Synopsis: Shyam Metalics has begun commercial production at its first aluminium facility, while its second plant nears launch, marking a key step in expanding its value-added aluminium business.
The shares of this mid cap company majorly engaged in the manufacturing of steel and allied products including pellets, sponge iron, TMT and long products, ferro alloys and generation of power, were in focus after the management plans capex for a better revenue outlook.
With the market capitalization of Rs. 29,497 Crores, the shares of Shyam Metalics & Energy Ltd were trading near its 52 week high of Rs. 1059 per share and is trading at a P/E of 22.9 whereas industry P/E stands at 22.9
Shyam Metalics Starts Commercial Production at Aluminium Foil Facility
Shyam Metalics, through its step-down subsidiary SMEL Steel Structural Pvt. Ltd., has commenced commercial production at its Aluminium Foil facility in Sambalpur, Odisha. The plant has an installed capacity of 18,000 tonnes per annum (TPA) and manufactures premium-grade aluminium foils with a thickness range of 6 to 40 microns. This is the first phase of the company’s downstream aluminium expansion, for which it is investing around ₹800 crore.
FRP Plant to Begin Operations by September 2026
The company has also confirmed that its Aluminium Flat Rolled Products (FRP) facility is in the final stage of readiness and is expected to start commercial production by the end of September 2026. The FRP plant will have an installed capacity of 60,000 TPA and will manufacture products with a thickness range of 0.3 mm to 4.0 mm. Once operational, both facilities will strengthen the company’s presence in the value-added aluminium products segment.
Focus on Higher-Value Aluminium Products
With these projects, Shyam Metalics is expanding into downstream aluminium products that are used across industries such as packaging, electrical, automotive and consumer applications.
The company believes this move will help reduce India’s dependence on imports while supporting the Make in India and Atmanirbhar Bharat initiatives. The focus on specialised aluminium products is also expected to improve the company’s product mix and increase its presence in domestic as well as international markets.
Expected Impact on Revenue and Margins
According to the company, the commissioning of the Aluminium Foil and upcoming FRP facilities is expected to improve operating margins by around 40%–50%, supported by better product realisations and an improved product mix. Management also expects the aluminium business to drive 2x to 2.5x growth in revenue, helped by a wider distribution network and stronger demand from both Indian and overseas customers.
Management Commentary
Chairman and Managing Director Brij Bhushan Agarwal said that the commencement of commercial production at the Sambalpur Aluminium Foil plant marks an important operational milestone in building a complete downstream aluminium ecosystem.
He added that the company is focused on supplying high-quality specialised products to fast-growing industries, creating new revenue opportunities, and supporting industrial and employment growth in Odisha. The launch of the 60,000 TPA FRP facility by the end of September 2026 is expected to complete this downstream aluminium ecosystem.
Conclusion
The commissioning of the Aluminium Foil facility and the upcoming launch of the FRP plant mark an important step in Shyam Metalics’ expansion into value-added aluminium products. With a total investment of around ₹800 crore, the company is looking to improve margins, expand its product portfolio, and strengthen its presence in domestic and international markets. If executed as planned, the new facilities could become a meaningful driver of future revenue growth and profitability.
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