Industry Overview
Electric resistance welded (ERW) pipe is manufactured by cold-forming a steel sheet into a cylindrical shape and joining its edges through electric resistance or electric induction heating. The edges are mechanically pressed together to form a bond without the use of welding filler material.
ERW steel pipes and tubes are widely used across engineering and infrastructure applications, including water, oil and gas distribution, line pipes, fencing, scaffolding, agriculture, drinking water supply, thermal power, deep-boring hand pumps, and telecom cable protection. Depending on end-user requirements, ERW pipes and tubes are manufactured in different wall thicknesses, diameters, and qualities, including line precision pipes, tubular poles, electric poles, and lightweight galvanized pipes for sprinkler irrigation.
Advancements in welding technology have expanded the application of ERW pipes and tubes, particularly in the oil and gas sector. Their high strength, toughness, and corrosion resistance make them suitable for demanding applications. Production units are also present in the SSI sector. Growing demand from the oil and gas, infrastructure, and automobile industries has supported an increase in ERW steel pipe production. The proposed project is a Green Field Project for an 18000Tons/Year ERW MS galvanized circular pipe production facility, with pipe sizes ranging from 13mm to 75mm.
Cost Estimation
| Particulars | Value |
|---|---|
| Plant Capacity | 60 MT/Day |
| Land & Building (11,160 sq.mt.) | Rs. 11.11 Cr |
| Plant & Machinery | Rs. 11.01 Cr |
| Working Capital for 1 Month | Rs. 9.71 Cr |
| Total Capital Investment | Rs. 32.71 Cr |
| Rate of Return | 60% |
| Break Even Point | 33% |
Content Index
- INTRODUCTION
- TYPES OF ERW PIPE
- PHYSICAL PROPERTIES OF PIPING MATERIALS
- PROPERTIES
- ADVANTAGES OF ERW PIPE
- USES/APPLICATIONS
- MARKET OVERVIEW
- BIS SPECIFICATIONS
- SUPPLIERS OF RAW MATERIALS
- MANUFACTURING PROCESS STEPS/PROCESS FLOW
- PLANT & MACHINERY (BROADLY)
- SUPPLIERS OF PLANT AND MACHINERY/TURNKEY
- ENGINEERING DESIGN CONSIDERATIONS
- ETP FACILITY
- SEWAGE AND WASTE WATER EFFLUENT
- WASTE GENERATION & MANAGEMENT/GREEN BELT
- UTILITIES PER MONTH (ESTIMATED)
- PRINCIPLES OF PLANT LAYOUT
- PLANT LOCATION FACTORS
- HEALTH SAFETY AND ENVIRONMENT
- ANTICIPATED ENVIRONMENTAL IMPACTS
- MITIGATION MEASURES (PROPOSED)
- HSE REQUIREMENT
- PROPOSED IMPLEMENTATION SCHEDULE
- PROJECT FINANCIALS
- PRELIMINARY LAYOUT
- CONCLUSIONS
Appendix
- 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)
Frequently Asked Questions
An ERW steel pipe is a pipe manufactured by forming steel into a cylindrical shape and electrically welding its edges together. In the ERW process, the edges are mechanically pressed together while electric resistance or induction generates the heat needed to form the weld. No welding filler material is required. ERW pipes can be produced in different diameters, wall thicknesses, and material qualities to meet the requirements of different industries and applications.
ERW pipes are commonly used for water, oil and gas distribution, line piping, fencing, scaffolding, agriculture, drinking water supply, thermal power applications, and telecom cable protection. They are also used for hand pumps serving deep-boring wells and for products such as tubular poles and electric poles. Their suitability depends on factors including pipe dimensions, material quality, operating conditions, applicable specifications, and the requirements of the end-user industry.
ERW pipes can provide high strength, good toughness, dimensional consistency, and corrosion resistance when manufactured with suitable materials and processes. The process uses electrical heating to join the prepared edges without welding filler material. ERW technology can also support the production of pipes in a range of diameters and wall thicknesses, allowing manufacturers to serve diverse applications. Product performance ultimately depends on material selection, manufacturing controls, welding technology, finishing, and compliance with relevant specifications.
ERW steel pipes are manufactured by cold-forming a steel sheet into a cylindrical shape and electrically heating the adjoining edges before pressing them together. The electrical resistance or induction process generates the heat required to create the bond. The manufacturing line can then incorporate operations such as sizing, cutting, finishing, inspection, and quality control according to the intended product specification. The precise process sequence and equipment configuration depend on the pipe dimensions, material, production requirements, and applicable standards.
Setting up an ERW pipe plant requires consideration of raw material supply, product specifications, manufacturing technology, plant and machinery, utilities, plant layout, environmental management, safety, quality requirements, and logistics. Site selection should also consider access to transportation, infrastructure, workforce, utilities, and markets. The project report specifically addresses engineering design considerations, ETP facilities, sewage and wastewater, waste management, green belt development, HSE requirements, plant location factors, implementation scheduling, and project financials.
Welding technology is important because the quality of the longitudinal joint directly affects the performance and reliability of an ERW pipe. The process must generate and control sufficient heat while maintaining appropriate pressure and alignment of the steel edges. Advances in welding technology have contributed to the wider use of ERW pipes and tubes, including applications in the oil and gas sector. Consistent process control, inspection, testing, and adherence to applicable specifications are important for achieving the required product quality.
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