City-based Shyam Metalics on Monday said it is planning to invest Rs 850 crore in 2021-22 as part of its ongoing capacity expansion.

The company in a statement said it is looking to expand integrated production capacity in steel making and ferro alloys from the existing 5.71mtpa (million tonnes per annum) to 11.54mtpa by financial year 2025 at a total capital expenditure of Rs 2,960 crore. The company has spent Rs 736 crore till 2020-21.

The expansion plan also includes production of aluminum foils. The company said a plant is being set up at Pakuria, about 40km from Calcutta with an annual rolling capacity of 40,000 mtpa. Pharmaceuticals, FMCG, electronics, automotive, dairy, confectionery are among the sectors where the company expects demand to rise. The aggregate installed capacity of captive power plants is also stated to grow from 227 MW as of December 31, 2020 to 357 MW by FY 2025.

The company operates three manufacturing plants —two in Bengal at Jamuria and Mangalpur and one at Sambalpur in Odisha.

The company said sales have grown from 1.07 lakh tonnes of long steel products in 2016-17 to 6.37 lakh tonnes in 2020-21 and following the expansion it could go up to 20 lakh tonnes of branded value added products.

Joint managing director Sanjay Agarwal said there are plans to implement pig iron capacities as backward integration.

The company listed on the stock exchanges in June this year and its maiden offer was oversubscribed by 121 times.