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Shyam Metalics eyes $1 bn in revenue from stainless steel business

Company preps expansion plan after acquiring Mittal Corp.

Published

2 years ago

March 10, 2023

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Shyam Metalics and Energy expects to generate $1 billion in revenue from the stainless steel business after acquiring Mittal Corp via the corporate insolvency resolution process (CIRP).

Brij Bhushan Agarwal, vice chairman and managing director of Shyam Metalics, stated that Mittal Corp would invest Rs 2,000 crore in new products and value addition. He expects to generate $1 billion in revenue over the next five years.

By acquiring Mittal Corp., the company enters the special steel segment. Mittal Corp’s committee of creditors (CoC) approved the resolution plan last month, and a letter of intent was issued in the name of its subsidiary, Shyam Sel and Power. This was subject to confirmation from the National Company Law Tribunal (NCLT). The total cost of acquisition and upgradation is understood to be about Rs 450 crore.

Agarwal is placing a large bet on stainless steel, anticipating demand from the Indian Railways and infrastructure sectors. “We also see strong demand from the defence sector,” he added.

In stainless steel, the emphasis would not be on nickel-intensive products. “We would look at products where the nickel percentage is no more than 2-3%,” he said, adding that Shyam Metalics supplied the majority of the other key ingredients.

Shyam Metalics’ consolidated net sales were Rs 10,393.96 crore in FY22. The company’s product portfolio includes pellets, sponge iron, billets, and value-added end-products such as TMT bars, wire rods, and structural.

The product portfolio is being expanded as the company prepares to invest Rs 10,000 crore in the metals business over the next 5-6 years. Ductile iron, which is used in a wide range of industrial applications, and roofing sheets for buildings would be significant revenue streams in the future.

Shyam Metalics acquired Ramsarup Industries last year, and Agarwal stated that the company would invest approximately Rs 1,000 crore in capex there in the first phase. “We are rebuilding the plant and developing ductile iron business, which will be operational in 2025-2026,” he explained.

He also said that Rs 3,400-4,000 crore revenue was expected from roofing sheets in the next 3-4 years. Of the Rs 10,000 crore planned, about Rs 2,500 crore had already been invested.

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India’s April-October Finished Steel Imports Reach 7-Year High

India is the world’s second-largest crude steel producer, had become a net importer in 2023/24.

Published

6 days ago

November 15, 2024

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India’s finished steel imports during April-October reached a seven-year high of 5.7 million metric tons, according to provisional government data reviewed by Reuters on Wednesday.

India, the world’s second-largest crude steel producer, had become a net importer in 2023/24, and this trend continued during the April-October period, the data indicated.

From April to September, China had been the leading exporter of finished steel to India, and this was widely expected to remain the case during the April-October period. Further details would be revealed later in the month.

A senior government official had informed Reuters last month that India’s steel ministry was in favor of implementing a safeguard duty or a temporary tax to curb the rising imports of steel.

India’s steel demand remained strong, primarily driven by infrastructure and the automotive sector, although it had slowed down in the United States and Europe.

The consumption of finished steel in India reached a seven-year high of 85.7 million metric tons during April-October, according to the data. Meanwhile, India’s finished steel exports during this period slumped to their lowest in seven years, totaling 2.8 million metric tons. The country’s finished steel production amounted to 82.7 million metric tons, marking a 4.4% increase compared to the previous year. Crude steel production stood at 84.9 million metric tons, reflecting a 3% year-on-year rise.

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NMDC Steel Q2 loss expands to Rs 5.95 bn, income at Rs 15.35 bn

The company had reported a loss of Rs 131.10 crore during the same period last year.

Published

6 days ago

November 15, 2024

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NMDC Steel announced on Tuesday that its loss had widened to Rs 595.37 crore in the September quarter, primarily due to a surge in expenses. The company had reported a loss of Rs 131.10 crore during the same period last year, according to an exchange filing.

The company’s total income increased to Rs 1,535.46 crore, up from Rs 290.27 crore a year earlier. However, NMDC Steel’s expenses escalated to Rs 2,364.39 crore in the second quarter of the current fiscal year, compared to Rs 464.93 crore in the corresponding period of the previous year.

NMDC Steel Ltd, which was demerged from the mining firm NMDC, owns and operates the 3 million-tonne Nagar Steel Plant at Nagarnar in Chhattisgarh. The Nagarnar plant, set up with an investment of about Rs 23,000 crore, is referred to as India’s youngest steel unit. NMDC Steel commenced commercial operations at this unit on August 31, 2023.

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Shalimar Paints reports a net loss of Rs 196.2 Mn in Q2 FY25

It had registered loss after tax of Rs 252.2 million in the corresponding quarter of the previous fiscal.

Published

7 days ago

November 14, 2024

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Shalimar Paints has reported net consolidated loss after tax of Rs 196.2 million during the quarter ended September 30, 2024.

It had registered loss after tax of Rs 252.2 million in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 1.46 billion in Q2 FY25, a growth of 20.15% from Rs 1.21 billion it recorded in the similar quarter last year.