Shera Energy Limited (NSE Code: SHERA) has announced a landmark development in its global business strategy with the acquisition of a copper cathode manufacturing plant in Zambia, Africa. The acquisition has been routed through its foreign material subsidiary Shera Zambia Limited, reflecting the company’s commitment to building a resilient supply chain and securing long-term raw material access in a resource-intensive industry.

Strengthening Global Sourcing and Operational Efficiency

Zambia, one of the world’s top copper-producing nations, offers an ideal setting for raw material integration. The newly acquired plant is located in the Copperbelt region, which borders the Democratic Republic of Congo, another copper-rich country. With this move, Shera Energy has ensured direct access to high-purity 99.99% copper cathodes, reducing its dependency on external suppliers.

The strategic acquisition will allow Shera Energy to produce copper from locally available copper oxide ores, improving cost-effectiveness and ensuring uninterrupted availability of raw materials.

Backward Integration for Long-Term Margin Security

Backward integration is at the heart of Shera Energy’s growth model. By acquiring a production facility for its primary raw material, the company is insulating itself from the volatility of global commodity prices. The Zambian plant will initially have a capacity of 1,200 metric tonnes per annum (MTPA) in FY 2025–26, with a scale-up target of 5,000 MTPA in the coming years.

Such integration is expected to enhance operational efficiency and increase profit margins, especially as global demand for non-ferrous products continues to rise across industries such as energy, infrastructure, and automotive.

Statement from the Leadership

Mr. Naseem Shaikh, Chairman and Managing Director of Shera Energy Limited, commented on the development:

“This strategic acquisition is a major milestone in our international journey. By establishing a direct source of high-purity copper cathodes, we not only enhance our supply chain resilience but also reinforce our commitment to cost-effective and sustainable operations.”

He further emphasized that the Zambia operations, though capital-light initially, are expected to generate substantial returns, supporting both domestic growth and expansion into new verticals, including cables and conductors.

Focus on Sustainable Growth and International Vision

Shera Energy has always positioned itself as a forward-looking and innovation-driven company. With operations spanning the manufacturing of winding wires and strips made from non-ferrous metals like copper, aluminum, and brass, the company caters to key industrial sectors.

This acquisition aligns with its goal to:

• Ensure long-term material security

• Strengthen global manufacturing capacities

• Explore sustainable business practices

• Expand into international markets

By localizing part of its material supply in Zambia, Shera Energy significantly lowers import-related risks, such as price hikes, delays, and currency fluctuations.

Future Investments in Shera Zambia Limited

The company has made it clear that the Zambian acquisition is not a standalone project. Shera Energy is actively evaluating further capital and operational investments in Shera Zambia Limited to reinforce its presence in the region. This might include:

• Technological upgradation of the facility

• Hiring skilled local manpower

• Expansion of processing and refining capabilities

• Potential joint ventures or local sourcing partnerships

Such steps would not only improve local capacity but also offer long-term socio-economic benefits in the region, reinforcing India’s business footprint in Africa.

Supporting Export Growth and Vertical Expansion

Shera’s product demand has been growing in both domestic and export markets. With consistent expansion in its manufacturing base, the company is now entering new product segments like cables and conductors. The availability of in-house copper cathodes will make these transitions smoother and more cost-efficient, leading to:

• Shorter lead times

• Improved product quality control

• Competitive pricing advantage in global markets

By aligning material sourcing with future product diversification, Shera Energy is setting a new benchmark for integrated manufacturing companies in India.

Why This Matters for Investors and Industry Stakeholders

The acquisition could be a potential game-changer for Shera Energy’s financial performance and stock trajectory. Here’s why:

• Enhanced EBITDA margins due to raw material cost savings

• Improved working capital efficiency

• Reduced supply chain risk

• Strategic international positioning in a key mineral economy

It reflects a robust long-term vision that aligns with investor expectations for scalability, profitability, and global competitiveness.

India-Africa Industrial Relations: A Growing Trend

Shera Energy’s Zambia move mirrors a broader trend of Indian companies investing in African natural resource economies. The continent offers:

• Raw material abundance

• Strategic location for global supply chains

• Lower operational costs

• Government-backed support for industrial partnerships

Such trends are crucial as India aims to secure critical resources for its Make in India ambitions while contributing to African economic development.

Conclusion: The Future is Global for Shera Energy

Shera Energy’s acquisition of a copper cathode plant in Zambia represents a bold and strategic step towards global integration. With its focus on backward integration, raw material security, and sustainable scalability, the company is positioned to become a leading force in non-ferrous metal manufacturing worldwide.

This move underlines Shera's readiness to invest in value-driven, global supply chain ecosystems that enhance both shareholder value and operational strength.

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