What is a rolling mill project report?
A rolling mill project report is a detailed project report (DPR) for a hot re-rolling mill that heats mild steel billets in a reheating furnace and rolls them into angles, channels, flats and rounds. It sets out the process, machinery, billet supply, yield, project cost, means of finance, five-year projections, DSCR and break-even.
Promoters use it to size the mill and raise a term loan; bank credit teams use it to judge whether the billet-to-section margin can carry the debt.
Also known as: steel re-rolling mill project report, SRRM project report, rolling mill DPR, rolling mill business plan, re-rolling mill feasibility report.
How much does a rolling mill plant cost in India?
Our sample report models a section re-rolling mill of 59 metric tonnes per day (MT per day) that buys its billets. That is 19,470 MT a year over 330 working days, starting at 60% capacity and reaching 80% in Year 5, with sections sold at ₹50,600 per MT.
| Land and site development | 121.39 |
|---|---|
| Building and civil works | 239.41 |
| Plant and machinery | 543.37 |
| Other fixed assets | 71.78 |
| Contingencies | 39.14 |
| Preliminary and pre-operative | 25.38 |
| Working capital margin | 252.46 |
| Total | 1,292.93 |
| Promoter's contribution (25%) | 323.23 |
|---|---|
| Term loan from bank (75%) | 969.70 |
| Cash credit limit (separate) | 757.40 |
| Total project cost | 1,292.93 |
Why the margin matters so much: net profit is only 3.2% of sales in Year 3 of the sample. A squeeze of 1% of sales, about ₹69 lakh a year, would take away nearly a quarter of that profit, so lenders read the billet-to-section spread first.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; the lowest DSCR is 1.28, in Year 2. All figures are illustrative.
Rolling mill manufacturing process for steel sections
A re-rolling mill does not make steel. It reheats cast billets and squeezes them, stand by stand, into the cross-section the buyer orders.
- Billet checking and cutting
Billets are checked for size, cracks and piping, then cut to the length that gives full bars with the least end waste.
- Reheating
A pusher furnace brings the billets to about 1,100 to 1,200 degrees Celsius; some steel is lost as scale at this stage.
- Roughing
Roughing stands reduce the hot billet in several passes and break up its cast structure.
- Intermediate and finish rolling
Grooved rolls, set by the roll pass design, shape the bar into an angle, channel, flat or round of the ordered size.
- Shearing and cooling
A hot shear crops the front and tail ends, and the sections cool evenly on the cooling bed.
- Straightening and testing
Sections are straightened, cut to length and checked for dimensions, weight per metre, tensile strength and bend.
- Bundling and dispatch
Bundles are tagged with size, grade, heat number and BIS mark, then loaded for stockists and fabricators.
Which type of rolling mill fits your plan?
"Rolling mill" covers several very different plants. Settle the route first, because it decides the machinery, the power load and which BIS standard you work to.
| Section re-rolling mill | Bought-in billets reheated in a fuel-fired furnace and rolled into angles, channels, flats and rounds. This is the plant in our sample report. |
|---|---|
| TMT bar mill | The same front end with a quenching box after the finishing stand; bars are made to IS 1786 and need a separate product licence. |
| Induction-heated mill | Electric induction heaters replace the fuel furnace. A filing for a 2,50,000 TPA mill shows two 20 tonne heaters, about 15.63 MW connected load and no point-source emission. |
| Integrated melting and rolling | An induction furnace and continuous caster make billets from scrap or sponge iron and feed them hot to the mill. Capital and power needs are far higher. |
| Cold rolling mill | Rolls hot-rolled coil or strip at room temperature into thinner, smoother cold-rolled strip. Different machinery and buyers. |
| Aluminium rolling mill | Rolls aluminium slabs or cast strip into sheet and foil. A different metal, process and market, planned as its own project. |
Billets and raw materials for a re-rolling mill
Billets are almost the whole raw material bill, so yield is the number to watch. In the Kharagpur filing, 2,63,000 tonnes a year of billets go in for 2,50,000 tonnes of product, and end cuts and miss-rolls return as scrap. Conventional furnaces also lose about 2–2.5% of the steel as scale.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| MS billets and blooms | 95% | 4,862.03 |
| Rolls, guides and furnace refractories | 5% | 255.90 |
| Total | 100% | 5,117.93 |
Raw materials are 74.2% of sales in the sample. Test your own report at current billet and section prices.
Machinery for a steel rolling mill
The reheating furnace and the intermediate and finishing stands are the two largest items in the sample, at ₹119.54 lakh each.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Pusher type reheating furnace with recuperator | Heats billets; the recuperator preheats combustion air with flue gas | 119.54 |
| Roughing mill stands | First heavy reductions of the hot billet | 92.37 |
| Intermediate and finishing mill stands | Grooved rolls form the final section | 119.54 |
| Mill motors, gearboxes and drives | Power and speed control for each stand | 76.07 |
| Cooling bed | Cools sections evenly so they stay straight | 43.47 |
| Hot shear and cold shear | Crop ends and cut to sale lengths | 43.47 |
| Section straightening machine | Removes bow and twist after cooling | 27.17 |
| Roll turning lathe and testing lab | Re-grooves worn rolls; tests strength and bend | 21.74 |
| Total plant and machinery | 543.37 | |
Costs are the sample report's estimates for a 59 MT per day mill. Get current quotations before you finalise.
Fuel, power, water and manpower for a re-rolling mill
Furnace fuel and scale loss are where well-run mills save money. A UNDP evaluation of the government's re-rolling mill energy programme gives useful reference points.
| Furnace fuel | Pusher furnaces on furnace oil use about 42–45 litres per tonne; a recuperator saves about 15%, and the Ministry of Steel lists regenerative burners as a best available technology |
|---|---|
| Scale loss | About 2–2.5% in conventional furnaces, against 0.6–0.8% in walking hearth furnaces |
| Power and fuel in the sample | ₹429.57 lakh in Year 3, 6.2% of sales, for mill motors, furnace blowers, cranes and fuel |
| Water | Mostly indirect cooling of rolls, bearings and furnace parts on a recirculating circuit; the 2,50,000 TPA filing needs 70 KLD of make-up water |
| Manpower in the sample | 189 people: 28 in management and supervision, 66 skilled, 95 semi-skilled and unskilled; ₹405.12 lakh in Year 1 |
| Working capital in the sample | Trade receivables are the largest current asset, ₹728.76 lakh in Year 1 at 45 days of credit; cash credit limit ₹757.40 lakh |
BIS licence and approvals for a rolling mill
As of October 2026, the Ministry of Steel lists 151 carbon, alloy and stainless steel products under its quality control orders. No steel product covered by them can be sold without the BIS Standard Mark.
| Product licence | BIS licence for IS 2062 hot rolled medium and high tensile structural steel, with sampling and testing as the standard requires |
|---|---|
| Billet input | Billets for re-rolling (IS 2830) are also covered; buy only BIS-marked billets with a test certificate per lot |
| Pollution board consent | "Rolling mill (oil or coal fired)" is in the CPCB orange category; consent to establish and operate from the State Pollution Control Board |
| Factory and safety | Factory licence under the Factories Act, and fire NOC where the state requires it, for hot work, furnaces and cranes |
| Power | HT connection sanctioned for the furnace, mill motors and auxiliaries |
| Registrations | Udyam (MSME) and GST registration |
Categories and rules differ by state. Confirm with your State Pollution Control Board and BIS before ordering machinery.
Who buys rolled steel sections?
Angles, channels and flats go into factory sheds, warehouses, power towers, solar mounting frames and machine bases. Most small and medium mills sell through stockists, who expect credit, and directly to fabricators who order by size and grade.
- Steel stockists and traders
- Structural fabricators and pre-engineered building (PEB) makers
- Transmission tower and solar structure makers
- Infrastructure and EPC contractors
- Agricultural equipment and trailer makers
Where a mill wins: both billets and sections are heavy, low-value loads. A mill near billet suppliers and close to fabrication clusters saves freight at both ends, which can be most of the margin.
Mistakes that weaken a rolling mill project report
- Using the spread from a good month
Billet and section prices move separately. Banks expect the report to test a narrower gap, not the best one seen.
- Assuming every tonne of billet becomes saleable sections
Scale, crop ends and miss-rolls all take away weight; scrap is sold at a much lower price.
- Leaving out roll wear
Rolls are re-grooved and replaced with tonnage. Without them, running cost is understated.
- Too many sizes in the product mix
Each roll change stops the mill. A wide mix cuts real output well below rated capacity.
- No time for the BIS licence
Sales cannot start until IS 2062 marking is granted, so the first months of revenue slip.
How NPCS helps you plan a rolling mill
- Route and product mixChoose between a section, TMT or integrated mill and the sizes your market buys.
- Furnace and mill configurationCompare furnace types, fuels and stand layouts against your capacity and power.
- Bank-ready project reportProjections, DSCR and price-spread sensitivity in the format your lender wants.
- BIS and approvals planLicence steps, testing lab and the consents list for your state.
NPCS's client list shows 116 assignments in metal products, including one rolling mill assignment, prepared since 1994 by the NPCS project team led by founder Ajay Kumar Gupta.
What's inside the rolling mill sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS rolling mill project reports
These are rolling mill project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Steel Rolling Mill | On request | ₹11.45 crore | 45% | 61% | Get this report |
| Aluminium Rolling Mill | Aluminium Foil Food Grade (thickness 0.006 mm to 0.150 mm): 24 MT/Day | ₹12.52 crore | 29% | 52% | Get this report |
| Steel Re-rolling Mill | 150 Ton/Day | ₹22 crore | 68.8% | 28.5% | Get this report |
| Steel Rolling Mill | 200.00 MT/Day | ₹38.97 crore | 61% | 26% | Get this report |
| Integrated Melting & Rolling Mill | 50400 MT/Annum | ₹39.47 crore | 45% | 56% | Get this report |
| Hot Plate Rolling Mill | 10,00,000 MT / Annum | ₹197 crore | 47% | 55% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
What clients say about NPCS
4.7
264 Google reviews, as of 20 Oct 2026
Clients most often mention
- feasibility reports 18
- project report 16
- helpful for startups 15
- detailed reports 8
-
Excellent experience with Niir Project Consultancy Services. Their Techno-Economic Feasibility Reports are incredibly detailed and backed by solid market data.
Piyush Singh, Google review, 2026
-
Niir Project Consultancy Services offers excellent guidance for business setup. Their market survey and feasibility reports saved us a lot of time and helped us make informed decisions. Highly recommended
Saroj Yadav, Google review, 2026 View on Google
-
In an era of information overload, NIIR stands out for its precision. Their technical consultancy and market feasibility studies are world-class.
Shrishti Gautam, Google review, 2026
-
NIIR Project Consultancy Services provides useful books and reports for students, entrepreneurs, and small businesses. Their content is easy to understand and focuses on practical ideas for starting and managing industries. Overall, NIIR is helpful for learning about business and project planning.
Raj Yadav, Google review, 2026
Rolling Mill project report: frequently asked questions
How much does it cost to set up a rolling mill in India?
A section re-rolling mill of 20–30 MT per day on bought-in billets needs roughly ₹5–8 crore, and our sample report models a 59 MT per day mill at ₹1,293 lakh. A mill with its own induction furnace and continuous caster costs several times more. These are indicative figures; your project report works out the cost for your capacity, product mix and site.
Is a rolling mill business profitable?
It can be, but margins are thin. In our illustrative sample the mill earns a 17% return on investment in Year 3 and breaks even at 52% of capacity. It pays back in about 4.3 years, with an average DSCR of 1.50. Real results depend on the billet-to-section price gap, furnace fuel, scale loss and how fast stockists pay.
What raw material is used in a re-rolling mill?
Mild steel billets or blooms are the main input, at 95% of raw material cost in our sample. The rest is rolls, guides and furnace refractories, which wear out with tonnage. Billets bought for re-rolling must carry the BIS mark under IS 2830, so ask each supplier for the licence number and a test certificate with every lot.
What is the difference between hot rolling and cold rolling?
Hot rolling shapes steel above its recrystallisation temperature, which for a re-rolling mill means heating billets to about 1,100 to 1,200 degrees Celsius. Cold rolling works hot-rolled coil or strip at room temperature to get thinner gauges and a smoother finish. They need different machinery, so a project report covers one route, not both.
Is a BIS licence needed for rolled steel sections?
Yes, for sections made to IS 2062. The Ministry of Steel lists IS 2062 among the standards under the Steel Quality Control Order, so sections must carry the BIS Standard Mark under a valid licence. Plan the licence, the in-house testing lab and sample testing before trial rolling, because unmarked sections cannot be sold.
Which machines are needed for a steel rolling mill?
You need a reheating furnace, roughing stands, intermediate and finishing stands, and mill motors with gearboxes. Add a cooling bed, hot and cold shears, a section straightener and a roll lathe with a testing lab. In our sample the furnace and the finishing stands are the largest items, at ₹119.54 lakh each, out of ₹543.37 lakh of plant and machinery.
Is the sample report free and can I use it for a bank loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not based on a real project. It should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, product mix, location and lender.
Sources and references
- Standardization and quality control of iron and steelMinistry of Steel, Government of India, checked Oct 2026
- Steel products covered under the steel quality control order (Lok Sabha unstarred question 3149)Ministry of Steel, Government of India, checked Oct 2026
- Ministry of Steel has notified Quality Control Order on 145 Indian Standards on steel and steel productsPress Information Bureau, Government of India, checked Oct 2026
- CPCB revised orange category of industries list, 2020Puducherry Pollution Control Committee, checked Oct 2026
- Energy and environment management in iron and steel sectorMinistry of Steel, Government of India, checked Oct 2026
- Mid-term evaluation: Energy Efficiency in Steel Re-Rolling Mills (2007)UNDP Evaluation Resource Centre, checked Oct 2026
- Pre-feasibility report for a 2,50,000 TPA standalone rolling mill, KharagpurEnvironment clearance portal, Ministry of Environment, Forest and Climate Change, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.