Shyam Steel charts retail expansion plan in North India
Maps Rs 2500 cr investment in Brownfield and Greenfield projects; to obtain 250 dealers across States of North India in 2023
Shyam Steel, a producer and manufacturer of primary TMT bars announced its plan to expand their retail operations across North India States of Delhi, Punjab, Haryana, Jammu & Kashmir, Himachal Pradesh, Rajasthan, and the NCR region. The company also plans to undertake investments of around Rs 2500 crore in brownfield and greenfield projects to expand its production capacity.
The steel maker sees potential for steel sector in North India, and said it will aim to be one of the leaders in primary TMT bar segment across the region. Lalit Beriwala, Director, Shyam Steel Manufacturing Limited said, "We are on a major expansion drive to revamp our retail business operations across North India. We will be expanding our dealer distribution network across Delhi, Punjab, Haryana, Jammu & Kashmir, Himachal Pradesh, Rajasthan, and the NCR region. We are also looking to expand our production capacity from 0.7 million tonnes a year to 1.35 million tonnes a year in the next four years' time to cater to the demands in the North India market."
Shyam Steel plans to obtain around 250 dealers in the States of North India in the next year. The company plans to generate employment for around 200 to 300 people in each of the States, which will benefit more than 1,000 families. Shyam Steel plans to generate business of around Rs 1000 crore through its North India operations in the next two to three years.
Currently, Shyam Steel has a production capacity of 0.7 million tonnes a year, and by April 2023, it plans to expand its capacity to 1 million tonnes a year. For this, the company is currently undertaking major brownfield investments of around Rs 1000 crore in their state-of-the-art integrated steel plant in Mejia, Durgapur. The expansion work for the plant will be completed by April 2023.
Shyam Steel is planning to invest another Rs 1500 crore in its greenfield plant in West Bengal. The company has already acquired 600 acres of land in Raghunathpur, Purulia, and the work for the project will commence shortly. The plant will have a production capacity of 0.35 million tonnes per year and it will be fully operational by September 2025.
Speaking about financials, the company reported a turnover of Rs 4500 crore in the last fiscal year and will be looking to double it to Rs 9000 crore in the next three years time.
"We have done an extensive survey across North India in the last six months and have found that there is a huge potential and demand for good quality TMT bars. We want to give our dealers the same quality of TMT bars that are used in the big infrastructure projects, and our team is conducting awareness drives for the dealers across North India to make them aware of the need to use good quality TMT products. Shyam Steel Apna Ghar app will also be an added advantage for us to actively engage with our target audience and business partners," Beriwala added.