Shyam Metalics Commences Commercial Production at ₹800 Crore Aluminium Foil Facility in Odisha

Leading integrated metal producer Shyam Metalics and Energy Limited (NSE: SHYAMMETL; BSE: 543299) today announced the formal commencement of commercial production at its state-of-the-art Aluminium Foil facility in Sambalpur, Odisha.

This milestone marks the group's strategic expansion further downstream into high-margin, value-added non-ferrous metal portfolios.

Capital Layout and Structural Production Capacity

The factory initialization is part of a larger structural downstream production matrix being deployed at the Sambalpur hub:

Installed Capacity: The newly commissioned unit has an installed output capacity of 18,000 Tonnes Per Annum (TPA). It is engineered to manufacture premium-grade aluminium foil ranging in thickness from 6 to 40 microns.

Aggregated Capital Outlay: Shyam Metalics is deploying an aggregate capital expenditure of approximately ₹800 crore into its Sambalpur aluminium downstream asset base. This financial pool finances both the operational foil unit and an adjacent, upcoming rolling line.

Targeted Financial and Market Projections

Management expects the factory rollout to create significant product diversification, moving the group beyond structural steel and ferroalloys into consumer-facing and industrial packaging segments:

Operating Margins: The high value-added composition of downstream foils is projected to enhance the company's operating product margins within this segment by an estimated 40% to 50%.

Topline Multipliers: Full commercial optimization of the facility is anticipated to drive robust segment revenues, accelerating the division's total top-line growth by 2.0x to 2.5x.

Import Substitution: By supplying localized premium foil, the project targets immediate domestic demand in packaging and manufacturing, effectively reducing country-wide import dependence.

Upcoming Expansion: Flat Rolled Products Line

The downstream complex is positioned for a second stage of operational scaling. An Aluminium Flat Rolled Products (FRP) facility is currently undergoing final operational readiness assessments at the same Sambalpur site.

Featuring an installed capacity of 60,000 TPA and designed to handle sheets ranging from 0.3 to 4.0 mm in thickness, this parallel line is on track for its commercial launch by the end of September 2026.

Shares of Shyam Metalics and Energy Limited was last trading in BSE at Rs. 1022.05 as compared to the previous close of Rs. 1040.30. The total number of shares traded during the day was 11883 in over 601 trades.

The stock hit an intraday high of Rs. 1058.75 and intraday low of 1006.25. The net turnover during the day was Rs. 12133769.00.

Source : Equity Bulls

Keywords

ShyamMetalicsandEnergy CommercialProduction AluminiumFoil NewFacility Odisha