Chennai United Metal Industries Plans ₹36 Crore Capacity Expansion.

Chennai United Metal Industries Private Ltd, a supplier of steel products to leading companies such as the Murugappa Group, TVS, and BHEL, is investing ₹36 crore to expand production capacity at its Gummidipoondi factory near Chennai.

The company plans to increase the billets plant’s production capacity from 23,760 tonnes per annum to 2,00,000 tonnes per annum. Similarly, the capacity of its re-rolled steel angles, flat bars, and channels plant will rise from 61,200 tonnes per annum to 2,00,000 tonnes per annum. Both expansions will be undertaken within the existing campus in Gummidipoondi Taluk, Tiruvallur District, according to documents filed for environmental clearance.

The total estimated investment for this brownfield expansion project is ₹36.25 crore. Upon completion, the project will create 20 permanent jobs at the factory.

The expansion is driven by growing demand for billets from steel rolling mills, fueled by extensive public and private sector development projects. These include construction activities in areas such as building, village development programs, housing, irrigation, and concrete road construction, the company stated.

A recent ICRA report highlighted that the domestic steel industry achieved a record capacity addition of 18.2 million tonnes per annum (mtpa) in FY24, with an additional 15.3 mtpa expected to be commissioned in the current fiscal. Despite strong domestic steel demand growth, projected at 10-11% for FY25, domestic mills face competition from cheaper imports.

Established in 2012 by promoters Jitendra Kumar Goel and Pravesh Goel, Chennai United Metal Industries was founded as part of a backward integration strategy. The company initially set up an induction furnace unit to manufacture billets and re-rolled steel products such as angles, flat bars, and channels.

HBL