§1What this business is
Chemical, petrochemical, pharma, food and power plants need tanks, pressure vessels, reaction vessels with steam coils, and piping that hold gas or liquid under pressure and heat. A heavy fabrication shop cuts plate on laser/plasma machines, rolls it on 3-roller benders, forms it on a large press brake, tack-welds parts in fixtures and completes them with TIG, MIG and submerged-arc welding. Welds are heat-treated and checked by ultrasonic, magnetic-particle and X-ray tests. The profile plans 10,000 MT of fabrication jobs a year.
Capacity: 10,000 MT of fabrication jobs a year (tankers, tanks, vessels, piping); year 1 at 30%.
§2Is it right for you?
Who it is for
An engineer with heavy fabrication or plant experience, code knowledge and contacts with process-industry buyers.
Who it is not for
A first-time founder — mistakes in pressure equipment can be dangerous and costly.
Advantages
- Large jobs bring big turnover
- Demand from chemicals, petrochemicals, pharma, food, power and shipbuilding
- Skilled, code-certified work is hard to copy, so good shops keep customers
- Material can be charged at actual cost on many jobs
Drawbacks
- Very large investment — ₹211.83 L
- Loss in the first year in the profile
- Safety-critical work with strict codes, inspection and liability
- Work comes in lumps through tenders and projects
Skills you need
- Pressure-vessel design codes and drawings
- Certified welding (TIG, MIG, SAW) and welder qualification
- Non-destructive testing and heat treatment
- Tendering, project management and third-party inspection
Why difficulty 5/5: Huge investment, safety codes and project-based sales.
§3Market
Who buys
- Chemical and petrochemical plants
- Pharma, food and dairy plants
- Power plants and boiler makers
- Shipbuilders and tanker makers
How it sells
- Tenders and project contracts
- Approved-vendor lists of large companies
- EPC contractors
Good to know
- Labour-only fabrication is quoted at ₹15–40 a kg in the profile.
- Critical tanks and pressure vessels need full inspection and testing before dispatch.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Heavy-duty saw machine | 1 | ₹2,00,000 |
| Laser / plasma plate cutting machine | 1 | ₹8,00,000 |
| Hydraulic press brake, 800 T | 1 | ₹8,00,000 |
| 3-roller plate bending machine | 2 | ₹2,50,000 each |
| TIG / MIG / SAW welding machine | 6 | ₹2,50,000 each |
| Welding positioner | 3 | ₹80,000 each |
| Shot blasting machine | 1 | ₹4,50,000 |
| Weld heat treatment plant | 1 | ₹2,00,000 |
| Radial drill machine | 1 | ₹6,00,000 |
| Vertical lathe, 2.5 m table | 1 | ₹10,00,000 |
| Heavy-duty lathe, 3 m bed | 1 | ₹7,50,000 |
| Ultrasonic / magnetic particle test system | 2 | ₹2,50,000 each |
| X-ray test system | 1 | ₹6,00,000 |
| Jib crane and hoists | lump sum | ₹2,00,000 |
| Air compressor and air handling | 1 | ₹2,50,000 |
| EOT crane | 1 | ₹4,50,000 |
From: SIDBI Stand-Up Mitra project profile — Heavy Fabrication (2018) — private guide — confirm locally
- Steel plates, pipes and sections of various grades₹30–250 a kg in the profile depending on grade; often charged to the customer at actual
- Welding wire, flux, electrodes and gasesconsumables for TIG, MIG and SAW welding
From: SIDBI Stand-Up Mitra project profile — Heavy Fabrication (2018) — private guide — confirm locally
In our raw material database
Hot-rolled (HR) steel coil and sheet →Steel pipes and tubes →
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent
- PESO approval if you make pressure vessels for compressed gases
- Boiler and IBR approvals if you make boiler-related pressure parts
- Fire safety clearance; radiation (AERB) clearance for X-ray testing
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
CGTMSE covers collateral-free loans up to its current limit; Stand-Up India (₹10 L–₹1 crore) can fund part of the cost for SC/ST and women founders. The ₹211.83 L cost is far above PMEGP's ₹50 L ceiling.
§7Money
How the investment is worked out: Land ₹25.00 L + building ₹30.00 L + plant and machinery ₹94.90 L + fixtures and electrical installation ₹7.75 L + preliminary and pre-operative ₹3.00 L + margin for working capital ₹51.18 L = ₹211.83 L.
Working capital: Working capital ₹116.74 L gross (stocks ₹48.45 L, receivables ₹24.32 L, overheads ₹7.48 L, creditors ₹36.49 L); margin ₹51.18 L, bank ₹65.55 L. Finance: owner ₹91.34 L, loan ₹120.49 L.
SIDBI Stand-Up Mitra profile, uploaded in 2018 (no year printed on it) — prices will be higher now; check current costs.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Weld or test failures leading to rework or rejection
- Steel price swings on fixed-price contracts
- Payment delays on large projects
- Accidents in heavy lifting and welding
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working heavy fabrication (tanks, pressure vessels, piping) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Heavy Fabrication (Tanks, Pressure Vessels, Piping)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.