Chaman Metallics Limited (**CML**), a key entity within the **GR Group of Industries** since **2019**, is undergoing a transformative shift from a standalone sponge iron manufacturer into a fully **Integrated Steel Plant**. Headquartered in Maharashtra, the company has strategically scaled its operations to capture value across the entire steel production chain. The company’s primary manufacturing hub is a **63-acre** facility located in the **MIDC Tadali Growth Centre** in Chandrapur. This location is highly strategic, situated within the **Chandrapur mineral belt**, providing immediate proximity to essential raw materials including iron ore, coal, and dolomite. --- ### **Strategic Transformation: From Standalone to Integrated Producer** In **FY 2025-26**, CML successfully transitioned from a project development phase to active integrated operations. The company completed a massive expansion project, scaling the total investment from an initial **₹296 crore** to **₹396 crore** to incorporate advanced infrastructure and higher capacity. #### **Current and Future Production Capacities** The following table outlines the significant scaling of CML’s industrial footprint following the 2025 expansion: | Division / Product | Previous Capacity | Added Capacity | Total Installed Capacity | | :--- | :--- | :--- | :--- | | **Sponge Iron (DRI)** | **72,000 TPA** | **1,15,500 TPA** | **1,87,500 TPA** | | **MS Billets (SMS)** | - | **1,98,000 TPA** | **1,98,000 TPA** | | **Ferro Alloys / Cast Iron** | - | **39,200 TPA** | **39,200 TPA** | | **Captive Power (WHRB)** | - | **12 MW** | **12 MW** | | **Captive Power (AFBC)** | - | **18 MW** | **18 MW** | | **Total Power Capacity** | - | **30 MW** | **30 MW** | **Future Outlook:** In **November 2025**, the company received **Consent to Establish** for further expansion, targeting a Sponge Iron capacity of **352,500 TPA** and a total power capacity of **43 MW**. --- ### **Product Portfolio & Technical Excellence** CML’s product mix is engineered to meet the rigorous standards of the modern steel industry, supported by **Bureau of Indian Standards (BIS)** certifications. * **Sponge Iron (Direct Reduced Iron):** The core product, used as a high-quality feedstock for Induction and Electric Arc Furnaces. * **Specifications:** Total Iron (**Fe**) of **90-92%**; Metallisation of **88-90%**; Low impurities (**Sulphur 0.03% max**, **Phosphorus 0.05% max**). * **MS Billets:** Produced via the new **Induction Furnace (SMS plant)**, these represent the company’s move into semi-finished steel products. * **Ferro Alloys (Silicomanganese):** Following the receipt of the **BIS Product Certification Licence** in **December 2025**, CML produces grade **Si16Mn63** conforming to **IS 1470:2013**. * **Dolochar:** A solid waste by-product of sponge iron production, which CML efficiently repurposes as fuel for its captive power generation. --- ### **Operational Synergy & Resource Security** CML utilizes a "Circular Economy" model to drive cost efficiencies and ensure raw material stability: * **Energy Integration:** The **30 MW Captive Power Plant** utilizes a **Waste Heat Recovery Boiler (WHRB)** to harness hot gases from the DRI kilns. This reduces power costs from approximately **₹9/unit** (grid) to **₹4–4.5/unit**, significantly protecting margins. * **Raw Material Security:** * **Coal:** Secured via a **10-year Fuel Supply Agreement (FSA)** with **Western Coalfields Limited (WCL)** and a **38,000 MT** annual agreement with **South Eastern Coalfields Limited (SECL)**. * **Pellets:** Sourced internally from group company **G.R. Integrated Steel Private Limited**. * **Forward Integration:** By converting in-house sponge iron into **MS Billets**, CML captures higher value-added margins and reduces exposure to the volatile merchant sponge iron market. --- ### **Financial Performance & Capital Structure** While the company has faced headwinds due to declining global steel realizations, it maintains a robust framework for growth. #### **Key Financial Metrics** | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Revenue** | **172.18** | **188.87** | **227.62** | | **EBITDA** | **17.17** | **20.48** | **27.47** | | **Profit After Tax (PAT)** | **9.78** | **12.52** | **17.10** | | **EPS (₹)** | **4.05** | **5.19** | **8.93** | #### **Capital Management & Credit Profile** * **Credit Ratings (July 2024):** **ACUITE A- | Stable** (Long Term) and **ACUITE A2+** (Short Term). * **Banking Facilities:** Revised sanction limits from SBI increased to **₹365 crore** in **January 2026**. * **Equity Expansion:** Authorized Share Capital increased from **₹25 crore** to **₹75 crore**, with a **Rights Issue** of up to **₹100 crore** approved in **May 2025** to fund growth. * **Borrowing Limits:** Shareholders approved an increase in borrowing powers to **₹2,000 crore**. --- ### **Risk Landscape & Mitigation Strategies** CML operates in a cyclical industry and has navigated several challenges during its expansion phase: * **Project Execution & Overruns:** The expansion faced **₹16-17 crore** in cost overruns due to inflationary pressures and statutory delays. These are being managed through promoter support and group company assistance. * **Market Volatility:** Average sponge iron realizations dropped from **₹34,500/MT** in FY23 to **₹29,072/MT** in FY25. CML is mitigating this through **cost control** (operating expenses fell **8.02%** in FY25) and moving into higher-margin billets. * **Operational Resilience:** A fire incident in **May 2025** caused **₹96.00 Lakhs** in damage but was fully recovered via insurance, demonstrating robust risk oversight. * **Global Headwinds:** While global demand saw a **2.0% decline** in 2024 (driven by China), CML is positioned to benefit from India’s domestic growth, where consumption rose by **15.1 MT**. --- ### **Market Outlook & Growth Catalysts** CML is strategically aligned with India’s industrial trajectory: * **National Steel Policy 2017:** Targeting **300 MTPA** capacity by 2030. * **Infrastructure Push:** Beneficiary of the **₹11.11 lakh crore** government capex allocation in the 2024-25 Union Budget. * **Import Substitution:** Leveraging **BIS certifications** and the **DMI&SP Policy** to capture government procurement contracts. * **Employment Growth:** Reflecting its scale-up, the workforce grew from **61** to **108** personnel by March 2025.