MS PIPE AND TUBE

[EIRI/EDPR/4077] J.C.: 2217XL

INTRODUCTION

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was superseded by a high frequency ERW process which produced a higher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, and 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.

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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.

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IMPLEMENTATION OF SCHEDULE OF ACTIVITY OF PROJECT

The major activities in the implementation of the project has been listed and the
average time for implementation of the project is estimated at 12 months:

Sl. No. Activity Period (In Months)

1. Preparation of project report 1

2. Registration and other formalities 1
3. Sanction of loan by financial institutions 3
4. Plant and Machinery:
a) Placement of orders 1
b) Procurement 2
c) Power connection/Electrification 2
d) Installation/Erection of machinery/Test Equipment 2
5. Procurement of raw materials 2
6. Recruitment of Technical Personnel etc. 2
7. Trial production 11
8. Commercial production 12

Notes:

1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 8th month onwards.

3. When imported plant and machinery are required, the implementation

period of project may vary from 12 months to 15 months.

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 CONTENTS

INTRODUCTION
IMPLEMENTATION OF SCHEDULE OF ACTIVITY OF PROJECT
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
BENEFITS OF MSME REGISTRATION
1. COLLATERAL-FREE LOAN FACILITIES & PRIORITY LENDING
2. CREDIT LINKED CAPITAL SUBSIDIES FOR MSMES
3. LOW INTEREST RATE ON LOAN
4. ISO CERTIFICATION CHARGES REIMBURSEMENT
5. INCUBATION SCHEME FOR MSME
6. MARKET DEVELOPMENT ASSISTANCE SCHEME FOR MSME
7. SUBSIDY ON PATENT REGISTRATION
8. PROTECTION AGAINST DELAYED PAYMENTS
9. 100% TAX EXEMPTION FOR INNOVATIVE STARTUPS
10. CONCESSIONS ON ELECTRICITY BILLS
11. TENDER PREFERENCE TO MSME
12. PRIME MINISTER EMPLOYMENT GENERATION PROGRAMME
FOR MSMES
LABOUR LAWS APPLICABLE FOR MSMES
ENVIRONMENTAL LAWS COMPLIANCES FOR MSMES
B.I.S. SPECIFICATION
PROCESS FLOW CHART
PROCESS FLOW CHART FOR HOT DIP GALVANISING
MANUFACTURING PROCESS
1. UNCOILED, LEVELED AND WELDING OF STRIP

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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
ULTRASONIC TESTING
EDDY-CURRENT TESTING
HYDROSTATIC TESTING
MAGNETIC PARTICLE TESTING
RADIOGRAPHIC (X-RAY) TESTING
DYE-PENETRANT TEST
13. MARKING
14. HOT DIP GALVANISING PROCESS
THERE ARE TWO TYPES OF HOT DIP GALVANIZING:
(A) CONTINUOUS GALVANISING
MAIN STEPS IN CONTINIOUS GALVANISING LINE
(A) PREPARATION OF BLACK COILS
(B) CLEANING
(C) ANNEALING AND COOLING
(D) ZINC BATH MANAGEMENT AND ALLOYING REACTIONS
(E) COATING WEIGHT [MASS] CONTROL AND MEASUREMENT
(F) POST TREATMENTS
TEMPER PASSING
LEVELING
CHEMICAL TREATMENT
INSPECTION
OILING AND RECOILING
(B) BATCH GALVANISING
ZINC BATH COMPOSITION FOR BATCH PROCESS
PART THICKNESS
STEPS IN GALVANISING
(A) PREPARATION
CAUSTIC CLEANING –
PICKLING –
FLUXING –
DRYING –
(B) GALVANISING
(C) POST TREATMENT

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SOURCES OF WASTE
WASTE MANAGEMENT IN GALVANISING PROCESS
TYPES OF WASTE
I) ACID WASTE
II) FLUX WASTE
III) DROSS
IV) ASH
V) BAG FILTER DUST
VI) GENERAL AND OTHER WASTES
LIMIT OF POLLUTION IN HOT DIP GALVANISING PROCESS
AIR POLLUTION CONTROL MEASURES FOR ACID FUMES
PLANT AND MACHINERY
(1) UNCOILER
(2) LEVELER
(3) SHEAR AND WELDER
HIGH QUALITY WELDING SEAM.
1. SWITCHGEAR RECTIFYING CABINET
2. INVERTER OUTPUT CABINET
3. CONNECTING OPTICAL FIBER
4. CIRCULATION SOFT WATER COOLING SYSTEM
5. CENTRAL OPERATION CONSOLE
6. MECHANICAL ADJUSTMENT DEVICE
(4) ACCUMULATOR
ACCUMULATOR
THE HORIZONTAL SPIRAL ACCUMULATOR FOR WELDED PIPE LINE
(5) FORMING AND SIZING SECTION
FORMING AND SIZING MILL
MATURE TECHNOLOGY FOR ROLLER COMPATIBILITY
OPTIMIZED FORMING
EDGE BENDING
W-FORMING ON FIRST STAND
(6) HF SOLID STATE WELDER
HIGH QUALITY WELDING SEAM.
1. SWITCHGEAR RECTIFYING CABINET
2. INVERTER OUTPUT CABINET
3. CONNECTING OPTICAL FIBER
4. CIRCULATION SOFT WATER COOLING SYSTEM
5. CENTRAL OPERATION CONSOLE
6. MECHANICAL ADJUSTMENT DEVICE
(6) ANNEALING FURNACE
(7) FLYING SAW
FLYING SAW
FLYING SAW ALL DIGITAL CONTROL SYSTEM
(8) FACING AND BEVELING MACHINE

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(10) STRAIGHTNER MACHINE
(11) THREADING MACHINE
THREADING MACHINE FEATURES:
(12) HYDRAULIC TESTING MACHINE
1) FOR ERW TUBE AND SEAMLESS TUBE
2) FOR LARGER DIAMETER PIPE (HSAW AND LSAW PIPES)
MARKET POSITION
LEADING VENDORS IN THE MARKET ARE –
SEGMENTATION BY END-USER AND ANALYSIS OF THE GALVANIZED
STEEL TUBES MARKET
SUPPLIERS OF M.S PIPE AND TUBE
SUPPLIERS OF RAW MATERIALS
SUPPLIERS OF M.S STRIP COILS
SUPPLIERS OF PACKING MATERIALS
SUPPLIERS OF PICKLING CHEMICALS
SUPPLIERS OF RESSISTANCE WELDING ELECTRODE
SUPPLIERS OF PLANT AND MACHINERY
SUPPLIERS OF ERW PIPE AND TUBE PLANT
SUPPLIERS OF HIGH FREQUENCY INDUCTION WELDER
SUPPLIERS OF DG SETS
SUPPLIERS OF EOT CRANES
SUPPLIERS OF POWER TRANSFORMER
SUPPLIERS OF ELECTRICAL PANEL
SUPPLIERS OF ELECTRIC MOTOR
SUPPLIERS OF COOLING TOWER
SUPPLIERS OF EFFLUENT 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

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APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
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 YEARS)

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 COST ESTIMATION

Plant Capacity 60 MT/Day

Land & Building (1672.24 sq.mt.) Rs. 2.07 Cr
Plant & Machinery Rs. 10.85 Cr
Working Capital for 2 Months Rs. 14.31 Cr
Total Capital Investment Rs. 27.76 Cr
Rate of Return 35%
Break Even Point 45%

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