§1What this business is
Stainless steel scrap is degreased, sorted by grade, weighed and melted in a medium-frequency induction furnace. Ferro-chrome and other ferro-alloys are added and samples are tested until the chemistry is right. The metal is poured into chilled cast iron moulds, fan-cooled, stripped, then ground and fettled. Ingots of 3¼ × 4¼ × 52 inches (about 120 kg) go to re-rolling units that make sheets and strips for utensils and auto parts, and to SS casting units. Grades follow IS 6529 and AISI 304 and 410.
Capacity: 675 MT of ingots a year on one shift, worth ₹3.645 crore.
§2Is it right for you?
Who it is for
A steel scrap trader or foundry hand near a stainless steel utensil or re-rolling cluster.
Who it is not for
Someone without a strong, cheap power supply and scrap-buying skill.
Advantages
- Basic raw material for SS sheets, strips and castings
- Steady demand from utensil, auto and dairy equipment chains
- Small team for a large turnover
- Uses scrap, which is widely traded
Drawbacks
- Heavy power use — about 50,000 kWh a month
- Large working capital in scrap
- 5% melting loss and 5% wastage in the profile
- Foundry pollution needs a Pollution Control Board NOC
Skills you need
- Sorting stainless scrap by grade
- Induction melting and alloy correction
- Chemical testing of melts
- Selling to re-rollers
Why difficulty 4/5: Large capital, high power load and close control of alloy chemistry.
§3Market
Who buys
- Stainless steel re-rolling mills
- SS casting foundries
- Sheet and strip makers for utensil and auto industries
How it sells
- Direct supply to re-rollers
- Metal traders
Good to know
- The profile says SS ingots are the basic raw material for SS sheet, strip and castings, used in chemical, pharma and dairy equipment and in utensils.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Medium-frequency induction melting furnace, 500 kg / 250 KW, hydraulic tilting | 1 | ₹20,31,000 |
| Water cooling system with heat exchanger, pumps, cooling tower and tanks | 1 | — |
| Auxiliary transformer | 1 | ₹2,00,000 |
| EOT crane, 7.5 MT, with rails and structure | 1 | ₹4,40,000 |
| Cast iron ingot moulds | 15 | ₹1,05,000 |
| Ladles of 50, 500 and 750 kg | 3 | ₹15,000 |
| Chemical testing equipment | 1 lot | ₹1,00,000 |
| Grinders, drill, welding transformer and weighing machine | 1 lot | — |
From: DC-MSME project profile — S.S. Ingots (2002)
- Stainless steel scrap of various grades60 MT a month at ₹35,000 a tonne in the profile
- Ferro-alloys, mainly ferro-chrome₹75,000 a month in the profile
- Refractories and ramming mass
From: DC-MSME project profile — S.S. Ingots (2002)
Suppliers in Building Business Bazaar
Coimbatore Metal Mart · Coimbatore →Electrotherm (India) Ltd · Ahmedabad →Greaves Foscco Ltd · Pune →Hindustan Machine Crafts · Chennai →Machine Tools Traders · Chennai →Metal Power Analytical (I) Pvt Ltd · Mumbai →Pillar (India) · Chennai →Raja Steels Pvt. Ltd · Coimbatore →Virwadia Metal Corporation · Chennai →
§5Licences & registration
- Udyam registration
- GST
- State Pollution Control Board NOC and consent to operate (induction furnace)
- Factory licence under the Factories Act
- High-tension power connection approval
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Above the PMEGP limit; CGTMSE covers loans without collateral, and Stand-Up India suits SC/ST or women founders.
§7Money
How the investment is worked out: DC-MSME profile (SISI Thrissur, Nov 2002): fixed capital ₹38.50 L (machinery ₹34.36 L including a ₹20.31 L induction furnace, installation ₹3.44 L, tools, furniture, pre-operative) + working capital for 3 months ₹75.75 L = ₹114.25 L. Shed of 300 sq m rented at ₹10,000 a month.
Working capital: Working capital is ₹75.75 L for 3 months — each month needs 60 MT of SS scrap at ₹35,000 a tonne (₹21 L).
Prices from 2002 — machinery, raw material and wage costs will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- The profile prints no HS code; confirm the 8-digit ITC(HS) line with DGFT or a customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Nickel and chrome price swings move scrap prices
- Power tariff increases
- Off-grade melts that buyers reject
- Competition from large steel plants
§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 stainless steel ingots (induction furnace) 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), 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 Stainless Steel Ingots (Induction Furnace)?
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.