Integrated metal-producing company, Shyam Metalics and Energy Ltd (SMEL), has acquired Mittal Corp Ltd through the NCLT route for an estimated ₹450 crore to foray into the stainless steel, wire rod, and bar business. This acquisition will help the company establish its manufacturing footprint in Madhya Pradesh and add close to 1,50,000 tonnes per annum of stainless steel and wire rod and bar mill capacities.

According to Brij Bhushan Agarwal, Vice Chairman and MD, Shyam Metalics, as ferroalloy, a key input material for stainless steel, is extensively produced by the existing group companies, this venture will help consolidate their manufacturing footprints in central India. The company currently has a presence in the eastern region. With the Government mandating a minimum 20 per cent use of stainless steel in coastal areas, the company remains optimistic about stable demand for these products.

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The company has been looking to foray into newer segments with a view to diversify the product basket and grow its business. It proposes to invest close to ₹10,000 crore over the next four-to-five years to expand production capacity to close to 14.45 million tonnes from the existing 8.85 mt. It currently has manufacturing plants in West Bengal and Odisha.

“The current investments across multiple portfolios will only take the company to the next level of diversification and business excellence, further strengthening its domestic and global position in the market,” Agarwal said at a press conference on Tuesday.

Inorganic growth

SMEL had, in 2021, acquired Sri Venkateshwara, a small aluminium foil plant in Giridh with an annual capacity of 3600 mt and also established one of the country’s largest aluminium foil rolling plants in West Bengal with an annual rolling capacity of 40,000 mt per annum.

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The company has also taken control of Ramsarup Industries Ltd through NCLT in May this year. It aims at enhancing and reviving the operations and steel manufacturing facilities of Ramsarup Ind. 

The new investment will also help Shyam Metalics to grow exports and expand into newer markets. The company currently exports to over 40 countries with a contribution of 16 per cent to the overall business.