Shyam Metalics acquires Mittal Corp Limited
Kolkata: Shyam Metalics and Energy Limited (SMEL), an integrated metal-producing company based in Kolkata, on Tuesday announced their third acquisition of Mittal Corp Limited with a foray into the stainless steel/wire rod and bar mill business.
According to the company's statement, "This inorganic growth will witness the establishment of manufacturing footprints in the state of Madhya Pradesh and add capacities of 1, 50, 000 tpa stainless steel/wire rod and bar mill." They further stated that the government's mandate of a minimum 20 per cent stainless steel usage in coastal areas will ensure a stable demand of these products.
With this development, Shyam Metalics has embarked on a 'diversification approach' in the metal space to chart the company's growth journey and has proposed to further invest Rs 7,500 crore over the next five years. In order to meet the growth plans with organic and inorganic expansion, SMEL's present Capex aims at growing to Rs. 10,000 crore in the next five years. The current manufacturing plants in West Bengal and Odisha that employ more than 15, 000 people will further see an addition of 10, 000 jobs to the entire workforce post expansions.
Feeling highly optimistic about the positive growth trajectory for Shyam Metalics, Brij Bhushan Agarwal, Vice Chairman and Managing Director said, "With a focus on achieving operational excellence, adopting capital prudence across the board, and leveraging our expertise and capabilities, Shyam Metalics has demonstrated stable growth path in past four decades. We remain PAT-positive since the commencement of our operations in 2005. 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."
The company said that its integrated steel production capacity is to further increase from the existing 8.85 MTPA to 14.45 MTPA of which the value-added Long Steel capacity shall increase to 2 MTPA from the present capacity of 1.47 MTPA.
