Shyam Metalics and Energy anticipates significant growth through FY2029 based on strategic expansions in product lines and advanced technology integration into operations. The company’s entry into the aluminium and stainless-steel business is also expected to contribute to the anticipated growth as it continues to move up the value chain.
In the last five years, Shyam Metalics has experienced momentous growth in revenue and EBITDA. While the former elevated at a CAGR of 24.7 per cent, from INR 4,376 crore in FY2020 to INR 13,195 crore in FY2024, EBITDA increased to INR 1,569 crore at a CAGR of 19.9 per cent. Aluminium accounts for 4 per cent of the company’s total sales, and stainless steel constitutes 4.5 per cent, underscoring the success of Shyam Metalics’ diversification efforts.
For the next five years, Shyam Metalics wants to further strengthen its aluminium business by expanding the annual production by 1.8 times from 24,000 tonnes to 42,000 tonnes through strategic investments in greenfield projects. The company also mulls over increasing its power generation capacity by 1.8-fold to 706 megawatts annually to meet India's growing demand of electricity.
Shyam Metalics has planned to invest a portion of its INR 10,025 crore CAPEX in expanding the production capacity of aluminium, stainless steel, carbon steel and special alloys, targeting a revenue growth of INR 40,000 crore and an EBITDA of INR 4,500 crore by FY2029.
The company has also demonstrated its determination in sustainability, sourcing 80 per cent of power requirements from captive power plants. At present, the company is well-positioned to capitalise on future growth with a substantial cash surplus of INR 2,000 crore. CRISIL maintains an AA credit rating for Shyam Metalics.
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