Sumangala Steel to install modern scrap shredder at Puducherry

“The modern scrap shredder will be imported to process end of life vehicles, white goods and light scrap. It will become operational by December 23,” Ashwin Sabanayagam, president and director said.

“City-based Sumangala Steel Private Limited is in the process of setting up a modern scrap shredder and thermo mechanical treatment (TMT) finishing infrastructure to make blue steel at its plant in Puducherry,” said a senior official.

“The modern scrap shredder will be imported to process end of life vehicles, white goods and light scrap. It will become operational by December 23,” Ashwin Sabanayagam, president and director told reporters on October 29.

“It will be the first scrap shredder facility in Puducherry. We are in talks to import it either from the U.S. or China. The scrap will be used as a raw material to make secondary steel products. It entails an investment of ₹25 crore,” said Rajendran Sabanayagam, chairman & MD.

The company will start investing in TMT finishing infrastructure to make blue steel from March 23 onwards. It would cost ₹15 crore. The total expansion cost will be met through borrowings.

Besides, the company has imported equipment from Italy to make readymade steel-like benders and iron rings that would save time in construction.

While tracing the history of the one of the oldest surviving steel mill in South, Mr. Rajendran said the 35-year-old firm has a capacity to produce 2,00,000 tonnes of various grades of TMT bars across all sizes from 8mm to 32mm.

“Currently, the plant is operating at 70-75% of capacity. Given the current trend, we can manage with the existing capacity for the next two years. Then, we have to scout for a land in Tamil Nadu to set up a green field project. Right now, we command a market share of 4-5% and most of our products are sold in Tamil Nadu, followed by Kerala and Karnataka,” Mr. Rajendran said.