Shyam Metalics and Energy Limited (SMEL) announced that its new integrated aluminium manufacturing facility in Sambalpur, Odisha, is almost ready, with commercial production about to start.
They're doing this through their subsidiary, Smel Steel Structural Pvt. Ltd., and it marks the group's big move into the high-demand market for value-added aluminium products. This project fits right into SMEL's strategy to diversify its offerings and build up its integrated manufacturing setup.
The state-of-the-art facility is designed to cater to both industrial and consumer packaging needs with two primary product lines:
• Aluminium Flat Rolled Products (FRP): The plant has an installed capacity of 60,000 Tonnes Per Annum (TPA), producing sheets and plates with a thickness range of 0.3 mm to 4.0 mm.
• Aluminium Foils: The facility features a capacity of 18,000 TPA, specializing in foils ranging from 6 to 40 microns in thickness.
On top of that, SMEL has upgraded its Pakuria facility, adding two annealing furnaces (with 25 MT and 30 MT capacities) and a 2300 mm Vertical Foil Separator. These improvements help the company process ultra-thin foils more efficiently.
SMEL expects the Sambalpur factory to impact its financial performance well. Management says that switching to value-added products should boost their operating margins by about 40% to 50%. They're also looking at revenue growth of around two to two-and-a-half times over the medium term, driven by efficient operations and a stronger, more premium lineup of products.
Brij Bhushan Aggarwal, the Chairman and Managing Director, pointed out that the new facility is ready to meet the rising demand for precision-engineered metal products and help cut down India's reliance on imports.