Kolkata, West Bengal: Brij Bhushan Agarwal, VC & MD, Shyam Metalics during a press briefing in Kolkata | Photo credit: DEBASISH BHADURI

Metals producer Shyam Metalics and Energy Limited (SMEL) has announced the acquisition of Mittal Corp. Limited for Rs ₹450 crore and said that once completed, the purchase would bolster its operations.

SMEL said in a statement that the acquisition will expand its manufacturing footprint in Madhya Pradesh and “add 1,50,000 TPA stainless steel (SS) / wire rod and rod milling capabilities” .

Brij Bhushan Agarwal, Vice President and Managing Director of SMEL, said the acquisition of a state-of-the-art plant in Madhya Pradesh, which already manufactures steel for the defense sector and the construction industry , would create value in the company’s new product. interval.

Mr Agarwal said capital expenditure (capex) is expected to reach ₹10,000 crore to cater for organic and inorganic growth via internal accruals.

“We had announced a capex of ₹3,900 crore and now we are increasing the proposed amount to ₹10,000 crore. This amount will be invested over a period of four to five years. Of the total capex, around 60-65% will be invested in West Bengal, of which 85% will be invested in the company’s plant in Jamuria,” he said.

He added that the company aims to increase the existing production capacity from 8.85 MTPA to 14.45 MTPA. According to the company, the investment is expected to generate 10,000 additional jobs at factories located in West Bengal and Odisha.

“We have made a foray into ferrous alloys, we manufacture all products in ferrous alloys and aluminum is also one of our products. The aluminum plant is the only such plant in Bengal. I can say that the aluminum plant is the biggest in the country,” Mr. Agarwal said.

In 2021, SMEL acquired Sri Venkateshwara, a small aluminum foil mill in Giridih with an annual capacity of 3600 MTPA and, according to the press release, it has “benefited immensely from the establishment of the rolling mill complex of aluminum foil to produce quality products with annual sales. rolling capacity of 40,000 MT per year”. According to Mr. Agarwal, the company is targeting revenues of ₹4,000 to ₹5,000 from aluminum alone in the next 4-5 years.

SMEL also took control of Ramsarup Industries Limited through the NCLT in May 2022, and said it aimed to revive and improve the company’s steel operations and facilities.