Wire Drawing with Wire Galvanizing Plant

Wire Drawing with Wire Galvanizing Plant. Hot Dip Galvanizing Plant. Galvanized Mild Steel (MS) Wire

A wire is a circular, small diameter flexible rod. Wire drawing is a cold working process.  It is an operation to produce wire of various sizes within certain specific tolerances. This process involves reducing diameter of thick wire by passing it through a series of wire drawing dies with successive die having smaller diameter than the preceding one. Mostly die are made by chilled cast iron, tungsten carbide, diamond or other tool material. The maximum reduction in area of wire is less than 45% in one pass.

Wire drawing, Making of wire, generally from a rod or bar. The wire-drawing process consists of pointing the rod, threading the pointed end through a die, and attaching the end to a drawing block. The block, made to revolve by an electric motor, pulls the lubricated rod through the die, reducing it in diameter and increasing its length. Fine wire is made by a multiple-block machine, because the reduction cannot be performed in a single draft.

Drawing is a widely used process because of its unbeatable advantages over any other procedure.

The advantages of wire and rod drawing of other applications are:

·         Good surface finishing

·         Adaptability to mass production

·         Close dimensional control

·         Improved dimensional properties

·         Economic benefits

Commercial wire drawing usually starts with a coil of hot rolled 9 mm diameter wire. The surface is first treated to remove scales. It is then fed into a wire drawing machine which may have one or more blocks in series.

Wires are drawn from carbon steel, alloy steel, stainless steel, etc. ferrous metals as also from aluminum, copper, brass, bronze and many other alloys. Nonferrous wires are used in electrical power transmission, viz. wires and cables, electronics systems and even in semiconductor IC etc. packaging, motor and transformer windings.

Galvanizing is the practice of immersing clean, oxide-free iron or steel into molten zinc in order to form a zinc coating that is metallurgically bonded to the iron or steel's surface. The zinc coating protects the surface against corrosion by providing protection to the iron or steel in two ways.

Hot-dip galvanized wire application:

This kind of wire is extensively used in such place:

·         Construction.

·         Handicrafts.

·         Woven wire mesh.

·         Express way fencing mesh.

·         Packaging of product.

Advantages of using galvanized MS wire:

·         Softness of wire

·         Smoothness make the appearance look better

·         Shining

·         Uniform coating increases the product life

·         Perfect MS wire ensures double life than any other ordinary galvanized wire available in the market.

Market Outlook

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

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

The more and more electrification and expansion of railway network associated with gauge conversion of railway track is expected to create huge market. On other hand the demand in the field of pre-casted cement product and domestic is expected to increase in many folds. Same way expansion of telephone network will also add demand. It is also used in strand which has got market in electrical and railways etc. G.I. Wires is also used in shipping in the form of round strand.

Construction, machinery and automotive markets especially present significant opportunities for steel wire. Steel wires are also used in a range of infrastructure constructions and many general engineering applications in machinery and heavy equipment and marine industry. In the automotive industry, steel wires are used for reinforcing tires to add to their strength and durability. Steel binding wires are used to bind and fabricate complex steel reinforcement structures for building of all types. Steel wire is of critical importance in automotive manufacturing for controls.

The projected increase in infrastructure and housing construction and Automobile sector in the coming years is expected to benefit demand for steel and other metal wire industry. Steel wire finds mission critical use in this sector as drilling lines, geophysical cable, offshore mooring ropes and electromechanical cable, and for mooring anchoring, towing, and lifting applications.

There is a plethora of growth opportunities for Indian steel wire market. Rapidly expanding construction, infrastructure, telecom and manufacturing industries bode well for the Indian steel wire market.

MS Wires

Demand : Past and Future

Year

(In Million Metric Tonne)

1990-91

0.85

2000-01

1.62

2001-02

1.73

2002-03

1.82

2003-04

1.94

2004-05

2.06

2005-06

2.19

2006-07

2.33

2007-08

2.49

2008-09

2.65

2009-10

2.83

2010-11

3.02

2011-12

3.21

2012-13

3.40

2013-14

3.60

2014-15

3.80

2015-16

4.00

2016-17

4.25

2017-18

4.45

2018-19

4.75

2019-20

5.03

2024-25

6.50

 

The global galvanized steel market to grow at a CAGR of more than 5% during the period 2018-2022.

The rising applications of galvanized steel pipes in the oil and gas industry are one of the major trends being witnessed in the global galvanized steel market. Galvanized steel pipes are widely used in the oil and gas industry for various applications such as exploration, refining, and transportation. The pipes used in the oil and gas industry should be durable and thermally stable. These pipes work under harsh environmental and chemical conditions.

In 2015, the revenue of Galvanized Steel wire in the USA market was about 124.77 million USD, and in 2016, the revenue of Galvanized Steel wire in the USA market was about 129.79 million USD.

 

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·         Properties

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Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR