Shyam Metalics announces 40 MW additional captive power generation, and 0.25 MTPA capacity expansion in steel products

Shyam Metalics and Energy Limited (SMEL), a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys, announced another strategic capacity expansion as outlined in the capex plans for Financial Year 2021-22.

We are pleased to announce that the Company has received "Consent to Operate" (CTO) from State Pollution Control Board, Odisha to increase captive power generation at its Sambalpur unit. Following the clearances, the capacity at the unit will increase from 118 MW to 158 MW. Across its units at Sambalpur, Jamuria & Mangalpur, the aggregate capacity will grow from 227 MW to 267 MW representing a 17.6% increase. The incremental capacity is now operational.

In addition, the company has also received CTO from West Bengal Pollution Control Board for the scheduled capacity expansion at Jamuria plant. This expansion will add 0.25 million tons per annum of incremental capacity across steel products. The aggregate capacities of Sponge Iron, MS Billet & Long Products are slated to increase by 7%, 6% & 10% respectively.

Commenting on the developments, Mr Bhushan Agarwal, Managing Director said, "Following the recent sponge iron capacity expansion at our Sambalpur & Jamuria plants, we are happy to further announce increased captive power generation. As we expand production, our power demand increases in sync, hence increased captive power gives us a strategic cost advantage. We have the lowest cost of captive power in India and almost 80% of our power consumption is met via captive generation. We incurred a capital expenditure of Rs 110 crores for addition of the 40 MW capacity, a testimony to our focus on keeping costs in control. It gives us immense pride to share that the project came online much before its projected timeline of May 2022. As outlined in our expansion plan for the year, the expansion at Jamuria plant will also enable us to meet the increasing demand for our products. Our operational excellence in producing high value long product structural steel in a cost effective manner will continue to give us an edge."

Shares of Shyam Metalics and Energy Limited was last trading in BSE at Rs. 319.45 as compared to the previous close of Rs. 320.50. The total number of shares traded during the day was 13253 in over 673 trades.

The stock hit an intraday high of Rs. 322.50 and intraday low of 315.60. The net turnover during the day was Rs. 4235124.00.

Source : Equity Bulls

Keywords

ShyamMetalicsandEnergy ConsenttoOperate CaptivePowerGeneration Expansion