According to the economics ministry, India's steel business expects to witness 2-3% annual growth in 2021-23. Therefore, it is the best time to learn how to start a steel business.
Types of Steel Business
Focus on a niche rather than targeting the entire market.
Here is a list of types of steel business:
- Nut and Bolt Production
- Export-Import of Iron and Steel
- Iron Recycling
- Paper Clip Making
- Alloy Steel Plant
- Steel Furniture Business
- Welding Unit
- TMT Bar Production
- Steel Fabrication
- Stainless Steel Utensils
After choosing one, proceed with the following process.
Steps to Start a Steel Business
Plan your Business
The first step to start a business is making a business plan that covers the following:
- Type of Business
- Market survey
- Name of the Firm
- Mission and Vision
- Estimate of Initial Investment
- List of requirements (like workforce, machinery etc.)
- Define your Niche
- Location options
- Potential Competitors
- Strategies and Goals
Register Your Company
Further, go for fast and easy Online Company Registration.
Get a free consultation from our experts 24x7 before registration.
After that, register your company with StartEazy in 4 simple steps:
- Fill the Form
- Make the Payment
- Mail the Documents
- Get the Incorporation Certificate
Registering a company protects you from all the potential legal conflicts.
A company can sue or be sued in its name.
Moreover, it limits the liability of the owner and increases the fund borrowing capacity.
You can register your business under the following structure:
- Private Limited Company Registration
- Limited Liability Company
- Partnership
- One Person Company
Locate your Company
Location plays a crucial role in the operations of a business.
Therefore, consider these things before choosing a location:
- Suppliers and Vendors - Being near to the source and distribution will help you reduce your transportation costs.
- Clients - Being near the clients will ensure productivity. Also, you can give better after-sale services in case needed.
- Some states also offer incentives for bringing new jobs to their area. For example, cheaper electricity and subsidiaries.
However, the decision highly depends on the nature and size of your business.
Get the Licenses
A business can't survive without fulfilling its legal obligations.
Hence, get all the required licenses for your business to operate without any conflicts.
- GST Registration
- Shop and Establishment License
- IEC - Import-Export Code (for steel import-export business)
- Udyam Aadhaar (for MSME Registration)
- Pollution Certificate
Buy the Machinery and Stock
Buying appropriate machines requires strategy and knowledge.
The cost of machines and tools for the steel business is quite expensive.
Also, the cost should include machine breakdown or servicing charges while investing.
Since manual work takes longer and involves a higher risk of mistakes, it is advisable to automate the tasks even if the machine is costly.
If you have a primary resource for steel, well and good. If not, you can outsource theraw materials.
Hire your Team
One can not run a business alone. You will need a skilled workforce that is disciplined and flexible.
A steel business needs people from physics, material science, metallurgy, chemistry, engineering, mathematics, IT, computer science, business management and accountancy department.
With this in mind, you will need to hire for:
- Production and Manufacturing
- Engineering
- Process Development
- Technical
- Research and Development
- Sustainability
- Marketing
- Product Development
- Logistics
- Purchasing machines and stock
- Finance
- Strategy Development
- Human Resource Managing
Investment Required for a Steel Business
Investment in a steel business depends on the scale and nature of your work.
A steel factory requires ample funds to buy machines and set up the plant.
The investment could start from lakhs to crores.
On the other hand, a steel fabrication business can start with an investment of Rs. 10,00,000 - Rs. 20,00,000.
To sum up
Since, there is an increase in demand for high corrosion resistance materials from the shipbuilding and marine sectors. It is the perfect time to learn how to start a steel business.
As a result, India ranks 2nd on the global list of steel-production countries.
In fact, the steel industry has the highest economic linkages in the GDP. Therefore, the steel business market has insane growth opportunities and competition.
For any more information or free consultation, fill out the form on the right.
