New Delhi: SMEL Steel Structural Pvt. Ltd., a step-down subsidiary of Shyam Metalics and Energy Limited, today announced the commencement of commercial production at its Aluminium Foil facility in Sambalpur, Odisha. The facility has an installed operational capacity of 18,000 tonnes per annum (TPA) and is equipped to manufacture premium-grade foils in the thickness range of 6 to 40 microns.
The company also confirmed that its Aluminium Flat Rolled Products (FRP) facility is in final readiness phase and is on track for commercial launch by September 2026, further strengthening its presence in the value-added aluminium products segment. The FRP section will have an installed capacity of 60,000 TPA and would span a thickness range of 0.3 to 4.0 mm.
(In total the company is investing around Rs 800 crore on the Aluminium facilities in Sambalpur)
Sambalpur Downstream Facility Capacity Profiles:
- Aluminium Foils: 18,000 TPA capacity | Thickness range: 6 – 40 microns (Now under active Commercial Production)
- Aluminium Flat Rolled Products (FRP): 60,000 TPA capacity | Thickness range: 0.3 – 4.0 mm (Commercial Production scheduled by the end of September 2026)
The strategic foray into value-added, downstream aluminium products represents a major step in SMEL’s product diversification strategy. It addresses the critical domestic demand for precision-engineered and high-quality materials, reduces import dependence, and strengthens India’s Atmanirbhar Bharat initiative under the Make in India vision.
The commissioning of these plants – Aluminium Foil and the FRP facility – is anticipated to enhance SMEL’s operating margins by approximately 40-50% on the back of optimised product mix and higher product realisations. It is also projected to drive robust revenue growth, expanding the company’s topline by 2x to 2.5x through enhanced market reach and distribution across domestic and international markets.
Brij Bhushan Agarwal, Chairman and Managing Director, Shyam Metalics and Energy Ltd. Said, “The commencement of commercial foil production at our Sambalpur plant marks a pivotal operational milestone in building a world-class downstream aluminium ecosystem. By delivering high-quality, specialized products, we are well-positioned to serve high-growth economic segments, unlock new revenue streams, and simultaneously foster localized socio-economic and employment growth in Odisha. We look forward to completing our ecosystem with the launch of the Flat Rolled Products line by September’s end.”
