Kolkata-based Shyam Metalics and Energy (SMEL) have accomplished the acquisition of Mittal Corp, a significant move bolstering their manufacturing capabilities. Through its wholly-owned subsidiary, Shyam Sel and Power, SMEL has invested Rs 351 crore in this strategic expansion.
The acquisition encompasses the establishment of two state-of-the-art manufacturing facilities located in Madhya Pradesh, enhancing SMEL’s production portfolio. Unit-I, sprawling across 17 acre, is dedicated to the production of stainless steel and mild steel billets, boasting an impressive annual capacity of 1,00,000 metric ton. Meanwhile, Unit-II, equipped with cutting-edge technology from Danieli Morgardshammar, adds substantial muscle with an installed capacity of 1,50,000 metric ton for wire rods and bars production.
This endeavor aligns with SMEL’s ambitious plans for growth, as the company gears up to launch its forthcoming stainless flat steel facility in Odisha. This new facility aims to achieve an impressive 80 per cent backward integration, reducing reliance on stainless scrap and ensuring a steady supply of raw materials needed for the production of specific stainless steel grades.
Beyond fortifying their manufacturing capabilities, this initiative is expected to significantly contribute to job creation, with the potential to add 10,000 employment opportunities to the existing workforce. These opportunities will span across SMEL’s manufacturing plants in West Bengal and Odisha, further strengthening their foothold in the region.
In line with their growth vision, SMEL is committed to both organic and inorganic expansion strategies and anticipates a substantial capital expenditure (capex) of Rs 10,000 crore over the next five years, setting the stage for further industry innovation and development.