In this article, we are analyzing about Steel Doors and Windows manufacturing business. Traditionally we were mainly using wooden doors and windows. Due to non-availability of quality woods and lack of supply, its price has increased drastically.
As a result of this issue, UPVC and steel door windows became popular in the construction of houses and big flats. The main advantages of steel door windows and doors are it ensures maximum quality with low price. It has huge market potential and high demand because of its durability and low cost.
In business sense, steel doors and windows making is a best business opportunity to earn huge profit. In this article we are discussing about the investment. Market, machinery and expected profitability of this business clearly. We have tried to include all the details related to this entrepreneurship and it will be highly useful for a new entrepreneur. Its main raw materials are TATA GI sheets.
Invest for business start up in steel doors and windows
Like all other businesses, basic infrastructure facilities to establish a steel doors and windows manufacturing business are building, machinery and electrical connection. For a new entrepreneur, the building can be adopted for rent. In that case, he has to arrange only rental agreement and the amount to pay monthly rent for this purpose.
Building space and investment
Whereas, if you have the financial capacity to construct a new own building, you can choose that option too. Here we are examining the minimum requirement of a building to operate this kid of a unit. This requirement is same for both rental building and owned building.
At least, the area and space of building should have 15 meters width, 20 meters length and 12 meters of height. It is enough to construct this building by using GI sheets and pipes. Now we can consider why it requires this kind of considerable size of building. There will be four different kinds of production procedures in this unit. Firstly material cutting, secondly welding process, then it has to be granted and polished and at last it has to be painted too.
For all these purposes, we should have adequate space in our unit. For all these procedures, the area of building should have 3200 square feet. To construct this kind of a shed, we have to spend 710,000 rupees. Now we can examine about all its essential machinery equipment’s.
Machinery investment
This section deals with the details machinery to establish a steel doors and windows manufacturing unit. Seven different kinds of machineries are required to operate this kind of a unit. Major types of those machines have listed here.
- They are welding machine,
- grander machine,
- cutter machine,
- driller machine,
- punching machine
- compressor.
- All these machines are abundantly available in market in various qualities. For example, welding machines are available in different amperes like 200, 250 and 350. The selection of quality of machinery should be completely based on your requirement and purchasing capacity.
But one thing is necessary to keep in mind that all the machines have to be use for a longer period of time and you have to ensure the longevity of the machines. On an average, you have to invest around 180,000 rupees to purchase all the required machines.
License and other investment
Mainly we need license from Panchayath and Municipality to establish a production unit. A steel doors and windows manufacturing unit may produce a considerable volume of sound. When it is cutting, granting and punching, it will make noises and it may leads to the problem of sound pollution.
For every unit which is more than 5 HP, it is essential to have license from Pollution Control Board. As it is a medium or large scale business by earning huge amount of revenue, it is necessary to have GST registration. If you are operating in proprietorship, you can register it by using your PAN card.
Whereas, if you are running it in partnership, the GST registration is should be through company PAN card. To run any business smoothly, you should have a bank account in the form of current account. The total amount of investment for licensee procedure will be around RS 30,000.
Total investment
Building – 71000
Electrical – 150000
Machinery – 180000
License – 30000
Total investment – 107000
Profit study from steel doors and windows
This section analyses the profit details of this manufacturing unit. Steel doors and windows manufacturing unit is a best business opportunity with high expected profitability.
Production cost
The price for 1 kg TATA Galvano sheet is RS 120. Normally, the size of a three panel window is 150 cm width and 140 cm height.
When we are creating this kind of a window, we need 26 kg raw materials. For this window, we can use GI square pipe of 18 kg as channels. When we are calculating the total raw material price for a window by multiplying 26 with 120, we will get 3120 rupees as total cost.
Working cost and scrap
Now we can calculate the working cost of a window. The labor charge to create a window is RS 300. There will be 200 rupees additional cost as welding and other equipment’s. There will be a cost of RS 350 for painting this kind of a window. When we are making a window, there will be production wastage of 2 kg. So, 150 rupees can be estimated as wastage in the manufacturing process.
Working cost to make one window is RS 1030. Thus, the total costs to manufacture a window are RS 4150. Normally, the market price of a steel window is RS 6700. By deducting this price from the cost, we will get 2550 rupees as profit from a single window.
Net profit from daily and monthly
Now we can calculate the total quantity of output in a day to calculate the total per day profit. By using 3 labours, we can produce 5 windows as final output in a day. Here, the total profit in a day will be RS 12,690. This amount of profit also can be increases by expanding the production the production capacity. By multiplying this amount of net profit with 26 working days, we can estimate the monthly profit. This monthly profit will be 329,940 rupees. This expected profitability is subjected to a little variation.
Marketing tips for steel doors and windows
As we all know, the production of a product itself will not generate any kind of profit. Its marketing also is very crucial. As its manufacturing process, the marketing of steel doors and windows is also quite easy. Its scope is increasing day by day due to increased rate of population growth and increases in the number of houses. We can market this product in Three different ways. Firstly, we can directly market it in our locality.
1 – Direct marketing
For that we have to use our connections like friends and relatives. By canvassing contractors in local areas too we can market it easily. Second category is in distribution side. Actually its scope in distribution side is very limited because this product is not usually taken by distribution agencies for direct sale. Anyhow, we can do counter sale in this area.
2 – Counter sale
It can be done by identifying the shops in different towns who supplying the equipments related to house construction such as tiles and electrical products. We can sell our product by displaying it in those shops. You can also market it by giving franchisees of your product in different localities. For that you have to open outlets in different districts. This strategy can be implemented by assigning the monitoring duty of this unit to local persons by providing salary or profit share.
3 – online marketing
Another category of marketing is selling the product through online platforms. Online marketing are familiar and popular in these days. In this modern era, all most all products are marketed through online and other social media plat forms. Firstly, you have to design a label for your products. By creating an emblem and brand name with ensuring quality and warranty, you can easily market the product. You have to popularize and familiarize your product among the people through continuous advertisement through social media. By this activity, you will get orders directly from the people.
Conclusion
As we tolled above, steel doors and windows manufacturing business is very attractive business opportunity with huge profitability. It can be established with a low amount of investment and it can be expanded in future to large scale operation.
The people who have creative mind to design different kinds of products will be very successful in this business. By this you can capture the market and earn huge amount of profit. In this article, we have tried to include all the details to establish and operate this kind of a manufacturing unit.
If you have any suggestions and queries, feel free to rise in the comment box. And finally, the business scope and potential of steel doors and windows manufacturing business is increasing day by day.