Shyam Metalics acquires Mittal Corp to foray into stainless steel bizz

21 Dec 2022 , 03:03 AM

Shyam Metalics and Energy Limited announced its third acquisition of Mittal Corp Limited, this time in the Stainless Steel (SS) / Wire Rod & Bar Mill business.

The matter is pending and will be resolved in due course. This inorganic expansion will see the establishment of manufacturing footprints in the state of Madhya Pradesh, as well as the addition of 1,50,000 TPA Stainless Steel (SS) / Wire Rod & Bar Mill capacities.

Our existing companies produce a large amount of ferro alloys, a key input material for stainless steel. The government has mandated that at least 20% of stainless steel be used in coastal areas, ensuring a very stable demand for these products.

Shyam Metalics has embarked on a ‘diversification approach’ in the metal space to chart the company’s growth journey and has proposed to invest an additional Rs 7,500 crore over the next five years as part of development plans.

SMEL’s current Capex aims to grow to Rs 10,000 crore in the next five years in order to meet growth plans through organic and inorganic expansion. 

The current manufacturing plants in West Bengal and Odisha, which employ over 15000 people, will see an additional 10000 jobs added to the total workforce following expansions.

At around 3.03 PM, Shyam Metalics was trading 3.96% higher at Rs 303.10, against previous close of Rs 291.55 on NSE. The counter hit intraday high and low of Rs 317.75 and Rs 301 respectively.

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