Smel Steel Structural, a step-down subsidiary of Shyam Metalics and Energy Limited, has announced that its upcoming aluminium manufacturing facility in Sambalpur, Odisha, is nearing readiness for commercial production. The development represents a strategic move into value-added aluminium products and strengthens the Group’s downstream manufacturing presence.
The facility will manufacture aluminium flat rolled products (FRP) with an installed capacity of 60,000 tonnes per annum, catering to thicknesses ranging from 0.3 mm to 4.0 mm. In addition, it will produce aluminium foils with a capacity of 18,000 tonnes per annum, covering thicknesses between 6 and 40 microns. These capabilities are aligned with rising demand across industries requiring precision-engineered and high-quality aluminium materials.
This expansion highlights the company’s emphasis on diversification and value addition while contributing to India’s evolving manufacturing landscape. The Sambalpur unit is expected to reduce reliance on imports and support sectors that depend on advanced aluminium products.
The commissioning of the facility is projected to strengthen the company’s financial and operational performance. With a greater share of value-added products, operating margins are expected to improve by approximately 40 to 50 percent, supported by an optimized product mix and enhanced efficiencies. Revenue growth is also anticipated to accelerate, with projections indicating a two to two-and-a-half-fold increase over the medium term, driven by improved realizations and broader market reach.
The project further enhances the company’s integrated manufacturing ecosystem by expanding its downstream capabilities and enabling entry into high-growth segments. This is expected to open new revenue streams while reinforcing operational strength.
Located strategically, the Sambalpur facility offers logistical advantages with access to key markets, enabling efficient distribution across domestic and international regions. This positioning supports responsiveness to changing market demands while maintaining cost efficiency.
Beyond business impact, the project is expected to generate employment opportunities and contribute to the socio-economic development of Odisha. It also aligns with national initiatives aimed at strengthening domestic manufacturing and promoting self-reliance.
Commenting on the development, Brij Bhushan Aggarwal, Chairman and Managing Director of Shyam Metalics and Energy Limited, stated that the project marks an important step in building a strong downstream aluminium ecosystem and will support industrial growth alongside regional economic progress.
Shyam Metalics and Energy Limited is one of India’s leading integrated metal-producing companies, with operations across West Bengal, Odisha, Jharkhand, and Madhya Pradesh. The company focuses on steel, ferro alloys, aluminium, and stainless steel products. Listed in 2021, it has grown into one of the largest ferro alloy producers in India by installed capacity and continues to deliver value-added solutions across sectors.
