- INR 1,800 crore to be allocated for expanding Sambalpur operations
- Sambalpur unit’s stainless steel capacity to be raised to 0.6 mnt/year
Shyam Metalics and Energy Ltd has approved an INR 2,700 crore capital expenditure programme to expand its long steel and stainless steel operations, with projects planned across its Kharagpur and Sambalpur facilities by early 2029.
Meanwhile, INR 1,800 crore will be allocated towards expanding stainless steel and downstream operations at Sambalpur. The project will increase stainless steel capacity from 0.5 million tonnes per year (mnt/year) to 0.6 mnt/year and include new cold rolling, precision rolling, annealing, and pickling facilities to enhance product quality and finishing capabilities.
The company plans to fund the expansion through internal accruals and borrowings. The capacity expansion aligns with its long-term strategy to improve product mix and capture rising demand in high-value steel and stainless steel segments.
The announcement comes amid continued investment momentum across India’s infrastructure, manufacturing, renewable energy, and mobility sectors. Recent developments include the INR 1,513 crore Bengaluru suburban rail coach order bagged by the Integral Coach Factory (ICF), Toyota Motor Corporation’s proposed 100,000-unit manufacturing facility in Maharashtra, and multiple renewable energy and industrial expansion projects announced across the country.
Industry participants expect capacity additions in speciality steel and stainless steel downstream products to remain strong over the medium term, supported by infrastructure expansion, railways, automotive demand, and increasing localisation of value-added steel products.
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