“Modern scrap shredders will be imported to process end-of-life vehicles, white goods and light scrap. It will be operational by December 23,” said Ashwin Sabnayagam, chairman and director.
“Modern scrap shredders will be imported to process end-of-life vehicles, white goods and light scrap. It will be operational by December 23,” said Ashwin Sabnayagam, chairman and director.
“The city-based Sumangala Steel Pvt Ltd is in the process of setting up a modern scrap shredder and Thermo Mechanical Treatment (TMT) finishing infrastructure for making blue steel at its plant in Puducherry,” a senior official said.
“Modern scrap shredders will be imported to process end-of-life vehicles, white goods and light scrap. It will be operational by December 23,” Ashwin Sabnayagam, chairman and director told reporters on October 29.
“This will be the first scrap shredder facility in Puducherry. We are in talks to import it from the US or China. Scrap will be used as raw material for making secondary steel products. This involves an investment of ₹25 crore,” said Rajendran Sabanayagam, chairman and MD.
The company will start investing in TMT finishing infrastructure for making blue steel from March 23. Its cost will be ₹15 crore. The total expansion cost will be met through borrowings.
In addition, the company has imported equipment from Italy for making ready-made steel such as benders and iron rings, which will save time in manufacturing.
Tracing the history of one of the oldest surviving steel mill in the South, Mr. Rajendran said that the 35-year-old firm has the capacity to produce 2,00,000 tonnes of different grades of TMT bars in all sizes from 8 mm to 32 mm .
“At present, the plant is operating at 70-75% capacity. Looking at the current trend, we can manage with the current capacity for the next two years. Then, we have to look for land in Tamil Nadu to set up a green field project. Right now, we have a market share of 4-5% and most of our products are sold in Tamil Nadu, followed by Kerala and Karnataka,” said Mr. Rajendran.
Sumangala Steel has reported a turnover of ₹450 crore for the first half of FY23. It is likely to end the financial year with a turnover of ₹1,000 crore as against ₹679 crore for the year-ago period.
“With the expansion and addition of new products, we are looking forward to achieve ₹1,500 crore sales within the next 24 months,” said Mr. Ashwin.