Shyam Metalics has announced the commencement of Phase I of its greenfield cold rolling mill at its Jamuria plant in West Bengal. This expansion, with a total capital cost of ₹603 crores, will specialize in producing pre-painted galvalume coils and galvanized steel. The company anticipates that this project will contribute around 8% to 10% to its revenue and EBIDTA within the next two years.
Jamuria Plant Expansion
Shyam Metalics and Energy Ltd. (SMEL) has started Phase I of its greenfield Cold Rolling Mill (CRM) in Jamuria, West Bengal, marking a significant expansion in its production capabilities. The facility commenced trial run on September 9, 2024, under Shyam Metalics Flat Products Pvt Ltd., a wholly owned step-down subsidiary of SMEL.
Production Capacity and Investment
The new Cold Rolling Mill has a total capacity of 400,000 tons annually. The project’s total capital cost is ₹603 crores, with ₹346 crores already invested and ₹257 crores pending. This expansion will allow Shyam Metalics to produce high-quality steel products.
Expected Revenue and Impact
The company anticipates that the new facility will operate at optimal utilization within the next two years and contribute approximately 8% to 10% of the company’s revenue and EBIDTA. By leveraging lower production costs and logistical advantages, this expansion reinforces the company’s position in the steel industry.
Strategic Advantages
Strategically located in eastern India, the facility provides logistical advantages and addresses the shortage of color-coated sheet manufacturing units in the region. This investment is expected to enhance the company’s market position and support regional economic growth. The mill will also support affordable housing initiatives.
Source: BSE
