SMEL expands metal empire with Mittal Corp acquisition and bold growth plans

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SMEL expands metal empire with Mittal Corp acquisition and bold growth plans

SMEL expands metal empire with Mittal Corp acquisition and bold growth plans

Industry News
Oct 23,23

This strategic move involved the establishment of two cutting-edge manufacturing facilities, namely Unit I and Unit II, located in the state of Madhya Pradesh.

SMEL expands metal empire with Mittal Corp acquisition and bold growth plans

Shyam Metalics and Energy Limited (SMEL) successfully concluded the acquisition of Mittal Corp Limited through its wholly owned subsidiary, Shyam Sel and Power Limited, at a total cost of Rs 351 crore. This strategic move involved the establishment of two cutting-edge manufacturing facilities, namely Unit I and Unit II, located in the state of Madhya Pradesh. Spanning 17 acres, Unit I is dedicated to producing stainless steel and mild steel billets with a substantial capacity of 1,00,000 metric tons per annum (TPA). Unit II, equipped with state-of-the-art technology from Danieli Morgardshammar in Sweden and Italy, has an impressive installed capacity of 1,50,000 TPA for wire rods and bars production.

Brij Bhushan Agarwal, the Vice Chairman and Managing Director of SMEL, expressed unwavering confidence in the company's growth trajectory. He underscored SMEL's dedication to operational excellence, prudent capital allocation, and the utilisation of its expertise, which have been instrumental in driving steady growth over the past two decades.

Highlighting the imminent contribution from the stainless steel business, Agarwal emphasised the upcoming stainless flat steel facility in Odisha. This facility is poised to reduce dependence on stainless scrap by achieving approximately 80% backward integration for the raw materials essential in producing targeted grades of stainless steel.

As part of SMEL's ambitious diversification efforts within the metal industry, the company plans to invest Rs 7500 crore over the next five years. By seamlessly integrating both organic and inorganic growth strategies, SMEL envisions a substantial capital expenditure of Rs 10,000 crore in the coming five years. This initiative is not only anticipated to create significant employment opportunities but also aims to add 10,000 jobs to the current workforce of over 15,000 employees across their manufacturing plants in West Bengal and Odisha.

Source: Business Line