KOLKATA: TMT bar manufacturer Shyam Steel Industries will invest Rs 700 crore for brownfield expansion of its plant in West Bengal's Bankura district, a company official said on Friday, July 23, 2021.
The company aims at completing the expansion of its Mejia plant by FY23, which will help increase direct employment in the facility to 5,000.
"Land procurement has already been completed for the project. Work on the expansion of the unit has started. It is expected to be fully operational by the last quarter of FY 23," Shyam Steel group director Keshav Beriwala told PTI.
He said the project will be funded through internal accrual and debt.
"We are a debt-free company but for the expansion, we will go for some borrowing," he said.
The project will help the Mejia plant increase TMT bar manufacturing capacity to five lakh tonne from 2 lakh tonne.
It will also expand the group's manufacturing capacity to nine lakh tonne by 2023.
The company is also ramping up sponge iron, billet and rolling-mill capacities by almost three times to support the making of the building-construction material.
Beriawala said the group is actively looking at options to participate in the bidding process for iron-ore mines to insulate them from raw material price fluctuations and uncertainties.
It has coal blocks in the state.