Kolkata, India: Shyam Metalics and Energy Limited (SMEL), a prominent integrated metal-producing company based in Kolkata, has successfully acquired Mittal Corp Limited through its wholly-owned subsidiary, Shyam Sel and Power Limited, for a consideration of Rs. 351 crores. This strategic move marks SMEL’s entry into the stainless-steel sector. This move will help in expansion of its operations and consolidating its position as a diversified steel and power conglomerate.
Shyam Metalics Plans
SMEL acquired Mittal Corp Limited through its wholly-owned subsidiary, Shyam Sel and Power Limited, for a consideration of Rs. 351 crores. This expansion is a significant step in SMEL’s ‘diversification approach’ within the metal industry.
Expansion in Madhya Pradesh
The acquisition has expanded SMEL’s manufacturing footprint in the state of Madhya Pradesh with two production units.
- Unit I has an installed capacity of 1,00,000 TPA. It is dedicated to the production of stainless-steel products, including stainless steel billets and mild steel billets. The Unit I operates on 17 acres.
- Unit II focuses on manufacturing wire rods and bars of various thickness. It is equipped with state-of-the-art technology from Danieli Morgardshammar in Sweden and Italy.
Diversification and Market Position
The acquisition positions Shyam Metalics and Energy Limited as a comprehensive solution provider for stainless steel requirements. It provides an opportunity to serve a wide range of industries, including construction, architecture, infrastructure, railways, defense, automotive, and more.
Mr. Brij Bhushan Agarwal, Vice Chairman and Managing Director of SMEL, expressed his optimism about the company’s growth trajectory, stating, “We expect the stainless steel business — both Mittal Corp and our upcoming stainless flat steel facility in Odisha — to contribute meaningfully towards future growth of the company. In Odisha plant, we plan to manufacture stainless steel through the primary route and will have minimal dependence on stainless scrap. We will have backward integration of around 80% for the raw materials required for the grades of stainless steel we plan to produce there.”
Future Investments and Employment Opportunities
SMEL plans to invest Rs 7500 crores over the next five years, with the aim of reaching Rs. 10,000 Crores in the next five years. This expansion will create employment opportunities, adding 10,000 jobs to SMEL’s current workforce of more than 15,000 employees across the company’s manufacturing plants in West Bengal and Odisha.
About Mittal Corp Limited
Mittal Corp Limited is a stainless-steel manufacturing company incorporated on July 5, 1985, with its registered office situated at 3 Nav Jeevan Society, Dr. Dadasaheb Bhadkamkar Marg, Mumbai, Maharashtra. The company specializes in the manufacturing of stainless-steel billets, blooms, and wire rods of various thickness.
About Shyam Metalics
Shyam Metalics is a leading and fastest-growing integrated metal-producing company based in India primarily in the steel Industry in West Bengal and Odisha with a focus on Long Steel Products and Ferro Alloys. The company got listed on the stock exchanges in 2021. Headquartered in Kolkata, West Bengal, the company is amongst the largest producers of ferro alloys in terms of installed capacity in India (Source: CRISIL Report). The company has the ability to sell intermediate and final products across the steel value chain. Shyam Metalics is one of the leading players in terms of pellet capacity and the largest coal fired sponge iron producer in terms of capacity in India.