Shyam Metalics has officially launched its aluminium foil plant in Sambalpur, Odisha, which carries an annual production capacity of 18,000 tonnes. This facility, operated by its subsidiary SMEL Steel Structural Pvt. Ltd., signifies the company’s foray into high-end aluminium products and bolsters its downstream operations.
The plant will specialize in producing premium aluminium foils ranging from 6 to 40 microns in thickness, targeting sectors such as packaging, pharmaceuticals, and industrial applications.
Future Developments
Additionally, the company is nearing the completion of its Aluminium Flat Rolled Products (FRP) facility at the same site, with commercial operations anticipated to commence by September 2026. This FRP facility will have a capacity of 60,000 tonnes per annum, manufacturing aluminium sheets and coils with thicknesses between 0.3 mm and 4 mm.
Investment and Strategy
The total investment for these two projects in Odisha is approximately ₹800 crore, designed to establish a comprehensive aluminium downstream manufacturing ecosystem. The expansion aligns with Shyam Metalics’ strategy to enhance its footprint in the high-value aluminium sector.
The company anticipates that these new facilities will cater to the increasing domestic demand, lessen reliance on imports, and align with the Make in India and Atmanirbhar Bharat initiatives.
Furthermore, Shyam Metalics expects the new product offerings to boost profit margins by 40-50% through improved realizations and aims for an overall revenue increase of 2 to 2.5 times in the upcoming years, driven by stronger domestic sales and elevated export levels.
Leadership Insights
Chairman and Managing Director Brij Bhushan Agarwal remarked that the aluminium foil plant marks a pivotal advancement in establishing a world-class downstream aluminium business. He emphasized the company’s goal to provide specialized products for rapidly expanding industries and create job opportunities in Odisha. He also confirmed that the FRP facility is projected to become operational by September 2026.
Vision for FY31
This aluminium expansion aligns with Shyam Metalics’ Vision FY31, targeting 2.3 times revenue growth, 2.7 times EBITDA growth, a 22 percent Return on Capital Employed (RoCE), and a 20% Return on Equity (RoE). The company aims to become India’s second-largest stainless steel producer following ongoing capital expenditures and to establish itself as one of the leading aluminium foil exporters in the country.
