Shyam Metals Commissions Phase II CRM Facility; Capacity Expands to 0.40 MTPA

Shyam Metalics announced the successful commissioning of Phase II of its Cold Rolling Mill (CRM) facility at Jamuria, West Bengal. The facility has already commenced commercial production from April 16, 2026.

This expansion includes an advanced Dual Pot GI cum Galvalume line, enhancing the company’s ability to manufacture high-quality, precision-engineered steel products.

Expansion & Capacity Boost:

• Addition of 0.15 MTPA capacity under Phase II
• Total CRM capacity now stands at 0.40 MTPA
• Strengthens presence in value-added steel segment

Product & Capability Enhancement

• Introduction of Dual Pot GI & Galvalume line
• Expands product range for high-end industrial applications
• Improves realization potential through premium products

Sectoral Opportunities

• Strategic entry into solar energy sector (mounting structures)
• Also targets automotive and consumer durables segments
• Reduces dependence on imports in high-quality steel

Government Alignment

• Aligned with PLI Scheme (PLI-2)
• Supports domestic manufacturing and import substitution

Strategic Location Advantage

• Located in Eastern India with logistical benefits
• Improves supply efficiency to key demand centers

Note: The project is expected to ramp up optimally over the next 10–12 months

Key Risks

• Slower-than-expected demand in solar/auto sectors
• Delay in achieving optimal capacity utilization
• Steel price volatility impacting margins
• Dependence on successful product mix transition

Worst Case Scenario

Underutilization of expanded capacity leading to pressure on return ratios and margins

Risk Level: Medium

• Focus on margin expansion through better product mix
• Expansion to drive incremental EBITDA over medium term
• Strong pipeline of value-accretive projects under evaluation
• Targeting optimal ramp-up within 10–12 months
• Strengthening position in high-growth, high-margin segments