Galvanised M.S. Wire

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Product Code N.A.
Quality and Standards IS 280 : 1977
IS 2629 : 1985
IS 2633 : 1986
IS 6745 : 1972
Production Capacity 3480 Ton (per year)
Uploaded on February 2007


Galvanized M.S. Wire has versatile use in producing different Engineering items such as Building Hardwares, barbed wires, Screens rivets etc. Special quality of wire is also required for producing special purpose fastners, reinforcement wire etc. The Galvanized M.S. Wire is a Mild Wire which is coated with a layer of Zinc. The coating of Zinc provides cathodic protection to underneath steel surface. The Galvanised M.S. Wire offers better surface protection at lower cost in humid atmosphere.

Market Potential

The Galvanized M.S. Wire has very good demand for its versatile use in different applications. There is a large demand for this item from the down stream industries.

With the availability of appropriate technology, the activity is highly feasible in the small scale sector and marketing is generally not a problem.

Basis and Presumptions

The profile is drawn on the basis of the following presumptions:

Working hours / shift 24 hr. per day
No. of Shifts per day Three
No. of working day/year 300
Total no. of working hours 7200 hrs.
Working efficiency 75%
Time period for achieving maximum capacity utilization 3 years from the date on which production will be started
Labour charges As per local market.
Rate of Bank Interest 12% per annum

The value of machinery and equipment is estimated on the basis of prevailing market rates. It is expected that it may take about 8 to 9 months to complete all activities of the project, till commercial production is achieved. If the project is available with the promoter, a period of 8/9 months will be needed for site selection, Registration with DIC as SSI unit, Building construction, selection and purchase of plant and machinery, Loan sanction from financial Institution, Erection and commissioning of Project for trial run etc.

Implementation Schedule

Standardizations parameters are as follows:

  • 1. IS:280-1977 specification for Mild Steel wire for general purposes.
  • IS:2629-1985, IS:2633-1986, IS:6745-1972 to test the quality of galvanization.

Production Capacity (per year)

The production target of Galvanised M.S. Wire 1160 MT per year.

Quantity 3480 MT
Value 20,29,40,000

Technical Aspects

Process of Manufacture

The production process of Galvanized M.S. Wire is as follows:

Pickling/Cleaning of the wire rod to remove surface oxides and impurities —> Mechanical Scraping of the wire rod surface —> Painting/Welding of Wire Rod —> Drawing of wire at various stages —> Annealing of wire if required —> The final drawing in continuous wire drawing machine —> Pre treatment of M.S. Wire cleaning and degreasing by special solvent like Sodium hydroxide solution and followed by pickling —>Galvanizing of M.S. Wire by immersing of M.S. wire in the molten bath of Zinc followed by water quenching —> Inspection of Galvanized M.S. Wire —> Binding of wire coil, packing etc.

Financial Aspects

A. Fixed Capital

(i) Land and Building

Land Required = 2000 Sq. Mtr.

@ 3500 / sq. Mtr. = Rs. 70, 00,000

Civil and building Construction;

Boundry wall, gates and roads inside the factory premises

Lump sum cost = Rs. 8,00,000

Building for factory, raw material and finished store, raw water system and bore well, DG set room, pollution control system room/ area, maintenance room, laboratory room, consumable stores, security room, workers room, offices for management, technical, commercial, financial and accounts and administrative staff

1200 Sq. mtr @ Rs. 7000/ sq. Mtr
Value = Rs. 84,00,000

Rs. 1,40,00,000

(ii) Machinery and Equipments

Name of Machinery and Equipment


Amount(In Rs.)

Heavy Duty Wire Drawing Bull Block intake capacity upto 10 mm of M.S. Wire rod with 660 mm Capstan and 40 HP motor complete with reduction gear box etc. 1 No. 8,00,000
Electric Motor 40 HP Sliping type for the above complete with Switch gear Control panel, etc. 1 set 4,00,000
Set of continuous Wire Drawing Machine Intake capacity for 6 mm of M.S. Wire with 550 mm Capstan and 25 H.P. Motor complete with reduction gear Box etc. 4 sets 16,00,000
Set of Electric Motor of 25 HP for the above complete with Control Panel etc. 4 sets 10,00,000
Mechanical Desealer cap. Up to 10 mm of Wire rod complete with reduction gears Take off Drum and 10 HP motor and Electrical 1 No. 1,50,000
Wire pointing Machine with electric motor of 3 HP 1 No. 1,00,000
Wire Butt Welding Machine suitable to weld M.S. Wire up to 10 mm 1 No. 50,000
Electric Furnace Bell type for Annealing of Wire Coil rating 20 KW 1 No. 5,00,000
Hot Diping galvanizing unit consist of Pickling, Washing Flux Tank, Diesel Furnace, Zinc Bath, Extraction unit and Pot L.S. 15,00,000
Electric Hoist of 1 ton capacity, DG set with accessories like oil tank, chimney etc., bore well water storage and distribution sytem, pollution control system - 20,00,000
Testing Equipment
Wire Testing Machine cap. 2 ton L.S. 3,00,000
Equipment for coating test LS 1,00,000
Gauges for Dimensional measurement of wire LS 50,000
Excise, sales tax, electrification and installation @ 40 % of cost of Machinery and equipment - 34,20,000
Cost of Dies of various sizes - 3,00,000
Office equipment and furniture - 7,00,000
Pre-operative Expenses - 3,00,000
Total   1,32,70,000

B. Working Capital (per month)

(i) Staff and Labour

Administrative Staff


Salary (In Rs.)

Amount(In Rs.)

General Manager 1 25,000 25,000
Sales and marketing personnel . 4   40,000
Purchase and other commercial staff 2   15,000
Finance and accounts staff 3   20,000
Peon/Watchman 8 3000 24,000
Workshop Staff
Production manager, shift supervisors, maintenance staff, laboratory chemists     1,50,000
Skilled Workers 30 5,000 1,50,000
Semi skilled workers Helpers 15 3,000 45,000
Total salary and wages 4,69,000
Add perquisites @ 22% / annum     1,03,000
Total 5,72,000

(ii) Raw Material



Rate (In Rs.)

Amount (In Rs.)

Mild Steel Wire rod of 8, 9 and 10 mm Dia. 300 ton 36,000 per ton 1,08,00,000
Zinc Ingot 15 ton 1,65,000 ton 24,75,000
Acid Fluxes and other additives L.S. - 4,00,000
Total   1,36,75,000

(iii) Utilities


Amount (In Rs.)

Electricity and Water L.S. 100,000
Water L.S. 5,000
Fuel L.S. 1,50,000
Total 2,55,000

(iv) Other Contingent Expenses


Postage and Stationery 5,000
Telephone and communications 15,000
Consumable Store 15,000
Repair and Maintenance 57,000
Transport charges 20,000
Advertisement and Publicity, sales and marketing expenses 2,00,000
Insurance 19,000
Miscellaneous Expenses 20,000
Total 3,51,000

(v) Working Capital

(In Rs.)

Raw material 1,36,75,000
Salary and Wages 5,72,000
Utilities 2,55,000
Other Contingent Expenses 3,51,000
Total 1,48,53,000

Working Capital (for 3 months) Rs. 4,45,59,000

C. Total Capital Investment

Fixed Capital Rs. 2,94,70,000
Working Capital Rs. 4,45,59,000
Total Rs. 7,40,29,000

Financial Analysis

(1) Cost of Production (per year)


Total Recurring Cost 17,82,36,000
Depreciation on Machinery and Equipment @ 10% 11,32,000
Depreciation on furnace, testing equipment and office equipment @ 20% 3,30,000
Depreciation on Dies @ 25% 75,000
Interest on total capital investment @ 12% 88,83,000
Total 18,91,16,000

Turnover (per year)



Rate (In Rs.)

Rate (In Rs.)

Galvanised M.S. Wire 3480 ton 57.62/ ton 57.62/ ton
Scrap Wire 120 ton 20000 / ton 24,00,000
Total 20,29,40,000

Net Profit (per year)


Rs. 20,29,40,000 - Rs. 18,91,16,000

= 1,38,24,000

Net Profit Ratio


Net Profit per year ×100

Turnover per year

1,38,24,000 ×100



Rate of Return


Net Profit per year ×100

Total Investment

1,38,24,000 ×100



Break-even Point


Total Depreciation 19,97,000
Interest on total Capital Investment 88,83,000
40% of Salary and Wages 27,45,000
40% of other contingent expenses 16,85,000
Total 1,53,10,000



Fixed Cost ×100

Fixed Cost ×100

1,53,10,000 ×100

1,53,10,000 + 1,38,24,000


Addresses of Machinery and Equipment Suppliers

  • M/s. Associated Machinery Mfg. Pvt. Ltd.
    Bulandshahar Road, Industrial
    Area, Ghaziabad.
  • M/s. C.S. Wire Pvt. Ltd.
    90-B, IDA., Jeedi Matha,
  • M/s. Wire Machinery Mfg. Corporation
    7 A, Ventinard Road,
  • M/s. Refrigeration and Machinery Corporation
    Rajendra Prasad Road,
    Mumbai - 400080.
  • M/s. Design Engineering Co.
    Mumbai - 400431.
  • M/s. Wesman Engineering Co. Pvt. Ltd.
    346, Pantheen Road,
  • M/s. Batliboi and Co.
    R.P. Road,
  • M/s. United Agro Engineering Co.
    R.P. Road,

Raw Material Suppliers

  • M/s. Steel Authority of India Ltd.
  • M/s. Tata Iron and Steel Co. Ltd.
  • M/s. Hindustan Zinc Ltd.

For further information please contact

Information Manager
TIMEIS Project