Shyam Metalics and Energy Limited, through its subsidiary Smel Steel Structural Pvt. Ltd., is set to launch a new aluminium manufacturing facility in Sambalpur, Odisha. The project, which is nearing completion, represents a strategic expansion into value-added aluminium products, reinforcing the company’s commitment to enhancing India’s downstream metal capabilities.
The facility will have an installed capacity of 60,000 tonnes per annum (TPA) for Aluminium Flat Rolled Products (FRP) with a thickness range of 0.3 – 4.0 mm. Additionally, it will produce Aluminium Foils with a capacity of 18,000 TPA, within a thickness range of 6 – 40 microns. This expansion is aimed at diversifying Shyam Metalics‘ product offerings and addressing the growing demand for high-quality metal products across various industries.
The commissioning of the Sambalpur unit is expected to significantly boost the company’s financial and operational performance. Shyam Metalics anticipates an improvement in operating margins by approximately 40–50%, driven by a better product mix and enhanced efficiencies. The new facility is also projected to contribute substantially to revenue growth, with expectations of a 2x to 2.5x increase in topline over the medium term, supported by expanded market reach and higher realisation products.
The project will enhance Shyam Metalics’ integrated manufacturing ecosystem by strengthening its downstream capabilities and enabling expansion into high-growth segments. This strategic positioning is expected to unlock new revenue streams and reduce dependence on imports, contributing to India’s manufacturing ecosystem.
The facility’s location offers logistical advantages, facilitating efficient access to key demand centres and supporting seamless distribution across domestic and international markets. This positions Shyam Metalics to better respond to evolving market dynamics while maintaining operational efficiency.
The project is expected to generate significant employment opportunities in the region and contribute to the socio-economic development of Odisha. It aligns with India’s broader vision of self-reliance and strengthening domestic manufacturing capabilities under initiatives such as “Make in India.”
Commenting on the development, Mr. Brij Bhushan Aggarwal, Chairman and Managing Director of Shyam Metalics and Energy Ltd., stated: “This project represents a key milestone in our journey toward building a robust downstream aluminium ecosystem. With rising demand for high-quality aluminium products, we are confident that this facility will contribute meaningfully to industrial growth while supporting local economic development.”
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).