Shyam Metalics and Energy Ltd. has commenced commercial production at its aluminium foil manufacturing facility in Sambalpur, Odisha, marking a key milestone in its expansion into value-added downstream aluminium products. The company is investing around ₹800 crore in the aluminium facilities, with its Aluminium Flat Rolled Products (FRP) plant scheduled to begin commercial operations by the end of September 2026.
The newly commissioned aluminium foil unit, operated by SMEL Steel Structural Pvt. Ltd., has an installed capacity of 18,000 tonnes per annum (TPA) and will manufacture premium-grade foils ranging from 6 to 40 microns in thickness. The upcoming FRP facility will add a capacity of 60,000 TPA, producing flat rolled products with thicknesses between 0.3 mm and 4.0 mm.
The company said the downstream aluminium business is expected to improve operating margins by 40–50% through a better product mix and higher realisations, while driving revenue growth of 2 to 2.5 times by expanding its presence in domestic and overseas markets. The expansion is also expected to reduce India’s dependence on imported value-added aluminium products and support the government’s Make in India initiative.
Commenting on the development, Chairman and Managing Director BrijBhushanAgarwal said the commissioning of the foil plant represents an important step towards building an integrated downstream aluminium ecosystem while creating employment and supporting economic growth in Odisha.
Shares of the Kolkata-headquartered Shyam Metalics traded over 2% higher during Thursday’s session, extending recent gains. The stock has risen more than 10% over the past month, taking the company’s market capitalisation to nearly ₹30,000 crore. Market participants viewed the commissioning of the aluminium foil plant and the progress of the FRP project as positive indicators of the company’s diversification strategy and future earnings potential.