india. modernization of foundries and re-rolling mills in the small scale sector. advisory services

250 Pages·2010·9.64 MB·English

OCCASION

This publication has been made available to the public on the occasion of the 50th anniversary of the
United Nations Industrial Development Organisation.

DISCLAIMER

This document has been produced without formal United Nations editing. The designations
employed and the presentation of the material in this document do not imply the expression of any
opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development
Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its
authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or
degree of development. Designations such as “developed”, “industrialized” and “developing” are
intended for statistical convenience and do not necessarily express a judgment about the stage
reached by a particular country or area in the development process. Mention of firm names or
commercial products does not constitute an endorsement by UNIDO.

FAIR USE POLICY

Any part of this publication may be quoted and referenced for educational and research purposes
without additional permission from UNIDO. However, those who make use of quoting and
referencing this publication are requested to follow the Fair Use Policy of giving due credit to
UNIDO.

CONTACT

Please contact [email protected] for further information concerning UNIDO publications.

For more information about UNIDO, please visit us at www.unido.org
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria
Tel: [phone] · www.unido.org · [email protected]
1.0
J] 2 2
11=
I.I
1.25 14 1.6
MICROCOPY RESOLUTION TfST CHART
NA'IIIMAI Unii» Au (>t '.lANDAnp-
1 . T ANPARP UH litt N< i MA If MI Al '•'"!,,
AHM -if 1 IM . H '-' I MAKI N ,
V
0105X
RESTRICTED
ADVISORY SERVICES REPORT
FOR
SMALL SCALE INDUSTRIES DEVELOPMENT ORGANIZATION,
GOVERNMENT OF INDIA
ON
\L&£'
MODERNIZATION OF FOUNORIES AND RE-ROLLING MILLS
IN THE SMALL SCALE SECTOR
by
( Rusi Lalkaka
Regional AdviseroiTlIeTElTlurgical Industries
ECONOMIC COMMISSION FOR ASIA AND THE FAR EAST
Bangkok, Thailand
f
\
RSàmiGTED
MODERNIZATION OF FOUNDRIES AND RE-ROLLING MILLS
IN THE SMALL SCALE SECTOR IN INDIA
June 1973
This report has not been clear«! with the United Nations Industrial
Development Organization, which does not, therefore, necessarily share
the views expressed.
V
- i
TABLE OF CONTüUTS
Pa^e
SUMMARY AND RECOMMENûnTIONS
I. INTRODUCTION
Background \
Toms of reference \
Method of work 2
Acknowledgement 3
II. SMALL SCALE META INDUSTRIES AND
¡CDERNIZATIQN
Small industries in the overall context 4
Metals in the small scale sector 4
Streng-.thening of metallurgy activity
at SSIDO 5
Sua11 scale foundry industry in India 7
Market for foundry products 10
Re-rolling industry in India n
The small scrap re-roller s 12
Obsolescence of existing units 14
Consequences of backward techniques 14
The proposed modernization programme I5
Objectives of modernization 17
Fears expressed regarding modernization 19
Nationalization
Neglect of other small units
Transformation to medium scale units
Implementation gap
/ III.
J
"N.
- li -
TABLE OF CONTENTS
continued)
(Ci
Pa»-e
III. UPGRADING THE TECtiHOLQGY AT FOUNDRIES 20
*• GREY IRON CASTINGS 20
Existing equipment and practices 20
Factory size
Equipment and processes
Layout
Labour
Possible improvements in equipment and practico 34
Melting processes
Cupola design
Cupola operation
Moulding
Fettling
Materials handling
Testini, equipraent
Utilization of foundry capacity 42
The economics of iron foundry mechanization 42
Existing facilities
¿4odernized facilities
B. MALLEABLE IKON CASTINGS 48
Existing malleable foundry facilities 48
Equipment
Products
Sugestione for modernization 48
c NON-FERROUS CASTINGS 51
Existing non-ferrous foundries 51
Suggestions for modernization 55
Mould inf.
Melting
Sand reconditioning
Fettling
Pressure die casting units
0. STEEL FOUNDRIES
Existing steel foundry facilities 58
Steelmaking equipment 58
Products 58
Suggestions for modernizing steel foundries 60
Design and cost parameters of small steel
62
foundry
/ IV
^^
\
- iii -
TABLE OF CONTENTS
Pare
IV. IMPROVING THE OP¿íHTIQNS OF RE-HOLLERS 64
Existing re-rollin£ facilities 64
Equipment
Products
Labour
Factors affecting re-rolling output 68
Suy estions for modernizing rolling mils 69
Modern techniques are viable 73
Alloy steel rolling 75
Tht; advent of the 'nicro-aill' 76
\l. ¿UW MATERIALS *MD OTHER PRODUCTION FACTORS 82
A. RAW MATERIALS 82
Fit iron 82
Coke 84
Ash content
Unif orra chetiical analysis
lb if orni size
Uniform strength and structure
Re-rol la ble scrap 86
B- CREDIT FACILITI Eft B7
c- LABÜI'K MÛ MANAGEMENT 89
Productivity 89
Supervisory personnel 90
Suggestions on trainint* 91
Rafresher courses
Special IIF services
Inter-plant study teams
Posters and publications
Î4anagement 92
0. MEETING 94
'Each one, adopt one' 94
Diversification vs specialization 95
Export possibilities 95
Strengthening the co-operative associations 96
/ VI.
J
-**±
- iv -
TABU OF CONTO] IS
(c¡co ntinuod)
VI. IMPLHffiMTATlüN OF MDD¿rftL¿TIQN 99
Some problems awaiting solution
Coiumunication ¿-ap
Staff bottle-neck
Tixte constraint
A. PRiTAAA'flON PHASE 100
Finalization of the assistance package 100
Setting up the organization 100
Promotion campaipi 102
Selection of firms for modernization 102
B' IMPLEMMTATIüH PHaSE 105
Inplant studies 105
Scope of studies 106
Analysis cf existing operations
Pattern of demand and proposed product-mix
Selection of technology and equipment
Modification of plant layout
Requirements of materials and supplies
Utilities and services
Quality control and record keeping
Estimated capital cost of ..lodernization
Personnel programme
Ec tina ted production cost >tnct financial analysis
Lon^terra development plan
Implementation of inouernization scherte
Iaplementation of recommendations 108
c- FOLLOW-UP PHASE 108
Possible schedule of activities 109
Implications of modernizing 109
The continuing pursuit of modernization 109
/ TABLES
•^
- V -
TABLE OF CONTENTS
(continued)
TABLES
—— Pav.e
Table 1 - i4etal and metal based industries under small
industries sector, 1967 6
2 - Size-wise distribution of iron foundries in India 8
3 - Future demand for castines 10
4 - Capacity and output of re-rolling industry 11
5 - Assessed capacities of scrap re-rollers in India 13
6 - Summary of iron foundry facilities 22 - 25
7 - Small iron foundries usin¿' specified facilities 2y
8 - Typical cupola parameters 36
9 - Equipment cost of small iron foundry before and
after modernization 45
10 - Foundry labour force before and after modernization 46
11 - Estimates of production cost before and after
laodernization 47
12 - Summary of malleable iron foundry facilities 49
13 - Operatin* parameters of 'modern' snail malleable
foundry 52
14 - Summary of non-ferrdus foundry facilities 53 - 54
15 - Summary of steel foundry facilities 59
16 - Summary of steel re-rollinf mill facilities 65-66
17 - Estimated scrap re-rolling mill capacities 72
18 - Design basis and capital cost of proposed micro-mill 79
19 - Labour force at micro-mill 80
20 - Production cost and profitability at micro-mill 81
21 - Sufe¿ested small foundry evaluation scheue 104
22 - Cost & benefits of modernizing selected
foundry/re-rolling units 112
/ ...
7
» m*
- vi -
THBL¿ OF CONTENTS
(continued)
FIGURE
Pa^-e
Fi,;. 1 - Map of India showin. distribution of scrap
re-rollers and iron foundries 9
2 - Reported production vs cupola size at
»nail Indi;\n foundries 28
3 - Layout of small scale iron foundry
(not un-typical) 32
4 - Suggest ed layout for uodernized cast
Iran foundry 33
5 - Suggested desiyi of 48" equi- & balanced blast
cupola (based on design proposed by NHL Fifcld
Station, Bátala 38
6 - Typical layout of small brass foundry 56
7 - alloy steel castings produced in si.all foundry 61
8 - Layout of modernized sitali rolling ¡.all 70
9 - Layout of mechanized scrap re-roilirit ..all 74
10 - Typical layout of ..dcro steel udii 7B
11 - Proposed profit plan (1972-73) of suoli
non-ferrous foundry 93
12 - Su£} ested organization for modernization 101
13 - Tmtative schedule of raodcirnizafcian activities 111
APPENDICES
I: Persons taut in India
II: Small scale metals plants visited
III: Itinerary of field visits in Indi'-
IV: Foundry Modernization questionnaire
V: Descriî tion of iron foundries visited
VI: Deaeri'tion of malleable iron foundries visited
VII: Description of non-ferrous foundries visited
VIII: Description of steel foundries visited
IX: Investment, narrower and production costs at
. snail steel foundry (capacity: 540 tons i_;»>U
castings/year)
X; liescri; tien of re-rollirii nails visited
XI: Part list for typical 8" 'homo-made' re-rollin¿' ¡oil!
XII: Investment, manrower, production costs and
profitability at modernized scra[ re-rollin¿ ;..11
(capacity: 400 tons/month of 3/8" rounds)
XIII: Su^-ested foundry training course
XIV: Proposed modernization irorrai.uue (as - resent ly envisaged by SSI DO)