§1What this business is
A small foundry with a machine shop. Metal is melted in a 150 kg induction furnace, poured into sand moulds, and the cast valve bodies are fettled, heat-treated, machined on a lathe, fitted with rubber seats, stoppers and caps, and pressure-tested. The DPR covers gate, globe, ball and butterfly valves in brass, bronze, gun metal, cast iron, mild steel and stainless steel. Buyers are water supply and irrigation departments, refineries, power plants, food and pharma plants. The DPR counts imports of ₹974 crore in 2019-20 and takes an average valve price of ₹2,930.
Capacity: Furnace capacity 1,200 kg a day; at 75% use 243 MT of valves a year worth ₹486 L (300 days, one 8-hour shift). The DPR assumes 60% casting yield, 10% rejections and 2% metal loss.
§2Is it right for you?
Who it is for
An engineer or foundry hand who knows casting and machining and can deal with government and industrial buyers.
Who it is not for
Anyone without foundry experience or without funds to carry three months of metal stock.
Advantages
- Every water line, factory and power plant needs valves and replaces them regularly
- Imports of ₹974 crore in 2019-20 leave room for Indian makers
- One foundry can make many sizes and metals by changing patterns
- Runners, risers and rejects are remelted or sold, so little metal is lost
Drawbacks
- Needs about ₹2.5 crore, of which ₹1.47 crore is working capital
- Half the machinery money goes into a testing laboratory
- A foundry is a polluting industry and needs Pollution Control Board consent
- Induction melting uses a lot of electricity
Skills you need
- Melting and sand casting of ferrous and non-ferrous metals
- Pattern making and machining to drawing
- Pressure, chemical and hardness testing
- Tendering to water boards and industrial buyers
Why difficulty 4/5: Foundry, machine shop and a full testing laboratory in one unit, with heavy working capital.
§3Market
Who buys
- Municipal water supply, public health engineering and irrigation departments
- Petroleum refineries and power plants
- Food processing and pharmaceutical plants
- Hardware and sanitary dealers
How it sells
- Tenders and rate contracts with government departments and PSUs
- Direct supply to plant builders and contractors
- Dealers and distributors of pipe fittings
Good to know
- Imports were ₹831 crore in 2017-18, ₹982 crore in 2018-19 and ₹975 crore in 2019-20; exports were ₹235 crore and ₹272 crore in 2017-18 and 2018-19.
- The DPR counts 5,304 MSME units on the Udyam portal and takes an average price of ₹2,930 a valve across five types.
- Selling price taken in the DPR: ₹2.70 L per MT of finished valves on average.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Induction furnace 75 kW / 150 kg, 1000 Hz, with control panel, hydraulic tilting and crucible | 1 | ₹20,00,000 |
| Power-operated moulding machine | 1 | ₹5,00,000 |
| Core oven / heating chamber | 1 | ₹3,00,000 |
| Moulding boxes and ladles | 1 set | ₹2,00,000 |
| Fettling equipment, patterns and tools | 1 set | ₹2,00,000 |
| Hot metal mixer, 1 tonne | 1 | ₹2,25,000 |
| Heat treatment furnace | 1 | ₹1,50,000 |
| General purpose lathe with 2 HP motor | 1 | ₹3,00,000 |
| Bench drilling machine 25 mm, metal cutting machine, bench grinder, pneumatic hand grinder, welding set | — | ₹2,74,000 |
| Electronic weighing machine up to 1,000 kg | 1 | ₹75,000 |
| Air compressor 15 HP with tank | 1 | ₹2,25,000 |
| Universal testing machine 600 kN | 1 | ₹10,00,000 |
| Optical emission spectrometer (Fe, Cu and Al base) | 1 | ₹25,00,000 |
| Radiography, magnetic particle and dye penetrant test equipment | 1 | ₹8,00,000 |
| Metallurgical microscope and universal hardness tester | — | ₹6,50,000 |
From: DC-MSME import-substitution DPR — Valves Metallic (2021)
- Copper, zinc, tin, aluminium, MS, SS and cast iron scrap28.35 tonnes a month, ₹42.50 L
- Fluxes₹1.00 L a month
- Moulding sand₹0.50 L a month
- Rubber seats, valve sheets, stoppers and caps₹1.00 L a month
From: DC-MSME import-substitution DPR — Valves Metallic (2021)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (foundry)
- BIS licence where the buyer or a quality control order asks for ISI-marked valves
- ISO 9001 certification, which most industrial buyers ask for
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At ₹2.49 crore the project is above the PMEGP ceiling of ₹50 L for manufacturing. CGTMSE can back a bank loan without collateral (it covers loans up to ₹10 crore).
§7Money
How the investment is worked out: Fixed capital ₹102.16 L (production machinery ₹48.50 L, testing laboratory ₹50.66 L, preliminary and pre-operative ₹3.00 L; the 300 sq m shed is rented) + working capital for 3 months ₹147.00 L (recurring cost ₹49.00 L a month) = ₹249.16 L.
Working capital: Working capital ₹147.00 L for 3 months. Metal is the big cost: raw material ₹43.00 L a month (28.35 tonnes of copper, zinc, tin, aluminium, MS, SS and cast iron scrap ₹42.50 L, plus fluxes, sand and fittings).
§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
- Sharp swings in copper, zinc and scrap prices
- Casting rejections above the 10% assumed
- Leaking valves failing a buyer's pressure test
- Slow payment from government departments
§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 metallic valves (cast industrial and water valves) 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Metallic Valves (Cast Industrial and Water Valves)?
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.