KIGOFABZ PRIVATE LIMITED
PROJECT REPORT
PRE ENGINEERED BUILDING FABRICATION
1. INTRODUCTION:
Pre Engineered Buildings (PEB) are the buildings which are engineered at a factory and
assembled at site. Usually PEBs are steel structures. Built-up sections are fabricated at the
factory to exact size, transported to site and assembled at site with bolted connections. This
type of Structural Concept is generally used to build Industrial Buildings, Metro Stations,
Warehouses etc.
The adoptability of PEB in the place of Conventional Steel Building design concept resulted in
many advantages, including economy & easier fabrication. These type of building structure can
be finished internally to serve any functions that is actually help in low rise building design.
Examples of Pre-Engineered Buildings are warehouses, Canopies, Factories, Bridges etc.
2. PRODUCT & ITS APPLICATION:
PEBs provide one stop solution for all building requirements of various customers primarily for
Commercial, Industrial, Residential or Institutional requirements. They provide speed in
delivery and erection, flexibility in expansion and withstand severest weather conditions. These
buildings are available in large multi-dimensional spans; lean to roof at all required heights and
side claddings. They feature a structural steel framework of primary and secondary members
(rigid frame, beams, purlins and girt, trusses and columns) on to which cladding and roofing
components are attached.
PEB is ideal for Factory Buildings, Warehouses, Aircraft Hangars, where the
intermediate columns need to be avoided.
PEB is ideal for Show Rooms, Office Complexes, Airports, Exhibition Halls etc. due to its
flexibility to provide aesthetics.
PEB is ideal for buildings in City Area where land cost is too high, thanks to its less
foot print area compared to RCC buildings.
PEB is ideal for buildings that needs to be relocated to other places.
PEB is ideal for buildings that is to be built fast.
PEB is ideal for Residential Sectors ( Emerging demand ).
PEB is ideal for Buildings that need to be expanded in future.
3. DESIRED QUALIFICATIONS FOR PROMOTER:
Any person with mechanical/ metallurgy engineering degree and experience.
4. INDUSTRY OUTLOOK/TREND
PEB sector has grown much beyond PEB (pre-engineered buildings). The industry has moved
to complex structures like high-rise buildings, process plants, large span structures and hi-tech
warehouses catering to the booming e-commerce industry. It should be more aptly known
now as a pre-engineered construction sector rather than a pre-engineered building sector.
Great boom coming in the next few years. The industry has metamorphosed into an industry
which is dealing with very complex structures, constructing complex buildings, which are
beyond traditional pre-engineered buildings.
The market is booming. There are lots of ongoing PEB projects. There are lots of large
projects happening. There are lots of projects coming from the warehousing sector. E-
commerce is booming. Large industrial houses are going for expansion at a rapid phase. Large
plants are coming up in the pharma sector, Green energy sector.
5. MARKET POTENTIAL AND MARKETING ISSUES. IF ANY:
The global pre-engineered building market size was anticipated at USD 9.73 billion. It is
estimated to register a CAGR of 15.5% over the forecast period(2022-2030). An increase in
construction spending by most governments coupled with an upswing in the demand for fast
track constructions in Asia Pacific, particularly in China and India, has driven the PEB market
over the past few years.
The market is expected to witness significant growth on account of increasing awareness
regarding modern off-site construction techniques. In addition, rising demand for green
buildings globally has resulted in shifting focus from traditional steel buildings to PEB, which
consumes lesser energy during and post construction. Primary market players are actively
involved in innovation, R&D activities, gaining new expertise in steel structures, upgrading
products according to revised regulations, and overall project management. Companies are
also involved in customization of offered products in order to consolidate their position in the
global arena.
Currently, 33% of the Indian Construction industry is based on PEBs, whereas the remaining
67% is Conventional construction. Overall the PEB industry in India is expected to grow rapidly
at around 35% per annum (which is considered as a conservative estimate). As per the
industry experts, potential growth with current capacity is 10% year-on-year basis. Hence
there would be good scope for capacity expansion for the current market players in the Indian
PEB Industry.
6. RAW MATERIAL REQUIREMENTS:
The raw materials required are heavy hot rolled plates, billets, blooms, of steel in various
grades specified by IS/ASTM/ASME/ BIS/ DIN/ MIL etc. The welding consumables viz
electrodes used by latest technology fabrication machines viz TIG/ MIG/ GMAW/ SAW/ SMAW
etc. machine for continuous welding of thick sections. Argon and other such gases are also
required for providing shield during welding process.
7. MANUFACTURING PROCESS:
Pre Engineered building Fabrication process starts with design drawings specifying the
sections of column, rafters purlins and sheeting material etc based on length width and height
of building. Materials to be used are also normally prescribed in design drawing. Each
assembly and components will have details precise dimensions; tolerances, etc. weld joint
quality parameters. Based on design drawings, the fabrication job is broken in to parts or
components. Raw materials like steel plate, GP coil, PPGL coil etc. are obtained as per
specification.
The process steps involved are as below:
Cutting to Size: This is a critical operation to get the precise shape and size of
components to be welded. Plate steel is loaded on a table and the parts are cut out to
required size and shape. This is done with a variety of cutting machines having gas
torches, Plasma, Laser, and Hydraulic shearing machines as cutting heads and the
control of cutting head may be equipped with manual, mechanical or automatic PLC/
CNC programmable controls for 2D and 3D movement controls.
Tack Welding: The formed materials and sub-assemblies are assembled and tack
welded to correct dimension and position prior to final welding.
Welding : The welding technology is chosen depending on material, thickness to be
weld, etc. and the weld machines with continuous electrode wire feeding and guiding
rails are used for MIG/ flux cored wire welding/ Submerged arc welding, TIG welding
etc. machines. Some manipulators/ welding gun/ work piece positioners etc. are used
for ensuring an interrupted welding of complete joint peripherally or longitudinally.
Weld joints are cleaned with brushes and inspected. Some of the joints may be tested
by nondestructive testing methods viz dye penetration test, ultrasonic or magnetic
particle test systems. Very critical joints are inspected.
The final welded structure is inspected and tested for all specification parameter and
sometimes tested for Radiography for internal defects of welding prior to painting.
Blasting & painting : blasting of final welded structure components with grit should be
done to get roughness on the surface of beams and columns. This results the good
adhesion of paint on structure. Painting operation carried manully by air less spray
painting to avoid rust, corrosion on structure.
Forming: raw material for purlins and roof sheeting are in coil form. Thes coils are
loaded to the cold forming machines and bend to required shape with rollers.
8. MANPOWER REQUIREMENT:
The unit shall require highly skilled service persons. The unit can start from 26 employees
initially and increase to 56 or more depending on business volume.
Monthly
Sr No Type of Employees No of Employees
Salary
Year 1 Year 2 Year 3 Year 4 Year 5
1 Skilled Operators 20000 10 12 14 16 18
2 Semi-Skilled/ Helpers 8000 12 15 18 22 24
3 Supervisor/ Manager 30000 3 4 5 6 6
4 Accounts/ Marketing 20000 2 2 3 3 4
5 Other Staff 7000 2 3 3 3 4
TOTAL 29 36 43 50 56
9. IMPLEMENTATION SCHEDULE:
The unit can be implemented within 4 months from the serious initiation of project work.
Time Required
S No Activities
in Months
1 Acquisition of Premises 1
2 Construction (if Applicable) 1
3 Procurement and Installation of Plant and Machinery 1
4 Arrangement of Finance 1
5 Manpower Recruitment and start up 1
Total Time Required (Activities run concurrently) 4
10. COST OF PROJECT:
The unit will require total project cost of Rs 204.30 lakhs as shown below:
Sr No Particulars In Lakhs
1 Land 0.30(lease)
2 Building 60.00
3 Plant and Machinery 90.00
4 Fixtures and Electrical Installation 25.00
5 Other Assets/ Preliminary and Preoperative Expenses 4.00
6 Margin for working Capital 25.00
TOTAL PROJECT COST 204.30
11. MEANS OF FINANCE:
The project will require promoter to invest about Rs 100.00 lakhs and seek bank loans of Rs
104.30 lakhs based on 51% loan on fixed assets.
Sr No Particulars In Lakhs
1 Promoters Contribution 100
2 Loan Finance 104.3
TOTAL : 204.3
12. WORKING CAPITAL REQUIREMENTS:
Working capital requirements are calculated as below:
Sr No Particulars Gross Amount Margin % Margin Amount Bank Finance
1 Inventories 18 50 9 9
2 Receivables 8 50 4 4
3 Overheads 6.5 100 6.5 0.00
4 Creditors 10 50 5 5
TOTAL 42.5 24.5 18
13. LIST OF MACHINERY REQUIRED:
Sr No Particulars UOM Qtty Rate Total Value
Main Machines/ Equipment
1 Hydraulic 16mm shearing machine Nos 1 1500000 1500000
2 Beam welding machine Nos 1 6000000 6000000
3 Heavy duty Saw Machine Nos 1 300000 300000
4 TIG/ MIG/ SAW Welding M/c Nos 6 100000 600000
5 Shot Blasting Machine Nos 1 150000 150000
6 Radial Drill Machine Nos 1 400000 400000
7 Ultrasonic/ Magnetic Particle test systems Nos 1 100000 100000
8 Air Compressor and Air Handling Nos 1 150000 150000
9 EOT Cranes Nos 2 450000 900000
subtotal : 8600000
Tools and Ancillaries
10 Misc. equipment tools etc. LS 1 250000 250000
11 Hand Tools and gauges LS 1 150000 150000
subtotal : 400000
Fixtures and Elect Installation
12 Storage and transport trolley LS 1 225000 225000
13 Office Furniture LS 1 75000 75000
14 Telephones/ Computer LS 1 200000 200000
15 Electrical Installation LS 1 2000000 2000000
subtotal : 2500000
Other Assets/ Preliminary and
16 LS 1 400000 400000
Preoperative Expenses
TOTAL PLANT MACHINERY COST 11900000
All the machines and equipment are available from local manufacturers. The entrepreneur
needs to ensure proper selection of product mix and proper type welding machines. It may be
worthwhile to look at reconditioned imported machines.
Some of the machinery and tooling suppliers are listed here below:
1. Invent weld Automation(P) ltd
2A & 3B, Lakshmi Industrial Estate,
1/130, Kunrathur Main Road,
Kovur, Chennai - 600 128
+91-7358386572 / +91-7358386575
invent@inventweld.com
2. Primo Automation Systems P Ltd,
Survey # 500/5 to 8,
Amarambedu Village,
Kundrathur PO,
Chennai - 600069, India
enquiries@primoautomation.com kph@primoautomation.com
3. Parksons Engineering Corporation
Great Western Compound,
37 Maharashtra Chamber Of Commerce Road, Fort,
Mumbai-400001, Maharashtra, India
4. Broadway Foundry & Engineering Works
Raghav Aggarwal
G. T. Road, ASR Bypass Batala - 143505,Punjab
5. Toss Weldtronics
Sachin Deshmukh (Manager)
Sector No. 21, S. C. H. No. 6, Building No. 17,
Flat No. 6 Yamunanagar,
Nigdi, Pune – 411044, Maharashtra
6. Omega Weld Rod System
No. 1/455-G, Aachankulam Road Neelambur
Coimbatore- 641062, Tamil Nadu, India
14. PROFITABILITY CALCULATIONS:
Sr No Particulars UOM Year Wise estimates
Year 1 Year 2 Year 3 Year 4 Year 5
1 Capacity Utilization % 40 50 50 60 70
2 Sales Rs. Lakhs 360 450.00 450.00 540.00 630.00
3 Raw Materials & Direct Inputs Rs. Lakhs 240.00 300.00 300.00 360.00 42000
4 Gross Margin Rs. Lakhs 120.00 150.00 150.00 180.00 210.00
5 Overheads Except Interest Rs. Lakhs 78.00 78.00 78.00 78.00 78.00
6 Interest Rs. Lakhs 15.00 15.00 15.00 15.00 15.00
7 Depreciation Rs. Lakhs 5.95 5.95 5.95 5.95 5,95
8 Net Profit Before Tax Rs. Lakhs 21.05 51.05 51.05 81.05 111.05
The Unit will have capacity of 7200 MT per year of fabrication of peb building primary
sections(columns, beams), structures, bridge griders etc. The fabrication quote prices without
materials, range from Rs 15 per Kg for simple jobs to Rs 30 per kg for high end products
depending on type, size/ complexity and job volumes.
The raw material costs are charged at actual, for the job and these costs may be added to
sales turnover if fabrication job is with material cost. The price of raw materials range from Rs
60 to 150 per Kg depending on the steel grades. The material requirements are considered
with wastage/ scrap etc. of 10 % of finished products. The unusable scrap is sold at @ Rs 40
~ 60 per Kg. and the income of same is added. Energy Costs are considered at Rs 7 per Kwh
and fuel cost is considered at Rs. 110 per liter. The depreciation of plant is taken at 5 % and
Interest costs are taken at 14 -15 % depending on type of industry.
15. BREAK EVEN ANALYSIS
The project is can reach breakeven capacity at 32.98 % of the installed capacity as depicted
here below:
Sr No Particulars UOM Value
1 Sales at Full Capacity Rs. Lakhs 900.00
2 Variable Costs Rs. Lakhs 600.00
3 Fixed Cost incl. Interest Rs. Lakhs 98.95
4 Break Even Capacity % of Inst Capacity 32.98
16. STATUTORY/ GOVERNMENT APPROVALS
The unit shall have to get state industrial unit registration from DIC, IEC Code for Export and
local authority clearance. Depending on structure of finance the company shall need to register
company with registrar of companies. The registration and approval for factory plan, safety for
Fire etc. requirement, registration as per Labour laws ESI, PF etc. shall be required as per
rules and applicability. Before starting the unit will also need GST registration for procurement
of materials as also for sale of goods. As such there is no pollution control registration
requirements, except painting line and ensure safe environment as per rules of factory safety.
Solid waste disposal shall have to meet the required norms. Entrepreneur may contact State
Pollution Control Board where ever it is applicable.
17. BACKWARD AND FORWARD INTEGRATION
The machines and equipment offer scope for diversification in to producing range of
fabrications from structural to machine building industry products. The unit may take up
import substitution for several machines/ automatic/ robotic systems, material handling
equipment. The unit can also of other consumer and industrial wire products / components
etc. by using the spare capacities and machine capabilities. As such there is not much scope
for organic backward or forward integration.
18. TRAINING CENTERS/COURSES
The most important scope of learning is in new product design and development by
associating with institutes like NID etc. Entrepreneur may also study the new product designs,
product range, features and specifications of leading Brands / competitors across the world by
scanning the Internet and downloading data. Viz. North American, Europe, China etc. markets.
Udyamimitra portal (link : www.udyamimitra.in ) can also be accessed for hand-holding
services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from Institutes
like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.
19. Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein.
Further the same have been given by way of information only and do not carry any
recommendation.
20. PROMOTERS DETAILS
1.G MADHU KRISHNA -DIRECTOR
EDUCATIONAL QUALIFICATION
Degree University/Institution Year of % / CGPA Discipline
Passing
M.Tech National Institute of 2011 7.2 CGPA Manufacturing
Technology -Warangal Engineering
B.Tech G.Pulla Reddy Engineering 2008 62.7 % Mechanical
College, Kurnool. Engineering
Intermediate Sri Krishna Junior college 2003 81.8% MPC
10th Ravindra Vidya Niketan 2001 84% All
WORK EXPERIENCE
1) Name of company : Maiwir engineering Pvt ltd
Inclusive Dates : Oct (2019) to Oct(2022)
Position : Factory General Manager
Major Projects covered : DRDO Banglore, Gachibowli 64m span fly over
griders, phoenix, Heritage
Duties and Responsibilities
Estimate fabrication Cost of projects based on design drawings and ensure the completion within the
given cost.
Monitoring Input to Output Material requirements, movements as per quality parameters.
Manage and coordinate daily operations of the manufacturing plant.
Analysing production data to identify and resolve any production / quality issues
Co-ordinating with all department heads regarding production to complete it on schedule.
Co-ordinating with clients on all production and QC activities.
Develop processes to increase productivity and enhance performance
Planning project production schedule and ensure it to complete in time.
Review of customer complaints and preparing corrective and preventive action
Resolving factory related issues. Responsible for overall production planning & execution
Monitor equipment and ensure that they are in good working order
Repair or replace plant equipment as needed
Ensure company policies and procedures are followed at all times
WORK EXPERIENCE
2) Name of company : Aster Building solutions Pvt ltd
Inclusive Dates : June (2011) to September(2019)
Position : Deputy manager QA/QC
Major Projects covered : PGCIL, HCA (uppal stadium),Reliance, cochin airport
TCS Adibatla, TATA, P&G, L&T.
Duties and Responsibilities
Co-ordinating with clients on all production and QC activities.
Conducting welding procedure specification and welder qualification tests.
Preparation and implementation of inspection and test plans (ITP), Quality plans, welding inspection
Review of documents work order, Codes, Standards / Specification, Quality Assurance Plans, Material
Test Reports, Drawings etc.
Review of customer complaints and preparing corrective and preventive action.
Preparing and analysis of monthly QA/QC-MIS to reduce reworks.
Preparing and presenting QA/QC Activities for QRM.
3) Name of company : Sujana tower Pvt ltd
Inclusive Dates : Aug-2008 to May 2009
Position : Engineer(production)
Major Projects covered : Bsnl, Airtel, Reliance(Tower fabrication)
Duties and Responsibilities
Dimensional and welding inspection of tower components as per the drawing.
Production planning and allocation of man power to the work place.
Documentation (production vs actual, Dpr, rework/rejection analysis)
2. SUDHEER DEVA
EDUCATIONAL QUALIFICATION
Degree University/Institution Year of % / CGPA Discipline
Passing
B.Tech B.V.C Engineering College 2008 62 % Mechanical
Amalapur Engineering
Intermediate sri gowthami junior 2003 65 % MPC
college, Narsapur
10th Z.P.High school, 2001 67 % All
chinchinada
WORK EXPERIENCE
Name of company : Maiwir engineering Pvt ltd
Inclusive Dates : Oct (2019) to Oct(2022)
Position : QA/QC MANAGER
Major Projects covered : DRDO Banglore, Gachibowli 64m span fly over
griders, phoenix, Heritage
Duties and Responsibilities
Welder qualification procedures (wps, wqt, pqr).
QA/QC inspections (Dim, Fit-up, welding, Dp, Blasting, Painting etc.)
Conducting ultrasonic test for butt joints.
Coordinating with clients in QA/QC issues.
Worked in M/s. Aster building solutions Pvt ltd, as QA/QC Sr Engineer.
Major Projects : HCA stadium, Pgcil, Ncc Rob, TCS Adibatla.
Period : From Apr 2012 to till date(8years)
Designation : QA/QC Sr Engineer.
Responsibilities.
Raw Material testing (visual, mechanical & chemical).
Welder qualification procedures (wps, wqt, pqr).
Review of documents ( Tc, Mtc, etc. )And submitting for clearance.
QA/QC inspections (Dim, Fit-up, welding, Dp, Blasting, Painting etc.)
Conducting ultrasonic test for butt joints.
QA/QC documentation as per the ITP.
Preparing dossiers for the projects.
Updating calibration status for QA/QC instruments.
Coordinating with clients in QA/QC issues.
Worked in M/s. FUTURA, YANAM. One of the fast growing and Challenging
Industrial Plant Construction Company in this Region.
Project : YANAM OBSELIK MONUMENTAL TOWER
Client : Reliance industries limited
Consultant : N.C.C
Period : From Jan 2011 to Apr 2012(1year)
Designation : Site Engineer (Mech)
PROJECT DETAILS: - Fabrication & erection of monumental structure (Replica of Eifel Tower)
including structural glazing around 188 M.T up to 332.6 feet height.
Worked with M/s. COMTECH Pvt. Ltd., under M/s LARSEN &TOUBRO LIMITED at
HYDERABAD. India.
Project : I.C.I.C.I Building, M.R.F tyre plant
Client : E.C.C.
Period : MAY. 2008 to Sep 2011(3years)
Designation : Production ENGINEER
PROJECT DETAILS: Fabrication & erection of I.C.I.C.I Building project Up to 10,000 M.T
& 90 MTR Height.
2. AKULA GANGADHAR REDDY
EDUCATIONAL QUALIFICATION
Degree University/Institution Year of % / CGPA Discipline
Passing
M SC DR NTR UHS 20014 60 % MEDICAL
Vjayawada ANOTAMY
Intermediate Ravindra residential 2004 75 % BiPC
college, Kurnool
10th Ravindra residential 2002 75 % All
School, Kurnool
OCCUPATION - BUSINESS
NAME OF FIRM- GANGADHAR REDDY SWEETS
PERIOD- FROM 2014
RESPONSIBILITIES-
Monitoring the making of sweets in sweet house running with 20 workmen.
Monitering the incoming material and out going finished product.
Marketing and sales of sweets.
Processing the workmen wages
