SETTING UP CONCAST FOR MANUFACTURING OF BILLETS

NEW
Product

BILLETS

NIC Product Code ( 2004 )

27141

Product Code ( ASICC-2000)

Quality and Standards

Plant Capacity per annum

Value

Month & Year of preparation

71246

:
IS 2830

Carbon steel cast billet ingots,billets,blooms

1992 and slabs for re-rolling into steel for general
structural purposes

IS 2831

Carbon Steel Cast Billet Ignots, Billets,

2001 Blooms and Slabs For Re-rolling into Low
Tensile Structural Steel - Specification

22275 MT

Rs. 65,15,43,750/-

March 2011

- : Prepared By : Micro Small and Medium Enterprises Development Institute, Government

of India
Ministry of Micro Small and Medium Enterprises
Bais Godam, Jaipur 302 006 (Raj.)
Ph. 0141-2212098, 2213099, Fax. 2210553
e mail- dcdi-jaipur@dcmsme.gov.in
web- dcmsme.gov.in

INTRODUCTION
The Project profile envisages to set up Con-cast plant for manufacturing of
M.S Billet which is the main raw material of Iron & Steel finished products, e.g. T.M.T
Bars, angles, channels and sections etc. used in construction activities.
Con-cast plant can be simply defined as a mill that carries con-cast process in which
the molten steel is poured into laddle mould to perform the gradual solidification of
metal into desired forms and shapes. Swiftly, the molten metal is solidified and is
drawn down the caster. This gradually gets transformed into a solid steel billet,
bloom or slab.
Basis of Project Selection :
Continuous casting gives out tremendous savings in terms of time, energy, labor and
capital. The process involves casting steel straight away into the semi-finished
shapes. Then there are some steps set eliminated which are involved there in the
traditional way of casting. The steps like ingot teeming transfer; stripping, soaking
pits and primary rolling are complete taken off. The process of continuous casting
also peps up the yield as well as the product quality. Also the products obtained by
following this manufacturing process are more homogeneous. Units from rolling mill
& Induction Furnace Cluster Jaipur are transferring to this concast process
technology and one new unit M/s. Maruti Products Pvt. Ltd., setup Concast plant at
Bagru, Jaipur.

Plant Capacity per annum

Wt. in MT

Rate in Rs.

Amount in Rs.

22275

29250

65,15,43,750/-

MARKET & DEMAND ASPECTS

The Profile is for establishing unit for manufacturing of M.S Billets which is raw material for
Re Rolling Mills used for the manufacturing of Iron & steel rod, angle, flats.A rough assessment on
global steel consumption indicates that around 52 per cent of finished steel is consumed by
Construction sector. Approximately 13 per cent of steel goes to Machinery and equipment sector, 21
per cent to Automobile, 5 per cent to Oil and Gas. In India the share of automobile in steel
consumption is much less, although it is growing at a faster pace.

Global steel consumption

Construction
sector
Machinery and
equipment sector
Automobile

9%
5%
21%

52%

Oil and Gas

13%

other

All these segments need to grow in strength to sustain the current momentum
in steel consumption. The two basic requirements for this to happen are the
enhanced purchasing power of the consumers whose numbers are continuously
rising, now that the trend of urbanization is upbeat. The second one pertains to
investment in infrastructure.
There are approximately 2600 Re-Rolling Miills throughout India, producing TOR
steel/ TMT Bar , the flats, special squares window section, thinner size HR strips, thinner
gaze HR strips, hexagons, wire rods, angles, channels, H-Beams, I-Beams, tele-channels
etc. are the products of this sector.

Further in Jaipur Re-rolling Mill and induction cluster, there are around 10
TMT Bar manufacturing units whose annual demand for Billet / ingot is around 1500
MT. per day i.e. 4,50,000 MT per annum. As the project envisage to produce 22,275
MT per annum. Hence there is a scope of setting up 5 such plants to cater the
demand of Jaipur Re-rolling Mill and induction cluster

IMPLEMENTATION SCHEDULE
The major activities and the time required for competition of each activity and their implementation
are illustrated below:

Sl. No.
1

Activity
Selection of Site

Months
-

Weeks
2

Preparation of Project Report

Provisional Registration

Financial Arrangements

Procurement of Machinery- in
concurrence with other activities

Procurement of Essential Raw Materials

Installation, Electrification and

commissioning of Machinery

Trial and Commercial Production

Total

12

VI. Quality Control:- The Bureau of Indian Standard has laid down following Indian
Standard Specifications may be followed for quality control

IS 2830

1992

Carbon steel cast billet ingots,billets,blooms and slabs for re-rolling into steel for
general structural purposes

IS 2831

2001

Carbon Steel Cast Billet Ignots, Billets, Blooms and Slabs For Re-rolling into Low
Tensile Structural Steel - Specification

VII. Pollution Control

Setting up of concast unit require Clearance from State pollution control department.
VIII. Energy Conservation
The Technology envisage in the project profile is recommended by UNDP (GEF) steel
project and it is most energy efficient proven technology for manufacturing Billets.

Raw Material
Pencil ingots/Billets

are being manufactured by Induction Melting Furnace route

locally, are generally using scrap / DRI (Direct Reduce Iron - Coal based) on a nearly 50:50
basis, As far as Chemical composition is concerned, even if Mild Steels scrap is of assorted
type and the opening carbon content varies from low to high, it can be easily
controlled/adjusted within the limits by using Sponge iron. As there is no tramp element in
Sponge Iron. It manufactures good quality structural steel. Ship-breaking steel scrap is the
first choice of the units, which is not available in sufficient quantity at present and Metallic
Scrap in unshredded, compressed and loose form would be imported through Chennai,
Cochin, Ennore, JNPT, Kandla Port, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin,
Vishakhapatnam, ICD Tughlakabad, Pipava, Mundra and Kolkata ports only. These imports
must be accompanied by pre-shipment inspection certificate issued by one of the 23
agencies including DNV, Bureau Veritas, BSI Inspectorate and SGS. Shredded Steel Melting
Scrap.

MANUFACTURING PROCESS & SOURCE OF TECHNOLOGY

I) Scrap Yard
Incoming scrap is analyzed for chemical composition during unloading of
truck. The unloaded scrap is then segregated for unwanted material like
Cast Iron, non-metallic, non-ferrous, etc.
The selected scrap is then weighed and then transferred to Induction
4

Furnace for melting.

II) Induction Furnace
Selected scrap and Sponge Iron (In-house production) is melted in
Induction Furnace. Slag is removed at regular intervals and a sample is
taken 2-3 times during melting for Spectrometer Analysis.
Once we achieve the required Carbon level then de-oxidation is carried
out and alloy additions done as required.
The liquid metal is then tapped into Ladle with purging arrangement.
III) Continuous Casting Machine
Liquid metal from Ladle is brought to CCM for casting into required size
of Billets. The CCM is fully PLC controlled for controlling all Casting
parameters.
The sizes available in CCM are:
100 x 100 mm2
110 x 110 mm2
130 x 130 mm2
160 x 160 mm2
200 x 200 mm2
IV) Billet Yard
After inspection and surface grinding, wherever required the billets are
sent to either market or to Rolling mills in the required lengths.
Presumption:(1) as per the nature of process , the plant has to run 12 Hr. per day The
scheme is based on it with 75% efficiency and 330 days per annum
(ii) Labour wages has been taken as per market rate. It is likely to vary
depending upon the location of the project.
(iii) Rate of interest has been taken 12% on an average on fixed and
working capital. It is likely to vary due to financial outlay and the location
of the unit.
5

(iv) The operative period of the project is estimated to be about 8 years

considering technology obsolescence
.
(v) Value of machinery & equipment is estimated on the basis of quotation
Received & prevailing cost of the local mkt.
(vi) As the masure part of the working capital is Raw material steel Scrap
and as per the prevailing practices the plant run on the basis of orders received,
the working capital requirement has been calculated for 1.5 months only.
Financial Aspects:1. Land and building
S.NO.

Land and site development

DESCRIPTION
1 Land 10,000 Sq. Mts.@ Rs. 1162.5 /Sq. Mtr.
2 Stamp Duty & Registration Exp.
3 Land Development

AREA
10000 Sq.mtr.

AMOUNT (Laks)
116.25
3.50
10.00
129.75

TOTAL

DETAIL OF BUILDING & CIVIL WORKS

S.No.

PARTICULARS
L

Area
sqm

Rate
Sqm/Rs

AMOUNT
(RS)

Main Shed

95

23

20

2185

6000

131.10

Main Shed

95

20

15

1900

6000

114.00

Lean to Shed

30

10

300

3500

10.50

Office Block

600

7000

42.00

Stores , Panel Room, Laboratory, etc

350

4000

14.00

Labour Quarter

1000

3500

35.00

Raw Water Tank & Soft Water Tank

( Total 400000 Ltr water Capacity)
Overhead Water Tank Capacity
( Total 150000 Ltr water Capacity)

9
10

30.00
25.00

Boundary Wall

8800

Internal Roads, Drainage, etc

350

30.80
10.00

Total Cost
or

442.40
442.40

DETAILS OF PLANT & MACHINERY

S.No.
1

DESCRIPTION OF MACHINERY

Qty

INDUCTION FURNACE
A. Induction furnace of 6000KW
having capacity 15 MT
b. Excise Duty
c. Central Sales Tax
d. Freight and Cartage, Insurance,
and
Other Handling Charges
CASTING SETUP
a. Continuous Casting Machine
6/11 mtr radius
Erection, Freight and Cartage,
Insurance, and
Other Handling Charges
Central Excise Duty
VAT

Rate
Rs

2.50%

c. Ladle (bottom pouring type)

d. Ladle Slide Gate System

437500 20126050

575000

10.30% 23575000
2%

1802500
386050

23000000 23000000

2.50%

b. Slag Box (Weight 2.6 Mt per

Box manufactured by Cast Iron)
(2Box X 2.5MT @ 33000/- per
MT

Amount
Rs

17500000 17500000
10.30%
2%

Amount Rs

300000

2428225
520065 26523290

600000

2000000
1000000

e. Ladle pre heater and furnace pre

heater

2000000

700000

f. Furnace Oil Tank steel

Fabricated

g. Air Compressor

i. Ingot moulds

40000

80000
500000
300000
6180000

Excise Duty
10.30%
CST
2%
Freight, Cartages & other handling
expenses
including crane charges, Machining
Charges .
7

636540
136331
40000

6992871

MATERIAL HANDLING
EQUIPMENTS
A. OVERHEAD E.O.T. CRANES
40/15 Ton capacity class IV Heavy
Duty, cabin operated
Lift height 15 Mtrs. Suitable
for steel plant operation

8150000

8150000

882645

Excise Duty

10.30%
180652.9

CST

9213298

2%

B. Lifting Magnet
1
Super Lift electro magnet size 72" Dia inclu. ,
Control Panel & rectifier Transformer Unit
Cable Reeling Drum

900000

900000

97470

997470

2%

19949.4

500000

1500000.00

1.50%

22500

10.30%

156817.50

2%

33586.35

17.13

2000000

20.00

CST
C. Cooling Tower

1017419

FRP Counter Flow Bottle shape 192" Dia

Height 200" fitted with 12.5 HP Motor
3600LPM
packing Charges
Central Excise Duty
CST
Pipelines (for Concast & Induction
Furnace )
Pipe lines fittings, valves, elbows, tees,

L.S.

strainers etc,
D. Water Softening Plant
ppm 350 Model S-6025/D make Ion
Exchange

145000

145000

2.00%

2900

10.30%

15234

2%

3263

1.66

1725000

17.25

Packing Charges
Central Excise Duty
CST
E. Water Pumps

1725000

F. R O System , Capacity 5.0M3/hrs

1290000

1290000

2.00%

25800

2%

26316

Model CDS-1,
Packing Charges
CST
TPT

25000

Transformer 1500 KVA

13.67

50

Tools & Other equipments

L.S.
8

20

Welding Machine

31000

186000

Hand Grinders

10000

50000

Drill Machine

15000

60000

2.96

Office Equipment
a. Furniture

LS

500000

b. Computer & IT Equipments

LS

100000

6.00

2500000

25.00

Physical & Chemical Laboratory

Weighing Bridge
Weighing Capacity 100MT

860000

VAT
Hydraulic Bailing Pressing Machine(60
H.P)**

Central Excise duty

4%

34400

2950000

2950000

10.30%

303850

2%

65077

700000

700000

10.30%

72100

CST/ RST
D. G. Set 250 KVA

Excise Duty

8.94

33.19

7.72
D. G. Set 500 KVA

Excise Duty

1800000

1800000

10.30%

185400
19.85

Slag Crushing Machine**

Central Excise duty

1200000

1200000

10.30%

123600

2%

26472

500000

500000

10.30%

51500

4%

22060

CST/ RST
Sheet bending Machine

Central Excise duty

CST/ RST

Total
Erection & Electrification Charges
@ 10 %

13.50

5.74
899.3393
89.93393
989.2732

Misc expenses and statutory payments

10.00

Total
Say in lakhs

Total Investment in Fixed assets- 1572.15 Lakhs

999.2732
1000

Working Capital RequirementRAW MATERIAL REQUIREMENT( For Installed Capacity)

Raw Material requirement for One Ton Finished
Product
PARTICULARS
%
Selected Scrap
Mill Heavy
Bundles
Sponge Iron
Turning & Boring

1000.00
Burning
Loss %
4
2
6
12
5

25%
5%
30%
35%
5%

Total Cost For installed capacity

Production
III
Consumable stores

Rate
21.50
22.50
19.50
19.50
19.00

Amount
Rs
5598.96
1147.96
6223.40
7755.68
1000.00
21726.00

Rs lacs

6452.62
Cost Rs in
lacs
4839.47

Percentage
75%
Cost Per
MT

Furnace Oil Ramming Mass

Clay & Refractoriness
Installed Capacity
Total Cost on Installed Capacity
Production
Capacity
Total Requirement for 75 % cap.
Total Raw material Requirement
per month

Kg
QTY
Kg
260
51
319
398
53

30.00
29700.00
8.91
Cost Rs in
lacs
6.68
4846.15
403.85
Lacs

Percentage
75%
=4846.15/
12

SALARY AND WAGES PER MONTH

S.
NO

PARTICULARS

NOS

RS PER

AMOUNT RS

MONTH
SALARY
1

Accountant

Cashier

clerk

peon

security Staff
Total

10000

10000

7500

7500

6000

12000

4250

4250

4000

12000

45750

WAGES

10

Foreman

Electrician

Chemists

Crane Driver

Skilled Labour

Semi skilled

Unskilled Workers

30000

30000

8000

8000

8000

8000

6000

18000

5500

44000

12

4500

54000

20

4000

80000

Total

46

TOTAL SALARY AND

WAGES

54

Add Fringe benefits

15%

242000

287750
43162.5
330912.5

TOTAL WAGES AND SALARY

3,31,000/-

UILITIES REQUIREMENT
Proposed Load
Total Load

Load K.W
7000

Cost of Power
No. of hours Day
Load Factor
No. of working day
Total Unit
cost per unit

12
0.7
330
19404000
5.25
645.9750 lakh

Total utility cost per month

v

Other Contingent Expenses

Repair & maint. @ 2%

Office Consumable stores

Transport charges

Telephone charges

Traveling expenses

Miscellaneous expenses

Insurance

165000
15000
15000
2000
15000
20000
41250

11

273250
TOTAL
Total Recurring Expenditure :
Description

v
S.No.

Cost
330912.5

Personnel

Raw material

Utilities

Other Contingent Expenses

40384583.33
6459750
273250
47448495.83

TOTAL

vi
e
i
ii

Total working capital for 1.5 months :

Rs.

Total Capital Investment :

Fixed Capital
Working Capital for 1.5 Months
Total Capital Investment :

Total Capital Investment

71172744

157215000
71095757
228310757

Say

Rs.22.83Crore

FINANCIAL ANALYSIS
Cost of Production (Per year) :

Total recurring cost :

569381950

Depreciation of machinery and equipment @ 10%

9614000

Interest on total Capital investment @ 12%

27406530

Depreciation of tools and office equipment @ 15%

429000

Total :

606831480

i
ii
iii
iv

Total Sales (Per annum)

Products

Qty. in
Nos.

Sale of Billets

22275
TOTAL

Rate
29250
:
Rs.

Value (Rs.)
651543750
651543750

Net Profit (Per yr.) (Before tax)

Total turnover per yr.) -cost of production per yr.)
=
651543750

12

-606831480

44712270

Net profit ratio :

Net profit 100
Turn Over

44712270
651543750

x100 =

7%

44712270
228387744

x100 =

20%

Rate of return :
Net profit 100
Total Investment

BREAK-EVEN POINT;
FIXED COST ;

40% salary & wages

1588380

Depreciation on machinery &

Equipments @ 10%

9614000

Depreciation of tools and office equipment

@ 15%

429000

Interest on capital investment @ 12%

27406530

40% of other contingent expenses

1113600

Insurance & Rent

495000

TOTAL

40646510

Net Profit (Per yr.) (Before tax)

44712270

BEP :
Fixed Cost 100
Fixed Cost + Profit

48%

13

The Source of technology guidance

A. Project Management Cell (PMC), UNDP / GEF Project Steel
Jawahar Dhatu Bhavan, 39,Tughlakabad Institutional Area,
Mehrauli - Badarpur Road, New Delhi - 110062
Ph.: 0091-11-29960593, 29960599, Fax:0091-11-29959994

B. National Institute of Secondary Steel Technology

Post Box No. 92, GT Road,
Mandi Gobindgarh-147 301 (Punjab)
Dist.: Fathegarh Sahib.
Tel : 01765-258080, 259532,
FAX : 01765-258079.
e-mail : nisst@dataone.in, info@nisst.org, website: www.nisst.org

LIST OF SUPPLIERS FOR PLANT AND MACHINERIES

Con-cast

M/s CONCAST
(INDIA) LIMITED,
CONCAST HOUSE,
1/5 Marol Co-op
Industrial Estate,
Andheri (E), Mumbai
- 400 059

Contact person :

Telephone
Email :+91
Mr.
22 2850
M.M.Deshpandeconcast
1789,
Fax : +91 22
i@bom4.vsnl.net.in
2851 5145

Induction Furnace Manufacturer

2 Electrotherm (India )
Ltd.
72,Palodia Via:Thaltej
,Ahmedabad382115,Gujarat (India)

Saurabh Bhardwaj,
Sr.Application Engineer
9785012863
saurabh.bhardwaj
@electrotherm.com
www.electrotherm.com
mkt@electrotherm.com

14

912717234553,
660550
Fax-91-2717234616
011-41427323
01125920224,450
34922

3 Megatherm Electronics
Pvt. Ltd.
Plot-L1, Block GP,
Sector V, Electronics
Complex
Salt Lake City,

Mr. Vikas Varsheya

(Director)
+91-9831188818
http://www.megathermindia.com

Phone :
+91 33 2357
7352 / 7745 /
7854 / 6093
Fax : 0- 33
2357 7757

Kolkata - 700 091, India.

4

M/s. Pillar (India) Vidyut Block- A-23, 2nd

Agni Marketing and
Avenue, Annanagar,
Engineering Services
Chennai-600102
Metallographic And Chemical Laboratory Consumables
5

M/s. Metallurgical
Services (p) Ltd.

M/s Metal Power

Analytical (I) Pvt. Ltd.

Foundry Equipments
7 M/s Balaji Equipment
Co.

8 M/s. Greaves Foscco

Ltd.

5, Lalithapuram Street,
Rayapetah, Chennai600014
8/9, Mehul Premises,
Kanti Nagar, Andheri
East, Mumbai-400059
23-A 6th Cross, BR
puram, VK Road,
Thanner Pandal,
Peelamedu,
Coimbatore-4
Mumbai Pune Road,
Pune-411019

Material Handling Equipments

10

Zeemag Industries in
Bhandup West

Elite Steels Pvt. Ltd.

70-5th Flr Bhandup Indl

Est Pannalal Cmpd, Lbs
Road, Bhandup
West, Mumbai 400078
Plot No. 13, Sector 25
Faridabad - 121 004
Haryana, India

Mr Rajeev T D
+(91)-(22)30943922,
30980030, 25961315
+(91)-9833056627
Phones: (91 129)
2233170, 2232555
Fax: (91 129)
2236962
Email ID:
info@elitecranes.com
espla@ndf.vsnl.n
et.in
Website:
www.elitecranes.com

15

Address of Raw material Suppliers

Sponge Iron
11 Monnet Ispat & Energy Ltd.

12

Monnet Marg,
Mandir Hasaud, Raipur 492 101,
Chatisgarh,India
Tel: +91 771 2471 334 339
Fax : +91 771-2471 250
e-mail : monnetraipur@monnetgroup.com,
Welspun House, 7th floor
Kamala Mills Compound
Senapati Bapat Marg
Lower Parel
Mumbai - 400013, INDIA 91-66136000, 9124908020

Welspun Steel Ltd.

"

Scrap
13

Shop No: 210 Shobhraj Complex,

EAGLE INTERNATIONAL

Wagha wadi Road

Bhavnagar .(Gujrat)364002
Mobile: +91 9898986434
+91 9328585960
E-mail: contact2jani@gmail.com
contact4hms@yahoo.com
contact4scrap@in.com

14

Local Market

16