Kolkata-headquartered integrated metal producer Shyam Metalics and Energy Ltd has announced the acquisition of Indore-based Mittal Corp Ltd to expand its footprint in stainless steel, wire rod and bar mill businesses.
With the acquisition, Shyam Metalics adds 150,000 tonnes per annum stainless steel, wire rod and bar mill capacity. It will invest ₹7,500 crore over five years to diversify its metals businesses further, the company said in a statement.
Within the next five years, capex is likely to be at ₹10,000 crore to support its inorganic and organic growth plans.
The firm seeks to expand its steel capacity to 14.45 million tonne per annum from 8.85 mtpa, including value-added long steel capacity of 2 mtpa from the existing capacity of 1.47 mtpa.
Shyam Metalics has already invested ₹2,400 crore from its ₹3,950 crore capital expenditure plan for the last two years.
The fresh infusion will also help it bet big on export markets and expand its global footprint. It is present in 40-plus countries, which contribute 16% to its revenue.
“We are PAT (profit-after-tax) positive since the commencement of our operations in 2005. The current investments across portfolios will take us to the next level of diversification, business excellence and strengthen domestic and global presence,” said Brij Bhushan Agarwal, vice chairman and MD, Shyam Metalics and Energy. Within the next six months, the company will boost capacities of pellets from 3.6 million tonnes (mt) to 6.0 mt, sponge from 2.10 mt to 2.90 mt, billet capacity from 1.47 mt to 2 mt, and finished steel from 1.47 mt to 2 mt.
The company is also looking to increase its captive power plant capacity from 267 megawatt (mw) to 357 mw.
Over FY24 and FY25 it will add capacities to its coke oven and ductile iron units and blast furnace facility, it said.
