Industry Overview
Electric Resistance Welded (ERW) pipes and tubes are manufactured by cold-forming steel strips into cylindrical shapes and joining the edges through electric resistance or induction heating, without using welding filler material. Initially, low-frequency alternating current was used for welding, a process that remained in use from the 1920s until 1970. It was subsequently replaced by high-frequency ERW technology, which provides improved weld quality and reduces problems associated with seam corrosion, hook cracks, and inadequate bonding.
ERW steel pipes and tubes are widely used in engineering, water supply, oil and gas distribution, pipeline construction, fencing, scaffolding, agricultural irrigation, thermal power plants, deep-boring hand pumps, and telecommunications cable protection. They are manufactured in various diameters, wall thicknesses, and quality grades to meet the requirements of different end-user industries. Product types include line pipes, precision pipes, tubular poles, electric poles, and lightweight galvanized pipes for sprinkler irrigation.
High-performance ERW pipes offer strength, toughness, and corrosion resistance. Improvements in welding technology have expanded their use in the oil and gas sector, alongside infrastructure and automobile applications. Production units include enterprises in the small-scale industries (SSI) sector. Growing demand from oil and gas, infrastructure, and automotive industries has supported increased ERW steel pipe production.
Cost Estimation
| Particulars | Details |
|---|---|
| Plant Capacity | 20 MT/Day |
| Land & Building (4000 sq.mt) | Rs. 3.17 Cr |
| Plant & Machinery | Rs. 5.60 Cr |
| Working Capital for 1 Month | Rs. 2.54 Cr |
| Total Capital Investment | Rs. 11.84 Cr |
| Rate of Return | 36% |
| Break Even Point | 50% |
Content Index
- INTRODUCTION
- TYPES OF ERW PIPE
- (1) LOW-FREQUENCY-WELDED ERW (LF-ERW) PIPE
- (2) HIGH-FREQUENCY-WELDED ERW (HF-ERW) PIPE
- (3) DIRECT-CURRENT-WELDED ERW (DC-ERW) PIPE
- PHYSICAL PROPERTIES OF PIPING MATERIALS
- MALLEABILITY
- DUCTILITY
- BRITTLENESS
- ELASTICITY
- CONDUCTIVITY
- CHEMICAL RESISTANCE/RESISTANCE TO CORROSION
- PROPERTIES
- ADVANTAGES OF ERW PIPE
- USES AND APPLICATION
- USES
- APPLICATION
- B.I.S. SPECIFICATION
- PROCESS FLOW CHART
- MANUFACTURING PROCESS
- 1. UNCOILED, LAVELED AND WELDING OF STRIP
- 2. STRIPPING
- 3. LOOPING
- 4. EDGE TRIMMING
- 5. FORMING
- 6. WELDING
- 7. BEAD TRIMMING
- 8. SIZING
- 9. CUTTING
- 10. NORMALISING
- 11. END FACING AND BEVELLING
- 12. TESTING (PLEASE REFER IS: 5504:1997)
- ULTRASONIC TESTING
- EDDY-CURRENT TESTING
- HYDROSTATIC TESTING
- MAGNETIC PARTICLE TESTING
- RADIOGRAPHIC (X-RAY) TESTING
- DYE-PENETRANT TEST
- 14. MARKING
- PLANT AND MACHINERY
- (1) UNCOILER
- (2) LAVELER
- (3) SHEAR AND WELDER
- (4) ACCUMULATOR
- (5) FORMING AND SIZING SECTION
- (6) HF SOLID STATE WELDER
- (7) ANNEALING FURNACE
- (8) FLYING SAW
- (9) FACING AND BEVELING MACHINE
- (10) STRAIGHTNER MACHINE
- (11) THREADING MACHINE
- (12) HYDRAULIC TESTING MACHINE
- MARKET POSITION
- DOMESTIC DEMAND DRIVERS
- CAPACITY EXPANSION BY DOMESTIC PLAYERS
- HUGE INVESTMENTS IN THE SOUTH/EAST INDIA
- MARKET SCENARIO: STEEL PIPES IN OIL & GAS INDUSTRY
- LOCATION OF INDIA’S OIL AND GAS RESERVES – LARGELY OFFSHORE – TO GENERATE HIGHER DEMAND FOR OCTG PIPES
- CARBON SEAMLESS TUBES - ONGC/OIL TO CONTRIBUTE TOWARDS 80% OF DOMESTIC DEMAND
- CAPEX BUOYANCY IN REFINERIES – HUGE OPPORTUNITY FOR STAINLESS STEEL SEAMLESS PLAYERS
- INDIAN REFINING MARKET: OPERATING AT >100% UTILIZATION
- DETAILED EXPORT DATA OF MS ERW PIPE
- PLANT LAYOUT
- MANUFACTURERS/SUPPLIERS OF M.S ERW PIPE
- SUPPLIERS OF RAW MATERIALS
- M.S STRIP COILS
- PACKING MATERIALS
- PICKLING CHEMICALS
- RESSISTANCE WELDING ELECTRODE
- SUPPLIERS OF PLANT AND MACHINERY
- SUPPLIERS OF ERW PIPE AND TUBE PLANT
- SUPPLIERS OF HIGH FREQUENCY INDUCTION WELDER
- EOT CRANE
- DG SETS
- POWER TRANSFORMERS
- SUPPLIERS OF COOLING TOWER
- SUPPLIERS OF EFFLUENT TREATMENT PLANT (ETP PLANT)
- AIR POLLUTION CONTROL EQUIPMENTS
- AIR COMPRESSORS 103
- PLATFORM WEIGHING MACHINE
- MATERIAL HANDLING EQUIPMENTS
- NDT INSPECTION EQUIPMENT
- FIRE FIGHTING EQUIPMENTS
- ELECTRICAL MEASURING INSTRUMENTS
- SUPPLIERS OF SUBMERSIBLE WATER PUMP
Appendix
APPENDIX – A:
- 1. COST OF PLANT ECONOMICS
- 2. LAND & BUILDING
- 3. PLANT AND MACHINERY
- 4. FIXED CAPITAL INVESTMENT
- 5. RAW MATERIAL
- 6. SALARY AND WAGES
- 7. UTILITIES AND OVERHEADS
- 8. TOTAL WORKING CAPITAL
- 9. COST OF PRODUCTION
- 10. PROFITABILITY ANALYSIS
- 11. BREAK EVEN POINT
- 12. RESOURCES OF FINANCE
- 13. INTEREST CHART
- 14. DEPRECIATION CHART
- 15. CASH FLOW STATEMENT
- 16. PROJECTED BALANCE SHEET
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