Shyam Metalics Targets ₹ 400 Billion Revenue Growth by 2031

Shyam Metalics and Energy Limited (SMEL) has unveiled its ambitious Vision 2031, aiming for a significant expansion in revenue to reach ₹ 400 billion by the year 2031. This initiative reflects the company’s commitment to sustainable and capital-efficient growth across its metal production operations. The ambitious target includes a 2.5 times increase in revenue, driven by strategic expansions in various high-value segments such as specialty steel, stainless steel, flat products, and aluminium.

The company’s strategy is designed to enhance its integrated business model while reinforcing its presence in key sectors including defence, engineering, railways, and real estate. SMEL plans to optimize operational efficiencies by pursuing backward integration in energy, mining, and beneficiation processes. To achieve these goals, the company will utilize brownfield expansions in regions such as West Bengal, Odisha, and Madhya Pradesh to maximize return on capital and minimize execution risks.

In terms of production capacity, SMEL aims to expand its aggregate output from 15 million tons to 27 million tons. The growth plan is expected to improve EBITDA margins by 200 to 300 basis points, supported by operational leverage and improved product value realization. This ambitious program is projected to create over 10,000 new jobs, bringing total employment to approximately 27,500, while also doubling its export revenues from US$ 150 million to US$ 300 million.

Capital Investment and Strategic Goals

To support its Vision 2031, SMEL has earmarked a capital expenditure plan of ₹ 100 billion, primarily funded through internal accruals. This investment will focus on upgrading technology, innovating processes, enhancing energy efficiency, and integrating downstream operations. The company has also secured iron ore mining assets in Maharashtra, with due diligence currently underway, further solidifying its raw material security and supporting cost optimization.

In the stainless steel sector, SMEL intends to increase its flat product capacity by six and a half times, targeting high-demand applications in tubes, utensils, defence, and railways. The long products division will maintain its focus on precision engineering and automotive sectors, adopting an export-oriented strategy. The company is also leveraging partnerships with European technology firms to enhance its product development and process excellence.

Commitment to National Growth and Sustainability

Underpinning these initiatives is SMEL’s alignment with India’s Atmanirbhar Bharat and Vision 2047 frameworks, which emphasize national growth, job creation, and sustainable industrialization. According to Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics, “Vision 2031 reflects our confidence in India’s long-term growth story and our readiness to capitalize on emerging opportunities in the metal and manufacturing sectors.”

Founded in India and primarily focused on the steel industry across West Bengal, Odisha, Jharkhand, and Madhya Pradesh, Shyam Metalics is recognized as a leading integrated metal producer. The company was listed on the exchanges in 2021 and currently boasts a market capitalization of ₹ 25,610 crore. Headquartered in Kolkata, it is one of India’s largest producers of ferro alloys and stands out in the sponge iron industry.

The objectives set forth in Vision 2031 illustrate SMEL’s strategic approach to expanding its market presence while fostering sustainable growth and enhancing shareholder value in the coming decade.