Companies

Shyam Steel to invest ₹250 cr to ramp up production

Our Bureau Kolkata | Updated on September 24, 2021

Looking at possibilities of setting up a greenfield plant in the East

Shyam Steel Industries Ltd is looking to invest close to ₹250 crore for ramping up production capacity by nearly 50-60 per cent over the next two years. The company has a capacity to produce around one million tonne of crude steel and around six lakh tonne of TMT annually across its five manufacturing units, all located in West Bengal.

According to Suket Beriwal, Director, Shyam Steel, the company is yet to firm up plans on which units will be ramped up and by how much. It will depend on the demand situation. It is also evaluating the possibilities of setting up a greenfield plant in the eastern region.

The company manufactures and supplies TMT rebar, billets and sponge iron.

“We are operating at more than 85 per cent capacity. We are looking at a capacity expansion of around 50-60 per cent in the next two years at an estimated investment of around ₹250 crore. We are also evaluating greenfield options in eastern India,” Beriwal told media at a virtual press conference on Friday.

Expanding footprint

The company, which has an established presence in the eastern and north-eastern regions, is looking to expand its retail footprint in central, south and west India. It has a network of over 6,000 distributors, dealers, and retailers in the markets it currently operates in.

The company has developed a highly efficient network of third-party logistics service providers to take its products to every corner of the country. It also plans to appoint a team of around 500 distributors, dealers, and retailers across each of these States to ensure easy accessibility of its brand to home builders at reasonable prices.

Retail accounts for around 50 per cent of the company’s total turnover of ₹3,000 crore. The remaining (50 per cent) comes from B2B.

“We are excited about our entry into the central, western and southern States. Individual home builders very often either do not have access to high quality TMT or pay a very high premium for it. With our entry into these markets, consumers will have the very high quality of a national TMT brand within their budget,” he said.

Published on September 24, 2021

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