Steel Wire Drawing Plant (Cap: 20 MT/Day)

STEEL WIRE DRAWING PLANT (CAP: 20 MT/DAY)

[EIRI/EDPR/4756] J.C.: 2976XL

The steel wire industry has witnessed a significant growth at a CAGR of 6.90% driven by an uptick in infrastructure development activities across the country and growing production in the automobile industry. Demand is expected to log 8-10% CAGR, growing to 8-9 MT, due to increasing budget allocation of central and state governments for infrastructure development and expansion of the automobile industry (Source: CRISIL Report) We intend to enhance our efforts to improve our productivity to meet the increasing demand of the steel wire market.

At the global level, all major economies registered a y-o-y decline in steel demand in recent years. However, demand for Chinese steel grew at 9.11% on-year on account of the country’s quick recovery from the first wave of Covid-19 and receipt of a stimulus package to spur industrial and economic activity. But then demand for Chinese steel declined 4.32%, resulting in global demand slipping 3.49% on-year. In past, high inflation, tightening global monetary conditions, and slowdown in production in China, kept the global steel sector under pressure. In recent years though, global steel demand is forecast to grow 1.95% to 1,822 MT, as per the World Steel Association. This projection is on the back of the effect of persistent inflation and high interest rate in most economies.

COST ESTIMATION

• Plant Capacity            20 MT/Day
• Land & Building (4000 sq.mt.)    Rs. 3.92 Cr
• Plant & Machinery                    Rs. 2.71 Cr
• Working Capital for 1 Month    Rs. 7.17 Cr
• Total Capital Investment          Rs. 14.53 Cr
• Rate of Return                          27%
• Break Even Point                      52%

CONTENTS

• INTRODUCTION
  
• MARKET POSITION
• INDIAN STEEL SECTOR REVIEW AND OUTLOOK
• BUILDING AND CONSTRUCTION
• INFRASTRUCTURE
• AUTOMOTIVE
• IMPACT OF GOVERNMENT REGULATIONS AND POLICIES ON THE INDIAN STEEL SECTOR 
• GOVERNMENT REGULATIONS TO PROMOTE THE DOMESTIC STEEL INDUSTRY
• GOVERNMENT POLICY 
• NATIONAL STEEL POLICY’S VISION FOR DEMAND, SUPPLY AND TRADE 
• THE PRODUCTION LINKED INCENTIVE (PLI) SCHEME 
• HIGHLIGHTS OF UNION BUDGET 2023-24
• BUDGET ESTIMATES FOR FISCAL 2024:
• EXPECTED IMPACT ON INFRASTRUCTURE ACTIVITIES 
• EXPECTED IMPACT ON RAILWAYS
• EXPECTED IMPACT ON AUTOMOBILES 
• STEEL WIRES MARKET ASSESSMENT 
• INTRODUCTION TO STEEL WIRES:
• FEW OF THE APPLICATIONS OF STEEL WIRES HAS BEEN HIGHLIGHTED BELOW:
• DEMAND TREND FOR STEEL WIRES
• KEY END USER INDUSTRY GROWTH DRIVERS 
• FENCING:
• INFRASTRUCTURE
• AUTO
• POWER CABLES
• CONSUMER GOODS/KITCHEN ACCESSORIES
• TRADE ANALYSIS FOR STEEL WIRES
• STEEL WIRES DEMAND TREND BY TYPE OF WIRE
• STEEL WIRES SEGMENTATION BY TYPE OF WIRE
• SPECIALTY WIRES MARKET
• LRPC WIRES DEMAND OUTLOOK
• MANUFACTURING PROCESS
• BELOW IS THE TYPICAL PROCESS INVOLVED IN MANUFACTURING OF DIFFERENT WIRES
• STEEL WIRES INDUSTRY STRUCTURE
• STEEL WIRES INDUSTRY STRUCTURE
• PLAYER WISE MARKET FOR STEEL WIRES IN FISCAL 2023
• PRODUCT PORTFOLIO MAPPING OF KEY PLAYERS
• PROFILE OF KEY STEEL WIRE MANUFACTURERS (FISCAL 2023)
• APPLICATION LANDSCAPE OF DIFFERENT TYPES OF STEEL WIRES
• B.I.S. SPECIFICATION
• INDIAN STANDARDS REFERRED IN IS IS 6528: 1995:
• INDIAN MANUFACTURING INDUSTRY
• INTRODUCTION
• MARKET SIZE
• INVESTMENT
• GOVERNMENT INITIATIVES
• ROAD AHEAD
• KEY REGULATIONS AND POLICIES
• BUREAU OF INDIAN STANDARDS ACT, 2016 (“BUREAU OF INDIAN STANDARDS ACT”)
• BUREAU OF INDIAN STANDARDS RULES, 2018 (“BUREAU OF INDIAN STANDARDS RULES”)
• STEEL AND STEEL PRODUCTS (QUALITY CONTROL) ORDER, 2020 (“QC ORDER”)
• NATIONAL STEEL POLICY, 2017 (“NSP 2017”)
• INDUSTRIAL AND LABOUR LAWS
• THE FACTORIES ACT, 1948 (THE “FACTORIES ACT”)
• ENVIRONMENTAL LAWS
• THE ENVIRONMENT PROTECTION ACT, 1986 (THE “ENVIRONMENT PROTECTION ACT”) AND THE ENVIRONMENT (PROTECTION) RULES, 1986 (THE “ENVIRONMENT PROTECTION RULES”)
• AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981 (THE “AIR ACT”)
• THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT, 1974 (THE “WATER ACT”)
• NOISE POLLUTION (REGULATION AND CONTROL) RULES, 2000 (“NOISE POLLUTION RULES”)
• HAZARDOUS AND OTHER WASTES (MANAGEMENT AND TRANSBOUNDARY MOVEMENT) RULES, 2016 (THE “HAZARDOUS WASTE RULES”)
• TAX LAWS
• FOREIGN EXCHANGE LAWS
• INTELLECTUAL PROPERTY LAWS
• TRADE MARKS ACT, 1999 (“TRADE MARKS ACT”)
• THE COPYRIGHT ACT, 1957
• OTHER APPLICABLE LAWS
• THE ELECTRICITY ACT, 2003 (“ELECTRICITY ACT”)
• OTHER INDIAN LAWS
• PRINCIPLES OF PLANT LAYOUT
• MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
• PLANT LOCATION FACTORS
• PRIMARY FACTORS
• 1. RAW-MATERIAL SUPPLY:
• 2. MARKETS:
• 3. POWER AND FUEL SUPPLY:
• 4. WATER SUPPLY:
• 5. CLIMATE:
• SPECIFIC FACTORS
• 6. TRANSPORTATION:
• 7. WASTE DISPOSAL:
• 8. LABOR:
• 9. REGULATORY LAWS:
• 10. TAXES:
• 11. SITE CHARACTERISTICS:
• 12. COMMUNITY FACTORS:
• 13. VULNERABILITY TO WARTIME ATTACK:
• 14. FLOOD AND FIRE CONTROL:
• EXPLANATION OF TERMS USED IN THE PROJECT REPORT
• 1. DEPRECIATION:
• 2. FIXED ASSETS:
• 3. WORKING CAPITAL:
• 4. BREAK-EVEN POINT:
• 5. OTHER FIXED EXPENSES:
• 6. MARGIN MONEY:
• 7. TERM LOANS:
• 8. TOTAL LOAD:
• 9. LAND AREA/MAN POWER RATIO:
• PROJECT IMPLEMENTATION SCHEDULES
• INTRODUCTION
• PROJECT HANDLING
• PROJECT SCHEDULING
• PROJECT CONSTRUCTION SCHEDULE
• TIME SCHEDULE
• TECHNICAL SPECIFICATION OF MACHINES
• PLANT LAYOUT
• STEEL WIRE MANUFACTURERS
• RAW MATERIAL MANUFACTURERS 
• DETAILS OF RAW MATERIALS SUPPLIERS
• DETAILS OF MACHINERY SUPPLIERS
• SUPPLIERS OF PICKLING ACIDS
• SUPPLIERS OF PACKING MATERIALS
• SUPPLIERS OF PLANT AND MACHINERY
• CUTTING MACHINE
• SUPPLIERS OF HARDNESS TESTING MACHINE
• SUPPLIERS OF FORGING DIES
• SUPPLIERS OF CNC LATHE MACHINE
• SUPPLIERS OF CNC MACHINING CENTRE
• SUPPLIERS OF METAL TESTING MACHINE
• SUPPLIERS OF DG SETS
• SUPPLIERS OF EOT CRANES
• SUPPLIERS OF POWER TRANSFORMERS
• SUPPLIERS OF ELECTRICAL PANEL
• SUPPLIERS OF ELECTRIC MOTOR
• SUPPLIERS OF EFFULENT TREATMENT PLANT (ETP PLANT)
• SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
• SUPPLIERS OF AIR CONDITIONING EQUIPMENTS
• SUPPLIERS OF AIR COMPRESSORS
• SUPPLIERS OF PLATFORM WEIGHING MACHINE
• SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
• SUPPLIERS OF FIRE FIGHTING EQUIPMENTS
• SUPPLIERS OF SHOT BLASTING MACHINE
• SUPPLIERS OF JIGS AND FIXTURE
• SUPPLIERS OF SUBMERSIBLE WATER PUMP
• SS PIPE & TUBE MANUFACTURER
• LIST OF DOCUMENTS REQUIRED TO GET FOR LICENSES
• DOCUMENTS:
• OTHER LICENSES REQUIRED FOR THE SETUP
• IMPLEMENTATION SCHEDULE
• ORGANIZATION CHART
• STATUTORY APPROVALS FROM GOVERNMENT
• SCHEMES AND CONSULTANCY SERVICES
• EXISTING SCHEMES AVAILABLE AND THEIR DETAILS
• DETAILS OF AGENCIES WHO CAN PROVIDE GUIDANCE (CSIR, MSME, SECTOR COUNCILS ETC.)
• DETAILS OF TEST FACILITIES AVAILABLE IN INDIA
• SWOL ANALYSIS
• STRENGTHS
• OPPORTUNITIES
• WEAKNESS
• LIMITATIONS
• STEEL PRODUCTS MANUFACTURING CONSULTANT
• PETER

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSETS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5-10 YEARS)