Shyam Metalics pushes for a $74M-worth aluminium FRP and foil plant in Odisha

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Indian metal manufacturer Shyam Metalics and Energy Limited is set for a notable expansion as it advances to invest around INR 7 billion (USD 74.27 million) to set up an aluminium flat rolled products (FRP) and foil manufacturing unit in Sambalpur, Odisha. As a major step in planning and investment, it would reinforce the presence of Shyam Metalics across the aluminium value chain.

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Downstream boost with the aluminium FRP and foil plant

Being developed through its subsidiary, Smel Steel Structural Private Limited, the project is already at an advanced stage, scheduled to be commissioned by June 2026. Once operational, the plant would add a capacity of 60,000 tonnes per annum (TPA) of aluminium FRP, in a 0.3-4.0 mm thickness range, as well as 18,000 TPA of aluminium foils in the 6 to 40-micron range. 

By entering the downstream platform, Shyam Metalics aims to diversify its product portfolio. The transition is expected to improve the company’s financial performance, with operating margin projected to improve in the range of 40 to 50 per cent. Moreover, with enhanced market access and stronger demand, the topline growth is expected to expand 2 to 2.5 times over the medium term.  

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Enhancing the manufacturing ecosystem, connectivity and socio-economics

At a structural level, the Sambalpur unit is expected to reinforce the company’s integrated manufacturing ecosystem. The move will not only open new revenue channels but also lower import dependence. With the increasing demand for aluminium in packaging, infrastructure, and engineering applications, the facility would be successful in delivering precision-engineered aluminium products.

Additionally, the seamless connectivity to major domestic markets and export routes gives Sambalpur logistical advantages, allowing for distribution efficiency, thereby optimising the supply chain.

Opening up avenues for socio-economic growth, the project is also likely to generate direct and indirect employment, contributing to regional development and bolstering Odisha’s position as an emerging metal industry hub.

Commenting on the development, Mr Brij Bhushan Aggarwal, Chairman and Managing Director, stated, “This project represents a key milestone in our journey toward building a robust downstream aluminium ecosystem. With rising demand for high-quality aluminium products, we are confident that this facility will contribute meaningfully to industrial growth while supporting local economic development.”

Indicating a strategic evolution to secure long-term growth in a swiftly shifting aluminium market, the facility also upholds national initiatives for self-reliance and domestic manufacturing, such as “Make in India”, while progressing towards realising a strong and efficient aluminium ecosystem.

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