Shyam Metalics and Energy draws Rs 990 cr capex plan

Shyam Metalics and Energy draws Rs 990 cr capex planShyam Metalics and Energy (SMEL) has announced new capital expenditure plans aggregating Rs 990 crore, proposing to further expand the capacity by 2.85 million tpa.

This capital expenditure will be over and above the ongoing capital expenditure expansion of approximately Rs 3,000 crore.

The company has also commissioned an aluminium foil making plant of 40,000 tpa.

The projects, a brownfield expansion in existing land available at respective plants. Based on the increased production capacities and the impending expansion, the Captive Railway Sidings will see addition of two incremental lines at both Jamuria and Sambalpur which shall double the rake handling capacities.

The new project expansion entails an increase of 25 percent over the 11.6 million tpa aggregate (including intermediates and pellet) capacity post expansions suggested in the IPO.

The increased aggregate capacity post current announcement will be 14.5 million tpa.

The budgeted incremental capex will be approximately Rs 990 crore, which will be funded completely through internal accruals.

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