§1What this business is
Steel sheet is sheared, formed and welded into tubes on a tube-making machine, then cut, threaded, bent and pickled in acid before packing. The report plans 600 kg a day. Buyers are fabricators, furniture and scaffolding makers, dairy and food equipment makers and hardware dealers.
Capacity: 600 kg of tube a day on a 10-hour shift; 50% in year 1.
§2Is it right for you?
Who it is for
A fabricator or steel trader who knows industrial buyers.
Who it is not for
Someone with no engineering background or buyer contacts.
Advantages
- Tubes are used in construction, furniture, automobiles and dairy equipment
- Scaffolding and infrastructure keep demand up
- Same line can make several sizes
- Industrial buyers order in bulk
Drawbacks
- Large steel mills sell tubes cheaply
- Steel price swings hit margins
- Acid pickling needs effluent control
- Quality must meet buyer specifications
Skills you need
- Tube forming and welding
- Machine maintenance
- Steel buying
- Selling to fabricators and OEMs
Why difficulty 3/5: Needs engineering skill and steady industrial buyers.
§3Market
Who buys
- Fabricators and furniture makers
- Scaffolding and construction contractors
- Dairy, food-processing and heat-exchanger equipment makers
- Automobile and bicycle part makers
How it sells
- Direct supply to industrial buyers
- Steel and hardware dealers
Good to know
- The report links demand to real estate, construction, telecom, power, metros, airports and ports, and to scaffolding in buildings.
- It also says the market for stainless steel tube and pipe was challenging at the time of writing.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Steel tube making machine | 1 | ₹9,00,000 |
| Guillotine shearing machine | 1 | ₹1,20,000 |
| Hand-operated shearing machine | 1 | ₹1,10,000 |
| Tapping machine | 1 | ₹1,11,000 |
| Special purpose production lathe | 1 | ₹95,000 |
| Power press with electric motor | 1 | ₹85,000 |
| Power hacksaw machine | 1 | ₹80,000 |
| Universal bending machine with electricals | 1 | ₹75,000 |
| Power press | 1 | ₹70,000 |
| Electric arc welding set | 1 | ₹25,000 |
| Bench drilling machine | 1 | ₹22,500 |
| Bench grinder | 1 | ₹20,090 |
| Portable hand drill | 1 | ₹11,900 |
From: PMEGP sample project report — Steel Tube (prepared by Udyami/Samadhan)
- Steel sheet / stripmain raw material
- Sulphuric acidfor pickling
- Packaging material
From: PMEGP sample project report — Steel Tube (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
MSME-Testing Centre (NR), New Delhi · New Delhi →MSME-Testing Centre (WR), Mumbai · Mumbai →MSME-Testing Centre (SR), Chennai · Chennai →MSME-Testing Centre (ER), Kolkata · Kolkata →MSME-Testing Centre, Ahmedabad · Ahmedabad →MSME-Testing Centre, Patna · Patna →MSME-Testing Centre, Dimapur · Dimapur →BIS Central Laboratory, Sahibabad · Sahibabad →BIS Eastern Regional Office Laboratory, Kolkata · Kolkata →BIS Northern Regional Office Laboratory, Mohali · Mohali →BIS Western Regional Office Laboratory, Mumbai · Mumbai →BIS Southern Regional Office Laboratory, Chennai · Chennai →
In our raw material database
§5Licences & registration
- Udyam
- GST
- State Pollution Control Board consent (acid pickling)
- Factory licence
- BIS certification where a steel-products Quality Control Order covers your tube
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report was made for it), CGTMSE for a collateral-free loan, Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: PMEGP sample report: plant & machinery ₹17.25 L, furniture ₹1.50 L, working capital ₹4.26 L = ₹23.01 L. Premises own or rented.
Working capital: Working capital ₹4.26 L (bank CC ₹3.84 L): 15 days of raw material, 10 days of finished stock, 15 days' credit.
Year not printed on the report — check current machinery prices.
§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.
§9Risks — where people fail
- Steel prices
- Competition from big mills
- Acid handling and effluent
- Rejections for weld quality
§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 tube manufacturing unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, 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 Tube Manufacturing Unit?
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.