Detailed Project Report on m.s. pipe manufacturing plant

M.S. PIPE MANUFACTURING PLANT [3517]

Electric resistance welded (ERW) pipe is manufactured by cold-forming a sheet of steel into a cylindrical shape. Current is then passed between the two edges of the steel to heat the steel to a point at which the edges are forced together to form a bond without the use of welding filler material. Initially this manufacturing process used low frequency A.C. current to heat the edges. This low frequency process was used from the 1920’s until 1970. In 1970, the low frequency process was superseded by a high frequency ERW process which produced a higher quality weld. Over time, the welds of low frequency ERW pipe was found to be susceptible to selective seam corrosion, hook cracks, and inadequate bonding of the seams, so low frequency ERW is no longer used to manufacture pipe. The high frequency process is still being used to manufacture pipe for use in new pipeline construction. ERW steel pipes & tubes find widespread usage across industries and fields. In addition to various engineering industries, they are used for water, oil and gas distribution, line pipes, fencing, scaffolding, etc. They are also used for agricultural purposes, drinking water supply, thermal power, for hand pumps for deep boring wells and also as protection for cables (telecom), among others. Depending on the requirement of the end user industry, ERW steel pipes & tubes are available in various wall thicknesses, diameters, and qualities. The different types include line precision pipes, tubular poles, electric poles, lightweight galvanised pipes for sprinkler irrigation, among others. The industry has sufficient capacity to manufacture the different types of pipes & tubes. High performance ERW steel pipes & tubes possess high strength, toughness and are corrosion resistant. In the manufacturing process of ERW steel pipes & tubes, the edges to be welded are mechanically pressed together and electric resistance or electric induction is used to generate the heat required for welding. With the adoption of better welding technology, ERW pipes & tubes are now widely used in the oil & gas sector. A number of ERW steel pipes & tubes production units are in the SSI sector. Higher demand from the oil & gas industry, infrastructure and automobile industries has led to a healthy increase in production of ERW steel pipes.

COST ESTIMATION

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%


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 – 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