“We are betting big on exports and plan to expand to newer markets.”

Shyam Metalics and Energy Ltd (SMEL) is a leading integrated metal-producing company based in India with a focus on long steel products and ferro-alloys, which has been charting its organic expansion plans as well as growing inorganically by acquiring stainless steel maker Mittal Corp and wire rod maker Ramsarup Industries. Headquartered in Kolkata, the company is the largest coal-fired player in terms of sponge iron capacity in India and ranks amongst the largest producers of ferro-alloys in terms of installed capacity in India. SMEL is also one of the leading players in terms of pellet capacity and in January it implemented its 1.2 million tons pellet capacity 8 months ahead of Schedule. Brij Bhushan Agarwal, Vice Chairman and Managing Director, who is spearheading the company, shares with Sumit Maitra the current strategies to operationalise its growth plans.

Share the status of the expansion project to increase the existing integrated installed facility of 8.85 million tons to 14.45 million tons by 2025.

SMEL announced the expansion of its integrated steel production capacity from the existing 8.85 million tons per annum (mtpa) to 14.45 mtpa of which value-added long steel capacity shall enhance to 2 mtpa from the present 1.47 mtpa.

To meet our growth targets, SMEL’s present capex aims at growing to `10,000 crores in the next five years. We initially announced a capex roadmap of `3,950 crores, but our capex is expected to grow towards `10,000 crores in the next 5 years to meet the organic and inorganic growth plans through internal accruals.

Out of the current investment of `7,500 crore, the company intends to invest approximately `5,000 crores in its primary West Bengal-based plant at Jamuria near Asansol. Also, we are the largest producer of coal-fired sponge iron in the country with a present capacity of 2.1 million tons (mt). Post the planned expansion the capacity shall produce 3 mt of iron.

How your product mix will improve following the expansion plan?

SMEL is the leading and fastest-growing integrated metalproducing company in India. We have a strong presence in the steel sector with a focus on long steel products and ferro alloys.

By H1 of CY2023, we will also aim to boost the capacities of pellet capacity from 3.6 mt to 6.0 mt, sponge capacity from 2.10 mt to 2.90 mt, billet capacity from 1.47 mt to 2.00 mt, finished steel capacity from 1.47 mt to 2.0 mt.

The Captive Power Plant capacity to be enhanced from 267 MW to 357MW. In FY24 and FY25 the coke oven plant, blast furnace plant and ductile iron plant capacities shall also be added to our production capabilities.