Shyam Metalics plans to double revenue by 2031 on the back of Rs 10,000-cr capex
Shyam Metalics and Energy has ambitious plans to double its revenue to over Rs 42,000 crore by 2031, driven by a substantial capital expenditure of Rs 10,000 crore. The Kolkata-based company, which operates in various sectors including carbon steel, stainless steel, and aluminium foil, aims to enhance its margins and earnings by shifting its sales strategy to direct customer engagement. This strategic pivot is expected to yield more stable earnings and improved profitability. The company has experienced impressive growth, with a compounded annual growth rate (CAGR) exceeding 20% over the past four years. Chairman Brij Bhushan Agarwal expressed confidence that this growth trajectory will continue, targeting a similar CAGR for the next four years. A significant portion of the planned investment will be allocated to expanding capacity in flat carbon steel products and stainless steel, with the latter projected to see revenue soar from approximately Rs 130-140 crore monthly to Rs 600-700 crore by 2028. While Shyam Metalics is focused on integration for now, Agarwal mentioned that future demergers could be considered if they align with investor interests. The company is committed to enhancing value through downstream operations, ensuring that a majority of the raw materials for stainless steel production will be sourced internally, which is expected to bolster margins significantly.
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