Chennai United Metal Industries to Expand by ₹36 Crore

Chennai United Metal Industries is planning to enhance manufacturing capacity in Gummidipoondi, near Chennai, with an expansion plan of ₹36 crore and supply steel products to industrial giants like Murugappa Group, TVS, and BHEL.

The increase in production capacity will be large-scale; it is also planned to increase the output of the billets plant applied from 23,760 to 200,000 tonnes annually. Capacity for re-rolled products like angles, flat bars, and channels will also increase – from 61,200 to 200,000 tonnes. This whole expansion will be done in its existing campus at Gummidipoondi taluk, Tiruvallur district, as stated in its latest environmental clearance filing.

The ₹36.25 crores brownfield expansion plan will develop production and employment prospects in that it is going to create 20 permanent jobs. The demand for billets has arisen, thanks to the increased pace of development projects across the public and private sectors.

A report recently put out by ICRA backs the growth perspective of the industry mentioning that India’s steel industry, at 18.2 mtpa, achieved record capacity addition in FY24 with an additional 15.3 mtpa planned to be completed this year. Domestic steel demand is pegged to grow by around 10-11% in FY25, yet competition from cheap imports leaves industry players to struggle toward keeping their peer group in competitiveness.

The Chennai United Metal Industries’ expansion is a measured response to these industry happenings to consolidate their position in the competition, supporting the needs of India’s infrastructure and industrial progress.