8 Best Steel Manufacturing Startup Ideas For Sure Success
According to the Ministry of Steel, India is the second biggest producer of crude steel in the world with a capacity of more than 138 million tonnes. As per the reports of the Joint Plant Committee, the production of India, of the total finished steel increased by 3.7% YoY to 131.6 million tonnes in 2017-18. So, if you wish to have your own startup in the steel industry in India then it is a good idea. With that, we will have a look at some of the steel manufacturing startup ideas that will help you to boost your startup.
8 Steel Manufacturing Startup Ideas For 2021 And Beyond
According to research, an immense increase in steel production globally is waiting for the future. The demand for steel in both developing and developed countries is in favor of the sustained growth of the steel industry with low related risks.
With these increasing demands, the opportunities for business in this sector also increase. Here are 8 beneficial steel manufacturing startup ideas that can be initiated in the steel industry.
Setting up an alloy steel plant is a major business that generates a huge variety of products for consumers. The products that are produced in the plant are case hardening steel, alloy constructional steel, die blocks, carbon constructional steel, spring steel, etc. The varied types of stainless steel are also produced in these plants like austenitic, ferritic steel, and martensitic steel. A big amount of capital and space is the basic necessities for initiating this business.
Import And Export
The export of global steel as per the volume has increased rapidly from 29.4% in 2014 to 31.1% in 2016. The big exporters of steel include Ukraine, Japan, China, Russia, and Brazil. While the big importers of steel are Vietnam, the U.S., Thailand, the European Union, and Indonesia. Import and export of steel is an advantageous opportunity in foreign trade. Most of the nations are associated with exporting and importing of steel. Permits and licenses are needed for beginning this business.
Other steel manufacturing startup ideas include the production of steel furniture. This furniture carries huge demands in the industry that includes cupboards, tables, chairs, kitchen racks, shoe racks, etc. More and more customers are demanding steel furniture because of its strength and durability. There is no requirement for big investments and the business can be initiated at a large scale.
Making of Gem Clips
Gem clips have a tremendous and regular demand in offices and schools for arranging papers properly. With a primary modest amount, this business can be begun. The primary raw material required is steel wire. You may wonder, how much investment is needed to start a steel mill in India. With just a machine, this business can be initiated at home with a basic investment of as little as $100.
Production of Bolts and Nuts
The bolts and nuts business is expected to increase at 4% CAGR until 2020. There is a high demand for these commodities in the industry. The main industries that use these outputs are the electrical industries, construction industries, engineering industries, and transportation industries. This business does not require huge investment and can be initiated with machine and hand tools.
Fabrication of Steel
Here are other metal fabrication business ideas. The fabrication of steel includes processes like cutting, bending, and assembling of steel. The industries that have a demand for these services are infrastructure, construction, and automotive production. To start this business you will require a moderate investment. This will also help you to build the small scale steel industry in India.
Settling A Welding Unit
This business requires knowledge and specific skills about welding of steel products. With some hand tools, a welding machine, raw materials, and apparatus this business can be started. In addition to the repair work, the manufacturing of steel products can also be done.
Another steel related business in India includes the recycling business. This type of business has many environmental benefits as it decreases the requirement for landfills and also the requirement for manufacturing and extracting raw materials. With rising awareness of saving the environment, the requirement for recycling units is also rising. Only in the US, the recycling business totals for over $3.7 billion in valuation and has nearly 7000 companies in the area.
There are endless products for recycling like household appliances, old cars, steel beams, railroad tracks, aerosols, food tins, paint cans, etc. A scrap metal and a recycling plant are needed for starting the business.
The Bottom Line
India is said to be the second largest manufacturer of steel in the world. And now with time, the demand for steel is increasing globally. So this is the best time if you plan to begin your startup in the steel industry. But having said that, it is true that this industry is huge and you may get lost on where to start from. Other than that, the iron business profit is also huge if you can enroute than correctly. So here we have discussed 8 steel manufacturing startup ideas that will help you to navigate your way through this industry.