"Shyam Metalics Acquires Mittal Corp Limited in ₹351 Crore Deal"

In a significant corporate development, Shyam Metalics and Energy Limited (SMEL) has successfully concluded the acquisition of Mittal Corp Limited through its wholly owned subsidiary, Shyam Sel and Power Limited, for a total transaction value of ₹351 crore. The acquisition includes the establishment of two state-of-the-art manufacturing facilities, Unit I and Unit II, both strategically located in the state of Madhya Pradesh.

Unit I, situated on a sprawling 17-acre expanse, is dedicated to the production of stainless steel and mild steel billets. This facility boasts a commendable production capacity of 1,00,000 metric tonnes per annum (TPA). Meanwhile, Unit II stands out with its cutting-edge technology sourced from Danieli Morgardshammar, hailing from Sweden and Italy. With an impressive installed capacity of 1,50,000 TPA, Unit II is primed for wire rods and bars production.

Brij Bhushan Agarwal, the Vice Chairman and Managing Director of SMEL, expressed unwavering confidence in the company's growth trajectory. He emphasized SMEL's enduring commitment to operational excellence, prudent capital allocation, and the strategic leveraging of its expertise, a strategy that has propelled the company's consistent growth over the past two decades.

Foreseeing substantial contributions from the stainless steel segment, Agarwal underscored the imminent establishment of a stainless flat steel facility in Odisha. This ambitious facility is strategically designed to reduce the company's reliance on stainless scrap and aims to achieve a remarkable 80 percent backward integration for essential raw materials needed in the production of specific grades of stainless steel.

SMEL's forward-looking diversification efforts within the metal industry are set to unfold with an impressive investment of ₹7,500 crore over the next five years. Employing a combination of organic and inorganic growth strategies, SMEL envisions a substantial capital expenditure (Capex) of ₹10,000 crore in the coming five years. This forward-thinking initiative is expected to create substantial employment opportunities, with an anticipated addition of 10,000 jobs to the existing workforce, which already comprises more than 15,000 employees across the company's manufacturing facilities in West Bengal and Odisha. The acquisition of Mittal Corp Limited marks a significant step forward in SMEL's expansion and diversification efforts, poised to drive its presence and influence in the metal industry to new heights.

HBL