Professional Documents
Culture Documents
Chief Editor Ajay Tambe Founder www.steelgroup.co.in Editor & Conceptualiser Rajeev Kumar CEO A Plus Creative Surender Mukhija Creative Director Frames25 Head Marketing Gautam Malhotra Director Marketing Frames25 Marketing & Subscription Neha Kochhar Frames25 Design Maharaj Singh Negi Frames25 Digitalized & Marketed BY Frames25 W 9, II Floor Okhla Phase II New Delhi 110022 Mobile: +91 9990096189 mailframes@frames25.com www.frames25.com Published By Steelgroup.co.in F-1102,Akruti Orchid Park Sakinaka ,Anndheri (E) Mumbai 400072 Mobile:+91-9322199557 ajay.tambe@steelgroup.co.in www.steelgroup.co.in Copyright steelgroup.co.in
Ajay Tambe Dear Readers, Global as well as Indian steel industry is presently going through a tough time .Last few quarters were quite challenging for many of the business houses as the industry is facing many problems . Under this adverse scenario colour coated steel industry is booming in India and a lot of capacity expansion is planned to take the production capacity of colour coated steel to close to 1.5 MT from a moderate existing capacity of 0.8 MT .Majority of the capacity addition is from JSW steel which is also setting up colour coating line for appliance grade .Other companies like Uttam Galva and Ralco steels are also coming up with added capacities. The user segment also gradually becoming demanding as awareness about Galvanized and Colour Coated Steel is gradually increasing. Still, the per capita consumption of colour coated steel is very low in India as compared to Europe, US and even China which ensures the growth in this industry. Usage of colour coated steel in construction segment is also increasing rapidly in India. Steel processors, service centers and profilers play a very important role to maintain the growth of colour coated steel in India. Majority of the profilers in all major cities are family owned business houses and run in a conventional way thus resisting the awareness about this wonderful form of steel in the user segment. We have observed the necessity of having an informative bulletin in the sector after encouraging feedback from 280 delegates and dignitaries from the sector during the first GCP Summit on 22nd Feb 2013 at The LaLiT, Mumbai. This quarterly e-bulletin is our sincere effort to keep the entire sector informed about the market trends, challenges of the user segments, new equipment & technology and overall growth of the sector. Hence, your contribution and opinion are very important for us to keep us going.
Chief Editor
Founder, Steelgroup.co.in ajay.tambe@steelgroup.co.in
August 2013
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CONTENTS
INNOVATION
INNOVATION
INNOVATION
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Innovation in Coil Coating Technology Vinyl Coated Metal (VCM) Aesthetic & Majestic
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PEB Industry Overview Investment Opportunity in Manufacturing of Pre-painted Galvanized Steel Coils, Sheets & Profiles
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COMPANY
INNOVATION
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INNOVATION NOITAVONNI
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NOITAVONNI
PROFILE
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TECHNOLOGY
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INNOVATION NOIT
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OVERVIEW
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Coil & Cut Sheet Handling and Protection
LOGISTIC 26
FACE TO FACE
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NEWS 34
Steel Goal Fades as $12 Billion Projects Dumped: Corporate India
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2nd
SUMMIT
2nd GCP summit 2014, January, Bangaluru
Mr Ajay Tambe Steelgroup.co.in F-1102 Akruti Orchid Park Sakinaka, Andheri Kurla Road, Andheri (East) Mumbai - 72, India Email:ajay.tambe@steelgroup.co.in
Contact Person: Neha Kochhar Frames25 W-9, II Floor,Okhla Industrial Area, New Delhi -110020 Email: nehaframes25@gmail.com
Principal Partner
Platinum Partner
ACCIL
Adding New Dimensions to Steel
Gold Partner
Media Partners
Summit Associate
Organizer
Design Partner
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INNOVATION NOI
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Innovation
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Innovation
The surge in demand of innovative products brings out best technology, automated process and robust coating system to produce Quality products. The main development and innovation takes place to replace the conventional powder coated, spray painted, post painted system, orthodox roofing & cladding system of clad, asbestoses, bricks, with most advance quality product called PPGI. Textures & wrinkle products are based on extremely low gloss levels which reduces unwanted reflection and are being used successfully in colder areas of Europe .Abrasion resistant systems are very good in scratch resistance and find their main application in roller shutters One of the most recent products is Thermal control paint (TCP) & is based reflectivity & emissivity principles. TCP coated sheets find a foremost place in Green building concept on account of its ability to maintain lower temperatures. The product has been a breakthrough in the European markets and slowly making its way into the Asian one also. Dust free systems are based on modifying resistivity of the coating & form the backbone of clean room applications. Inspired by nature, coil coatings have products with natural looks also. The base material is metal but the feeling is of Wood grain, Marble & Leather These products are based on multi layer applications and require very high precision on coil coating lines during application. Even the most advanced sector of coil coating industry i.e. Appliance has not been left untouched by the innovations in the industry.
Process
The progress of advanced coil coating technology in the last 30 years since it was first introduced to the market has been amazing. Latest coil coating technology not only produces higher quality finished goods, but enables a process that is cost effective, efficient and eco-friendly. Although coil coated products are modern, innovative, stylish & tough but their feasibility is dependent on a lot of processes like pre-treatment of metal, process of application & quality of paints and there have been significant innovations in all the three fields. In early nineties the process of pre-treatment was based on acidic and chrome chromates, and then came amorphous phosphates with chromate post rinsing which proved to give better adhesions. These pre-treatments were good for multi substrates like HDG, CRS or Aluminium. With some advance developments in 80's & 90's, a new concept had originated and that is no rinse pre-treatments to save energy, money and protect environment. Latest technology involves Chrome free pre-treatment to eliminate toxic components and adheres to environmental legislations.
Product
Regular Products The technology has changed for better prospects over the years in each and every sector like Building, Automotive and Appliances. Innovation has led the old paint systems of alkyds, acrylics & vinyls to regular Polyesters, Super durables & Silicon modified products. These products are widely being used for roofing & cladding applications. Advanced Products A lot of work has been done on establishment of advance products like Poly vinyl di-fluoride (PVdF), Wrinkle/Texture, Abrasion resistance coatings, TCP, Dust free system, Wood grain ,Appliances etc. Coil coaters & paint suppliers are working hand in hand to give best quality product for the best intended use. They are also working on some of the new products which are very attractive on protecting environment & controlling pollution. PVDF Coatings are premium products which gives best outdoor & long term durability because of excellent UV resistance.
August 2013
Innovation
The monotony of white color in OEM sector has been transformed into a plethora of colors by the new technological advancements in the coil coating industry. New patterns are very eye catching with various dark colors. One has a variety of patterns to choose from solid to metallic finishes, smooth finish to embossed effect. Paint suppliers are also working on upcoming patterns like Lamicoat films, brush finish, hair line and attractive floral patterns. Electron Beam curing process which is intended to provide ultra fast curing, high line speed, compact oven size and high production. Coil coating industry has come a long way from its baby years and has now entered its youth at the epitome of its beauty and strength. This is not the end, this is the beginning of a new era which will usher into the world of colors with a myriad applications.
Floral pattern
Embossed Pattern
Over 10 million tons of such coated steel is produced today in over 300 coating lines all over the world!!! Today, the world is truly beautiful and more colourful like never before.... Thank you Pre-painted Coil Coating Products
Line Technology
Moving on to the processing segment, earlier conventional lines were operated at a speed of 12-20 meters per minute (mpm) but latest lines are operating upto 120 mpm to cater the growing demands from the market. Not only have line speeds increased tenfold, the number of substrates, paint systems & product application has proliferated over the same period. Latest curing technologies includes Near Infra Red, Infra Red, Ultra Violet &
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Innovation
Construction and Consumer Durable segments. PCM and VCM will surely satiate the needs of white-goods and construction sectors by offering the flexibility and freedom to incorporate futuristic designs and patterns, depending on the designer's inspiration. Pre-coated metals eliminate the need for customers' in-plant liquid or powder painting. By purchasing Precoated, customers usually realize significant improvements in quality, cost savings, and production efficiencies. Of the various Precoated metal categories, Vinyl-Coated are "best in class." They provide superior appearance, durability and overall performance. Vinyl coated metal is a value-added product in which vinyl film is bonded to the surface of a metal sheet (usually Cold Rolled, Galvanized or Galvalume). The basic difference between Pre Coated and Vinyl Coated Metal is, Pre Coated Metal sheets are provided by applying a paint film on a metal sheet while Vinyl Coated Metals are essentially metal coated with a vinyl film. Both
this ads aspiration value to the various appliances. As of today, not a single domestic player caters to VCM finishes. Vinyl coated metal is totally imported. The import is primarily done from Korea. The current major suppliers are POSCO, Dongbu and Union Steel to name a few. JSW Steel has taken flight to the future by establishing new Colour Coating line at its Vasind Unit. This technologically superior line will serve the niche market with highly specialized products VCM (Vinyl Coated Metal).
August 2013
Innovation
JSW Steel's Textured-finish colour coated coils and sheets are durable, cost-effective and easy to install and use. Hence, it proves to be a versatile product for various applications like panelling, steel doors, wall and ceiling panels and even for furniture. It is virtually a ready-to-use product that can be cut, bent, pressed, drilled, roll formed, lock-seamed and joined, all without damaging the surface or the substrate. The manufacturing of VCM comprises of pre-treatment, chromating and phosphating of sheets, an application of primer coat followed by backer coat at appropriate temperature. The primer is based on poly vinyl chloride co-polymer, phthalate plasticizers, pigments and heat and light stablizers. A vinyl film is applied on a base metal which could be either Galvanised steel or Galvalume. There are two types of coaters of vinyl film: sheet laminators and coil coaters. These coaters apply the films the same way except the metal is either pre-cut into sheets or coated in coil form prior to cutting or shearing. The coating lines clean the metal to remove mill oils and metal fragments. These cleaning processes include liquid alkaline cleaners, brushes, and rinse tanks. After the cleaning, there is pretreating with iron phosphates for cold rolled steels, zinc phosphates for Galvanized steels. Adhesives are roll applied, run through a continuous gas fired oven and partially cured. When the pre-glued sheets or coils of metal exit the ovens, the vinyl film is rolled onto the surface of the metal and rolled by metal rolls. It is the pressure of the metal rolls and the residual heat in the metal
strip that completes the curing of the adhesive to the film and the metal surfaces. Advantages of Vinyl-Laminated Metals Attractive Optimal coating quality and consistency Customizable designs Product innovation and differentiation Durable - highly resistant to abrasion, peeling, tearing, texture loss, fading, stains, corrosion, chemicals, weather, moisture, household substances Temperature (hot or cold) insulation Sound-dampening Fame-retardant & fire resistance (self extinguishing) Non-toxic Electromagnetic and radio frequency resistance Fingerprint resistance Easier to clean and less maintenance than other finishes Environmental Friendly: vinyl contains post-consumer recycled content; recyclable and/or biodegradable after use VCM products are engineered for effective formability and are normally well-adapted to press braking, roll forming, stamping, shearing, piercing, die-cutting, crimping, laser cutting, drilling, punching, beading, folding, drawing, lock forming, adhesive bonding, fastening, and wing bending. By manufacturing VCM first time domestically, JSW has made its point to always raise the bar for itself and the industry as whole. This has been done with relentless pursuit of technological advancement, unwavering focus on innovation, strident emphasis on quality products and constant initiative for customer satisfaction.
Construction Pattern
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COMPANY
PROFILE
YogijiDigi: Carving a Niche for Themselves
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Company Profile
From Left to Right Mr A K Rana, Mr Samir Bansal, Mr S K Tripathi & Mr Navneet Gill
Since the beginning of time, behind the growth of every revered brand name in the world, there have been three distinctive attributes. A vision, holding true to its core values, and finally, continually delivering on its promise of providing superior quality products, technologies & services.
An Association to Excel
The vision of providing economical energy saving Drives & Automation solutions for all industry sectors led to the conception of DIGI DRIVES in 1993. Under the able leadership of Mr Navneet Gill & Mr Samir Bansal, the company began its operations from a small setup in Faridabad manufacturing FHP Bonzer DC Drives. Within a few years, DIGI developed a fully equipped workshop and lab at Faridabad with complete automation system design facility. From the fabrication of panels to FAT (factory acceptance test) of Drives, DIGI became a single source solution provider of Motors, AC Drives, PLC, DCS, Instrumentation, MCC, PCC, Power factor Panels and AGC (Automatic Gauge Control).
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DIGI soon became the channel partner of ABB & the pioneers of the Automation sector in India by providing automation solutions for several plants of Paper mill, Printing, Sponge Iron, Power Plants & Cold Rolling Mills. It was during these several projects of automation for Cold Rolling Mills that DIGI realized there is a dearth of quality Flat Steel solutions provider at an affordable cost in the market. With only a few players supplying quality solutions but at a very high price, there was a big potential in the market to carve a niche for themselves by being a one stop solution provider to the customers. In a global economy subject to ever changing market dynamics & heightened competition, a one stop solution which covers all the requirements of the customer, cutting down cost was the need of the hour. With this vision, brand DIGI joined hands with YOGIJI TECHNOEQUIP in 2008 forming a unique association. YOGIJI TECHNOEQUIP founded by Mr A K Rana (Ex MECON) & Mr S K Tripathi, brought with them invaluable years of experience in design, manufacturing, erection and commissioning of Flat Steel Solutions to the table. With this strong alliance, YOGIJI DIGI setup a state of the art manufacturing facility near Faridabad in 2009 with imported machines. In a short span of time since the alliance, YOGIJI DIGI have successfully designed and commissioned several Cold rolling Mills of varying widths & speeds rolling thinner gauges (0.150.20 mm) with yield of more than 98% on a regular basis.
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Company Profile
With the first narrow width Cold Rolling Mill commissioned recently & a Push Pull Pickling line for AVON Ispat Ltd. Ludhiana under erection in India, YOGIJI DIGI is making their presence felt at home as well. By achieving excellent results for their existing lines, they are grabbing repeat orders from their customers and with each passing day YOGIJI DIGI brand gets stronger. With the vision to become one of the leading flat steel solutions providers, they are constantly evolving with time led by innovation & determination. With their core values of providing quality solutions at an affordable cost intact, they are already delivering on their promises to the old customers & the new.
Overseas Operation
Successful commissioning of the mill in Zambia led to several repeat orders by the same customer for their projects in Uganda, Mozambique, Tanzania & Ghana. Another 1300 mm width high speed Cold Rolling Mill is already under erection in Egypt. Besides the Cold Rolling Mills, they are also supplying Continuous Galvanizing Line, Push Pull Pickling Line, HR Slitting, CR Slitting, Cut To Length Line & have successfully commissioned their first Color Coating Line in Uganda that uses the top of the line Dual Head Coater of GFG USA. Years of experience & knowledge of both the Mechanical & Automation sector on their side led to the design & manufacturing of their first 1000 mm wide 500 mpm 4 HI Cold Rolling Mill in Zambia and 1250 mm 600 mpm 4 HI Cold Rolling Mill in Nepal which had the best features of several mill designs.
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Company Profile
Simplistic in nature and by removing the redundant features of age old designs, these mills achieved great efficiency with top quality. Achieving such a result at an affordable cost for the customer set a precedent for the things to come. The brand YOGIJI DIGI had now ingrained DIGI's core value of providing 'quality & efficient solutions at an affordable cost'.
work for them from the beginning of the project planning till the very end of the project. Due to this, customers end up taking wrong decisions without any technical guidance to help them out. It is when we come into the picture; we realize how the customer has been taken for a ride. For such customers the whole project has to be approached from the scratch bringing them back to square one. This results in customer's precious time and resources being lost. Considering the competitive market it ultimately leads to loss of business for the customer. Apart from the issues relating to the customer, there are other factors as well such as the slow pace at which the bank formalities are done by our Indian banks. For certain services the bank takes months to complete their formalities through endless documentation & procedures. In a global market, months' time can lead to political upheavals in a country which can ultimately cause the whole project to be delayed. For a project to be completed in time and for us to compete in the global market, it is imperative that our Indian banks improve their efficiency.
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TECHNOLOGY
Technology
Link Coater In 2006, a totally different coating head construction was patented by FME. This construction, called a Link Coater, does not rely on linear bearings or weak deflection-prone roll supports to establish the inter-relation of nipped rolls. The machine configuration has more to do with strip transport than coating application. Therefore it is the coating head construction and interaction of the nipped that impacts the end coating result. The innovation of the Link Coater construction is that it is based on the triangle geometry. Each corner of the triangle connects a vital coater function in a very rigid configuration and it has similarly triangular link configuration for all coating head roll. So this is the basic difference of design in Link coater design to the conventional roll coating design. Each additional roll such as this pickup roll and metering roll, if included, are also similarly configured in triangular links. As we find that conventional roll coating design has stacked slide type
August 2013
design and L- shaped roll support frame mounted on linear bearings so due to that the nip force measurements are far away from the actual roll nip. The design is affecting the actual nip force magnitude because of the unknown stick slip bearings. It has been observed that the stacked slide design mounted on the linear bearings exhibits what is commonly called stick-slip in operation In Link Coater, the applicator roll, metering roll and pick up roll is mounted in traditional fashion. The pivot points replace the traditional linear slides with rolling bearings which provide very low friction and eliminate stick-slip. These bearings are sealed from coating and solvent contamination. LINK COAT Coater-roll support slide deflectionSo due to the configuration difference with the conventional coating design we get the points like there is no deflection or loss of load due triangular geometry of support frame. Some other weakness of the conventional roll coating design is that the deflection of the applicator roll support affects the roll
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Technology
Conventional L-Shaped coating head nip repeatability. A stress analysis of the Link Coater vs. the L-shaped stacked slide quantifies the intuitive observation that the Link Coater construction has 25 times the deflection resistance of the stacked slide.
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Technology
CONVENTIONAL coater- roll support slide deflection Advantage the link coater : It eliminates stick slip It eliminates inter-nip roll deflections It eliminates effects of drive shaft vibration It provides reliable and repeatable nip force measurement It enables closed loop nip-force control coater provides paint thickness accuracy up to 0.5 micron. The pay-back of this technology is to improve the Statistical Process Capability of your coil coating operation. Reducing process variation will not only improve product color and consistency but also provide improved cost control through better paint utilization. For more information visit www.fitchmetalseng.com
August 2013
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PEB Industry Overview Investment Opportunity in Manufacturing of Pre-painted Galvanized Steel Coils, Sheets & Profiles
OVERVIEW
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Overview
Driving Factors
PEB concept gained impetus in the Indian markets in the early 2000 due to opening up of the economy and a number of multinationals planning to set up their facilities to target the rapidly growing Indian consumer demand for different products. Changes in Government regulations, industry friendly policies and promotion of India as preferred FDI destination also resulted in heavy FDI inflows thereby giving a further boost to the PEB technology. Though the growth has been exciting, application of PEB concept has still long way to go in the construction sector and acceptance among the corporate which is yet to reach to the level of developed economies. Growth of PEB industry has given development of a new and separate dedicated product line to the steel industry color coated steel. Color coated galvalume steel is considered more durable and corrosion-resistant than post painted steel and also have excellent workability and aesthetic qualities. A wide arrange of color options are also available with pre-painted steel based on various industry requirements with most of the leading steel producers already catering to this with focus on galvalume steel as a separate product.
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Overview
New Opportunities
Structural steel is an area which is not yet tapped completely and has very high potential due to very less number of organized players doing offsite fabrication. But the scenario is expected to change over the next few years where demand for factory controlled fabrication will increase when compared to current model of site fabrication. Citing this opportunity, Kirby has entered this heavy engineering applications that include Offices / Commercial Buildings / High Rise Buildings, Shopping Malls, Multiplexes, Power Plants, Oil & Gas Structures, Steel Plants, Bridge Girders, Multi Level Car Parking Structures, Airport Terminal Buildings, Residential Buildings, etc. to cater to growing structural steel demand in the country.
Overview
PEB structures, in addition to the standard packages which include STAADPro, AutoCAD, ProSteel, Tekla, etc. which allows all the buildings to be customized as per the unique demands of the customers. Over the years, Kirby India has evolved from a mere manufacturer of PEB to a total solution provider for customer needs. Like a true leader, it has constantly tried to set new standards in the PEB industry. The company has demonstrated its capability to design and manufacture complex & heavy structures and also by setting up mega projects in the Automobile, Shipyard, General Engineering, Infrastructure, Logistics, and various other sectors. Kirby India has also successfully ventured into many unexplored territories like Power Plant Structures, Bridge Girders and Shipyard structures and became the role model for other PEB players by making inroads into these areas and laying the foundation for similar type of projects. The company has the privilege of partnering most of the leading corporates across all industries by setting up their facilities. To name a few, Kirby India has been associated with companies such as Nokia, Skoda, Tata Group, Reliance Industries, Hindustan Unilever, UNICEF, BMW, Renault-Nissan, Suzlon Group, Birla Tyres, Apollo Tyres, MRF Ltd, Bridgestone, Pipavav Shipyard, L&T, Toshiba-JSW, Pepsico, Coca-Cola, Procter & Gamble, Dabur India, ITC Ltd, Delhi Metro, Bangalore Metro, Hyderabad Metro, Essar, JSW Steel, JSPL, Gati, Mahindra & Mahindra, Asian Paints, Hindusthan National Glass, Shimizu Corporation, Soma
Enterprise, Siemens Ltd, Sterlite Industries, Alstom, Bharat Forge, POSCO, Madhucon Projects, Ruchi Group, BRG Group, Base Corporation, PRP Exports, Kohler, NCC, ABB, Jain Irrigation, Ministry of Defense, etc. and many more. Kirby also received some recognitions and accolades such as CNBC-TV18 Infrastructure Excellence Award 2011, Greentech Environment & Safety Awards 2011, EPC World Awards 2011 and Greentech Safety Award 2012 to name a few. The company has also received various other awards in seminars or events where the company has participated or sponsored over these years.
August 2013
Overview
the growth of PEB industry as steel is durable, easy to produce, environmental friendly and has the ability to withstand some of the most damaging weather conditions. Therefore, steel is a green building material - a concept that is increasing in popularity with both builders and consumers. The heightened emphasis on green building construction is also poised to push market expansion. The use of sky lights and solar panels on rooftops will meet daylight and captive power requirements, while, at the same time, reducing emissions and gaining carbon credits under clean development mechanism. Effective usage of insulation material, louvers and other materials are also becoming part of green buildings. All the materials used in making of Kirby buildings are recyclable and environmentfriendly. Kirby is always looking forward to be a part of ecofriendly products and the ongoing green revolution in the construction industry. To conclude, Kirby is the only PEB manufacturer in India that is capable of supplying a packaged solution for all building requirements maintaining international quality standards. Almost all the big names in Indian corporate & multinational companies that have set up facilities in India have joined hands with Kirby in some way or the other. Today, Kirby has become a generic name in the PEB market in India and has maintained its market leadership through its innovation and vast experience. Its buildings have stood the test of time, time and again against all odds manmade and natural. www.kirbyinternational.com E-mail : kirby@kirby-india.com Phone: +91 8455 224401/02
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Overview
Investment Opportunity in Manufacturing of Pre-painted Galvanized Steel Coils, Sheets & Profiles
Girish Ghate:- EISEN ENGINEERING
There has been an exponential increase in the domestic demand of pre-painted steel in India for the past five to six years. The consumption pattern in the pre-painted steel indicates a growth of 26% for the past five years. Consumption of pre painted steel in India stands at 270,000 tons per year during 2010-11. Based on a sustained growth rate at the same pace, the demand for pre-painted steel in India is expected to reach 2.2 million tons per year by 2019-20, which calls for substantial increase in the domestic production capacity. This paper briefly describes the techno economic feasibility of setting up manufacturing facilities for the production 60,000 tons per year of pre painted steel coils & profiles. Galvanized steel coils have been considered as the input raw material. Major production facilities include entry section, pre-treatment, primer coating, finish coating, exit section, profiling, power & utilities etc. An investment of Rs. 50 crore and an annual turnover of Rs. 360 crore has been envisaged. The IRR works out to 23% with a payback period of 4 years.
There has been an increasing demand for Pre Painted Galvanized Iron (PPGI) steel sheets & profiles in domestic market in India. PPGI finds its application mainly in construction, decorative, appliances and automobile industry. Consumption of PPGI in has seen steep growth in Indian domestic market in the past five years due to the exponential growth in construction as well as in appliances & automobile sectors. Consumption of PPGI is further fueled due to the steady replacement of asbestos and GI sheeting by PPGI in construction industry. PPGI steel exhibit much superior corrosion resistance over galvanizing or painting of sheets applied as 'stand alone' over steel. Galvanizing provides cathodic protection to steel while the paint retards the consumption of zinc during service life of GI sheets. Due to the synergic effect of galvanizing & paint together, the service life of PPGI steel is 1.5 to 2.5 times longer than the sum
of the service life of galvanizing & painting used independently. Excellent formability enables PPGI to be formed in required shapes used in construction & appliance industry.
Market
The demand for PPGI steel in the Indian domestic market is increasing at an exponential rate of 26% for the past five years as seen in the following table. The demand for PPGI steel as on 201011 stood at 270,000 tons per year.
% growth 29 27 25 23 25
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Overview
Based on average growth of 26%, estimated demand for PPGI works out to 680,000 tons per year by 2014-15 during which the demand for PPGI will surpass the domestic production. Based on a sustained growth rate of 26%, domestic demand for PPGI will reach 2.2 million tons per year by 2019-20, which calls for substantial increase in the domestic production capacity. This paper briefly describes the techno economic feasibility of setting of manufacturing facilities for the production of 60,000 tons per year of PPGI coils and profiles based on galvanized steel coils as the input raw material. Entry Section Pre-treatment Primer Coating Finish Coating Exit Section Profiling
Entry section involves pay-off real for unwinding of incoming GI coils, end cutting shear, stitching machine for joining subsequent coil, looper and feeding & guiding system for the strip to pass through the production line. Pre-treatment of the coil involves application of a thin layer of chemical that bonds the coating surface of steel to the subsequently applied paint and ensure excellent adhesion. After the pre-treatment, uniform layer of primer is applied on the surface in the Primer section. Application of primer paint essentially provides corrosion resistance to the product. Primer paint is dried in the primer oven before it passes to the next section. After applying the primer layer, the strip surface is applied with top coat as per the requirement and then cured in the finish paint oven. Top coat provides excellent appearance to the surface and provides resistance to ultra violet light. Exit section consists of cutting shear, re-coiler & coil car. Finished
Production Facilities
Production of PPGI steel essentially involves continuous painting of GI strip with a layer of primer paint and subsequent coating with finish paint. The paints used for coating are generally of polyester, polyurethane, PVDF, plastisol etc. Brief technical specifications of the production line proposed here are as follows: PPGI grade Input material Strip width Strip thickness Line speed Construction grade GI coil 600 to 1250 mm 0.2 to 0.8 mm 50 mpmThe production line
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Overview
Project Cost
Total project cost works out to Rs.50 crore as follows: o o o o o o o o Land & Site Development Civil & Structural Plant & Machinery Utilities & Other Assets Know How & Engineering Preliminary & Preoperative Contingency Margin for working capital Rs. Cr 2 10 21 5 2 3 1 6 Total ...50
Manufacturing Costs
painted steel coils are wound on the re-coiler provided in the exit section. PPGI sheets are processed on the forming lines to produce final shapes as per the market requirements. The manufacturing cost includes the cost towards raw material, consumables, power, utilities, manpower, repairs & maintenance and works overheads. Annual manufacturing expenses amount to Rs. 336 crore as follows: Rs. Cr Raw Material Consumables Power & utilities Manpower Repairs & Maintenance Works Overheads 318.00 6.00 5.00 3.00 0.50 3.50 336.00
Power
Total requirement of power for the plant works out as follows: Maximum Demand, KW ...1000 Annual Power, mill kwh ... 5.1
Requirement of power will be met by state grid. Power will be received at 11 KV and stepped down to required voltages inside the plant.
Revenue
Based on the production envisaged and unit sales price, the total revenue of the plant is estimated at Rs. 360 crore based on the production of 60,000 PPGI per year.
Financial Indicators
Key financial parameters and indicators are as follows: Project Cost Project Cost Debt Equity Rs. Cr Rs. Cr Rs. Cr 50 33 17
Schedule of Implementation
Total time required for implementation of the project is estimated at 12 months. Activities involved in the implementation include basic & detailed engineering, procurement, civil & structural work, equipment installation, cold commissioning, hot trials & commissioning.
Manpower
The total manpower requirement of the plant during operation is estimated at 60 as follows: General Manager Manager Engineers / Executives killed Operators Semi Skilled Manpower 1 5 18 12 4 Total ... 60
Financial Parameters BEP, conventional BEP, cash Basis IRR on Investment PV Index Pay back, convent. Pay back, NPV
% % % Year Year
40 33 23 2.2 4 5
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LOGISTIC
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Logistic
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Logistic
Handling of Material at Plant Coil handled with C-Hook padded with Woolen felt. The floor should be flat & clean. In the plant, Padding on hooks and other handling devices helps to avoid damage on edges. Cushioning materials like felt board and polyurethane protect coils while they are moved, placed in inventory or shipped.
Transportation
Transport driver should check material must be covered with double tarpaulin. Other goods should not be transported with pre painted material. Ensure no water seepage during transportation. Ensure there should be no hole on the floor of truck to avoid water seepage. Truck platform should be flat
Warehouse
Following care needs to be taken for the coated steel product to avoid any damage to the coating Avoid the water seepage inside the packed coils and packets. Material is to be kept on the Dry surface to avoid moisture contact. Packed coil and packets are to be store and stacked properly in a closed shade to protect the material from the rain water.
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Stacking of material
Coils should remain packaged to prevent rust till further processing Partially processed coils should be repacked for future use Coils should not be allowed to butt-up against safety rails or walls or floor plates Metal-on-metal contact should be avoided whenever possible. Coil/sheet stock should be stored in dry conditions. The floor should be free of debris. Minimize coil stacking, but when required Band clips should not reside between touching coils Felt strip padding should be placed between coils Narrower coils should be stacked on wider coils Highter weight coils should be stack on heavier coils If any deviation is observed, same should be recorded in L.R. copy. Ensure there should be no damage to the goods during unloading (woollen felt, Rubber coated C-Hook etc. can be used) Do not slide sheet on rough surface or over each other. For personal safety and to protect the surface finish, wear Clean, Dry Hand Gloves. Rotated on a first-in/first-out basis Organized to minimize unnecessary coil/sheet movement Arranged so coils can be easily reached in the order you plan to use them Stack Corrosion Water is a necessary perquisite for corrosion of stored pre painted panels Water or water vapor may penetrate between panels or coil wraps due to capillary action Ambient humidity and temperature cycles will also promote water intrusion into stored panel bundles through condensation. Besides water, two other important factors that contribute to the corrosion of stored pre painted panels are temperature and exposure time. Corrosion will accelerate with increased temperature. Given enough time, panel bundles will eventually become wet and storage corrosion may occur under most job site panels. Storage/ stack corrosion can be prevented by: Reducing site storage time. Decreasing water contact. Moderating temperature extremes Courtesy JSW Steels Ltd. To Be Continued in next edition
Coils should be stacked with sufficient distance in between for SAFE material handling Recommendations : Ensure the material condition is OK during unloading of the material.
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FACE TO FACE
Ajay Tambe Face to Face with Pramod Baliga, Sagittarius Group
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Face to Face
Face to Face
serious injury and even fatalities. Much like quality, even safety requires continuous vigilance and an uncompromising attitude. Nobody should be allowed on the shop floor without basic safety equipment like safety shoes, helmets, gloves, etc. This rule extends to our visitors as well, much to their dismay, but we it is something that is of pr ime impor tance and cannot be compromised on. Another important factor that helps maintain safety, is teaching the team to look out for each other and warn the other people in advance if something unsafe is noticed. raw material prices of coated products, even though international prices are falling. Such fluctuation makes it hard for us to plan especially for big projects which span over a few months. A certain amount of stability will help independent service centres like us.
AT- What Is Your Opinion On The Future O pp or tunities I n Galvanizing And Colour Coated Steel Business?
PB- - The growth in this sector is inevitable. Infrastructure is a crying need of the country and this sector looks well placed to service this need. There is also tremendous competition in this sector, but we believe that a strong customer focus and financial prudence will define organizations that will succeed. This is a very big challenge and opportunity for the independent service centres as customers are demanding and input costs and labour costs are only moving northwards. There are also markets that remain largely unexplored and extending our reach and service to rural or semi-rural markets is a huge opportunity for us. This might mean larger volumes but these markets have traditionally price conscious and price sensitive. One thing we would definitely like to improve in our segment is the collaboration and co-operation between the mills and service centres. Both have a lot of value to give each other. Service centres have their ears very close to the ground and their inputs would be invaluable to the mills
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Face to Face
whereas the mills have a lot to offer in terms of knowhow and best practices. They will also need to solve challenges together, for e.g., some segments of the market need better education and understanding of the product. Also, in terms of branding, once the sheets are laid it is very hard to identify which mill the sheet has come from and which service centre the material has been processed at, this needs to change.We also need to identify areas where we can provide value addition for the customer and other areas where colour coated products can be used. We need to diversify usage from roofing and cladding to other areas; this will help us avoid stagnation and improved pricing. This will also help avoid unfair practices taking place in the market. All in all, like any industry that is yet to m a t u re t h e re a re c h a l l e n g e s a n d opportunities. We need to convert the challenges to opportunities both at an industry level and a service centre level. (PB - Pramod Baliga AT - Ajay Tambe)
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NEWS
Steel Goal Fades as $12 Billion Projects Dumped: Corporate India
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are alternative for laminates with unique features and benefits, cheaper by 20% and expect to capture at least 10% of the market share in the current year. Essar Steel has annual production capacity of 400,000 tonnes of colour-coated products. The products can be made weather-proof, corrosion resistant, UV resistant and anti-bacterial. "We are targetting exports to cold countries like Russia and Northern Europe were these products offering 100% UV resistance, is in demand. The north east region of our country is also a target area. We are looking at a volume of 5,000 tonnes per month," said R Sirdhar, Business Head Downstream Products, Essar Steel Ltd. Wood finish steel is a vale added product and is priced at a premium of 20% over pre- painted steels.
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News
Commenting on the launch of the product, Mr Dilip Oommen, Managing Director & CEO, Essar Steel India, said, "Jammu and Kashmir is potentially a big market for us. With the launch of this product we are sure that we will be able to create a mark for our brand in this market. These products have been tested for extreme weather conditions in the region and we will put in all necessary steps to ensure a consistent supply and service to our valuable customers. These color-coated products are currently available in a variety of shades and patterns. There are more than 480 shades - ranging from RMP, SMP, PVDF, Wrinkle, Wood Finish and ARS. The products find varied application in construction and infrastructure industry, white goods and automotive industry depending on life cycle and environment. Currently these products are being largely exported to Europe, Russia and African countries.
With the CIL-MH partnership, the company is poised to increase sales and accelerate global business expansion, thereby aiming at being the No.1 supplier for metals machinery in the world. Sources : www.goodreturns.in
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Monnet's problems started with land acquisition issues. Following signing of the MoU, the Jharkhand government had created a nodal agency Jharkhand Infrastructure Development Corporation (JIDCO) to acquire the land for the project. Monnet had deposited the desired amount. However, after three years, JIDCO was dissolved and Monnet was advised to go for purchase of land directly. "We started to work on land acquisition in Hazaribag and were later told that water is not available at this site. So, we changed the project site to Chas Block in Bokaro district with assurance from the state that required water will be made available from the Damodar river," Mr. Mudgal said. However, when the company was ready to register the land following the "tedious process of verifying ROR (Record of Rights) and making all efforts", the state government informed it that water could not be made available from the river. On the iron ore front also, Monnet said, the state had backtracked from the earlier promises. Mudgal said the state government had recommended to centre for allocation of Ghatkori Iron Ore mine to Monnet Isapt, only to withdraw later saying the area has been reserved for state-owned firms. Monnet took the matter to court, but lost the case. It seems Jharkhand does not require industry. We briefed all this to Inter Ministerial Group meeting in the Ministry of Steel that in the absence of water and iron ore, it is not possible for to move ahead," Mr. Mudgal said. However, unlike Posco or ArcelorMittal, which pulled out their cumulative Rs. 80,000 crore investment proposal in Jharkhand and Odisha respectively, Monnet does not want to lose hope in Jharkhand even now. In a statement issued to announce its financial results on Tata Steel said, while "the Group has successfully implemented its 3 million tonne per annum bownfield expansion at Jamshedpur to take total capacity to 10 million tonne in March 2013. The group is now embarking on its next phase of growth and is setting up a 6 million tonne steel project in Odisha."
Tata Steel Sets Up New 6mn Tonne Steel Plant for Odisha Project
To initiate its new Greenfield six million tonne steel plant in Odisha's Kalinganagar, Tata Steel has set up a new subsidiary, Tata Steel Odisha. According to the reports, the project will be implemented in two phases of 3 million tonne each. Tata Steel said it has successfully negotiated financial closure of its 6 million tonne per annum Kainganagar project. Some Rs 22,800 crore worth of project financing was tied up with a consortium of 21 banks and financial institutions. This will meet the funding requirement of both the phases of the project.
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News
Ankit Metal to Put Up Steel & Power Plants for Rs 408 Crore
Ankit Metal & Power, an arm of the Rs 4,000 crore SKP Group, that also owns companies like Rohit Ferro Tech (a leading producer of ferro chrome), Impex Ferro Tech (largest producer of manganese alloys) and SKP Overseas (owning Indonesia coal mines), is now coming up with a new steel, pellet & power plant at Jorehira in West Bengal's Bankura district with a capital outlay of Rs 408.45 crore. This is part of the company's backward integration plans. The company had earlier announced a Capex plan of Rs 2000 crore over the next two years, which included ramping up of its steel, alloy, pellets and power capacities through greenfield and brownfield expansions. The company is also on the look-out for mines and alloy units (domestic or overseas), if they are available at right prices, top company officials said. "The new plant, which is expected to be commissioned within this year itself, will produce 45 MW of captive power, 0.6 million tonne of pellet, 100 thousands tonne of wire rods, 30 TPD sponge iron, RM pre heater and AOD converter," Ankit Patni, managing director, Ankit Metal & Power, said. "In a country where production and manufacturing industry is facing tough challenges due to shortage of power, the captive power plant will definitely boost the production capacity of the company. Once the plant is operational, it would generate about 3000 employment, direct and indirect, in our state", said Mr Patni. The plant, being put up on a 100 acre land, enjoys the locational advantage of being positioned close to the coal belt in Ranigunj and having linkage with Coal India Limited for supply of company's annual coal requirement, thereby deriving cost savings in logistics and transportation, he said. Once all the projects, which have been lined up, come through over the next two years, the company is looking at a steel capacity of 400,000 tonne per annum, alloy capacity of 400,000 tonne per annum, pellet capacity of 2 million tonne and captive power generation of 150 MW. Strategically located on the coast in the state of Maharashtra, India, the JSW-Dolvi Works 1.0 MTPY MIDREX Plant began operation in 1994 producing cold DRI for use on site utilizing 100% natural gas. With the continuing escalation of natural gas pricing, combined with infrequent availability of consistent gas supply in India, JSW Steel has looked to Midrex for use of coke oven gas to create better sustainability for the plant and overall site. The project, scheduled to be completed within 16 months or less, will use COG as a supplement to its natural gas intake so that the DR plant will be able to efficiently operate under a wide range of operating parameters, offering maximum flexibility to JSW Dolvi Works. JSW Dolvi Works is owned by JSW Steel Ltd. (India's largest privately owned steel company) and has a long history of implementing technological enhancements to boost productivity, lowering costs and improving environmental performance. These include the induction of an automated Lime Coating System and an Oxygen Injection System. Sources : www.mydigitalfc.com
JSW Steel ranked world's most aggressive steelmaker for expanding capacity rapidly: World Steel, USA
JSW Steel, the flagship company of $11 billion Indian conglomerate JSW Group has been ranked as the world's most aggressive steelmaker for expanding capacity rapidly by World Steel Dynamics (WSD) Inc, USA based on a study of 34 world class steel makers. The country's largest private steel manufacturer in terms of installed capacity, JSW Steel has also secured highest scores in conversion cost, yields and most preferred location in highgrowth markets. WSD has 34 steelmakers on in its "World-Class Steelmakers" list. Based on 23 parameters that include size, expansion plan, adaptation of new technology & products, pricing power, raw material security, labour , environment, safety and energy cost etc, JSW Steel has been ranked fourth amongst the best operating steel plant in the world. Mr Seshagiri Rao, Jt MD and Group CFO, JSW Steel said, "We are a rapidly aggressive expanding company seeking to harness new technologies and the substantial expected growth of steel demand in India. We will be commissioning our new 2.3 mtpa capacity Cold Rolled Mill this year in our downstream plant. We have also decided to produce automotive grade steel in collaboration with JFE of Japan. The company can achieve 90 per cent of capacity utilisation by December.
Midrex and JSW Steel to Convert DR Plant to Allow Use of Coke Oven Gas to Supplement NG for DRI Production
Midrex and JSW Steel to convert DR PMidrex Technologies, Inc. and JSW Steel Ltd. have announced the signing of a contract to modify the existing MIDREX Direct Reduction Plant located at JSW-Dolvi Works (formerly JSW Ispat, Ltd.) to utilize coke oven gas (COG) to supplement its natural gas supply for production of direct reduced iron.
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WSD in its report says the global economy is looking better. The risk of a global recession in 2013 seems diminished, although global growth in 2013 may not be robust due to reduced gains in fixed asset investment. It has further forecasted of a 4% rise in global steel production because of an increase in steel buyer inventories. WSD expects steel demand growth to be about 2.5% per year by 2020 or a higher growth rate than China. World Steel Dynamics is a strategic information service providing critical and new perspectives on possible and probable steel industry developments. WSD regularly analyzes and publishes reports on steel prices, steelmakers' costs, steel supply, demand and steel finances. Sources : Mitsubishi Hitachi, SMS Group, Economic Times, www.goodreturns.in, www.livemint.com, www.bloomberg.com, www.mydigitalfc.com, Midrex, JSW Steel & JSPL
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JOURNAL
A Quarterly E Magazine for Galvanizing Coating & Profiling Sector
Targated to
The entire Galvanizing, Coating, Profiling and its related sectors.
Circulation
The first edition will be going to more than 10,000 individual in the sector.
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Chief Editor
Mr Ajay Tambe Steelgroup.co.in Email:ajay.tambe@steelgroup.co.in
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