Shyam Metalics and Energy Limited (SMEL), through its step-down subsidiary SMEL Steel Structural Pvt Ltd, has commenced commercial production at its aluminium foil manufacturing facility in Sambalpur, Odisha. The company has also announced that its Aluminium Flat Rolled Products (FRP) plant is in the final stages of commissioning and remains on schedule to begin commercial operations by the end of September 2026.
Together, the two facilities represent an investment of approximately ₹800 crore, marking a significant expansion of the company’s downstream aluminium business and reinforcing its strategy to diversify into higher-value products. The newly operational aluminium foil plant has an installed production capacity of 18,000 tonnes per annum (TPA) and manufactures premium-grade foils ranging from 6 to 40 microns in thickness. The upcoming FRP facility will add another 60,000 TPA of capacity and produce flat rolled aluminium products in thicknesses ranging from 0.3 mm to 4.0 mm, catering to a wide range of industrial applications.
The expansion positions Shyam Metalics to address the growing domestic demand for value-added aluminium products while reducing reliance on imports. The facilities are expected to serve industries such as packaging, consumer goods, electrical equipment, automotive, and infrastructure, supporting the Government of India’s Make in India and Atmanirbhar Bharat initiatives through increased domestic manufacturing.
According to the company, the new downstream capacities are expected to improve operating margins by 40–50%, supported by a richer product mix and higher value realisations. The investment is also projected to significantly strengthen revenue growth by expanding the company’s presence across domestic and export markets.
Commenting on the development, Brij Bhushan Agarwal, Chairman and Managing Director, Shyam Metalics and Energy Limited, said, “The start of commercial production at our aluminium foil facility marks an important milestone in our downstream expansion strategy. These investments strengthen our ability to manufacture specialised aluminium products that meet evolving customer requirements while creating new opportunities for growth. With the Flat Rolled Products facility scheduled for launch in September, we are building an integrated aluminium ecosystem that enhances our competitiveness, supports import substitution, and contributes to industrial and economic development in Odisha.”
The commissioning of the aluminium foil plant represents another step in Shyam Metalics’ long-term growth strategy of expanding its portfolio beyond primary metals into value-added manufacturing. With the FRP facility nearing completion, the company is set to strengthen its position in India’s rapidly growing aluminium market while creating additional employment opportunities and supporting the development of advanced manufacturing capabilities in the region.
Shyam Metalics and Energy Limited is one of India’s leading integrated metal producers, with operations across West Bengal, Odisha, Jharkhand, and Madhya Pradesh. The company manufactures long and flat steel products, ferro alloys, aluminium, and stainless steel. Listed on Indian stock exchanges since 2021, SMEL has an aggregate installed metal production capacity of 16.78 MTPA, supported by 467 MW of captive power generation, and continues to expand its presence across the metals value chain.
