What is a steel shots and grits project report?
A steel shots and grits project report is a detailed project report (DPR) for a plant that melts steel scrap, atomises it into round shot, hardens and tempers it, and crushes part of it into angular grit. It sets out the process, machinery, raw materials, market, project cost, finance, five-year projections, DSCR and break-even.
Foundry owners adding an abrasives line, steel entrepreneurs and their lenders use it to size the plant, raise a term loan and test whether the unit can repay.
Also known as: steel abrasives project report, project report on steel shots and grits, steel shot and grit plant DPR, steel shots and grits business plan.
Steel shots and grits manufacturing plant cost in India
Our sample report models a plant melting and atomising 14 MT per day, or 4,620 MT a year at full capacity over 330 working days. It starts at 60% utilisation and reaches 80% in Year 5, selling at ₹66,900 per MT ex-GST.
| Land and site development | 76.21 |
|---|---|
| Building and civil works | 176.90 |
| Plant and machinery | 437.97 |
| Other fixed assets | 63.02 |
| Contingencies | 30.74 |
| Preliminary and pre-operative | 19.62 |
| Working capital margin | 76.65 |
| Total | 881.11 |
| Promoter's contribution (25%) | 220.28 |
|---|---|
| Term loan from bank (75%) | 660.83 |
| Cash credit limit (separate) | 229.95 |
| Total project cost | 881.11 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments; lowest yearly DSCR 1.47. All figures are illustrative.
Steel shots and grits manufacturing process
Shot and grit come off the same line. The melt is turned into round shot first, and grit is made later by crushing part of the hardened shot.
- Melting
Sorted scrap is melted in a medium frequency induction furnace, and ferro alloys and carbon raiser bring the bath to a high-carbon chemistry.
- Atomising
The molten stream falls from a tundish onto a high-pressure water jet or spinning disc, and the droplets freeze as round shot in a water tank.
- Drying and screening
Wet shot is dried, then spiral separators roll off hollow, tailed and irregular pieces, which go back to the furnace.
- Hardening
Shot is reheated and quenched in water so the structure turns to hard martensite.
- Crushing for grit
Part of the quenched shot, which is hard and brittle at this stage, is crushed in a mill into sharp, angular grit.
- Tempering
Shot and grit are tempered at a set temperature to reach the hardness grade the buyer orders, softer for long-life cleaning and harder for etching.
- Grading and testing
Material is sieved into S grades for shot and G grades for grit, then checked for hardness, density and microstructure lot by lot.
- Packing
Each grade is packed in 25 kg bags on pallets or in jumbo bags, with a test certificate for the lot.
Steel shot or steel grit: what the plant sells
Most buyers need one or the other for a specific job, and many plants sell both. The product mix you plan decides how much crushing and tempering capacity the plant needs.
| Feature | Steel shot | Steel grit |
|---|---|---|
| Shape | Round | Angular, sharp edges |
| How it is made | Atomised, hardened and tempered | Hardened shot crushed, then tempered |
| Action on the surface | Peens and cleans, leaves a smooth finish | Cuts, leaves a rough anchor profile |
| Typical jobs | Cleaning castings and forgings, shot peening springs and gears | Preparing steel for paint and coatings, descaling plate and pipe |
| Size grades | S grades; a higher number means larger shot | G grades; a higher number means finer grit |
| Indian standard | IS 4606:1983 | No separate IS; buyers usually specify ISO 11124-3 or SAE grades |
Plan the mix early: grit runs through the crusher and an extra screening pass, so a grit-heavy plant needs more of both than a shot-only plant of the same tonnage.
Raw materials for steel shots and grits
Scrap quality decides shot quality. IS 4606 caps sulphur and phosphorus at 0.08% each, so plants buy clean, low-residual scrap such as punching and sheet cuttings, and avoid painted, galvanised or oily scrap.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Low-residual steel scrap | 84% | 1,094.39 |
| Ferro manganese and ferro silicon | 8% | 104.23 |
| Carbon raiser | 4% | 52.12 |
| Furnace lining ramming mass | 4% | 52.11 |
| Total | 100% | 1,302.85 |
Raw materials are 60.2% of sales in our illustrative sample. Scrap prices move every week, so test a price rise in your report.
Machinery for a steel shots and grits plant
The induction furnace is the largest single item in the sample, followed by the hardening and tempering furnaces. Together they take nearly half of the machinery budget.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Medium frequency induction furnace with power panel | Melts scrap and holds the bath at pouring temperature | 131.39 |
| Water atomising tank with tundish and pumps | Breaks the melt into droplets that set as shot | 43.80 |
| Rotary shot dryer and bucket elevators | Dries wet shot and moves it between stages | 35.04 |
| Hardening and tempering furnaces with quench system | Sets the hardness grade of shot and grit | 78.83 |
| Grit crushing mill | Crushes hardened shot into angular grit | 35.04 |
| Vibrating screens and spiral separators | Grade sizes and remove hollow or misshapen shot | 43.79 |
| Quality laboratory | Hardness tester and sieve shaker for lot testing | 17.52 |
| Cooling tower and water recirculation | Cools furnace coils and reuses quench and atomising water | 26.28 |
| Weighing and bagging machine | Packs each grade in 25 kg bags | 26.28 |
| Total plant and machinery | 437.97 | |
Costs are the sample report's estimates for a 14 MT per day line. Get current quotations before you finalise.
Power, water and manpower for the plant
Power is the biggest running cost after raw materials, because every tonne is melted once and heated again for hardening and tempering.
| Power connection | High-tension supply sized for the furnace transformer, heat treatment furnaces and auxiliaries |
|---|---|
| Power and fuel in the sample | ₹185.42 lakh in Year 3, 8.6% of sales |
| Water | Closed-loop cooling for the furnace coils, plus make-up water for the atomising and quench tanks |
| Manpower in the sample | 72 people: 11 in management, supervision and administration, 25 skilled operators and 36 semi-skilled and unskilled workers |
| Wage bill in the sample | ₹154.92 lakh in Year 1, rising 5% a year |
Standards and approvals for a steel shot plant
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board. Induction furnace melting falls in the Orange or Red category depending on melting rate and the state's list; Odisha, for example, lists secondary melting up to 1 tonne per hour as Orange |
| Factory licence | Licence under the state's factory or labour code rules, since the workforce and power use cross the thresholds |
| Product standard | IS 4606:1983 for steel shot used in foundries; BIS has published a product manual for certification under it |
| Buyer specifications | ISO 11124-3 for high-carbon cast steel shot and grit, often asked for by exporters and OEM suppliers |
| Power | High-tension connection sanctioned for the connected load before the furnace is ordered |
Checked October 2026. Categories and certification rules differ by state and change over time; confirm with the board and BIS before applying.
Who buys steel shots and grits
Steel shot and grit are consumables. Every shot blasting machine wears its media down to dust and needs regular top-ups, so a foundry or fabricator that switches to you can order every month for years.
Buyers compare suppliers on consumption per tonne of castings cleaned, not on price per kg alone. Hollow shot, soft shot and poor grading all raise consumption, which is why buyers ask for a test certificate with each lot.
- Grey iron and steel foundries
- Forging and auto component makers
- Spring and gear makers that use shot peening
- Pipe coating and structural fabrication units
- Shipyards and storage tank builders
- Granite cutting units
Location matters: a plant within a day's haul of a foundry cluster can deliver small, frequent lots, which buyers value because they hold little stock of each grade.
Mistakes that weaken a steel shots and grits project report
- Counting every tonne melted as saleable
Melting loss, hollow shot and off-size material that goes back to the furnace all cut output. Sales should be based on graded, saleable tonnes.
- Budgeting for mixed scrap
Coated or high-residual scrap gives brittle or soft shot that buyers reject. The report should price the clean scrap the chemistry needs.
- Using an average power rate
Melting runs on a high-tension tariff with demand charges. A flat rate per unit can understate power, the largest cost after raw materials.
- No crusher or tempering capacity for grit
If the plan includes grit, the crushing mill, extra screening and longer tempering must appear in both the machinery list and the cost of production.
- Ignoring foundry credit terms
The sample allows 45 days of credit to buyers. Shorter debtor days shrink the cash credit limit and leave the plant short of scrap money.
How NPCS helps you plan a steel shots and grits plant
- Capacity and grade mixSet daily tonnage and the split between shot and grit grades for your target buyers.
- Furnace and line selectionCompare induction furnace, atomising and heat treatment options and get quotations.
- Bank-ready project reportProjections, DSCR, break-even and working capital in the format your lender asks for.
- Layout and approvalsPlant layout, power load, water circuit and the consents list for your state.
NPCS, led by founder Ajay Kumar Gupta, has prepared project reports since 1994, and its published client list records 116 assignments in metal products alone.
What's inside the steel shots and grits 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 steel shots and grits project reports
These are steel shots and grits 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 Shots/Grits | 30 MT/Day | ₹8.58 crore | 54% | 30% | Get this report |
| Steel Shots & Grits Steel Abrasives) | 40 MT per day | ₹18.84 crore | 28% | 66% | Get this report |
| Steel Shots & Grits | 100 MT per day | ₹37.8 crore | 29% | 67% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Steel Shots and Grits project report: frequently asked questions
How much does it cost to set up a steel shots and grits plant in India?
A plant making 10–15 MT per day usually needs ₹7–10 crore including land, building and working capital margin, and a 30–50 MT per day plant about ₹15–25 crore. These ranges are indicative. Our sample report models a 14 MT per day plant at ₹881 lakh, with plant and machinery of ₹438 lakh. Your own report prices the plant for your capacity, site and furnace.
What is the difference between steel shot and steel grit?
Steel shot is round and peens the surface, leaving a smooth, dimpled finish, so it is used to clean castings and for shot peening. Steel grit is angular and cuts the surface, leaving a rough profile that helps paint and coatings grip. Grit is made by crushing hardened shot, so one plant can make both from the same melt.
What raw material is used to make steel shots?
Low-residual steel scrap is the main input, with ferro manganese, ferro silicon and a carbon raiser to bring the melt to a high-carbon chemistry. IS 4606 sets carbon at 0.6–1.25% for steel shot. In our sample report, scrap makes up 84% of raw material cost, and raw materials as a whole come to 60.2% of sales.
Which standard applies to steel shot in India?
IS 4606:1983 covers steel shot for use in foundries. It sets the chemistry, an average hardness of 400–500 HV, a density of at least 7 g/ml and limits on hollow and defective shot. BIS has published a product manual for certification under it. Export and OEM buyers often ask for ISO 11124-3, which covers high-carbon cast steel shot and grit.
Is a steel shots and grits plant profitable?
In our illustrative sample, a 14 MT per day plant earns a 20% return on investment in Year 3 and breaks even at 43% of capacity. It pays back in about 3.8 years, with an average DSCR of 1.69. Real results depend on scrap prices, the power tariff, how much shot is rejected and recycled, and how well you hold foundry customers.
How much power does a steel shot plant need?
Melting is the main load. An induction furnace typically uses roughly 600–750 units (kWh) per tonne of steel melted, and the hardening and tempering furnaces add more; these figures are indicative. In our sample, power and fuel cost ₹185.42 lakh in Year 3, or 8.6% of sales. Apply early, because a high-tension connection takes time to sanction.
Is the sample report free and can I use it for a bank loan?
Yes, the sample PDF is free to open and download. It is an illustrative report that shows the structure and depth of an NPCS project report. Its figures are representative rather than taken from a real plant, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, site, furnace and finance plan.
Sources and references
- IS 4606:1983 Specification for steel shot for use in foundries (copy published with a BHEL tender)Bureau of Indian Standards (hosted by Bharat Heavy Electricals Limited), checked Oct 2026
- Product manual for steel shots for use in foundries according to IS 4606:1983Bureau of Indian Standards, checked Oct 2026
- Foundry Sectional Committee MTD 14: standards for review and reaffirmationBureau of Indian Standards, checked Oct 2026
- ISO 11124-3:2018 Specifications for metallic blast-cleaning abrasives, Part 3: High-carbon cast-steel shot and gritSwiss Association for Standardization (SNV), checked Oct 2026
- Categorisation of industrial sectors under Orange as per CPCB criteriaState Pollution Control Board, Odisha, checked Oct 2026
- Categorisation of industrial sectors under Red as per CPCB criteriaState Pollution Control Board, Odisha, 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.