Shyam Metalics Share Price Rises by 3% on Odisha Facility Expansion

Renowned metal manufacturer Shyam Metalics recently established a new stainless steel plant at its Odisha facility in Sambalpur as reported on April 9, 2024. This expansion of the company’s manufacturing capacity was reflected in its share prices and moved them up 3% instantly. This was a result of a great amount of trust which the company was able to establish among its shareholders with such a great success.

The new stainless steel hot rolled coils (HRC) plant is expected to play a major role in various sectors and will also prove to be beneficial for the Indian economy. Some crucial sectors that are expected to have a positive impact due to this expansion include:

• Construction
• Automotive
• Infrastructure
• Consumer Goods

The share price of the company on April 10, 2024, was recorded to be ₹631 on the National Stock Exchange recording a 3% rise after the news of the establishment of the new plant was announced.

However, according to the company, the expansion plan was something the company has been working on for a long time. It was on July 27, 2023, that the company approved the expansion plan in its meeting of the board of directors. The company also looks forward to making even more accelerated growth and taking a cutting edge in the stainless steel market.

What the new Stainless Steel Plant brings in?

The new facility of the company brings with it a much more extended capacity and growth to it. The new stainless steel plant will have a capacity of 0.3 million metric tons per annum (MTPA). Additionally, the plant will be able to produce around 200 and 400-series stainless steel HRC specifically.

The plant will specialize in producing this series of stainless steel by utilizing raw materials like direct reduced Iron (DRI), and ferroalloys in an efficient manner. It is therefore expected to set new quality standards for the company and also help it excel in the domain.

Shyam Metalics Future Plans :

With a strong upper hand in the stainless steel market, Shyam Metalics further looks ahead to take a lead in the market. Hence, to excel in the long products sector, the company has applied for a 20-acre land parcel at the Mittal Corp. The company looks forward to this expansion with the hope of establishing a stainless steel bright bards capacity of 25,000 metric tons per annum (MTPA) along with a stainless steel wire division of capacity of 18,000 metric tons per annum. As stated by the company in a press conference, it looks forward to achieving these goals by 2026-27.

This new expansion is estimated to cost around ₹650 to ₹750 crore. With such a rapid expansion, the company also expects to create massive employment opportunities with sustained growth.