Shyam Metalics & Energy , a leading integrated metal producer in India, has announced its strategic entry into the crash barrier manufacturing sector, focusing on road and rail safety applications. The company aims to capture an 8-10% market share in this segment by the fiscal year 2025-26, signaling a significant expansion of its product portfolio.

New Manufacturing Facility

The company has commenced production at its state-of-the-art facility in Giridih, Jharkhand. This plant, which began operations in August, boasts an annual capacity of 24,000 MTPA (Metric Tonnes Per Annum) and employs over 150 skilled professionals. The facility operates around the clock, ensuring quick turnaround times while adhering to global quality and IS standards.

Product Range and Applications

Shyam Metalics' current product portfolio in the crash barrier segment includes:

• W Metal Beam Crash Barriers
• Thrie Metal Beam Crash Barriers
• W Beam Railway Guard Rails

These products cater to projects for Indian Railways and National Highways, contributing to enhanced safety measures in the country's transportation infrastructure.

Expansion Plans

The company has outlined ambitious expansion plans to strengthen its position in the crash barrier market:

1. A new manufacturing facility is planned in Sambalpur with an investment of ₹50.00 crore, adding 60,000 MTPA to the production capacity. This facility will serve the South and West markets.

2. In FY 2026-27, Shyam Metalics plans to invest an additional ₹50.00 crore to expand its product portfolio at the Giridih facility. This expansion will include the production of:

   • Transmission Line Towers
   • Railway Electrification Structures
   • Solar Panel Structures
   • Lighting Poles

Market Outlook and Growth Potential

Mr. Brij Bhushan Agarwal, Chairman & Managing Director of Shyam Metalics, expressed confidence in the company's new venture, stating, "The launch of our crash barrier unit marks a significant step in strengthening India's road and railway safety. With a 24,000 MTPA annual capacity and 150 professionals driving precision and innovation, we are confident of achieving an 8-10% market share in the coming fiscal."

The company anticipates that this new business segment has the potential to add nearly 50% more value to its Giridih operations in the next few years. With India's infrastructure investments expected to drive demand for crash barriers by 25% annually, Shyam Metalics is well-positioned to capitalize on this growth.

Future Prospects

Looking ahead, Shyam Metalics plans to explore export opportunities in the Middle East, Europe, and Africa, leveraging global infrastructure expansion initiatives. This move aligns with the company's commitment to building a safer, stronger, and more self-reliant nation while expanding its international footprint.

As Shyam Metalics diversifies its product range and enters the crash barrier manufacturing sector, it demonstrates its adaptability and commitment to contributing to India's infrastructure development and safety initiatives.

Shyam Metalics & Energy Limited (SMEL) has released its consolidated sales figures for August, revealing a mixed performance across various product segments. The company, known for its diverse portfolio in the metal industry, showed significant growth in some areas while experiencing declines in others.

Pellet Sales Soar

The standout performer in SMEL's product lineup was pellets, with sales volumes skyrocketing by 216.17% year-over-year to 137,392 MT. This impressive growth was accompanied by a 13.87% increase in realizations, indicating strong demand and improved pricing power in this segment. The month-on-month growth was also substantial, with a 56% increase in sales volumes and a 7.97% rise in realizations compared to July.

Stainless Steel Segment Shows Strength

Stainless steel sales volumes increased by 32.83% year-over-year to 9,378 MT, despite a 15.96% drop in realizations. The segment also showed positive momentum on a month-on-month basis, with a 15.75% increase in sales volumes compared to July.

Challenges in Other Segments

While pellets and stainless steel performed well, other segments faced challenges:

• Sponge iron sales declined 34.51% year-over-year to 56,575 MT, with realizations down 1.60%.
• Specialty alloys volumes fell 17.28% year-over-year to 14,849 MT, accompanied by a 5.51% decrease in realizations.
• Carbon steel volumes experienced a slight drop of 2.14% year-over-year to 139,057 MT.

New Segments Show Promise

SMEL's newer segments demonstrated growth potential:

• Pig Iron sales reached 67,780 MT, showing a 20.85% month-on-month increase.
• HR Tube/Pipe volumes surged 381.16% month-on-month to 332 MT, albeit from a low base.

Recent Plant Implementations

The company's recent expansions are beginning to bear fruit:

• A blast furnace with a capacity of 770,000 tonnes per annum, along with sinter and coke oven plants, was implemented at the Jamuria location in November 2024.
• A color-coated plant was also set up at Jamuria in November 2024, enabling the production of color-coated sheets.

Financial Stability

Shyam Metalics & Energy's financial position remains strong, with CRISIL upgrading its rating to AA (Positive) for Long Term Bank Facilities and A1+ for Short Term Bank Facilities. The company prides itself on being one of the least leveraged steel companies in India.

As Shyam Metalics & Energy navigates through varying market conditions, its diversified product mix continues to provide resilience. The company's strategic expansions and strong performance in key segments like pellets and stainless steel offset challenges in other areas, positioning SMEL for continued growth in the metal industry.