Shyam Metalics and Energy was incorporated in 2002 as Shyam DRI Power Limited.
Subsequently, the name was changed to Shyam Metalics and Energy Limited (SMEL) in 2009.
SMEL is a leading integrated metal producing company that manufactures long steel products
and ferroalloys and sells intermediate and final products across the steel value chain. Key
highlights of the company are as follows:
Amongst the largest producers of ferroalloys in India: SMEL has an aggregate
installed capacity of 5.7 million tonnes per annum (MTPA).It is a leading player in terms of
pellet capacity and stands as the fourth-largest player in the sponge iron industry in
terms of sponge iron capacity in India.
Strong product portfolio:SMEL mainly produces intermediate and long steel products
such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and
ferroalloys products. The company’s focus is on high-margin products such as
customized billets and specialized ferroalloys for special steel applications.
Long-term linkages for its raw materials: This enables SMEL to ensure reliable
availability of primary raw materials such as iron ore, chrome ore, manganese ore, and
coal. The company has linkages with mine owners located in Odisha/Odisha such as
Mining Corporation/MOIL Limited, and Mahanadi Coalfieldsfor iron ore and iron ore
fines/chrome ore/Manganese ore, and Coal.
Strategic plant locations:SMEL‟S plants at Sambalpur in Odisha and Jamuria and
Mangalpur in West Bengal are strategically located near raw material sources.The
manufacturing plants are located within 250 km of the mineral belt in eastern India leading
to lower transportation costs and superior operating margins.
Significant cost efficiencies:SMEL has achieved cost efficiencies by utilizing waste/by-
products as inputs for other products and processes. For FY20 and 9MFY20, the average
cost of power from captive power plants stood at Rs 2.1 per kWh and Rs2.5 per kWh
respectively, which stands lower than power costs through external sources.
Robust financial performance: The company‟s revenues grew at a CAGR of 6.6% from
Rs 3,843 Cr in FY18 to Rs4,363 Cr in FY20.It reported revenues of Rs 3,993 Cr for
9MFY20 despite facing the Covid-19 impact. The company has a high-interest coverage
ratio of 17.8 x as well as has debt/equity ratio of 0.27x,which stands lowest among the
