under evaluation.
Company Scale Context
Shyam Metalics, headquartered in Kolkata, operates manufacturing plants across West Bengal, Odisha, Jharkhand and Madhya Pradesh with aggregate installed metal capacity of 16.78 MTPA across intermediate and final products, supported by 467 MW of captive power capacity. The company holds market capitalisation of over ₹24,500 crore and is among the largest ferro alloy producers and the largest coal-fired sponge iron producer by installed capacity in India.
Disclaimer: This article is based on a company press release and regulatory filing and is for informational purposes only. It does not constitute investment advice. Readers are advised to consult a SEBI-registered financial advisor before making investment decisions.