Bhubaneswar: SMEL Steel Structural Pvt. Ltd., a step-down subsidiary of Shyam Metalics and Energy Limited, has started commercial production at its aluminium foil manufacturing facility in Sambalpur, Odisha, marking its entry into the value-added downstream aluminium products segment.
The newly commissioned plant has an installed production capacity of 18,000 Tonnes Per Annum (TPA) and can manufacture premium-grade aluminium foils with thicknesses ranging from 6 to 40 microns, SMEL said in a press release.
The company also announced that its Aluminium Flat Rolled Products (FRP) facility at the same location is in its final stage of readiness and is expected to begin commercial production by the end of September 2026. The FRP unit will have an annual production capacity of 60,000 TPA and will produce aluminium sheets with thicknesses ranging from 0.3 mm to 4.0 mm.
Shyam Metalics is investing around Rs 800 crore in the aluminium facilities at Sambalpur.
According to the company, the expansion into downstream aluminium products is aimed at meeting growing domestic demand for precision-engineered materials, reducing dependence on imports, and supporting the Centre’s Atmanirbhar Bharat and Make in India initiatives.
The company said the commissioning of the aluminium foil and FRP plants is expected to improve operating margins by around 40–50% through a better product mix and higher value realisation.
The company projected that the downstream aluminium business could help expand its topline by two to two-and-a-half times through wider domestic and international market reach.
Chairman and Managing Director Brij Bhushan Agarwal said the start of commercial aluminium foil production represents an important operational milestone in developing an integrated downstream aluminium ecosystem.
He added that the company aims to supply specialised, high-quality products to fast-growing sectors while creating new revenue opportunities and supporting employment and economic development in Odisha. He also said the company expects to complete the downstream ecosystem with the commissioning of the FRP facility by the end of September.
Shyam Metalics and Energy Limited is an integrated metal producer with operations across West Bengal, Odisha, Jharkhand and Madhya Pradesh. The company manufactures steel products, ferro alloys, aluminium and stainless steel, and has been listed on Indian stock exchanges since 2021.
