Shyam Metalics and Energy Limited (SMEL) on Tuesday said it has forayed into the stainless steel, wire rod and bar mill business through the acquisition of Mittal Corp Limited.

The acquisition is at an estimated cost of Rs 450 crore and will allow the company to expand in Madhya Pradesh. It also follows the earlier two inorganic expansions — Sri Venkateshwara, a small aluminium foil rolling plant at Giridih at an estimated Rs 21 crore, and Ramsarup Industries (through NCLT) at an estimated Rs 400 crore.

The company has chalked out a plan to expand the existing integrated steel production capacity from 8.85 million tonnes (mt) to 14.45mt and has earmarked a capex spend of Rs 10,000 crore in the next five years to meet the organic and inorganic growth plans through internal accruals.

“We had announced a capex roadmap of Rs 3,950 crore but now we have revised the investment horizon for the next 4-5 years to a total of Rs 10,000 crore,” a company official said.

SMEL in a statement on Tuesday further said that in the next six months the company plans to expand pellet capacity from 3.6mt to 6mt, sponge capacity from 2.1mt to 2.9mt, billet capacity from 1.47mt to 2mt and finished steel capacity from 1.47mt to 2mt. The company also plans to expand its captive power plant capacity from 267 mega watt (MW) to 357MW.

“We remain PAT positive since the commencement of our operations in 2005. The current investments across multiple portfolios will only take the company to the next level of diversification and business excellence, further strengthening its domestic and global position in the market,” said Brij Bhushan Agarwal, vice-chairman and managing director, Shyam Metalics and Energy.

“The plan is to get to a revenue of around Rs 25,000 crore by 2025,” Agarwal said on Tuesday.

The company closed FY22 with net revenue from operations of Rs 10,400 crore. The company further said that its manufacturing plants in Bengal and Odisha currently employ more than 15,000 people and an additional 10,000 jobs could be created as part of the expansion plan.

Rs 450cr deal

■ Shyam Metalics forays into stainless steel, wire rod and bar mill

■ Plans to expand integrated steel capacity to 14.45mt

■ Earmarked capex of Rs 10,000cr in five years