Steel Giant Shyam Metalics Diversifies into Railway Wagon Manufacturing
Kolkata, June 2024 – In a strategic expansion, Shyam Metalics and Energy Limited (BSE: 513499) has announced its entry into railway wagon production through a new greenfield facility in Kharagpur, West Bengal, to be operational by March 2026.
Project Highlights
✔ Total Capacity: 4,800 wagons/year (phased development)
✔ Phase I (2026): 2,400 wagons/year (8 wagons/day)
✔ Phase II: Doubling to 4,800 units
✔ Investment: Estimated ₹1,200 crore
✔ Product Range:
- Flat, open & box wagons
- Hopper covered wagons
- Tank wagons
- Specialized rolling stock
Strategic Rationale
- Backward Integration: Leverages existing steel production capabilities
- Railway Sector Growth: Aligns with Indian Railways’ 300,000 wagon procurement plan (2024-2030)
- Make in India Push: Supports Atmanirbhar Bharat in transport infrastructure
Sheetij Agarwal, Director, Shyam Metalics:
“This facility embodies our triple commitment – to industrial progress, sustainable manufacturing, and national infrastructure development.”
Market Context & Competitive Edge
Indian Wagon Industry Demand
| Parameter | 2024 | 2030 Projection |
|---|---|---|
| Annual Demand | 25,000 units | 40,000+ units |
| Private Share | 35% | 60% (expected) |
| Steel Content | 18-22 tonnes/wagon | 15-20 tonnes (lighter designs) |
Shyam Metalics’ Advantages:
✅ In-house steel supply reduces input costs by 12-15%
✅ Existing logistics network in Eastern India
✅ Ramsarup Industries’ engineering expertise
Sustainability Features
- Green manufacturing processes to minimize carbon footprint
- Water recycling systems for zero liquid discharge
- Solar-powered auxiliary units
Employment Generation
- Direct jobs: 1,200+ skilled positions
- Indirect impact: 3,000+ in ancillary industries
Implementation Timeline
- Q3 2024: Final approvals & land development
- Q2 2025: Machinery installation begins
- Q1 2026: Phase I commissioning
- 2027-28: Phase II completion
Industry Outlook
With Texmaco, Titagarh, and Jupiter Wagons as key competitors, Shyam Metalics’ entry could:
🔹 Reduce import dependence for specialized wagons
🔹 Improve price competitiveness in tenders
🔹 Accelerate railway modernization through domestic innovation