₹15m machinery investment: Chandni Machines starts aluminium ingot project in Rajkot, targets October 1 production

Chandni Machines Limited has begun work on its new aluminium ingot manufacturing project at Kuvada GIDC in Rajkot, Gujarat.

For the project, the company has leased an industrial factory building covering around 22,000 square feet for the facility. It has an existing electricity connection of around 37 KW. It has also placed machinery and equipment orders worth approximately INR 15 million (USD 158,000), with the required payments already made. 

Once operations stabilise, the facility expects to produce around 300 tonnes of aluminium ingots per month. Based on its current internal estimates and an average cost assumption of around INR 315 per kg (USD 3,320 per tonne), a monthly revenue of around INR 94.5 million (USD 996,000) is estimated.

The machinery will begin arriving in phases from September 2. Installation is expected to be completed by around September 20.

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“We have already made substantial progress towards establishing the facility, including securing the manufacturing premises, placing orders for machinery and equipment, initiating infrastructure development and mobilising manpower,” said Jayesh R. Mehta, Chairman & Managing Director of Chandni Machines Limited.

The company is planning for trial production from September 20, 2026, and commercial production from October 1. The schedule depends on the completion of installation and commissioning work and the necessary statutory approvals.

Chandni Machines has also applied for Consent to Operate from the relevant Pollution Control authorities. It expects to receive the approval by around September 10, subject to the regulatory process.

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Construction of workers' quarters and washroom facilities has also started. The facilities are being developed for around 50 workers, while approximately 30 contractual workers have already been engaged for production-related work. More workers will be deployed depending on production requirements.

The company sees a potential monthly net profit of around INR 5 million (USD 53,000) once production reaches the targeted level. However, these estimates depend on aluminium prices, raw material costs, product realisations, production levels, operating expenses and market conditions.

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Chandni Machines is also considering doubling the proposed capacity by March 2027. The decision will depend on business performance, market conditions, resources, regulatory approvals and investment requirements.

Mehta further noted, “Our immediate focus is on establishing stable production, achieving targeted capacity utilisation and building a strong customer base. We are also evaluating a two-fold expansion by March 2027 as part of our broader growth strategy."