Shyam Metalics Clears ₹2,700-Crore Capex for Expansion Initiatives.

Shyam Metalics and Energy Limited has announced a major expansion plan involving a capital expenditure (capex) of ₹2,700 crore, aimed at strengthening its presence in both long steel and stainless steel segments. The investment will be deployed across its Kharagpur and Sambalpur facilities, with completion targeted by early 2029.

The company said the expansion is designed to diversify its product portfolio and significantly enhance overall production capacity.

At Kharagpur, Shyam Metalics will invest ₹900 crore to set up a Wire Rod and Bar Mill (SBQ Mill) equipped with a furnace. The project will add a capacity of 8,00,000 tonnes per annum (TPA) and is scheduled for commissioning by March 31, 2029. The facility is expected to strengthen the company’s position in high-value specialty steel products and support its move up the steel value chain.

A larger portion of the investment, ₹1,800 crore, will be directed towards expanding the stainless steel and downstream operations at Sambalpur. The project will increase stainless steel capacity from 0.50 million tonnes per annum (MTPA) to 0.60 MTPA.

The Sambalpur expansion will include new advanced facilities such as a stainless steel cold rolling mill, precision cold rolling mill, hot rolling annealing and pickling line, and a bright annealing line, aimed at improving product quality and finishing capabilities.

Overall, the ₹2,700 crore capex programme is expected to be funded through a combination of internal accruals and borrowings, as per management plans. The company said the initiative reflects its long-term strategy to expand capacity, improve product mix, and capture growing demand in value-added steel segments.