§1What this business is
Steel scrap and ferro-alloys are melted in a 750 kg medium-frequency induction furnace, the melt is tested, and it is poured into sand moulds made from patterns and cores. Castings are cooled at a set rate, cut free of risers, ground, shot-blasted, heat-treated and machined to the buyer's drawing. Stainless, heat-resistant and tool-steel grades can be made.
Capacity: Tonnage not printed; built around one 750 kg induction furnace. Runs at 35% in year 1 and 75% in year 5.
§2Is it right for you?
Who it is for
A mechanical or metallurgical engineer with foundry experience and contacts with engineering buyers.
Who it is not for
Anyone without foundry know-how or capital for a heavy industrial shed.
Advantages
- Railways, cement, power and fertiliser plants need steel castings regularly
- Alloy and stainless grades fetch better prices
- An in-house test lab builds buyer trust
- Steel scrap is the main raw material and is widely traded
Drawbacks
- Loss in the first year
- ₹2.10 crore project with heavy electrical load
- Needs a metallurgist and skilled moulders
- Rejections are costly — one bad melt wastes a full heat
Skills you need
- Melt chemistry and alloy additions
- Pattern, mould and core making
- Heat treatment and testing
- Selling to engineering buyers on drawings
Why difficulty 5/5: Heavy foundry, metallurgy skills, ₹2 crore-plus and a loss in year 1.
§3Market
Who buys
- Railways and their suppliers
- Cement, power and fertiliser plants
- Pump, valve and gear makers
- Chemical, pharma and dairy-equipment makers
How it sells
- Direct orders against drawings
- Vendor registration with large buyers and PSUs
Good to know
- The report says buyers want close machining allowance, set chemistry and on-time supply.
- Tool-steel component demand is rising with industry and exports.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Medium-frequency induction melting furnace, 750 kg | 1 | ₹35,00,000 |
| Cooling tower, water softening plant, heat exchanger | 1 | ₹8,50,000 |
| Moulding machines | 3 | ₹7,50,000 |
| Sand mixer, sieves etc. | 1 | ₹1,50,000 |
| Core moulding machines | 2 | ₹50,000 |
| Sand reclamation system | 1 | ₹2,00,000 |
| Core baking oven | 1 | ₹70,000 |
| Ladles with heating system | 2 | ₹60,000 |
| EOT crane | 1 | ₹3,50,000 |
| Shot blasting machine | 1 | ₹2,00,000 |
| Lathes, drilling and milling machines | 2 + 1 + 1 | ₹5,00,000 |
| Metallurgical microscope and sample polishing machine | 1 + 1 | ₹2,80,000 |
| Physical and chemical testing labs | 1 lot each | ₹5,00,000 |
From: SIDBI Stand-Up Mitra project profile — Steel Castings (2017) — private guide — confirm locally
- Assorted steel scrap or ingotsthe basic melting stock
- Ferro-alloys and micro-alloying additionsmanganese, silicon, chromium, nickel, vanadium, molybdenum as the grade needs
- Moulding sand, fluxes, refractory powder and pattern materialconsumables for moulds and cores
From: SIDBI Stand-Up Mitra project profile — Steel Castings (2017) — private guide — confirm locally
Suppliers in Building Business Bazaar
Process and Product Development Centre (PPDC), Agra · Agra →MATERIAL TESTING LABORATORY LLP · New Delhi →SHREEJI MATERIALS TESTING LABORATORY LLP · Bhavnagar →METALAB ANALYTICAL PRIVATE LIMITED · Ahmedabad →HTH LABORATORIES PRIVATE LIMITED · Panipat →ATMY ANALYTICAL LABS PVT. LTD. · Faridabad →KANHA TESTING LABS PVT. LTD. · Gurgaon →ALPHA TEST HOUSE PRIVATE LIMITED · Bahadurgarh →STERLING TEST AND RESEARCH CENTRE LLP · Faridabad →ETL TEST HOUSE PRIVATE LIMITED · Jammu →SUN TECH · Ranchi →ADITYAPUR AUTO CLUSTER · Jamshedpur →
§5Licences & registration
- Udyam registration
- GST
- State Pollution Control Board consent (foundries need dust and fume control)
- Factory licence and fire NOC
- High-tension electricity connection
- IEC code for export
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Too large for PMEGP; CGTMSE can guarantee the bank loan and Stand-Up India can fund SC/ST and women founders.
§7Money
How the investment is worked out: Land ₹30 L + building ₹45 L + plant & machinery ₹72.33 L + fixtures and electrical ₹12.20 L + preliminary ₹4 L + working-capital margin ₹46.80 L = ₹210.33 L. Finance: promoter ₹87.68 L, bank loan ₹122.65 L (70% of fixed assets).
Working capital: Gross ₹95.63 L (inventories ₹29.63 L, receivables ₹26.56 L, overheads ₹9.82 L, less creditors ₹29.63 L); own margin ₹46.80 L, bank ₹48.83 L.
Stand-Up Mitra profile uploaded in 2017; the year is not printed on the profile. Machinery and material prices will be higher now.
§8Export potential
Export council / board: Not verified yet
- No HS code or export body has been checked against an official list yet.
§9Risks — where people fail
- Scrap and ferro-alloy price swings
- High electricity tariff
- Casting defects and buyer rejection
- Pollution-board action on dust and fumes
§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 steel castings (induction furnace foundry) 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 Steel Castings (Induction Furnace Foundry)?
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.