M.S. Rounds, Angles, Channel, Tor Steel etc.

Home » Technology » Project Profiles » Metallurgy » M.S. Rounds, Angles, Channel, Tor Steel etc.
Product Code 35450200
Quality and Standards IS 226 : 1975
(Superseded By IS 2062 : 1992)
Uploaded on February 2007


Small Scale Re-Rolling Mills produce various types of rolled sections such as Round, Tor Steel, Flat, Square, Light Angle and Z Section. Among these products, M.S. Round and Tor Steel are the most popular products and therefore, this profile has been drawn incorporating the required machinery and equipment for manufacturing these items. Round and Tor steel are produced up to 25mm diameter. Any construction work, whether that is civil or structural, require rolled sections like Round, Tor Steel, Flat, Angle etc. The products, as indicated in this profile are mainly for civil constructional work like Govt. office buildings, Hospitals, Hotels, Domestic houses, Dam, Bridges and various other establishments.

Market Potential

After independence, development work started in multi-directions. This development encompassed construction of Barrage, Hydro-Electric Power Station, and other establishments mentioned above. In city and urban areas, lot of houses are being constructed. Besides this, both Central and State Govt. are spending huge amounts of money for construction of Houses for accommodating people of low income group. All this work will be continuing for a long time. As stated earlier, M.S. Rounds and Tor Steel are indispensable products in civil construction work and therefore, the demand for the same will not only continue but will also increase. As a matter of fact, there is sufficient gap between the demand and supply of Re-rolled products, which is revealed from the fact that the products are sold on hard cash basis.

Basis and Presumptions

The profile is drawn on the basis of following presumptions:

Working Hours/Shift 8 hours.
No. of shift/day 3
Working days 300
Total No. of working hours 7200
Working Efficiency 75%
Margin Money 25% of Capital Investment
Rate of Interest on Fixed and Working Capital. 12%
Operative period of the Project 10 years
Value of Machinery and Equipment is estimated on the basis of prevailing cost in the market.

Implementation Schedule

Project implementation will take a period of 8 months from the date of approval of the scheme. Break-up of activities with relative time for each activity is shown below:

Nature of Activities

Period in Month (Estimated)

Scheme preparation and approval 0–1
SSI Provisional registration 1–1 1/2
Sanction of loan 1–4
Clearance from Pollution Control Board 3–4
Placement of Order for Delivery of M/c. 3–4
Installation of Machines 4–5
Power connection 2–5
Trial run 5–5 1/2
Commencement of production 5 1/2 onwards

Technical Aspects

Process of Manufacture

Standard Billets and scraps will be cut to required size by shearing machine and will be fed into coal fired heating furnace for heating at a temperature of about 1100 deg. C.

After that, these stores will be fed into the roughing rolls and other rolls one by one, where cross sectional size will be reduced gradually. The semi-finished store is finally passed through the chilled rolls of the last stand which comprise of 2 rolls. Shape and size of the cross section of the finished products depend on grooves made on rollers. All kinds of sections except Tor Steel is finished at the last stand.

In case of Tor Steel, Scrap/Billet/Ingot are passed through special rolls, so that special rounds are formed with two ribs along the whole length of the bar and the same have ceration marks on the whole area of its surface. After this operation, these bars are twisted at cold condition by the help of a motor operated Twisting Machine and thus Tor Steel is formed.

Quality Control and Standards

In the market tested as well as commercial grade, re-rolled sections are sold. Commercial products are not so much controlled from the angle of quality, but tested quality products are tested in accordance with the Indian Standard Specification No. IS:226 : 1975 (Superseded by IS:2062 : 1992). The tests are comprised of chemical analysis of the product, determination of tensile strength and elongation percentage etc. In this profile, provision has been made for physical testing of the products, but provision has not been made for chemical laboratory because the seller of Billets/Ingots will provide chemical analysis report for every lot.

Production Capacity (per annum)

Quantity 10,980 M.T. of Rolled Products 300 M.T. Scrap.
Value Rs. 35,84,20,000

Motive Power

Plant and Machinery 1200 H.P
Office and Lighting 20 H.P.

Pollution Control

In the Re-Rolling Industry the main operations are cutting to desired size, pre-heating and rolling. During preheating the coal fired/oil fired furnace with recuperator and raised stack height above 30 metres may produce pollution within the prescribed limit. In rolling mill noise pollution is created to some extent; but due to large open shed of rolling mill the noise level is automatically maintained within the prescribed limit of noise pollution. The unit will take care to satisfy the pollution norms at the time of selection of machinery and equipment and also the process. Before finalisation of the project, necessary clearance will be obtained from Pollution Control Board.

Energy Conservation

Presently the energy conservation efforts are needed to be strengthened substantially. The potential for conservation however is high and all efforts need to be made by the individuals to realise it. The energy audit is an integral part of an energy conservation project for a systematic approach for decision. Electrical power is one of the main impulses in this type of industry which in our country is not sufficient and there is need to consume as little as possible. The machines are individually motorised so that the energy may be saved when the machines are not in use. Use of lubricant and proper maintenance of machine still further act towards energy conservation. The use of capacitor band where necessary, also helps to this effect.

Financial Aspects

A. Fixed Capital (Non-Recurring Expenditure)

(i) Land and Building

Amount (In Rs.)

Land measuring 4000 sq. mtrs. @ Rs. 3500 / Sq. mtr 1,40,00,000
Construction of boundary wall: Gate, General Office, Factory Shed, Store etc., workers room, raw material and finished store, security, electrical transformer, pollution control area, bore well and water distribution 2000 Sq. Mtrs. @ Rs. 7000 per Sq. mtr. 1,40,00,000



(ii) Machinery and Equipments (Indigenous)



230mm Rolling Mill of stands consist of 3 sets geared couplings, iron fly wheel, reduction gear, 230mm PCD pinion stand, spindles of couplings, one set of rolls, 7 nos. mill stands. 1 Set 57,00,000
Cooling Bed 13 Mtr. ×2 Mtr. 1 5,00,000
Coal fired furnaces 13 Mtr. ×2.75 Mtr. ×2 Mtr. 1 15,00,000
Shearing machine 37 mm with 20 H.P Motor 1 7,00,000
Cropping machine with 10 HP Motor, capacity 12.5 mm to 25 mm 1 2,00,000
Twisting Machine with 10 HP Motor, capacity up to 16mm. 1 4,00,000
Twisting Machine with 20 HP Motor, capacity up to 25mm. 2 10,00,000
Piller Drilling Machine 25mm capacity with 2 HP Motor. 1 50,000
Heavy duty Lathe 3000mm with 5 HP Motor 1 2,00,000
Bench grinder 240mm wheel with 1 HP motor. 1 20,000
Electric welding Set 500 amp. 1 50,000
Shaping machine with 2 HP motor 1 1,00,000
Measuring instruments, hand tools etc. LS 2,00,000
DG set with accessories LS 20,00,000
Platform type weighing scale 1 50,000
Pollution control devices, bore well, overhead tank, deep tube well, pipe line, under ground tank, chain pulley etc. 1 set 15,00,000
Structure to hold over head channel for movement of long carrying Hot Billets. LS 5,00,000
Office furniture LS 3,00,000
Typewriters, Computer, Fan, Telephone, Fire fighting equipment, First aid box etc. LS 10,00,000
500 KVA step down Transformer, distribution Box, Fuse, cable etc. LS 10,00,000
Excise, sales tax electric fittings and Installation @ 40% of the cost of Machinery   67,88,000
Total (ii) 2,37,58,000

(iii) Pre-operative Expenses Rs. 8,00,000
Total Fixed Capital (i + ii + iii) Rs. 5,25,58,000

B. Working Capital (per month)

(i) Staff and Labour



Salary (In Rs.)

Amount(In Rs.)

Works Manager 1 30,000 30,000
Production manager, shift in charge, maintenance engineers,     200,000
Shift Supervisors, foremen, electrical and mechanical     1,00,000
Finance and accounts staff     30,000
Sales and marketing staff     50,000
Purchase and stores staff 1 3,000 30,000
Skilled Workers 10 6,000 6,000
Administrative staff     25,000
Semi-Skilled Workers 80 4,000 3,20,000
Unskilled Workers 60 3,000 180,000
Unskilled Workers 60 3,000 180,000
Peon 3 3,000 9,000
Watch and Ward 6 3,000 18,000
Sweeper 4 3000 12,000
Perquisites @ 22% 234,000
Total 12,98,000

(ii) Raw Materials


Qty. MT

Rate Rs.)/M.T

Value ( Rs.)

Re-Rollable Scrap 360 20,000 72,00,000
Billets 600 24,000 1,44,00,000
Steam Coal 90 4,000 3,60,000
Re-fractory, Lubricant clay, Rolls etc. LS   3,00,000
Total 2,22,60,000


Amount (In Rs.)

Electricity and Water 10,00,000

(iv) Other Contingent Expenses


Maintenance and Spares 60,000
Transport Charge 30,000
Travelling 3,00,000
Postage, Stationery and communications 50,000
Advt. and Publicity 2,00,000
Insurance 31,000
Misc. Expenses 2,00,000
Total 8,71,000
Total Recurring Expenditure (i+ii+iii+iv) 2,54,29,000
Working Capital for 3 Months 7,62,87,000

C. Total Capital Investment

Non-Recurring Expenditure Rs. 5,25,58,000
Working Capital Rs. 7,62,87,000
Total Rs. 12,88,45,000

Financial Analysis

Cost of Production (per year)


Total recurring cost 30,51,48,000
Depreciation on Building @ 5% 7,00,000
Depreciation on Machinery and equipment @ 10% 20,96,000
Depreciation on furniture and furnace, @ 20% 5,60,000
Interest on total Capital Investment @ 12% 1,54,61,000
Total 32,39,65,000

(2) Sales Proceed (per year)


Qty. (M.T.)

Rate (In Rs.) MT

Amount (In Rs.)

Rounds, Tor steel, Angles, Channels 10980 32,233 32,233
Sale of Scrap 300 15,000 45,00,000
Total 35,84,20,000

(3) Profitability (per annum)

i) Profit

= Total Sales– Cost of Production

= Rs.35,84,20,000 – Rs.32,39,65,000

= Rs.  3,44,55,000

ii) Cash Generation

= Profit + Depreciation

= 3,78,11,000 

iii) % of Profit on Sales

3,44,55,000 ×100



iv) % of Return on Investment




Break-even Point

Fixed Cost


Depreciation on Building, plant and m/c, furniture and furnace 33,56,000
Interest on Total Investment 1,54,61,000
40% of Salary and Wages 62,30,000
40% of other Expenditure 41,80,000
40% of Utilities 4,00,000
Total 2,96,27,000




2,96,27,000 + 3,44,55,000


Addresses of Machinery Suppliers

  • M/s. G.R.C.
    1, Taratala Road,
  • M/s. Standard Electricals
    282, B.B. Chatterjee Road,
  • M/s. Associated Engineers
    32, G.C. Avenue,
  • M/s. Machine Tools Impex
    75, S.C. Avenue,
  • M/s. Rona Udyog (P) Ltd.
    18D, Everest House,
    46C, Chowringhee Road,

Raw Material Suppliers

  • Steel Authority of India Ltd.
  • Local Market.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com