Shyam Steel Industries, one of the leading TMT rebar manufacturers in India, is planning to invest INR 700 crore in brownfield expansion of its Mejia plant in Bankura district, West Bengal, the company’s Group Director, Keshav Beriwala, informed. The project is expected to get completed by FY’23 and will provide jobs to 5,000 people.
“Land procurement has already been completed for the project. Work on the expansion of the unit has started….,” Beriwala said.
He said the project will be funded through internet accruals and debt.
“We are a debt-free company but for the expansion, we will go for some borrowing,” he added.
After completion of the expansion project, the production capacity of the Mejia plant will increase to 500,000 tonnes (t) from 200,000 t at present. It will also expand the group’s manufacturing capacity to 900,000 t by FY’23.
The company is also planning to ramp up production capacities of its sponge iron and billet plants and rolling-mill by nearly three times to increase production of construction steel.
Further, the group is actively looking at options to participate in the bidding process for iron ore mines to insulate itself from raw material price fluctuations and uncertainties. It also has coal blocks in the state, Beriwala said.
Shyam Steel currently has four fully operational steel manufacturing units in West Bengal — a DRI unit, a steel melting shop equipped with electric arc furnace, a continuous billet casting unit and a rolling mill with thermex system.
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