Profile No.

: 115 NIC Code: 24108

WIRE DRAWING

1. INTRODUCTION:

Drawing of wire from metal rod is a metal working process that reduces the cross-section and
elongates in to wire. During wire drawing the volume of metal remains the same and hence
there is increase in the length of the drawn wire. A significant advantage of drawing is that
there is very little material waste. It is carried out by pulling the metal rod through a single or
a series of the drawing dies.

In the case of series of drawing dies, the each subsequent drawing stage uses smaller bore
diameter than the previous drawing die. The draw ratio of diameter depends on elongation
and plastic deformation of metal. Drawing is usually performed in round sections at room
temperature, however, it is also performed at higher temperatures for large wires to reduce
forces.

2. PRODUCT & ITS APPLICATION:

Wire/rod drawing is an important industrial process for providing commercial products. Wire
products cover a very wide range of applications viz. Hard Bright Wire, Galvanized Wire, Ball
Bearing Wire, Alloy Steel Wire, ACSR Core Wire, Cycle Spoke Wire, Lock Washer Wire,
Sectional Wire, Tyre Bead Wire, Umbrella Rib Wire, Spring Steel Wire, Wire Nail, Card & Gill
Pin Wire, Piano Wire, Electrode Wire, Stainless Steel Wire, Signal Wire, Cable Armoring Wire,
Rivet Wire, Cold Heading Quality Wire, Stay Wire, Hair Pin Wire, Heald Wire, Binding Wire etc,
to structural components, electrical transformers and motor winding, cables, HT conductor
etc. Steel Wire rope is composed of wires, strands and a core, which is made of steel. The
wires are predominantly constructed from high-carbon steel and stainless steel. The wires are
twisted to form strands and they designate the strength of the steel wire rope.
 Commercial wire drawing usually starts with a coil of hot rolled wire rods. The surface is first
treated to remove scales. It is then fed into a wire drawing machine which may have one or
more blocks in series.

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

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Any ITI. Diploma holder or any graduate with experience in the field. Mechanical/ metallurgy
background will be helpful.

4. INDUSTRY OUTLOOK/TREND

The Global wire business has been something like 43 million tons and in terms of Dollars it is
US $ 20 billion. This market is also expected to grow to some 54 million tons of wires by 2010
and in Dollar terms it would be something like US $ 25 billion. North America, Europe and
South East Asia each account for approximately 25% of the Global demands for the Steel
Wires.

Compared to global industry, India constitutes less then 10 % the global wire industry and our
exports are less then 1%. and very few Indian production caters to export markets. Size of the
Steel Wire Industry in India is 3 million tonne approximately in terms of volume & US $ 2
billion in terms of value, combining both organized and unorganized sectors. Approximately, 65
% of total production comes from organized producers and the rest from the unorganized
counterpart. Wire Industry is accountable for 5 per cent of total steel demand in India.

5. MARKET POTENTIAL AND MARKETING ISSUES. IF ANY:

In our Country, almost 88% of the wire demand is for wires in plain carbon steel grades, 5%
for Stainless Steel grades and the balance for Alloy Steel Wires. Out of the plain carbon wires
 almost 75% to 80% of the demand is for black/uncoated wires and the balance 20% to 25%
is for wires coated with other base metals e.g. Zinc (Galvanized), Copper, Bronze, and other
coating materials.

Construction, machinery and automotive markets especially present significant opportunities

for steel wire. Steel wires are also used in a range of infrastructure constructions and many
general engineering applications in machinery and heavy equipment and marine industry. In
the automotive industry, steel wires are used for reinforcing tires to add to their strength and
durability. Steel binding wires are used to bind and fabricate complex steel reinforcement
cement structures for building of all types. Steel wire is of critical importance in automotive
manufacturing for controls. All of these consuming sectors are having high growth rate ranging
from 5% to 15%.

The projected increase in infrastructure and housing construction and automobile sector in the
coming years is expected to benefit metal wire industry. There is a plethora of growth
opportunities for Indian steel wire market.

The steel wire industry in India is at a juncture as raw materials are now available at
internationally competitive rates, consumption is poised to jump, and new export markets are
waiting to be tapped, and skilled manpower is readily available. The growth in India, we are
also growing at 5%-7% per annum.

6. RAW MATERIAL REQUIREMENTS:

Various grades of steel and other metal e.g. copper wire rods are required. These are available
from 6 mm to 12 mm diameter size. Normally 6 mm wire is procured for drawing. For higher
diameter rods, in-house Rod breakdown machine or outside job work is normally required.
Other materials consist of lubricant powder soaps of different grades and fuel for annealing
furnace.
7. MANUFACTURING PROCESS:

The process steps are as below:

1. Coating: The surface of the bar or coil is coated with a drawing lubricant to aid cold
drawing.
2. Pointing: Several inches of the input end of the bar or coil is reduced in size by swaging
or extruding so that it can pass freely through the first drawing die.
3. Drawing: The drawing machine pulls or draws the lead wire bar or coil through the die
in single or multiple stages. The die reduces the cross section of the bar or coil, shapes
the profile of the product and increases length in each stage. In multi-pass drawing
wire passes through smaller and smaller dies. Material may require annealing to soften
the material and increase ductility, after certain stage between drawing pass to remove
hardening and brittleness due to cold work.
4. Finished Product: The drawn product passes through final finishing die to get bright
and/or polished finish. Heat treatment is generally used to soften the material, to
modify the microstructure, improve mechanical properties and the machining
characteristics and get precise and uniform dimensional tolerances.
5. The finished product is tested for tensile and hardness testing, and measuring of the
diameter.

For carbon steel as well as stainless steel or other materials, wire/rod may be heat treated.
Surface treatment may be done by pickling in acid (ferritic and martensitic steels) or basic
solutions (austenitic steels). The prepared skin is then coated with lubricant. Cold drawing is
carried out through diamond dies or tungsten carbide dies till the desired diameter is achieved.
8. MANPOWER REQUIREMENT:

The unit shall require highly skilled service persons. The unit can start from 12 employees
initially and increase to 39 or more depending on business volume.

Sr. No Type of Employees Monthly Salary No of Employees

Year 1 Year 2 Year 3 Year 4 Year 5

1 Skilled Operators 18000 3 4 6 8 12
2 Semi-Skilled/ Helpers 7000 6 8 12 16 24
3 Supervisor/ Manager 30000 1 1 1 1 1
4 Accounts/ Marketing 16000 1 1 1 1 1
5 Other Staff 7000 1 1 1 1 1
TOTAL 12 15 21 27 39

9. IMPLEMENTATION SCHEDULE:

The unit can be implemented within 6 months from the serious initiation of project work.

Time Required in
Sr. No Activities
Months
1 Acquisition of Premises 2

2 Construction (if Applicable) 2

3 Procurement and Installation of Plant and Machinery 2

4 Arrangement of Finance 2

5 Manpower Recruitment and start up 1

Total Time Required (Some Activities run concurrently) 6

10. COST OF PROJECT:

The unit will require total project cost of Rs. 126.22 lakhs as shown below:

Sr. No Particulars In Lakhs

1 Land 20.00

2 Building 35.00

3 Plant and Machinery 33.80

4 Fixtures and Electrical Installation 4.30

5 Other Assets/ Preliminary and Preoperative Expenses 2.00

6 Margin for working Capital 31.12

TOTAL PROJECT COST 126.22

11. MEANS OF FINANCE:

The project will require promoter to invest about Rs. 54.89 lakhs and seek bank loans of Rs.
71.33 lakhs based on 70% loan on fixed assets.

Sr. No Particulars In Lakhs

1 Promoters Contribution 54.89
2 Loan Finance 71.33
TOTAL: 126.22

12. WORKING CAPITAL REQUIREMENTS:

Working capital requirements are calculated as below:

Sr. No Particulars Gross Amount Margin % Margin Amount Bank Finance

1 Inventories 22.62 40 9.05 13.57

2 Receivables 26.21 40 10.48 15.72
3 Overheads 2.54 100 2.54 0.00
4 Creditors 22.62 40 9.05 13.57
TOTAL 73.99 31.12 42.87
13. LIST OF MACHINERY REQUIRED:

Sr.
Particulars UOM Quantity Rate Total Value
No
Main Machines/ Equipment
1 Bull Block Wire drawing Lines Nos 2 650000 1300000
2 Wire Rod Breaking Machine Nos 1 600000 600000

3 Wire pointing and welding machine Nos 1 60000 60000

4 Coilers and DE coilers Nos 8 30000 240000

5 Die Repair and Polishing machine Nos 1 150000 150000
6 Annealing furnace Nos 1 450000 450000
7 Pickling line Nos 1 250000 250000
8 Surface treatment tank Nos 1 140000 140000
9 Pillar drilling machine Nos 1 60000 60000
Subtotal: 3250000
Tools and Ancillaries
1 Misc. equipment Dies tools etc. LS 1 100000 100000
2 Hand Tools and gauges LS 1 30000 30000
Subtotal: 130000

Fixtures and Elect Installation

Storage and transport bins and trolleys LS 1 20000 20000

Office Furniture LS 1 30000 30000

Telephones/ Computer LS 2 40000 80000
Electrical Installation LS 1 300000 300000
Subtotal: 430000
Other Assets/ Preliminary and
LS 1 200000 200000
Preoperative Expenses

TOTAL PLANT MACHINERY COST 4010000

All the machines and equipment are available from local manufacturers. The entrepreneur
needs to ensure proper selection of product mix and proper type of dies and tooling to have
modern and flexible designs. It may be worthwhile to look at reconditioned imported
machines, dies and tooling. Some of the machinery and dies and tooling suppliers are listed
 here below:

1. Mayfair Machine Kraft Private Limited

No. 5 A-9 Acre, Kothari Compound, SV Road, Thane-400610, Maharashtra, India

2. Shree Ramvijay Engineering & Brass Works

Siddhant Panchal (Partner), Plot No. 229/230, G. I. D. C., Hansalpur,
Viramgam, Ahmedabad – 382150, Gujarat, India

3. Swaraj Technocrafts Private LimitedPlot No. 40, Sector- 2 District Dhar,

Pithampur-454775, Madhya Pradesh, India

4. B.T.I. Machine Tools

Plot No. XXIII-1943/9, 423, Kabir Complex, Industrial Area A Near Cheema Chowk,
Ludhiana-141003, Punjab, India

5. Assomac Machines Ltd.

26/2,South Of G.T.Road, B.S.Road Indl.Area, Site No.1

Ghaziabad - 201001, Uttar Pradesh, India

14. PROFITABILITY CALCULATIONS:

Sr No Particulars UOM Year Wise estimates

Year 1 Year 2 Year 3 Year 4 Year 5
1 Capacity Utilization % 40 50 60 70 80
2 Sales Rs. Lakhs 314.49 393.11 471.73 550.35 628.98
Raw Materials & Other Direct
3 Rs. Lakhs 271.46 339.32 407.18 475.05 542.91
Inputs
4 Gross Margin Rs. Lakhs 43.03 53.79 64.55 75.31 86.07
5 Overheads Except Interest Rs. Lakhs 20.44 20.44 20.44 20.44 20.44
6 Interest Rs. Lakhs 9.99 9.99 9.99 9.99 9.99
7 Depreciation Rs. Lakhs 7.51 7.51 7.51 7.51 7.51
8 Net Profit Before Tax Rs. Lakhs 5.10 15.85 26.61 37.37 48.13
 The basis of profitability calculation:

The Unit will have capacity of 750 MT per year of assorted sizes/ material grades. The sales
prices of control cables range from range from Rs 50 to Rs 350 or more per kg. depending on
type, wire construction, finish, material/ grade and volumes. The raw material cost ranges
from 35 to 65 per kg for mild steel wire rods and that of carbon steel and stainless steel wire
rods range from Rs 60 to 260 per Kg. The material requirements are considered with wastage/
scrap etc of 6 % of finished products. The unusable scrap is sold at @ Rs 18 ~ 50 per Kg. and
the income of same is added. Energy Costs are considered at Rs 7 per Kwh and fuel cost is
considered at Rs. 65 per liter. The depreciation of plant is taken at 10 % and Interest costs
are taken at 14 -15 % depending on type of industry.

15. BREAK EVEN ANALYSIS

The project is can reach break even capacity at 35.26 % of the installed capacity as depicted
here below:

Sr No Particulars UOM Value

1 Sales at Full Capacity Rs. Lakhs 786.22

2 Variable Costs Rs. Lakhs 678.64
3 Fixed Cost incl. Interest Rs. Lakhs 37.94

4 Break Even Capacity % of Inst Capacity 35.26

16. STATUTORY/ GOVERNMENT APPROVALS

The unit shall have to get state industrial unit registration from DIC, IEC Code for Export and
local authority clearance. Depending on structure of finance the company shall need to register
company with registrar of companies. The registration and approval for factory plan, safety for
Fire etc requirement, registration as per Labour laws ESI, PF etc shall be required as per rules
and applicability. Before starting the unit unit will also need GST registration for procurement
of materials as also for sale of goods. As such there is no pollution control registration
requirements, except installation of chimney/ blowers for heat treatment furnace / pickling
 line and ensure safe environment as per rules of factory safety. Solid waste disposal shall have
to meet the required norms.

17. BACKWARD AND FORWARD INTEGRATION

The machines and equipment offer scope for diversification in to producing other consumer
and industrial wire products / components wiz. Wire cloth, reed wires, nails, etc by using the
spare capacities and machine capabilities. As such there is not much scope for organic
backward or forward integration.

18. TRAINING CENTERS/COURSES

There are no specific training centers for wire drawing technology. There are training for dies
and tools development run by several centers of excellence viz Indo German Tool Room at
Ahmedabad, Rajkot, Chennai, and CTTC Bhubaneshwar etc shall be helpful.

The most important scope of learning is in new product design and development by
associating with institutes like NID etc. Entrepreneur may also study the new product designs,
product range, features and specifications of leading Brands / competitors across the world by
scanning the Internet and downloading data. Viz. North American, Europe, China etc markets.

Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for hand-holding

services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from Institutes
like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein.
Further the same have been given by way of information only and do not carry any
recommendation.