How to Plan for a Profitable Rebar Plant Installation

The demand for rebar or concrete reinforcing steel has been steadily growing in India for the last three decades. Since the opening up of the Indian economy, there has been a boom in the construction business and infrastructure projects. Apart from the occasional slump that has been witnessed every now and then there is a constant need for this key ingredient in construction. Apart from the big players, there are thousands of smaller players who are doing brisk business. If you are planning a rebar plant installation you need to work on a profit-driven plan. Here are some of the things that you must consider during rebar plant installation. 

Rebar Size 

As you would know rebar bars come in different sizes right from 4mm in diameter all the way up to 50 mm. The most popular sizes are 8mm, 10mm, 12mm, 16mm, 20mm, 25mm, and 32mm. When installing a plant you need to make sure it is capable of producing bars that are in demand in your target market. The demand for all the sizes aren’t equal and the demand also varies on market. For instance, there is very low demand for 50 mm bars in most parts of the country and if you don’t have a demand for such bars installing a plant with this capacity may simply lead to waste of money. 

Plant Capacity 

What is the production capacity of the plan? This is one of the things that you should always consider while negotiating your plant installation with the engineering company you hire for your project. As you would know higher the capacity the more capital you would need to put on it. In an ideal case, you must install a plant that would have a capacity of around 300,000 metric tons annually. It will offer you headroom to grow when there is more demand in the market. 

Rebar Grade 

Rebar comes in different grades and this is determined by yield strength, ultimate tensile strength as well as their chemical composition. Before installing your rebar plant you need to do market research on the demand for different grades of rebar and make sure that plant you are installing is aligned with this demand. 

When these things are kept in mind you would be able to install rebar plant that improves your scope for profitability. 

Summary 

In this write-up discuss some of the opportunities that one can explore by setting up a structure rolling plant in India.