Sumangala Steel bullish about the future. To focus on products for the future and build Brand
The Chennai based Sumangala Steel (P) Ltd., one of the oldest surviving steel making companies in South India has a state-of-the-art steel mill in Puducherry with a capacity to produce 200,000 tons per annum.
Sumangala Steel which closed the last fiscal year with a turnover of Rs.679 Crores expects to touch Rs.1000 Crores at the end of this financial year. Sumangala Steel had launched a major branding thrust with ArvindSwamy TV commercials on Tamil New years’ day 2022.
Addressing a press conference Mr. Rajendran Sabanayagam, Chairman & Managing Director said, what started as a small scale industry in 1987 with a capacity of 12,000 tons per annum had survived in an industry where many players closed down.
The Chairman explained how the company’s nimble footed quick decision making, timely investments and its single minded focus on quality and unmatched attention to detail has made Sumangala to what it is today.
Sumangala spearheaded the use of large Induction Furnaces in 1994 to produce steel billets. As many steel makers closed Sumangala Steel became the dominant and only supplier of steel billets in the South from 2002 to 2012. Sumangala Steel thereafter forward integrated in 2015 with a state-of-the-art modern rolling mill to produce high quality TMT bars directly hot charging its steel billets. When demand grew SSL installed a new 30 ton Induction Furnace in 2019 to increase capacity to 200,000 tons per annum.
SSL has over 600 employees & manufactures various grades of TMT such as 500D, 550 & 550D across all sizes from 8mm to 32mm. Fair pricing coupled with branding, loyal network & unmatched quality are its strength which will help SSL to navigate the future successfully. The Chairman explained the salient difference between primary steel and secondary steel.
Mr. Ashwin Sabanayagam, President & Director of Sumangala Steel laid out the future plans
Readymade steel with imported equipments from Italy
Modern scrap shredder to process end of life vehicles and white goods
Investment in TMT finishing infrastructure to deliver blue steel timely to its network of dealers.
The above investment of Rs.50 crores is expected to enable SSL to achieve higher profitability, higher EBITDA and achieve a sales of 1500 crores within the next 24 months.
As their tag line goes “We understand steel” SSL’s deep understanding of all aspects of steel making puts it on a strong wicket to consolidate its position as one of the leading players in the South.
About Author
