SMEL Steel Structural Private Limited, a subsidiary of Shyam Metaliks & Energy Limited (SMEL), has started commercial production at its aluminum foil unit at Sambal, Odisha. The company was preparing for this for a long time, for which investors were also waiting. With the start of production in this plant, India’s import dependence on aluminum foil will reduce. This is the reason that in the last one month, the shares of Shyam Metallics and Energy Limited have increased by more than 10 percent in BSE and NSE and the market capitalization of the company has increased by about Rs 30 thousand crores. The special thing is that the company’s shares have registered an increase in five out of the last seven trading sessions. On Friday, the company’s shares fell 1.75 percent and closed at Rs 1022.05 per unit.
The company will make premium-grade foil with thickness of 6 to 40 microns.
The annual production capacity of this plant of SMEL Steel Structural Private Limited is 18 thousand tonnes. Premium-grade foils with thickness of 6 to 40 microns can be made in this plant. The company’s Aluminum Flat Rolled Products (FRP) plant is also in the final stages and can be commercially launched by September 2026. This will further strengthen the company’s presence in the value-added aluminum products segment. The FRP section will have an installed capacity of 60,000 tonnes per annum and will produce products with thicknesses ranging from 0.3 to 4.0 mm. The company is investing approximately Rs 800 crore on this plant.)
Self-reliant India initiative will get strength
Taking strategic steps into value-added, downstream aluminum products is an important part of SMEL’s product diversification strategy. It meets the significant domestic demand for precision engineering and high quality materials. Reduces dependence on imports and strengthens India’s ‘Atmanirbhar Bharat’ initiative under the ‘Make in India’ vision. With the commencement of these two plants, the operating profit of SMEL is expected to increase by about 40-50 percent. This will happen due to better product mix and higher earnings from the product.
The needs of fast growing sectors will be met
Brij Bhushan Agarwal, Chairman and Managing Director, SMEL, said the commencement of commercial production at the Sambalpur plant is an important operational milestone towards creating a world-class downstream aluminum ecosystem. By providing high quality and differentiated products, we are well positioned to meet the needs of the fast growing economic sector, create new sources of income as well as promote local socio-economic and employment development in Odisha.
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