SMIORE outlines ₹710 crore steel and MedTech expansions

The Sandur Manganese & Iron Ores Limited (SMIORE) has outlined ₹710 crore of steel and medical-devices capital expenditure in Q2FY27, including a ₹390 crore MedTech factory targeting commercial production by December 2027 and ₹320 crore for value-added steel processing and Special Bar Quality capacity.

What does SMIORE's ₹710 crore capex plan include?

SMIORE's disclosed ₹710 crore plan comprises a ₹100 crore Bright Bar and Heat Treatment project, a ₹220 crore Punjab steel-plant expansion and a ₹390 crore medical-devices manufacturing facility. The two steel projects account for ₹320 crore, while the MedTech facility is the largest individual project at ₹390 crore.

The ₹390 crore MedTech investment follows an October 2026 lease for 6.2 acres of developed land at Andhra Pradesh MedTech Zone, or AMTZ, in Visakhapatnam. SMIORE describes the factory as a first concrete step in diversification, whereas the ₹320 crore steel spending extends activities already carried out through its steel subsidiaries.

What will SMIORE's steel projects add and when?

SMIORE's ₹100 crore project will add a Bright Bar Facility and a Heat Treatment Facility in one integrated complex under a shared pre-engineered building shed. The company expects commissioning within 20 months of project commencement, but did not disclose the project start date, production capacity or a commissioning month.

SMIORE has separately approved ₹220 crore to raise Punjab plant capacity from 1.20 lakh tonnes per annum to 1.70 lakh tonnes per annum of Special Bar Quality, or SBQ, steel. The plan therefore adds 0.50 lakh tonnes per annum, with the Electric Arc Furnace, or EAF, expected within 18 months of project start, the rolling mill within 22 months and full production after a further six-month ramp-up.

The Punjab plant operates through Royal Sandur Green Steel Private Limited, which was renamed from Arjas Modern Steel Private Limited during Q2FY27. SMIORE says the EAF route supports its green-steel presence, while the ₹100 crore project at Royal Sandur Metals is directed at a more value-added portfolio.

The expansion follows higher steel volumes in Q2FY27. Steel production reached 1.09 lakh tonnes, up 8% year on year, and sales reached 1.12 lakh tonnes, up 11% year on year and 7% quarter on quarter; average realisation rose 5% sequentially to ₹78,422 per tonne from ₹74,385 per tonne in Q1FY27.

How is SMIORE entering medical devices?

SMIORE is entering medical devices through wholly owned Royal Sandur MedTech Private Limited, whose board approved ₹390 crore for the Visakhapatnam manufacturing unit. The facility is intended to make catheters, intravenous, or IV, cannula, syringes and IV sets, with commercial production targeted by December 2027.

The October 2026 lease covers 6.2 acres at AMTZ, where SMIORE plans to establish the manufacturing unit. The presentation identifies the site and product categories but does not disclose annual manufacturing capacity, customers, regulatory approvals, construction dates or a phased spending schedule for the ₹390 crore outlay.

SMIORE also incorporated Royal Sandur Hospitality Private Limited and Royal Sandur Academy Private Limited after adopting a unified group identity in the previous quarter. However, it disclosed no capital outlay, operating target or timetable for those hospitality and academy entities, unlike the December 2027 production target for MedTech.

Managing Director Bahirji A. Ghorpade described the Punjab expansion and medical-devices entry as concrete steps towards new frontiers alongside metals and mining. That is management's strategic view; the Q2FY27 presentation does not provide revenue, margin, return or market-share projections for the new medical-devices business.

What funding and execution issues frame SMIORE's plan?

SMIORE reported consolidated cash and cash equivalents of ₹630 crore and consolidated debt to equity of 0.24 times at Q2FY27. Standalone cash and cash equivalents were ₹608 crore, but the presentation does not state whether the ₹710 crore programme will be financed through internal cash, borrowings or another source.

SMIORE's wider project pipeline includes a beneficiation plant begun in Q1FY27, with civil works under way, critical equipment ordered and commissioning scheduled for Q2FY28. It has also applied to increase environmental clearance for run-of-mine iron ore production from 7.85 million tonnes per annum to 9.42 million tonnes per annum and to split a proposed 7.00 million-tonne beneficiation plant into two 3.5 million-tonne plants.

The completed Downhill Conveyor System was capitalised in Q1FY27, but it still requires Department of Mines and Geology approval for weighbridge integration with the ILMS portal. SMIORE says that, once operating, the system would deliver ore directly to a railway siding and is expected to improve realisations through easier customer access.

In energy-linked operations, SMIORE expects commercial production from two restarted coke-oven batteries in Q4FY27. Ferroalloys production rose 8% sequentially to 14,142 tonnes in Q2FY27, while realisation declined 1% sequentially to ₹70,515 per tonne; management expects higher energy generation from the restart to support greater ferroalloy volumes.

Conclusion

SMIORE's ₹710 crore programme combines ₹320 crore of steel investment with a ₹390 crore move into medical devices. The steel projects add Bright Bar, Heat Treatment and 0.50 lakh tonnes per annum of SBQ capacity, while the MedTech plan establishes a factory on 6.2 acres in Visakhapatnam for four named product categories.

The next disclosed milestones are the Q4FY27 restart of two coke-oven batteries, Q2FY28 commissioning of the beneficiation plant and December 2027 commercial production at the MedTech facility. SMIORE has also set 18-month and 22-month commissioning targets for the Punjab EAF and rolling mill, while the pending ILMS integration and environmental-clearance application remain unresolved matters.