Speaking to mediapersons here on Tuesday, SMEL Vice Chairman and Managing Director, Brij Bhusan Agarwal, said the estimated cost of acquiring MCL was Rs 450 crore and with this development, SMEL has embarked on a diversification approach in the metal space to chart the company’s growth journey.
He also proposed to further invest Rs 7,500 crore over the next five years.
‘In order to meet the growth plans with organic and inorganic expansion, SMEL’s present capex aims at growing to Rs 10,000 crore in the next five years, besides aiming to expand the existing 8.85 MTPA production capacity to 14.45 MTPA,’ he said.
Agarwal also said that expansion of the capacity will result in employment of 10,000 additional individuals in the next few years, the majority of which will be in the company’s existing plants in Odisha and West Bengal.
‘With a focus on achieving operational excellence, adopting capital prudence across the board, and leveraging our expertise and capabilities, SMEL has demonstrated a stable growth path in the past four decades. We have remained PAT (profit after tax) positive since the commencement of our operations in 2005. The current investments across multiple portfolios will only take the company to the next level of diversification and business excellence, further strengthening our domestic and global position in the market,’ he said.
According to Agarwal, SMEL has already invested Rs 2,400 crore out of the Rs 3,950 crore existing capex plan of the company in the last two years.
‘The new investment will also help SMEL bet big on its exports and expand its geography to newer markets, which currently stands at 40+ countries with a contribution of 16 per cent to the overall business,’ Agarwal said.