India: Shyam Metalics set to commission aluminium FRP, foil plant in Odisha

• Odisha aluminium unit to enhance Shyam Metalics' downstream product mix
  
  
• New downstream unit may boost margins by 40-50% and accelerate revenue growth
  
  

Shyam Metalics and Energy Limited said its step-down subsidiary, Smel Steel Structural Pvt. Ltd., is in the advanced stage of readiness for commencement of commercial production at its aluminium manufacturing project in Sambalpur, Odisha. The development marks the groups strategic expansion into value-added downstream aluminium products and is expected to strengthen Indias domestic manufacturing ecosystem while reducing reliance on imports.

The upcoming facility will manufacture aluminium flat rolled products (FRP) with an installed capacity of 60,000 tonnes per annum in the thickness range of 0.3-4.0 mm. In addition, the unit will produce aluminium foil with capacity of 18,000 tpa in the thickness range of 6-40 microns. The project is aimed at catering to rising demand for precision-engineered and value-added aluminium products across multiple end-use sectors, including packaging, consumer goods, electrical, and industrial applications.

According to the company, commissioning of the Sambalpur unit is expected to significantly improve financial and operational performance. Operating margins are projected to rise by around 40-50%, supported by a better product mix, higher value-added output, and efficiency gains. Revenue is also expected to increase by 2x to 2.5x over the medium term through expanded market reach, stronger product realisations, and new downstream revenue streams.

The Odisha facility is also expected to provide logistical advantages through efficient access to major demand centres and smoother distribution across domestic and international markets. In addition, the project is likely to generate employment opportunities and contribute to the socio-economic development of the region, while aligning with India's broader Make in India initiative.

Shyam Metalics and Energy Limited operates across steel, ferro alloys, aluminium, and stainless steel segments, with aggregate installed metal capacity of 16.78 mtpa and captive power capacity of 467 MW.