Stainless steel plant Odisha

India’s stainless steel market is expanding steadily, but how are domestic producers preparing for rising demand? Shyam Metalics and Energy Ltd has taken a key step by starting work on a new stainless steel hot rolled coil facility at its Sambalpur plant in Odisha, strengthening its downstream presence and long-term growth plans.

New stainless HRC unit takes shape at Sambalpur

Shyam Metalics and Energy Ltd (SMEL) has started construction of a stainless steel hot rolled coil (HRC) facility at its existing integrated steel complex in Sambalpur, located in Odisha. The project marks an important milestone in the company’s strategy to move deeper into value-added stainless steel products while using its established manufacturing base.

The upcoming unit will have an installed capacity of around 0.3 million tonnes per year. It is designed to manufacture 200-series and 400-series stainless steel hot rolled coils, grades that are commonly used across sectors such as automotive components, construction, fabrication, kitchenware, and general engineering.

According to the company, the facility will benefit from SMEL’s integrated operating model. It will rely on captive raw materials, including direct-reduced iron (DRI), ferroalloys, and in-house power generation. This integrated setup is expected to ensure a more reliable supply chain, improve operational efficiency, and help manage costs more effectively in a competitive market.

Industry observers note that flat stainless steel products such as hot-rolled coils are seeing faster growth compared to long products, driven by rising downstream fabrication and manufacturing activity across India.

Expanding downstream capabilities and product mix

Alongside the HRC project, SMEL has announced plans to further expand its stainless steel downstream portfolio at the Sambalpur complex. The company intends to set up a stainless steel bright bar manufacturing facility with a planned capacity of 25,000 tonnes per year, as well as a stainless steel wire production unit with an annual capacity of 18,000 tonnes.

Both these facilities are expected to be commissioned around mid-2027. The combined investment for the HRC unit and the additional downstream projects is estimated at approximately USD 687 million, highlighting the company’s long-term commitment to value addition and diversification.

In a general statement, the company indicated that these investments are aimed at reducing dependence on external suppliers for flat stainless steel products, improving the overall product mix, and strengthening its presence across both domestic and export markets.

Market outlook and strategic importance

India’s stainless steel consumption is currently growing at an estimated annual rate of 6 to 7 per cent, supported by infrastructure development, urbanisation, higher appliance usage, and wider adoption of stainless steel in transportation and public utilities. This demand environment has encouraged Indian steelmakers to focus more on downstream integration and import substitution.

The commissioning of the Sambalpur stainless steel HRC facility aligns with this broader industry trend. While global stainless steel markets continue to face challenges, including nickel price volatility and trade-related uncertainties, India’s domestic demand outlook remains relatively resilient.

For SMEL, the new facility is expected to support higher stainless steel volumes, improve margin stability through value-added products and enhance competitiveness against both imports and domestic peers. Overall, the Sambalpur HRC project represents a significant step in the company’s transition towards becoming a more balanced and integrated stainless steel producer in India, with stronger control over its supply chain and product offerings.