Shyam Metalics and Energy Limited (SMEL), completed the acquisition of Mittal Corp Limited through its wholly owned subsidiary, Shyam Sel and Power Limited for ₹351 crore. The acquisition involves the establishment of two manufacturing facilities, Unit I and Unit II, in the state of Madhya Pradesh. Unit I, spanning 17 acres, is dedicated to the production of stainless steel and mild steel billets with a capacity of 1,00,000 TPA. Unit II, equipped with technology from Danieli Morgardshammar, Sweden/Italy, boasts an installed capacity of 1,50,000 TPA for wire rods and bars production.
Brij Bhushan Agarwal, Vice Chairman and Managing Director of SMEL, expressed confidence in the company’s growth trajectory. He emphasized SMEL’s commitment to operational excellence, capital allocation, and leveraging its expertise to achieve steady growth over the past two decades.
Anticipating contributions from the stainless steel business, Agarwal also highlighted the forthcoming stainless flat steel facility in Odisha. The facility aims to minimize dependence on stainless scrap and achieve around 80 per cent backward integration for raw materials required in the production of targeted grades of stainless steel.
SMEL’s diversification efforts, within the metal industry, involve investing ₹7500 crore over the next five years. By incorporating both organic and inorganic growth strategies, SMEL envisions a Capex of ₹10,000 crore in the next five years. This initiative is expected to create employment opportunities, adding 10,000 jobs to the current workforce of more than 15,000 employees across their manufacturing plants in West Bengal and Odisha.
However, the shares were down by 1.46 per cent to ₹463.45 at 12.47 pm on the BSE.