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A Business Plan for Ferro Alloys (Low Carbon Ferrochrome (LCFC), Ferro Molybdenum (FeMo), Ferro Vanadium (FeV), Ferro Titanium (FeTi))

Capacity - Plant and Machinery cost 1783.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 30.00 %
Break Even Point (BEP) 71.00 % TCI 0.00 Lakhs
Cost of Project 9775.00Lakhs

Description:

Low Carbon Ferrochrome (LCFC), Ferro Molybdenum (FeMo), Ferro Vanadium (FeV), and Ferro Titanium (FeTi) are specialized alloys used in numerous industries due to their unique properties. Each of these metallurgical components plays a crucial role in manufacturing processes, offering distinct characteristics that contribute to the overall performance and durability of various products.

Low Carbon Ferrochrome (LCFC) is a type of ferroalloy, which is an alloy of iron and chromium but with a lower carbon percentage as compared to traditional ferrochrome. This reduction in carbon is significant, as it enhances the alloy's properties, making it more versatile and useful in various applications. LCFC is predominantly used in the production of stainless steel due to its ability to enhance corrosion resistance, durability, and strength.

On the other hand, Ferro Molybdenum (FeMo) is an alloy of iron and molybdenum, which is highly valued in the steel-making industry. It is used to produce a variety of steel products, including stainless steel, tool steel, and high-speed steel. The addition of molybdenum to these materials enhances their hardness, strength, and resistance to corrosion and wear, making FeMo a crucial component in industries such as automotive, aerospace, and energy.

Ferro Vanadium (FeV) is another highly valuable alloy in the metallurgical industry. This alloy, made up of iron and vanadium, is commonly used in the production of high-strength low-alloy steel (HSLA). HSLA is a type of carbon steel that is more robust, lighter, and more resistant to corrosion than conventional carbon steel. The addition of vanadium to steel significantly improves its hardness and strength, making FeV indispensable in the manufacturing of car parts, pipelines, and other heavy-duty equipment.

Lastly, Ferro Titanium (FeTi) is an alloy of iron and titanium, with the latter making up to 30% of the alloy. FeTi is highly valued for its strong deoxidizing properties, which are beneficial in the steel-making process. Titanium’s addition to steel significantly enhances its strength, resistance to corrosion, and heat stability. This makes FerTi an essential ingredient in industries that require high-performance materials, such as the aerospace, military, and construction sectors.

Uses and Applications

Low Carbon Ferrochrome (LCFC), Ferro Molybdenum (FeMo), Ferro Vanadium (FeV), and Ferro Titanium (FeTi) are as diverse as they are critical to various sectors. Their unique properties make these alloys essential components in an array of products and manufacturing processes.

The primary use of Low Carbon Ferrochrome (LCFC) is in the stainless steel industry, where it is used to improve the corrosion resistance and strength of the steel. The decreased carbon content in LCFC ensures that the steel is more ductile, allowing it to be used in various applications, such as kitchenware, surgical instruments, and construction materials. Further, LCFC is used in the production of acid-resistant steels. These are widely used in industries that deal with highly corrosive substances, such as chemical and petrochemical companies. LCFC is also essential in the production of heat-resistant steels, which are crucial in high-temperature applications like aircraft engines, power generation, and industrial furnaces.

Next, we have Ferro Molybdenum (FeMo). Its primary function is to add hardness and strength to steel products. Thus, it's widely used in the production of high-speed and tool steels, which require exceptional hardness for cutting and drilling applications. Moreover, FeMo is critical in the manufacture of stainless steel, where it enhances the steel's resistance to corrosion and heat. The automobile industry greatly benefits from this, using FeMo-enhanced steel in various car components like engine parts, gears, and suspensions.

Ferro Vanadium (FeV) has carved out a significant role in the metallurgical industry due to its contribution to the strength and hardness of steel. FeV is an essential component in the production of High Strength Low Alloy Steel (HSLA), widely used in car parts, structural applications, pipelines, and heavy-duty equipment. HSLA is favored for its lightweight nature and high strength, which boosts fuel efficiency and performance in the automotive industry. In the construction sector, FeV-enhanced steel is commonly used in building bridges, skyscrapers, and other infrastructure due to its excellent strength-to-weight ratio.

Finally, we have Ferro Titanium (FeTi). Owing to its robust deoxidizing properties, FeTi is an invaluable asset in the steel-making process. Deoxidation is a crucial step in steel production that prevents the steel from becoming brittle. In addition, FeTi-enhanced steel is known for its superior strength, corrosion resistance, and heat stability. Thus, it is widely used in industries that demand high-performance materials. The aerospace industry, for instance, uses FeTi-enhanced steel in aircraft engines due to its high-temperature resistance. In the construction industry, FeTi is used in structural applications where high strength and durability are required. As such, the distinct properties of LCFC, FeMo, FeV, and FeTi have seen their usage extend across a plethora of industries and applications, making these alloys indispensable in our modern world.

Why This Business Is Booming?

The booming success of the LCFC, FeMo, FeV, and FeTi business is primarily fueled by their vital role in a plethora of industries and applications. The unique properties of these specialized alloys make them indispensable in our modern world, driving up demand and consequently, the growth of this sector.

The first major contributor to the flourishing business around these alloys is the continuous development and growth of the stainless steel industry. As discussed earlier, LCFC plays a crucial role in the production of stainless steel, making it more durable, corrosion-resistant, and strong. With the increased demand for stainless steel in various sectors like construction, automotive, and household appliances, the need for LCFC is also on the rise.

Additionally, the escalating demand for more robust, corrosion-resistant, and heat-resistant steels in sectors like automotive, aerospace, and energy is driving the FeMo business's growth. As FeMo significantly enhances the hardness, strength, and resistance to wear and corrosion of steel products, its importance in these sectors is undeniable.

Similarly, FeV's indispensable role in producing High-Strength Low-Alloy Steel (HSLA) has significantly contributed to this alloy's business growth. HSLA is widely used in the automotive and construction sectors, both of which are thriving industries. As the demand for lightweight, strong, and corrosion-resistant steel continues to rise, so does the demand for FeV.

FeTi, with its strong deoxidizing properties and the ability to enhance steel's strength, resistance to corrosion, and heat stability, has found its niche in high-performance sectors like aerospace, military, and construction. The growing demand for advanced materials in these sectors has amplified the demand for FeTi, contributing to the alloy's business success.

Aside from the continuous growth in demand for these alloys, technological advancements in manufacturing processes have also played a significant role in the flourishing business around LCFC, FeMo, FeV, and FeTi. With the advent of more efficient and cost-effective production methods, manufacturers have been able to increase their production capacities to meet the growing demand, thus driving the sector's growth.

Global Market Outlook

The global ferrochrome market size was valued at USD 17.8 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030. Increasing stainless steel production around the globe is a significant factor driving the market growth. Ferrochrome (FeCr) is added to stainless steel to enhance its appearance and impart corrosion resistance. The minimum FeCr content in stainless steel is 10%, while the average content is 18%. The dynamics of the stainless steel industry play a crucial role in influencing FeCr supply and demand, as it accounts for the majority of ferrochrome consumption.

Ferrovanadium Market was valued US$ 5.58 Bn in 2022 and is expected to reach 8.51 Bn by 2029, at a CAGR of 6.2% during a forecast period. Growing demand of this FeV during steel and metallic construction will generate huge opportunity for market growth. Ferrovanadium is defined as an alloy used as an additive to intensify the superiority of ferroalloys. FeV is also accepted in the engineering of steel product due to its high tensile strength and lightweight. Ferrovanadium have anticorrosive property towards hydrochloric, sulfuric acids and alkali solutions. It is a combination of vanadium and iron, and as per grade it varies from 35% to 80%. Moreover, ferrovanadium material has vast application in numerous end use industries such as transportation, oil and gas, and construction.

The global ferrotitanium market size was USD 228.1 million in 2021 and is projected to touch USD 356.84 million by 2031, exhibiting a CAGR of 4.6% during the forecast period. Ferrotitanium is an alloying additive made of iron and titanium, formed by reduction or melting, with a minimum weight of titanium of 20% and maximum weight content of 75%. Compared to silicon or manganese, ferrotitanium has a substantially higher deoxidizing capacity. Steel's mechanical qualities are further enhanced by ferrotitanium thanks to the metal's increased strength and corrosion resistance. In the steel sector, tool steel and stainless steel are where ferrotitanium is most frequently employed. Additionally improving alloy characteristics is ferrotitanium. It enhances their machining capabilities and increases their wear resistance. It is also added to profile cables with a fraction of 0 to 2 mm at the same time.

Conclusion

The booming success of the LCFC, FeMo, FeV, and FeTi business is a direct result of the indispensable role these alloys play in various thriving industries coupled with the advancements in production technology. As long as the demand for stronger, lighter, and more durable materials persists in our modern world, this business is set to continue its upward trajectory.         

Key Players

·         Gulf Chemical and Metallurgical Corporation

·         AMG Advanced Metallurgical Group

·         Bear Metallurgical Company

·         Treibacher Industrie AG

·         ALBCHROME

·         Outokumpu

·         IMFA

·         Balasore Alloys Limited

·         Ferro Alloys Corporation

·         Global Titanium (U.S.)

·         AMG Superalloys (U.K.)

·         Arconic (U.S.)

·         Metalliage (Canada)

Cost Estimation

Capacity:

Low Carbon Ferrochrome (LCFC)              20 MT Per Day

Ferro Molybdenum (FeMo)                        40 MT Per Day

Ferro Vanadium (FeV)                               20 MT Per Day

Ferro Titanium                                          20 MT Per Day

 


Information

  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

ABOUT NPCS

 

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period


We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

 

The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?


The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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• This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

• This report provides vital information on the product like its definition, characteristics and segmentation.

• This report helps you market and place the product correctly by identifying the target customer group of the product.

• This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.

• The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

 

Our Approach:


• Our research reports broadly cover Indian markets, present analysis, outlook and forecast.

• The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players. 

• We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.

 

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

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