PNN
New Delhi [India], July 16: SMEL Steel Structural Pvt. Ltd., a step-down subsidiary of Shyam Metalics and Energy Limited, today announced the commencement of commercial production at its Aluminium Foil facility in Sambalpur, Odisha. The facility has an installed operational capacity of 18,000 tonnes per annum (TPA) and is equipped to manufacture premium-grade foils in the thickness range of 6 to 40 microns.
Highlights: -
- Investing around ₹800 crore in downstream aluminium facilities at Sambalpur to strengthen the value-added product portfolio.
- Commences commercial production at 18,000 TPA Aluminium Foil facility in Odisha; 60,000 TPA Aluminium FRP plant on track for commercial launch by September 2026.
- Downstream aluminium business expected to enhance operating margins by 40-50% through improved product mix and higher realisations.
- Aluminium expansion projected to drive 2x-2.5x revenue growth by expanding domestic and international market reach.
Listed on BSE and NSE, Shyam Metalics & Energy Ltd, company's share price was up over 10% in the last one month, with the market capitalisation of the company near Rs. 30,000 crore.
The company also confirmed that its Aluminium Flat Rolled Products (FRP) facility is in the final readiness phase and is on track for commercial launch by September 2026, further strengthening its presence in the value-added aluminium products segment. The FRP section will have an installed capacity of 60,000 TPA and would span a thickness range of 0.3 to 4.0 mm. (In total, the company is investing around Rs 800 crore on the Aluminium facilities in Sambalpur)
Sambalpur Downstream Facility Capacity Profiles:
- Aluminium Foils: 18,000 TPA capacity | Thickness range: 6 - 40 microns (Now under active Commercial Production)
- Aluminium Flat Rolled Products (FRP): 60,000 TPA capacity | Thickness range: 0.3 - 4.0 mm (Commercial Production scheduled by the end of September 2026)
The strategic foray into value-added, downstream aluminium products represents a major step in SMEL's product diversification strategy. It addresses the critical domestic demand for precision-engineered and high-quality materials, reduces import dependence, and strengthens India's Atmanirbhar Bharat initiative under the Make in India vision.
The commissioning of these plants - Aluminium Foil and the FRP facility - is anticipated to enhance SMEL's operating margins by approximately 40-50% on the back of optimised product mix and higher product realisations. It is also projected to drive robust revenue growth, expanding the company's topline by 2x to 2.5x through enhanced market reach and distribution across domestic and international markets.
Mr. Brij Bhushan Agarwal, Chairman and Managing Director, Shyam Metalics and Energy Ltd., said: "The commencement of commercial foil production at our Sambalpur plant marks a pivotal operational milestone in building a world-class downstream aluminium ecosystem. By delivering high-quality, specialized products, we are well-positioned to serve high-growth economic segments, unlock new revenue streams, and simultaneously foster localized socio-economic and employment growth in Odisha. We look forward to completing our ecosystem with the launch of the Flat Rolled Products line by September's end."
About Shyam Metalics and Energy Limited
Shyam Metalics is a leading and fastest-growing integrated metal-producing company based in India, primarily in the steel industry in West Bengal, Odisha, Jharkhand, and Madhya Pradesh, with a focus on Long & Flat Steel Products, Ferro Alloys, Aluminium, and Stainless Steel. The company got listed itself on the exchanges in 2021 and possesses a market capitalization of more than ₹ 29,000 Cr. Headquartered in Kolkata, West Bengal, the company is amongst the largest producers of ferro alloys in terms of installed capacity in India. The company has an aggregate installed metal capacity of 16.78 MTPA across the steel value chain and is supported by a 467 MW aggregated installed capacity of captive power plants.
For more information, please visit our website at https://www.shyammetalics.com/.
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