Shyam Metalics and Energy Announces ₹2,700 Crore Capex Push for Specialty Steel Growth.

Shyam Metalics and Energy has announced plans to invest ₹2,700 crore in a new expansion programme aimed at increasing its share of higher-margin, value-added steel products, the company said recently.

The proposed investment, which is subject to board approval, will be funded entirely through internal accruals, underscoring the company’s focus on capital discipline. The projects are expected to be commissioned by 2029 and form part of its broader ₹16,060 crore capital expenditure pipeline, of which around ₹8,700 crore has already been deployed.

The expansion strategy is centred on strengthening the company’s presence in specialty steel and value-added segments, along with enhancing its stainless steel downstream capabilities.

A key component of the plan is a ₹900 crore investment in an 800,000 tonnes per annum Special Bar Quality (SBQ) and specialty wire rod and bar mill. This facility is expected to enable entry into premium steel markets serving the automotive, engineering, and infrastructure sectors, where realisations and margins are typically higher.

In parallel, the company will deploy ₹1,800 crore to expand its stainless steel operations, including upgrades to melt shops, hot strip mills, and cold rolling facilities. With this, total investment in the stainless steel segment will rise to ₹2,830 crore. The expansion is aimed at reducing import dependence in select categories and strengthening supply to sectors such as automotive, railways, and coastal infrastructure.

Chairman and Managing Director Brij Bhushan Agarwal said the company is shifting its focus from scale-led expansion to value-led growth.

“This marks the next phase of Shyam Metalics’ evolution from scale-led growth to value-led growth. Our objective is not simply to add capacity, but to build stronger positions in sophisticated, higher-margin product categories,” he said.

He added that investments in specialty and downstream stainless steel products would help the company move up the value chain, support import substitution, and reinforce domestic manufacturing capabilities.

The latest capex forms part of a multi-year expansion programme being executed over the next three to four years, aimed at improving product mix, boosting blended margins, and enhancing export competitiveness while maintaining long-term shareholder value.