Shyam Metalics & Energy Ltd

Shyam Metalics & Energy announced the commencement of operations at recently acquired Ramsarup plant following its indirect acquisition through its wholly owned subsidiary, Shyam Sel and Power in May 2022.

This operational commencement is expected to create approximately 2000 direct and indirect job opportunities in the thriving industrial belt of Kharagpur, underscoring Shyam Metalics commitment to driving socio-economic development in the region. Through strategic integration and operational excellence, Shyam Metalics is poised to amplify Ramsarup plants' manufacturing capabilities, driving growth and innovation in the steel sector.

Ramsarup plants' boasts advanced infrastructure, including a Direct Reduced Iron (DRI) unit with a production capacity of 1,50,000 Tonnes Per Annum (TPA) complemented by an integrated Captive Power Plant (CPP) unit capable of producing 20 Megawatts (MW) of power.

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Shyam Metalics & Energy will hold a meeting of the Board of Directors of the Company on 14 May 2024.

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Shyam Metalics & Energy unveiled its latest development, the SEL Tiger Foil. Crafted with a deep dedication to preserving food freshness and increasing sustainability, SEL Tiger Foil is a testament of excellence in household food safety. Driven by the strong demand and a projected 7.4% CAGR growth in the aluminum foil segment by 2030, Shyam Metalics is poised to benefit from increased demand and business opportunities in this sector.

SEL Tiger Foil, being manufactured in Giridh, Jharkhand by Shree Venkateshwara Electrocast, a step-down subsidiary of Shyam Metalics & Energy, is available in 2 categories, microns, 11 microns, and 18 microns. Each variant is tailored to meet diverse food storage needs. With a range including 9-meter rolls for occasional needs and 72-meter rolls provides an ample supply of aluminium foil for everyday culinary endeavors, with an ideal size for regular use. This launch also heralds a new, nature-friendly box design, underscoring Shyam Metalics' dedication to sustainable practices.

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The headline equity indices pared some gains and traded with minor gains in mid-morning trade. The Nifty traded below 22,700 level. Metal shares witnessed buying demand for the fourth consecutive trading sessions. Trading was volatile due to the expiry of weekly index options on the NSE.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 145.19 points or 0.19% to 74,828.15. The Nifty 50 index added 39.80 points or 0.18% to 22,682.55.

In the broader market, The S&P BSE Mid-Cap index rose 0.52% and the S&P BSE Small-Cap index added 0.12%.

The market breadth was negative. On the BSE, 1,684 shares rose and 1,906 shares fell. A total of 145 shares were unchanged.

Due to the observance of Ramadan Eid on 11 April 2024, the domestic market will be closed. Consequently, the Nifty weekly options expiry has been shifted to today.

Buzzing Index:

The Nifty Metal index gained 1.02% to 8,984.95. The index rallied 3.46% in the four trading sessions.

Vedanta (up 7.19%), NMDC (up 5.9%), Hindalco Industries (up 2.03%), National Aluminium Company (up 1.85%), Steel Authority of India (up 1.55%), Hindustan Zinc (up 1.39%), JSW Steel (up 0.78%), Tata Steel (up 0.75%), Ratnamani Metals & Tubes (up 0.31%) and Jindal Stainless (up 0.04%) advanced.

On the other hand, APL Apollo Tubes (down 2.24%), Welspun Corp (down 1.27%) and Hindustan Copper (down 1.24%) edged lower.

Stocks in Spotlight:

Shyam Metalics and Energy added 1.48% after the company established a new stainless steel hot rolled coils (HRC) facility at its existing plant in Sambalpur, Odisha as a part of its expansion plan.

RattanIndia Power declined 1.32%. The company announced that Manish Ratnakar will take over the position of chief financial officer (CFO) and key management personnel (KMP) from Ankur Mitra effective from closing business hours of 9 April 2024.

Global Markets:

Asian stocks traded mixed on Wednesday as of Japan’s corporate inflation climbed in March and rate decisions are assessed from New Zealand and Thailand’s central banks.

South Korea’s markets are closed Wednesday, as the country heads to the polls to elect its next parliament. Japan’s corporate goods price index rose 0.8% in March from a year ago, accelerating from the revised 0.7% increase in February.

U.S. stock indexes ended nearly flat on Tuesday, pressured by financial-sector stocks as investors awaited a key inflation reading and braced for major banks to kick off earnings-reporting season later this week. The widely watched report on March's consumer-price index is due on Wednesday.

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The company said that the expansion plan was already approved by its board the meeting held on 27 July 2023. The firm is strategically positioning itself for accelerated growth and expansion in the stainless steel market, it added.

The metal producer stated that the new facility, boasting a capacity of 0.3 million metric tons per annum (MTPA), will specialize in the production of 200 and 400 series stainless steel HRC by utilizing captive raw materials such as direct-reduced iron (DRI), power and ferroalloys in a reliable and efficient supply chain, while maintaining uncompromising quality standards throughout the manufacturing process.

To bolster its capabilities in the long products sector, the company has also applied for the acquisition of a new 20-acre land parcel at the newly acquired Mittal Corp. which is now merged with its wholly owned subsidiary Shyam Sel and Power, dedicated to downstream products from its wire rod division. This expansion initiative includes plans to establish a stainless steel bright bars capacity of 25,000 metric tons per annum (MTPA) and an SS wires division with a capacity of 18,000 MTPA, Shyam Metalics stated in the press release.

The project is expected to be commissioned by mid of financial year 2026-27. The estimated cost is expected to be in the range of Rs 650 crore to Rs 750 crore.

Together, these expansion ventures are anticipated to generate approximately 1500 new employment opportunities, underscoring Shyam Metalics' unwavering commitment to fostering innovation and sustained growth with an integrated supply chain, said the firm.

Further, the company added, “The planned expansion into stainless steel flat products is poised to play a crucial role in supporting India's burgeoning automotive, construction, infrastructure, and consumer goods sectors. By providing high-quality stainless steel products, Shyam Metalics aims to contribute significantly to the nation's economic growth and development.”

Sanjay Agarwal, joint managing director at Shyam Metalics and Energy, said, “With our aggressive expansions into both stainless steel long and flat products, we are well-positioned to capitalize on emerging opportunities in the sector, both domestically as well as internationally.”

Dr. Deepak Kumar Gaur, chief operating officer of Shyam Metalics and Energy, said, “Due to our strong supply chain and unwavering commitment to quality, our company is well-positioned to precisely and effectively meet the ever-evolving demands of the stainless steel market. By diversifying into flat stainless steel products, we will be able to drive growth in important industries like consumer goods, construction, automotive, and infrastructure.

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

The company’s consolidated net profit jumped 89.2% to Rs 127.30 crore in Q3 FY24 as against with Rs 67.27 crore posted in Q3 FY23. Net sales stood at Rs 3,315.29 crore in Q3 FY24, registering a growth of 13.5% year on year.

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The company recieved letter of intent (LoI) from the industry, energy, labour, and mining department, Government of Maharashtra.

Natural Resources Energy (NREPL), wherein Dorite Tracon, a promoter company of Shyam Metalics and Energy, holds 49% of the economic interest, it added.

The said composite licence for Surjagad 1 iron ore block for iron ore in Angudra, Ramunkal Meta, Puske Meta, Negal Meta village, Etapalli Taluka, Gadchiroli district is spread over an area of 1,526 hectares.

This significant achievement follows NREPL's successful bid in the e-auction process conducted for the said mineral block. As the ‘preferred bidder’ under the established auction rules, NREPL submitted a final price offer of 126.35%, demonstrating its commitment to the project's value, said the firm.

The LOI is valid for a period of 1 year from the date of issuance. During this time, NREPL will fulfill all necessary conditions to secure the final composite license from the Government of Maharashtra.

This project holds immense potential to contribute to the economic growth of the region, generate employment opportunities, and support the nation's infrastructure development, stated in the company’s press release.

B Bhushan, Vice Chairman & MD, Shyam Metalics and Energy, said, “This milestone LoI is a testament to the collaborative efforts between Shyam Metalics through its Promoter Company and Sarda Energy & Minerals. It reinforces our shared vision for growth and development within Maharashtra’s mining sector. We are committed to responsibly utilizing this opportunity to create value for all stakeholders while adhering to the highest environmental and safety standards.”

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

The company’s consolidated net profit jumped 89.2% to Rs 127.30 crore in Q3 FY24 as against with Rs 67.27 crore posted in Q3 FY23. Net sales stood at Rs 3,315.29 crore in Q3 FY24, registering a growth of 13.5% year on year.

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Shyam Metalics & Energy informed the receiving of the Letter of Intent from the Industry, Energy, Labour, and Mining Department, Government of Maharashtra, in respect of receiving of the Letter of Intent for Composite License for Iron Ore Block in the State of Maharashtra by its Joint Venture Company, namely Natural Resources Energy (NREPL), wherein Dorite Tracon, a promoter company of Shyam Metalics and Energy, holds 49% of the of the economic interest.

The said Composite Licence for Surjagad 1 Iron Ore Block for Iron Ore in Angudra, Ramunkal Meta, Puske Meta, Negal Meta village, Etapalli Taluka, Gadchiroli District is spread over an area of 1526 hectares. This significant achievement follows NREPL's successful bid in the e-auction process conducted for the said mineral block. As the 'Preferred Bidder' under the established Auction Rules, NREPL submitted a final price offer of 126.35%, demonstrating its commitment to the project's value.

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Shyam Metalics & Energy announced that Natural Resources Energy (NREPL) — an Associate Joint Venture Company of one of the company's promoter Company i.e. Dorite Tracon, which holds 49% economic interest, has been awarded the Letter of Intent for Composite Licence by the Industry, Energy, Labour and Mining Department, Government of Maharashtra, for Surjagad 1 Iron Ore Block for an area of 1526 Hectare in the State of Maharashtra.

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Shyam Metalics & Energy announced its ambitious foray into a greenfield expansion project focused on aluminium flat-rolled products. The Group intends to invest Rs 450 crore in the same. The investment is aimed at capacity expansion of the group while also generate the employment of 1000 direct and in-direct jobs. It will increase manufacturing of Aluminium flat rolled products to bridge the demand & supply gap making Shyam Metalics group self reliant for the raw materials of aluminium foil business. The plant is to be setup in Odisha.

With an annual capacity of 60,000 metric tons per year (KTPA) of flat-rolled products, this expansion marks a significant stride towards sustainable manufacturing and supporting the ever-increasing electric vehicle (EV) sector in India.

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Net profit of Shyam Metalics & Energy rose 89.24% to Rs 127.30 crore in the quarter ended December 2023 as against Rs 67.27 crore during the previous quarter ended December 2022. Sales rose 13.47% to Rs 3315.29 crore in the quarter ended December 2023 as against Rs 2921.70 crore during the previous quarter ended December 2022.

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