Unplugged: Power Price Surge Switches Off Shyam Century’s Meghalaya Operations

Shyam Century Ferrous Limited announced its plan to shut down its Byrnihat, Meghalaya, plant due to a sharp rise in power tariffs. The company, a major ferro alloy producer with a capacity of approximately 21,600 metric tons of ferro silicon per year, attributed the shutdown to the recent hike in the price of electricity as the major reason. This closure is expected to harm the company's Top line, as this plant generated a Turnover of Rs. 14670.66 lakhs for the Company (100% of the turnover is contributed by this plant.)

 

Management stated that the sharp hike in power tariffs has rendered operations at the Meghalaya plant economically unviable. The factory, with around 125 workers and one of India's key suppliers of ferro alloys, has been facing mounting cost pressures during the past year. Despite attempting to run the operations optimally and remain profitable, the management of the company concluded that production under the current tariff regime was not feasible.

 

This shutdown will likely impact the local economy and the entire ferro alloys industry, which is already dealing with volatile input prices and unstable market demand. Shyam Century Ferrous reiterated its commitment to taking care of affected personnel during the transition and will pursue alternative steps to reduce the impact on its business and stakeholders.

 

The management of the company remains optimistic about an improved business environment in the future and is watching policy actions that would make it viable for the Meghalaya facility to resume operation.

 

Source: TradingView (Refinitiv)