Shyam Metalics is foraying into the special steel segment by acquiring Mittal Corp, which would fuel expansion plans for new products in flat and value addition in long stainless steel.

The metals major expects to cater to the requirements of Indian Railways and infrastructure segments as well as defence assets.

Last month, the committee of creditors (CoC) of Mittal Corp approved the resolution plan and a letter of intent (LoI) has been issued in the name of its subsidiary, Shyam Sel & Power. However, the company is awaiting confirmation from the National Company Law Tribunal (NCLT). The cost of acquisition and upgradation is estimated to be Rs 450 crore.

Further, the integrated metal producing company has lined up an investment of Rs 10,000 crore over the next five-six years to diversify its metals business. Ductile iron which has wide industrial applications, and roofing sheets for buildings are expected to bring in significant revenue for the company. The acquisition of Ramsarup Industries last year will also give a push to its ductile iron business, to this effect.

Mittal Corp would add Rs 2,000 crore to its kitty and further on, Shyam Metallics expects to generate revenue of one billion USD in the next five years.

The company's product portfolio includes pellets, sponge iron, billets and end-products like TMT bars, wire rods, and structural.