Chandni Machines Diversifies into Aluminium Ingot Manufacturing

Investment: Rs 1.5 crore | Targeted Monthly Revenue: Rs 9.45 crore

Reader Takeaway: The company enters the non-ferrous segment to boost revenue, though execution and commodity price volatility pose risks.

What just happened

Chandni Machines Limited is setting up a new aluminium ingot manufacturing facility at Kuvada GIDC, Rajkot, Gujarat. The company has secured a 22,000 sq. ft. facility and deployed Rs 1.5 crore in capital. The project is currently in the setup phase, with machinery arrival scheduled for early September 2026. The firm aims to reach commercial production by October 1, 2026.

Why this matters

This project marks a shift in the company’s business model by entering the non-ferrous metals value chain. Once stabilized, the facility is estimated to produce 300 tonnes of aluminium ingots monthly. Management expects this capacity to generate a monthly revenue of Rs 9.45 crore, contributing an estimated Rs 50 lakh to the monthly net profit.

Expansion Plans

Chandni Machines is already evaluating a potential two-fold increase in production capacity by March 2027. This secondary phase of growth remains dependent on initial project performance and market conditions.

Risks to watch

The timeline is aggressive, with regulatory approval (Consent to Operate) and machinery installation compressed into September 2026. Furthermore, the financial projections are based on an average realization of Rs 315 per kg. As these figures are highly sensitive to global aluminium price fluctuations and input costs, the actual profitability may vary significantly from management estimates.

What to track next

Shareholders should track the successful commissioning of the plant and the procurement of the necessary regulatory permits by mid-September 2026. The ability of the management to scale production to the 300-tonne target will be the key performance indicator for the next two quarters.