Bhubaneswar, July 18 (UDN): Shyam Metalics and Energy Ltd. has commenced commercial operations at its premium-grade aluminium foil manufacturing facility in Odisha’s Sambalpur, marking a significant expansion of its value-added metals business and reinforcing the state’s position as an emerging manufacturing hub.
The facility, developed through the company’s step-down subsidiary SMEL Steel Structural Pvt. Ltd., has an annual production capacity of 18,000 tonnes and is part of the company’s overall ₹800-crore investment in Sambalpur.
The commissioning of the plant was positively received by the market, with the company’s shares rising nearly 3 per cent, pushing its market capitalisation to around ₹30,000 crore.
Expansion of Downstream Aluminium Business
The aluminium foil plant is the first phase of Shyam Metalics’ broader downstream expansion strategy in Odisha. The company is simultaneously developing an Aluminium Flat Rolled Products (FRP) facility at the same location.
The upcoming FRP unit, expected to become operational by September 2026, will have an installed capacity of 60,000 tonnes per annum. It will manufacture premium aluminium sheets and coils with thickness ranging from 0.3 mm to 4 mm, catering to industries including packaging, automobiles, consumer goods and engineering.
The dual-facility investment is aimed at increasing domestic production of value-added aluminium products while reducing dependence on imports for specialised industrial materials.
Boost to Manufacturing and Exports
With the commissioning of the new plant, Shyam Metalics is targeting growing demand for aluminium foil used in food packaging, pharmaceuticals, flexible packaging and industrial applications. The company also plans to strengthen its export footprint by supplying premium-grade products to international markets.
According to the company, the expansion into downstream aluminium manufacturing is expected to improve profitability through a better product mix while creating new business opportunities in both domestic and overseas markets.
Employment and Industrial Growth
Chairman and Managing Director Brij Bhushan Agarwal said the project represents an important step in the company’s long-term growth strategy. He noted that manufacturing specialised aluminium products in Odisha would not only diversify the company’s revenue streams but also generate employment and contribute to the state’s industrial development.
Vision for 2031
As part of its Vision 2031 roadmap, Shyam Metalics has outlined ambitious growth targets, including doubling its revenue by FY31 and increasing EBITDA by nearly 2.7 times. The company also aims to achieve a 22 per cent Return on Capital Employed (RoCE) and 20 per cent Return on Equity (RoE) by the end of the decade.
The commissioning of the aluminium foil plant adds to Odisha’s growing portfolio of large-scale industrial investments and is expected to strengthen the state’s role in India’s expanding metal and manufacturing sector.