-- Smel Steel Structural, a step-down subsidiary of Shyam Metalics and Energy (NSE:SHYAMMETL, BOM:543299) is poised to begin commercial production at its aluminium manufacturing project in Sambalpur, Odisha in India, according to a Thursday filing to the Indian bourses.
The facility will produce aluminium flat rolled products with an installed capacity of 60,000 tons per annum (TPA), in the thickness range of 0.3 - 4.0 mm, and aluminium foils with a capacity of 18,000 TPA, in the thickness range of 6 - 40
microns.
Sambalpur unit, when commissioned, is expected to significantly enhance the company's financial and operational performance. The company estimated a 40-50% improvement in operating margins driven by better product mix and enhanced efficiencies.
Its revenue is also expeected to increase by 2x to 2.5x over the medium term, supported by expanded market reach and higher realization products.
The company's shares were up 3% in recent trade.