The company said the investment will be funded entirely via internal accruals and is aimed at expanding higher-margin product offerings, driving incremental topline growth and strengthening long-term earnings quality.
It said the proposed expansion plan will be placed before the board of directors for formal approval at the upcoming meeting.
The investment is in addition to firm’s previously announced ₹16,060 crore capex pipeline, of which around ₹8,700 crore has already been invested. The remaining balance is under phased execution over the next three to four years, Shyam Metalics said in its exchange filing.
Targeted for commissioning by 2029, the multi-pronged investment program is designed to deepen the company’s presence in value-added and specialty steel segments, strengthen stainless downstream capabilities and support a calibrated shift towards a richer product mix with improved margin potential.
Shyam Metalics said strategic growth projects will drive higher-value revenues.
The company said a ₹900 crore investment for an 8 lakh TPA special bar quality (SBQ) and specialty wire rod and bar mill, will enable the firm’s entry into premium steel categories with stronger realisations and higher-margin applications across automotive, engineering, infrastructure and industrial segments. Expected outcomes include increase in share of high realization value added products, improved blended product margins, among others.
It added that the ₹1,800 crore investment will expand its stainless steel capacity by key downstream additions include expanded stainless steel melt shop, capacity enhancement in Hot Strip Mill, major cold rolling expansion, among others.
With these additions, the cumulative investment in the stainless steel segment will increase to ₹2,830 crore, it said.
“The investments in specialty steel and advanced stainless downstream products will help us move further up the value chain, support import substitution, and strengthen India’s manufacturing capabilities,” Brij Bhushan Agarwal, chairman and MD of the company, said.
Earlier this week, brokerage firm Goldman Sachs had initiated coverage on Shyam Metalics with a “buy” rating and a price target of ₹1,065, citing the company’s horizontal exposure across Carbon steel, Stainless steel and Aluminium.
Shyam Metalics shares were up 1.3% at ₹889.1 apiece at 9.50 am on Wednesday, The stock has gained 15.2% in the past month,
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