Shyam Metalics and Energy is looking to ramp up its capacity to boost profitability.

The company has earmarked a total capex of Rs 2,960 crore over the next two-to-three years to scale up its integrated production capacities of steel and ferro alloys to 11.54 million tpa from the existing 5.71million tpa.

It also plans to add an additional 130 MW captive power capacity. The expansion plan includes its foray into production of aluminium foils involving metal rolling expertise.

Nearly 75 percent of the expansion will be complete by FY23 and the remaining 25 percent is expected to be implemented by FY25.

There has been a steady growth in sale of long steel products from around 1.07 lakh tonne in FY17 to 6.37 lakh tonne in FY21. This is further expected to increase to 20 lakh tonne after the proposed expansion comes on stream.

The total capex cost will be aggregating to Rs 2,960 crore of which it has already spent Rs 736 crore during the last fiscal. It further plans to invest around Rs 850 crore during FY22 and another Rs 800-900 crore in FY23. A majority of the capex will be through internal accruals.

Shyam Metalics currently operates three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. The plants of Sambalpur and Jamuria are equipped with their own captive railway sidings, captive power plants with waste heat recovery boilers and captive water reservoirs.

The company is in the process of setting up an aluminium foil rolling mill complex at Pakuria, about 40 km from Kolkata.

It will have an annual rolling capacity of 40,000 tpa with a product mix to cater to the requirement of the market related to pharmaceuticals, household foil, FMCG, electronics, automotive, dairy and confectionery, among others.