Industry Overview
Electric resistance welded (ERW) pipe is manufactured by cold-forming steel sheet into a cylindrical shape and joining its edges through electric resistance or induction heating, without welding filler material. The process initially used low-frequency A.C. current from the 1920s until 1970, after which high-frequency ERW technology was adopted to achieve higher-quality welds. Low-frequency ERW pipe was subsequently discontinued because of susceptibility to selective seam corrosion, hook cracks, and inadequate seam bonding.
ERW steel pipes and tubes are widely used in engineering, water, oil and gas distribution, line piping, fencing, scaffolding, agriculture, drinking-water supply, thermal power, deep-boring hand pumps, and telecom cable protection. Products are available in different diameters, wall thicknesses, and qualities, including line precision pipes, tubular poles, electric poles, and lightweight galvanised pipes for sprinkler irrigation. High-performance ERW pipes offer strength, toughness, and corrosion resistance. Improved welding technology has expanded their application in the oil and gas sector, while demand from infrastructure, automobile, and energy-related industries has supported production growth.
Cost Estimation
| Particulars | Value |
|---|---|
| Plant Capacity | 60 MT/Day |
| Land & Building (8000 sq.mt.) | Rs. 5 Cr |
| Plant & Machinery | Rs. 47.27 Cr |
| Working Capital for 2 Months | Rs. 13.81 Cr |
| Total Capital Investment | Rs. 66.62 Cr |
| Rate of Return | 22% |
| Break Even Point | 63% |
Content Index
- INTRODUCTION
- SIZE OF HOLLOW STEEL SECTIONS
- MILD STEEL (SHS) SQUARE STEEL HOLLOW SECTION:
- MILD STEEL (RHS) RECTANGULAR STEEL HOLLOW SECTION:
- MILD STEEL (CHS) CIRCULAR STEEL HOLLOW SECTION:
- TYPES OF ERW PIPE
- (1) LOW-FREQUENCY-WELDED ERW (LF-ERW) PIPE
- (2) HIGH-FREQUENCY-WELDED ERW (HF-ERW) PIPE
- (3) DIRECT-CURRENT-WELDED ERW (DC-ERW) PIPE
- PHYSICAL PROPERTIES OF PIPING MATERIALS
- MALLEABILITY
- DUCTILITY
- BRITTLENESS
- ELASTICITY
- CONDUCTIVITY
- CHEMICAL RESISTANCE/ RESISTANCE TO CORROSION
- PROPERTIES
- ADVANTAGES OF ERW PIPE
- USES AND APPLICATION
- USES
- APPLICATION
- B.I.S. SPECIFICATION
- PROCESS FLOW CHART
- MANUFACTURING PROCESS
- 1. UNCOILED, LAVELED AND WELDING OF STRIP
- 2. STRIPPING
- 3. LOOPING
- 4. EDGE TRIMMING
- 5. FORMING
- 6. WELDING
- 7. BEAD TRIMMING
- 8. SIZING
- 9. CUTTING
- 10. NORMALISING
- 11. END FACING AND BEVELLING
- 12. TESTING (PLEASE REFER IS:5504:1997)
- ULTRASONIC TESTING
- EDDY-CURRENT TESTING
- HYDROSTATIC TESTING
- MAGNETIC PARTICLE TESTING
- RADIOGRAPHIC (X-RAY) TESTING
- DYE-PENETRANT TEST
- 14. MARKING
- PLANT AND MACHINERY
- (1) UNCOILER
- (2) LAVELER
- SHEAR AND WELDER
- HIGH QUALITY WELDING SEAM.
- 1. SWITCHGEAR RECTIFYING CABINET
- 2. INVERTER OUTPUT CABINET
- 3. CONNECTING OPTICAL FIBER
- 4. CIRCULATION SOFT WATER COOLING SYSTEM
- 5. CENTRAL OPERATION CONSOLE
- 6. MECHANICAL ADJUSTMENT DEVICE
- (4) ACCUMULATOR
- ACCUMULATOR
- THE HORIZONTAL SPIRAL ACCUMULATOR FOR WELDED PIPE LINE
- (5) FORMING AND SIZING SECTION
- FORMING AND SIZING MILL
- MATURE TECHNOLOGY FOR ROLLER COMPATIBILITY
- OPTIMIZED FORMING
- EDGE BENDING
- W-FORMING ON FIRST STAND
- UNIQUE MODULE ROLL (ASSEMBLY ROLL) AND JUANTIE (EDGE GRADUALLY TO CENTER) FORMING TECHNOLOGY
- (6) HF SOLID STATE WELDER
- HIGH QUALITY WELDING SEAM.
- 1. SWITCHGEAR RECTIFYING CABINET
- 2. INVERTER OUTPUT CABINET
- 3. CONNECTING OPTICAL FIBER
- 4. CIRCULATION SOFT WATER COOLING SYSTEM
- 5. CENTRAL OPERATION CONSOLE
- 6. MECHANICAL ADJUSTMENT DEVICE
- (7) ANNEALING FURNACE
- (8) FLYING SAW
- FLYING SAW
- MAIN SPECIFICATION:
- MAIN SPECIFICATION:
- FLYING SAW ALL DIGITAL CONTROL SYSTEM
- (9) FACING AND BEVELING MACHINE
- (10) STRAIGHTNER MACHINE
- (11) THREADING MACHINE
- THREADING MACHINE FEATURES:
- (12) HYDRAULIC TESTING MACHINE
- ERW PIPE CURRENT MARKET ASPECTS
- INDIAN MARKET
- HUGE INVESTMENTS IN THE SOUTH/EAST INDIA
- GLOBAL MARKET
- TECHNOLOGY INSIGHTS
- APPLICATION INSIGHTS
- COUNTRIES INSIGHTS
- STEEL PIPES & TUBES MARKET SHARE INSIGHTS
- MARKET OVERVIEW
- STEEL PIPES INDUSTRY OVERVIEW
- STRUCTURE AND APPLICATION OF STEEL PIPES AND TUBES INDUSTRY
- EBITDA/TONE AND LEVERAGE ACROSS PIPE SEGMENTS/PLAYERS
- STEADY IMPROVEMENT IN SALE OF ERW STEEL PIPE
- INCREASING DEMAND FOR STEEL PIPES
- ERW PIPES
- ERW PLAYERS PROFITABILITY
- ERW PIPES GROWTH IN RECENT YEARS
- HR COIL PRICES HAVE CORRECTED SHARPLY DUE TO EXCESS GLOBAL SUPPLY, DRIVEN BY CHINA
- UTILISATION UPTREND
- ERW PIPES
- UTILISATION LEVELS HEADED NORTH
- ANNEXURE
- LIST OF STEEL PIPE COMPANIES RATED BY CRISIL
- PLANT LAYOUT
- MANUFACTURES/SUPPLIERS OF M.S ERW PIPE
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF M.S STRIP COILS
- SUPPLIERS OF RESSISTANCE WELDING ELECTRODE
- SUPPLIERS OF PICKLING CHEMICALS
- SUPPLIERS OF ZINC INGOT
- SUPPLIERS OF CASTIC SODA
- SUPPLIERS OF HYDROCLORIC ACID
- SUPPLIERS OF ZINC AMONIUM CLORIDE
- SUPPLIERS OF DEGREASING CHEMICAL
- SUPPLIERS OF PHOSPHATING CHEMICALS
- SUPPLIERS OF PLANT AND MACHINERY
- SUPPLIERS OF ERW PIPE AND TUBE PLANT
- SUPPLIERS OF HIGH FREQUENCY INDUCTION WELDER
- SUPPLIERS OF PIPE GALVANISING PLANT
- SUPPLIERS OF EOT CRANES
- SUPPLIERS OF D.G. SETS
- SUPPLIERS OF POWER TRANSFORMERS
- SUPPLIERS OF COOLING TOWER
- SUPPLIERS OF ETP PLANTS
- SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
- SUPPLIERS OF AIR COMPRESSORS
- SUPPLIERS OF PLATEFARM WEIGHING MACHINE
- SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
- SUPPLIERS OF NDT INSPECTION EQUIPMENT
- SUPPLIERS OF FIRE FIGHTING EQUIPMENTS
- SUPPLIERS OF ELECTRICAL MEASURING INSTRUMENTS
- SUPPLIERS OF SUBMERSIBLE WATER PUMP
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 pipe is a steel pipe manufactured by forming steel strip into a cylindrical shape and electrically welding its edges together. The process uses resistance or induction heating to generate the heat required to join the edges without welding filler material. ERW pipes are manufactured in different diameters, wall thicknesses, and qualities to meet end-use requirements. They are widely used in water, oil and gas distribution, engineering, construction, agriculture, fencing, scaffolding, and other industrial applications.
ERW steel pipes are manufactured through a sequence of strip preparation, forming, electrical welding, sizing, cutting, finishing, and testing operations. The steel strip is uncoiled and levelled before forming it into a cylindrical section. The edges are heated electrically and pressed together to create the weld. Subsequent operations may include bead trimming, sizing, normalising, end facing, bevelling, and marking. Depending on product requirements, testing can include ultrasonic, eddy-current, hydrostatic, magnetic particle, radiographic, or dye-penetrant testing.
The principal difference is the electrical frequency used to heat the pipe edges during welding. Low-frequency ERW manufacturing historically used low-frequency A.C. current, while high-frequency ERW uses high-frequency electrical heating. The report notes that the low-frequency process was used from the 1920s until 1970 and was subsequently superseded by high-frequency ERW because the latter produced higher-quality welds. Low-frequency ERW was also associated with seam-related problems such as selective seam corrosion, hook cracks, and inadequate bonding.
ERW pipes are used across engineering, infrastructure, utilities, energy, agriculture, and construction applications. Major uses identified in the report include water supply, oil and gas distribution, line pipes, fencing, scaffolding, agricultural systems, thermal power applications, deep-boring hand pumps, and telecom cable protection. Product types can also include tubular poles, electric poles, line precision pipes, and lightweight galvanised pipes for sprinkler irrigation. Selection depends on the required diameter, wall thickness, material quality, and application conditions.
An ERW pipe plant generally requires equipment for strip handling, forming, welding, sizing, cutting, finishing, and testing. The report identifies machinery including an uncoiler, leveller, shear and welder, accumulator, forming and sizing section, HF solid-state welder, annealing furnace, flying saw, facing and bevelling machine, straightner machine, threading machine, and hydraulic testing machine. Supporting systems include cooling, electrical control, material handling, and inspection equipment. The exact equipment configuration depends on the pipe specifications and production requirements.
ERW pipes can undergo several non-destructive and pressure-based tests to assess weld and pipe integrity. The report identifies ultrasonic testing, eddy-current testing, hydrostatic testing, magnetic particle testing, radiographic or X-ray testing, and dye-penetrant testing. The appropriate test method depends on the applicable specification, pipe material, dimensions, intended service, and quality requirements. The report specifically refers to IS:5504:1997 in connection with testing. Proper inspection helps identify weld discontinuities, surface defects, leakage, and other conditions affecting product quality.
ERW pipe production is important because the products serve a broad range of infrastructure and industrial applications. The report highlights demand from the oil and gas, infrastructure, and automobile industries, along with applications in water supply, agriculture, power, construction, and engineering. Modern high-frequency welding technology has also expanded the suitability of ERW pipes for demanding applications. The industry can manufacture pipes and tubes in different sizes, wall thicknesses, and qualities, allowing producers to address varied requirements across domestic and industrial markets.
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