Shyam Metalics announces its 3rd acquisition for facilitating inorganic growth in steel space

Shyam Metalics & Energy has announced their third acquisition of Mittal Corp with a foray into the Stainless Steel (SS) / Wire Rod & Bar Mill business. The matter is subjudice and shall be resolved in due course. This inorganic growth will witness the establishment of manufacturing footprints in the state of Madhya Pradesh and add capacities of 1,50,000 tpa Stainless Steel (SS) / Wire Rod & Bar Mill. Ferro Alloys a key input material for Stainless Steel is extensively produced by the company's existing companies. The Government has mandated a minimum 20% use of stainless steel in Coastal Areas which ensures a very stable demand for these products.

With this development, Shyam Metalics has embarked on a 'diversification approach' in the metal space to chart the company's growth journey and has proposed to further invest Rs 7500 crore over the next five years. In order to meet the growth plans with organic and inorganic expansion, SMEL's present Capex aims at growing to Rs. 10000 crore in the next five years. The current manufacturing plants in West Bengal and Odisha which employs more than 15000 people will further see an addition of 10000 jobs to the entire workforce post expansions.

In 2021, SMEL made a very successful acquisition in the aluminum foil metal space and then successfully implemented one of India's largest Aluminium Foil Rolling Plant in India in the State of West Bengal. The acquisition of Sri Venkateshwara, a small Aluminium Foil plant in Giridh with an annual capacity of 3600 MTPA has hugely benefited the setting up of the Aluminium Foil Rolling mill complex to manufacture Quality Products with an annual rolling capacity of 40000 MT per annum.

SMEL has also taken control of Ramsarup Industries through NCLT which will help facilitate inorganic growth in the steel space. Following the takeover of Ramsarup Industries in May 2022, Shyam Metalics aims at enhancing and reviving the operations and steel-making manufacturing facilities of Ramsarup Ind. Fresh planning for revival aided with the deployment of capital will lead to the generation of 3000 new jobs and facilitate the growth of the company the state and its people.

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