Shyam Metalics outlines 1.6 MTPA stainless capacity plan

Shyam Metalics is planning to raise combined stainless steel billet and finished-steel capacity to 1.60 million tonnes per annum (MTPA), from 0.27 MTPA currently. Its diversification programme also includes a 60,000-tonne aluminium flat rolled products facility and a Kharagpur wagon plant designed for 4,800 units, extending its downstream product range beyond carbon steel.

How is Shyam Metalics expanding its stainless steel business?

Shyam Metalics plans to lift stainless steel billet capacity to 0.85 MTPA and finished stainless steel capacity to 0.75 MTPA, from 0.12 MTPA and 0.15 MTPA respectively. The two categories would therefore total 1.60 MTPA after expansion, compared with 0.27 MTPA currently. The presentation identifies cold-rolled and hot-rolled expansion at Sambalpur as the mechanism for increasing capacity and changing the product mix.

The company entered stainless steel through its acquisition of Mittal Corp, which was completed in October 2023. It has two manufacturing units at Pithampur, Madhya Pradesh, across about 35 acres, with 0.15 MTPA of installed finished-stainless capacity. Its rolling mill was developed by Italian supplier Danieli, and the stated range covers 200, 300, 400 and Duplex stainless steel series.

The planned expansion is concentrated in billet and finished stainless steel rather than every product line. Bright-bar capacity is shown unchanged at 0.03 MTPA, while wire-rod capacity remains 0.02 MTPA. The source associates Series 200 with kitchen utensils, Series 300 with automotive, white goods and decorative uses, and Series 400 with construction.

What does the aluminium flat rolled products project add?

Shyam Metalics is developing a 0.06 MTPA aluminium flat rolled products facility, equal to 60,000 tonnes annually, under its greenfield aluminium expansion. The company assigns Rs 450 crore of capital expenditure to this facility and Rs 75 crore to a 0.10 MTPA mill with caster. Management says the project is intended to address a demand-supply gap in aluminium flat rolled products and provide backward integration for the foil business.

The company says its aluminium foil facility was commissioned in July 2026 and that the flat rolled products, or FRP, facility is likely to be commissioned soon. It lists 0.018 MTPA of foil capacity with Rs 250 crore of capital expenditure, plus a 0.005 MTPA battery-foil plant with Rs 25 crore of expenditure. Across the listed aluminium programme, Rs 515 crore had been incurred and Rs 35 crore remained pending, against total capital expenditure of Rs 550 crore.

Shyam Metalics describes its aluminium plant network as having average capacity of 0.024 MTPA at Pakuria, West Bengal, Giridih, Jharkhand, and an upcoming Odisha plant. More than 60% of foil production is used for exports, according to the presentation. The foil operation can roll material from 40 to 5 microns and mainly produces 6-to-10-micron rolled material, while the post-expansion foil capacity in the wider schedule is 0.042 MTPA.

Why is Shyam Metalics entering wagon manufacturing?

Shyam Metalics is entering railway wagon manufacturing through a greenfield facility at Kharagpur, West Bengal, designed for 4,800 wagons. The capacity is split equally between Phase I and Phase II, at 2,400 wagons each. The project is being developed by step-down subsidiary Ramsarup Industries Ltd., and management says Phase I operations are expected to commence soon.

The planned plant will use a Uni-Flow manufacturing layout and make flat, open, box, hopper covered, tank and specialised wagons. The presentation places the project within the company’s five-year capital expenditure roadmap and links it to the Government of India’s Make in India initiative. It does not give a commissioning date, order book, customer list or expected wagon sales volume.

The wagon project has total planned capital expenditure of Rs 200 crore, of which Rs 88 crore had been incurred and Rs 112 crore was pending. In the pending-project schedule, wagons are grouped with the 1.58 MTPA hot strip mill in flat products, where budgeted capital expenditure totals Rs 5,600 crore. That group had incurred Rs 1,108 crore and had Rs 4,492 crore pending.

How is Shyam Metalics’ product mix changing?

Shyam Metalics reported stainless steel at 4% of revenue in FY25, 7% in FY26 and 8% in H1 FY27. Aluminium represented 5% in FY25, fell to 4% in FY26 and returned to 5% in H1 FY27. Carbon steel remained the largest category at 77% in both FY26 and H1 FY27, although its share was below the 85% reported in FY23.

Sales volumes show stainless steel increasing from 0.8 lakh tonnes in FY25 to 0.9 lakh tonnes in FY26, followed by 0.5 lakh tonnes in H1 FY27. Aluminium volume was 0.2 lakh tonnes in both FY25 and FY26 and 0.1 lakh tonnes in H1 FY27. Finished steel volume rose from 15.1 lakh tonnes in FY25 to 17.2 lakh tonnes in FY26, while intermediate volume increased from 21.2 lakh tonnes to 28.9 lakh tonnes.

How much capital expenditure remains in Shyam Metalics’ expansion plan?

Shyam Metalics says it had incurred Rs 9,921 crore of capital expenditure since listing as of Q2 FY27, equal to 53% of its total planned Rs 18,785 crore programme. Of the amount incurred, Rs 6,671 crore had been capitalised. The wider plan includes conventional steel additions, including a 1.58 MTPA hot rolling mill, a 0.80 MTPA special bar quality mill and a 0.40 MTPA parallel flange beam facility.

The pending-project table shows Rs 496 crore of expenditure remaining for intermediates, Rs 1,022 crore for long products and Rs 4,492 crore for flat products. The hot strip mill alone accounts for Rs 4,380 crore of the flat-products amount still pending, compared with Rs 112 crore for wagons. The company has also listed post-expansion capacity of 0.85 MTPA for stainless billet, 0.75 MTPA for finished stainless sheet and 0.06 MTPA for aluminium flat rolled products.

Conclusion

Shyam Metalics’ plan combines a substantial rise in its core stainless billet and finished-steel capacities with entry into aluminium flat rolled products and railway wagons. The reported mix data shows stainless steel’s revenue share rose from 4% in FY25 to 8% in H1 FY27, while carbon steel remained 77% of revenue in the latest reported half-year.

The next disclosed milestones are commissioning of the aluminium FRP facility and the expected start of Phase I wagon operations, both described by management as coming soon without specific dates. Execution will also depend on the remaining Rs 4,492 crore of flat-products expenditure, including Rs 4,380 crore allocated to the hot strip mill.