Shyam Metalics commissions aluminium foil facility in Odisha

Shyam Metalics and Energy, through its step-down subsidiary SMEL Steel Structural, has commenced commercial production at its new Aluminium Foil facility in Sambalpur, Odisha.

The modern facility has an installed capacity of 18,000 tonnes per annum (TPA) and is equipped to manufacture premium-grade aluminium foils.

With this commissioning, Shyam Metalics has strengthened its presence in the growing domestic and global markets for high-quality aluminium foils used in packaging, pharmaceuticals and other industrial applications.

The company has also confirmed that its Aluminium Flat Rolled Products facility at the same location is in the final stages of readiness and is on track for commercial production by September. The FRP plant will have an installed capacity of 60,000 TPA and will produce sheets and coils in the thickness range of 0.3 to 4.0 mm.

The two facilities represent a cumulative investment of about ₹800 crore in Odisha, reinforcing Shyam Metalics’ commitment to building an integrated aluminium downstream ecosystem.

The foray into value-added aluminium products is a key pillar of Shyam Metalics’ product diversification strategy. It will help meet rising domestic demand for precision-engineered materials and reduce India’s dependence on imports.

The new facilities are expected to deliver a margin expansion of 40-50 per cent through an optimised product mix and higher realisations. They are also projected to drive topline growth and expand the overall revenue by 2 to 2.5 times in the coming years through wider domestic distribution and growing international reach.

The company aims to become the second largest Stainless Steel player in India while emerging as one of the largest Aluminium Foil exporters from the country.

Brij Bhushan Agarwal, Chairman and Managing Director, Shyam Metalics and Energy said the commencement of commercial foil production at Sambalpur plant marks a pivotal operational milestone in building a modern downstream aluminium ecosystem.

By delivering high-quality, specialized products, the company is well-positioned to unlock new revenue streams and employment growth in Odisha, he said.

Shyam Metalics’ has an ambitious Vision to grow revenue and EBITDA by two times and 2.7 times by FY31. It targets 22 per cent RoCE (return on capital employed) and 20 per cent RoE (return on equity) by FY31.

With a strong foundation in steel and a rapidly expanding footprint in aluminium downstream, Shyam Metalics is on its way to delivering sustained profitable growth.

Shares of the company jumped 3 per cent to Rs 1,052 a share while market-cap touched a new high of about Rs 30,000 crore on Thursday.