Shyam Metalics and Energy Limited (SMEL), a metal-producing company based in Kolkata, through its wholly-owned subsidiary, Shyam Sel and Power Limited acquired Mittal Corp Limited on October, 18, 2023 at a consideration of Rs. 351 crores, the company announced through an exchange filing. The development marks the company’s foray into stainless-steel sector, expanding its operations and solidifying its position as a diversified steel and power conglomerate.
The acquisition will expand the manufacturing footprints of SMEL in the state of Madhya Pradesh, with the creation of two key manufacturing facilities, Unit | and Unit Il. Unit |, with an installed capacity of 1,00,000 TPA, sprawled over 17 acres of land, is dedicated to the production of stainless-steel products, including stainless steel billets and mild steel billets. Unit Il boasts an installed capacity of 1,50,000 TPA for manufacturing wire rods and bars of various thickness, equipped with state-of-the-art technology from Danieli Morgardshammar, Sweden/Italy.
This strategic acquisition positions SMEL as a comprehensive solution provider for stainless steel requirements, catering to diverse industries such as construction, architecture, infrastructure, railways, defense, automotive, and more.
Brij Bhushan Agarwal, Vice Chairman and Managing Director, expressed his optimism about the company's growth trajectory, stating, "With a focus on achieving operational excellence, adopting capital prudence, and leveraging our expertise and capabilities, Shyam Metalics has demonstrated stable growth over the past two decades. The current investments across multiple portfolios will take the company to the next level of diversification and business excellence, further strengthening its domestic and global market position."
We expect the stainless steel business — both Mittal Corp and our upcoming stainless flat steel facility in Odisha — to contribute meaningfully towards future growth of the company. In Odisha plant, we plan to manufacture stainless steel through the primary route and will have minimal dependence on stainless scrap. We will have backward integration of around 80% for the raw materials required for the grades of stainless steel we plan to produce there.
This expansion represents a significant step in SMEL's 'diversification approach’ within the metal industry, with plans to invest Rs 7500 crores over the next five years. With both organic and inorganic growth strategies in play, SMEL's present Capex aims to reach Rs. 10,000 Crores in the next five years, fostering employment opportunities by adding 10,000 jobs to the current workforce of more than 15,000 employees across their manufacturing plants in West Bengal and Odisha.