DETAILED PROJECT REPORT

FOR

Progressive Industries
Private Limited
(A Drums Manufacturing Unit)

Prepared by:

GKB & Associates,

Chartered Accountants
4007, Grand Plaza, Fraser Road, Patna

Contents
Background............................................................................................................................ 3
About the Company............................................................................................................... 4
Promoters............................................................................................................................... 6
Preference of CRC Drums over Plastic Drums........................................................................6
INDUSTRY STRUCTURE (DEMAND)........................................................................................... 7
INDUSTRY STRUCTURE (MANUFACTURING CAPACITY)...............................................................8
INDUSTRY STRUCTURE......................................................................(REGION-WISE DEMAND)
9
Types of CRC Steel Drums.................................................................................................... 10
Drum Manufacturing............................................................................................................ 11
SWOT Analysis..................................................................................................................... 13
Requirements....................................................................................................................... 14
Specific Requirements.......................................................................................................... 14
Factors of price fluctuations of the drums............................................................................15
Marking of Welds.................................................................................................................. 16
Packing................................................................................................................................. 16
Specification for 156.5 Ltr. Drums for Bitumen....................................................................17
Advantages:......................................................................................................................... 18
Uses..................................................................................................................................... 18
Drums Performance............................................................................................................. 19
CUSTOMER EXPECTATIONS.................................................................................................... 19
Outlook of the Global Warehouse drums Market..................................................................20

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Background
A drum is a cylindrical container used for shipping bulk cargo. Drums can be made of steel, and are
generally used for the transportation and storage of liquids. Drums are often certified for shipment of
dangerous goods. The construction of drum needs to meet applicable regulations and is usually
matched for compatibility with the specific product shipped. Drums are also called barrels in
common usage. The drums are typically made of steel with a ribbed outer wall to improve rigidity
and for rolling. The lids can be welded or secured with a head gasket and bolt ring. Drums can also
be made of durable plastic or paperboard. They are commonly used for transporting oils, fuels,
chemicals, and dry goods. The barrels are made of 1mm and 1.25mm thickness CRCA sheet.
Availability of steel locally and opening up of the Indian economy resulted in a spurt in demand and
consequently, the growth of barrel and drum plants across India accelerated.
Steel barrels are used widely for mixing, storing, dispensing and filtering process applications for a
variety of liquid and solid materials. Constructed most often from carbon steel or stainless steel, steel
barrels or steel drums are durable and cost-effective, allowing a manufacturer to get many uses from
the same drum and then recycle it once it is finished being used.
A CRC steel drums will be rich in the tensile properties and reliability. This property of a packing
materials is highly required because on the packing materials the safety of the product depends. Cold
Rolled Steel offers very high tensile strength, and as a result, is ideal for mining and defense
industries.
CRC Steel drums are used from the temporary storage of the contents to the function evolved into
today's industrial packaging, sales packaging, transport packaging; form a consistent flow of
container from production to distribution, consumption, has become a means of long-term
preservation of the built-in items, we can say steel drums to humans work and life has brought a lot
of change and progress.
Moreover, the CRC Steel Sheet Drums are resistant to internal and outside pressure enabling their
use as pressure containers Mild Steel drums are available in all sizes and our present report
deals in the Steel Barrels of 220 Ltr. capacity and 156.5 Ltr. Bitumen Drums.

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About the Company

The company is one of the leading manufacturer of Drums & Containers, accompanied with well
equipped infrastructural base and an experienced team. They have been successfully catering to
chemical, pharmaceutical, oil food and various other industries. Packaging for hazardous
chemicals or food products, cold-rolled carbon steel drums provide safety and durability. As a
manufacturer, the company provided the ability to collect and recondition or recycle everything it
produces.
The Companys production plant comprises manufacturing of new steel drums of different
capacities and sizes. The Factory products are various kinds of new steel drums in order to pack
and export bitumen. The quality of packing is an important factor for export of bitumen. But
packing with a low quality can cause leakages leading to financial losses.
Factory is able to produce new steel drums with different capacities based on the customers
choice and uses for bitumen. They are also able to export their required grade of bitumen anywhere
in the world. They tried to make new steel drums without pores. It uses the raw material with the
best quality. It uses steel sheets of steel company in order to make steel drums. The important
factors of the steel drums are plate thickness (body, top & bottom) 0.6+/- 0.02mm, Height 98 and

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83 cm, Diameter 50 cm , Lid hole position, Lid hole diameter, Body corrugations, net filling
capacity, gross weight, Drum tare weight and color.
The company offer products such as the 220 litre and 156.5 litre capacity of drums for packaging
of:
Lubricating Oils & Greases
Additives
Transformer Oil
Chemicals & Agro Chemicals
Food & Fruit Products
Bitumen
Bitumen emulsion.
Quality
The company is a quality cautious organization, thus all their endeavor is directed to develop high
quality products. They follow stringent quality tests as per I.S.I. Standard at every level of
production starting from the procurement of raw materials to the finished product.
Working environment
The company will promote a work culture that encourages individual growth; creativity and team
spirit that further assist in overcoming the challenges come in the way to success. By Training,
Mentoring and Encouraging to the team, they can attain the goal of complete clients satisfaction.
Thus, the company had achieved the success that meets all the requirement at the clients end. In
addition, some other reasons that provide an edge over other competitors in the market are as
follows:
o
Excellent quality
o
Prompt delivery
o
World-class facilities
o
Experienced professional
o
Ability to meet bulk orders
o
Ethical business policies

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Promoters
Mr. Mritunjay Kumar is an experienced business having 03 years experience in the manufacturing
field. He is qualified graduate and his plan is to start up the business of manufacturing of drums.
With experienced skills, high sense of responsibility and serious working style, he is the
quintessential entrepreneur with many successful position in the past.
Mrs. Sarika is the wife of Mr. Mritunjay Kumar, having the Graduate Degree. She is having an
experience for 02 years in this field.

Preference of CRC Drums over Plastic

Drums
CRC Steel Drums offered by the company are far more superior than the Plastic Drums available
in the market. Some of the other advantages of using Steel Drums in place of Plastic Drums are as
follows:

Plastic drums cannot be filled at elevated temperatures

Plastic drums soften up when stored in hot environment

Plastic drums show signs of season - cracking

Stack-ability of steel drums make it favorable in terms of warehousing costs

Plastic is not biodegradable and hence not environment friendly

Plastic drums cant be earthed thus are prone to static electricity builds

Plastic drums are not safe from rodent attack

Reusability of plastic is very low as compared to steel drums

Insurance and ware housing charges are higher for plastic drums

Plastic is not flame retardant but inflammable and emits toxic vapors

Excellent processing performance of the steel drums, mature processing technology,

continuous, automated production. Steel drums having good ductility and strength, can be rolled
into various thickness of the sheet, foil, sheet stamping, rolling, stretching, welding made of
different shapes and sizes of the packaging container.

CRC Steel drums, rich in resources, energy consumption and the cost is relatively low.

The CRC steel drum has a very good protective properties. Low water vapor permeability
of the steel, completely opaque, and can effectively avoid the harmful effects of ultraviolet
radiation. Its gas barrier properties, moisture, shading and shelf life much higher than the plastic,
paper, and other types. Steel drums for a long time to maintain the quality of goods, which is
particularly important for food packaging.

Plastic drums cannot match the ruggedness of steel drums

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Plastic drums require more attention and care while transportation and handling
The CRC steel drum has a special metallic luster, but also easy to print decoration, it will
give the appearance like beautiful merchantability.
Excellent mechanical properties of the steel drums, high strength, steel drum container can
be made of thin-walled, high compressive strength, the packaging containers unbreakable. This
makes the safety of packaging products with reliable protection and easy storage, transport,
handling and use.

INDUSTRY STRUCTURE (DEMAND)

DEMAND (MILLION)

7.50

7
6
5
4

3.50

GROWTH 114%

3
2
1
0
1991

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2015

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INDUSTRY STRUCTURE (MANUFACTURING

CAPACITY)
CAPACITY (MILLION)

18.00

17.50

16.00
14.00
12.00
10.00
8.00
6.00
4.00

GROWTH 325%

4.10

2.00
0.00
1991

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2015

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INDUSTRY STRUCTURE
DEMAND)

(REGION-WISE

REGIONWISE DEMAND
5%
(NORTH)

17% (SOUTH)

21% (SOUTH)
11%
(NORTH)

9%
(EAST)

14% (EAST)

64% (WEST)

2010

PROGRESSIVE INDUSTRIES PRIVATE LIMITED

59% (WEST)

2015

Page 9

Types of CRC Steel Drums

Steel drums come in many sizes and have many different purposes.

Open-Head
UN Rated Drum

Closed-Head
UN Rated Drum

Standard Open Head Steel

Drums

Good for solids and liquids too.Tight head fittings. Perfect forStandard Steel, Non-UN Rated
These economical drums comeliquids and suitable forDrums may be an option.
with bolt ring closures and apackaging a variety ofStandard color is black.
cover with gasket. Suitable forcontents, including hazardous
packaging
a
variety
ofmaterials.
New
and
contents, including hazardousreconditioned Steel Drums are
materials, they have proven toavailable. Available with a rust
be a durable and heavy-dutyinhibitor enamel or with an
package for storage andepoxy phenolic lining.
transportation. Reconditioned
and New drums are available.
Lined (epoxy phenolic) and
unlined drums are offered. All
drums come available in black.

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Drum Manufacturing
A state of art manufacturing unit, located at Tola Mirchaiganj, Vill-Post: Sarsu, Banganga
Tapovan Jethian Road, Gaya-805109 for the manufacture of 220 ltr. capacity and 156.5 ltr. drums
commencing its production & service in the year 2016. The company had an intensive experience
in steel fabrication and an enviable reputation in the Indian Market. The project is being
implemented by a team of technical and commercial experts. The design and manufacturing
process is totally indigenous and the company takes pride in manufacturing barrels and drums to
the highest quality of standards.
Drums and barrels are made out of Cold Rolled Closed Annealed sheet and can be manufactured
with or without epoxy inner coating.
To manufacture steel drums, plants complete the process during a formation phase. To start, the
sheet metal to be used in making each drum enters an edge grinder, a machine that rids sheets of
jagged edges, smoothing them instead. The steel sheets then enter a bender, which has a
cylindrical mold, proceeding to curve and bend the metal.
Next, various welding processes are employed. Once the metal is bent, it is fed by a worker into
a spot welding machine, which begins to connect the two ends of the metal sheet into a tube by
welding several points along the edge. After this, the two somewhat connected ends are seamed
together completely by entering a seam welding machine, welding up and down the entire joint of
sheet ends.
Once the basic body of the drum has been created, it undergoes a rigorous manipulation process.
The flanging operation includes feeding the drum into flange insertion machine to create rim
indentations and edges on the top and bottom of the container. Following the creation of these
edges, drums enter a bead expander, a machine that takes the drum horizontally and expands
beads or rolling hoops around the circumference of the container. These hoops are created by
cranking rods around the inside of the drum and serve to strengthen the body of the item. These
outward facing hoops or beads are combined with inward facing circumferential indentations
along both the top and bottom of each drum. The indentations are corrugated and are created with
a corrugating machine.
Now that the body has been created to the above specifications, the bottom piece of the container
must be created and then connected. Drum bottoms first go through a cutting and embossing

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process. The bottoms are stamped down and cut in a pressing machine using special dies/molds.
Once the container bottoms have been made, they enter a pre curler, a machine which smoothes
the edges of each bottom piece to prepare it for seaming to the drum body. Ready to be added to
containers, bottom pieces enter a seaming machine along with a drum body which rotates and
presses the two pieces together. The now-seamed item prevents leakage of materials that the
container will eventually hold.
A freestanding container now formed, its time to add a top piece to the drum. Drum tops are
formed in a similar manner as bottoms. Once created, drum tops must be punched via a machine
which will punch out holes in specific sizes and positions. These holes will hold flanges to be
inserted next. The flange insertion process involves bending the insides of metal rings within
a flange fitting die set/mold machine and inserting them into the drum openings/holes. These
openings will later be the point at which drum contents are poured into or out of the container.
When all is said and done, the top, now complete with flanged openings, is seamed to the body in
a process not unlike that for bottom seaming to create a functional container. This completes the
basic steel drum.
Optional processes are employed, however, in steel drum production, depending on preference
and end usage. Each drum may enter a paint booth machine, in which the drums are fed
horizontally and rotated while the machine sprays and coats the drum exterior with paint. To
complete the paint process, the containers are cooked in an oven to help dry and bring the paint to
the correct shade.
Much goes into understanding how metal containers work and how they are made. As these items
are fairly large storage containers, both pails and drums do get most of their use in industrial
settings such as holding chemicals, paints, coatings and petroleum products. Metal containers
afford us many benefits as well, including capacity and strength.

SWOT Analysis

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1. Abundant resources of iron ore mines and quarries.

2. Adaptability of company in the fast changing environment.
3. Low cost and efficient labour force.
4. Strong managerial capabilities.
5. Economies of scale.
Strengths

6. Modern new plants and mordernised old plants.

1. Operational efficiency are not as good as international leaders.

Weaknesses

2. Higher cost of energy.

1. Newer technologies and huge infrastructural demand.
2. Increase in foreign interests.

Opportunities

3. Rapid urbanisation.
1. India is plagued with violent agitation against land acquisition
2. Government & regulatory norms

Threats

3. International competition

Requirements
(1) dry skin passed
(2) non-alloy quality
(3) continuous cast
(4) continuous annealed or Hicon/H2 batch annealed (under special circumstances other batch
annealing process could be agreed upon)
(5) suitable for drum making (body or lid, as specified)
(6) un-oiled
(7) suitable for resistance seam lap welding at a welding speed of 18m/min, by using an overlap
of 2 +/- 0.5 mm, with an AC welding process

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(8) suitable for spray painting or lacquering without pre-cleaning or any other pre-treatment (paint
samples available on request).

Specific Requirements
(1) carbon content: max. 0.09 %
(2) hardness: 40-55 HRB 1)
(3) cleanliness: - a loss of reflectivity in tape test of maximum 20%)
- a surface free of oil, rust and water sensitive residues
- a total contamination of less than 25 mg/m/side
(4) heavy metal content to be less than 100 ppm (lead (Pb), Cadmium (Cd), Mercury (Hg) and
Chrome 6 (CrV1))
(5) tolerance on ordered coil width: minus 0, plus 2 mm
(6) the thickness drop between the edge and 40 mm from the edge should not exceed 3% of the
measured thickness
(7) flatness: Steel characteristics should be such that after decoiling and roller levelling the
distance between the sheet and a horizontal plane surface does not exceed 5 mm, measured
over a distance of 1800 mm in length. The buyer to assure that suitable equipment is used
and the equipment is adjusted correctly.
(8) Camber: edge camber maximum 1 mm over a length of 2000 mm
(9) welds: no more than one weld per coil is allowable. However one additional pickling line
weld will be accepted. This weld should not be marked.
(10) winding regularity of the coils: maximum 10 mm between the two extreme spires.

Factors of price fluctuations of the drums

According to the market demand and supply, drums prices are up and down is a normal market
phenomenon,
affecting
its
price
fluctuations
are
mainly
the
following:
1, product design and quality
A good product in order to have a good market must first have innovative designs to attract the
attention of customers to get customers of all ages. Whatever the industry wants to have regular
customers, in order to achieve such a state, not only to focus on their services, but also to ensure

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that the products of own production with high quality, high variety of products is the life of
enterprise.
2, the technological level of enterprises
An enterprise with advanced production technology, in order to have high production efficiency
and advantages. Improve the efficiency, quality assurance in order to allow enterprises to have a
place in the fierce market competition, enterprises can have their own brand, even if the price of
their products than other manufacturers in the same industry, as consumers will choose their own
products.
3, the manufacturer's production costs.
The production cost is one of the important factors of enterprise product price only reasonable
control of the cost of business to make a production of commodity quantity and quality are higher
than other companies.
4, the market demand
Market demand, there will be a corresponding increase in the price of the drums. If we do not
need such a product, its price will not be upgraded. Analysis of steel drums with performance
characteristics.

Marking of Welds
The weld within the coil (but not the pickling line weld) must be marked by one of the following
methods (or combination of methods), specified in the order:
(1) a hole punched adjacent to the weld at the mid width position
(2) aerosol paint and also marked clearly noticeable at the outside of the coil
(3) punching at each edge of the coil

Packing

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Coils should be packed in such a way to avoid any penetration of moisture and formation of rust.
The supplier has to take back the packing material used if it is specified in the order, after
negotiation between buyer and supplier.
Packing Specifications (Size, Shape & Weight)
Material: New Cold
Rolled Steel
Height (mm)
Diameter (mm)
Body
Thickness (mm)
Top/Base
Thickness (mm)
Net Weight (kg) +/-3
Gross
Weight (kg)
+/-3
Empty
Drum
Weight (kg) +/-1
Color

Type
A
980
500

Type
B
860
500

Type
C
980
500

0.6

0.6

0.6

0.6

0.6

0.6

182

150

210

192

158

220

9.5

7.5

10

Black

Black

Black

In corrugated newly produced cold rolled steel drums coated in Anti-Rust black painted
Material: New Cold Rolled Steel
Temperature in Shade: 30 Degree Celsius

Specification for 156.5 Ltr. Drums for

Bitumen
ITEM
Plate Thickness (Body)
Plate Thickness (Top
Bottom)
Height
Diameter
Lid Hole Position

&

VALUE
0.6 0.02 MM
0.6 0.02 MM
83 CM
50 CM
Centre

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Lid Hole Diameter

Body Corrgations
Net Filling Capacity
Gross Weight
Drum Tare Weight

10 CM
13
150 2 Kg
158 2 Kg
8.5 0.2 Kg (Inclusive of
LID Cap)

Color
Workmanship

Material
Quality Standard

Black
Drums supplied will be of
good workmanship and are
sufficiently leak-proof when
filled with hot Bitumen.
DIN 1623 ST12 New Cold
Rolled A Grade Steel
Institute of Standards &
Industrial Research of
India

Advantages:
reduction of logistics costs up to 40%
feasible and economical for any quantities (from several tons up to hundred thousands of tons).
soft bitumen grades (road paving bitumen) packed in flexible, easy-to-handle, plastic container
applicable for all climatic conditions
environmentally friendly (in comparison to metal drums): inner liner is melted together with the
bitumen, the outer plastic bag (2kg) is recyclable.
high safety and stability during transport

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 long-term outdoor storage

can be transported by any means of conventional transportation (ships, containers, trucks,
railways etc.)
dimensions concur with international transportation standards
Storage & Handling Recommendations- For normal operations storage temperature limits 1C50C.

Uses
Steel Drums are widely used as the main packing method for Bitumen. We offer new steel drums,
though some clients ask for used or second hand drums, we strongly recommend them to go for
new steel drums. USED DRUMS WASTE YOUR COMMODITY AND MONEY.
Right now we supply Type A and B according to below table of specification:
new drums

used drums (not recommended)

Drums Performance
Steel drums manufacturers professional performance of their products
1, excellent mechanical properties of the steel drums, high strength, steel drum container can be
made of thin-walled, high compressive strength, the packaging containers unbreakable. This

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makes the safety of packaging products with reliable protection and easy storage, transport,
handling and use.
2, excellent processing performance of the steel drums, mature processing technology,
continuous, automated production. Steel drums having good ductility and strength, can be rolled
into various thickness of the sheet, foil, sheet stamping, rolling, stretching, welding made of
different shapes and sizes of the packaging container.
3, the steel drum has a very good protective properties. Low water vapor permeability of the steel,
completely opaque, and can effectively avoid the harmful effects of ultraviolet radiation. Its gas
barrier properties, moisture, shading and shelf life much higher than the plastic, paper, and other
types. Steel drums for a long time to maintain the quality of goods, which is particularly
important for food packaging.
4, the steel drum has a special metallic luster, but also easy to print decoration, it will give the
appearance Huagui Fu Lai, beautiful merchantability.
5, steel drums, rich in resources, energy consumption and the cost is relatively low. And repeated
recyclability, speaking from the area of environmental protection, is an ideal green.

CUSTOMER EXPECTATIONS

NO LEAK
INTERNALLY SPOTLESS/CLEAN
EXTERNALLY SCRATCH PROOF PAINTING
WEATHER RESISTANT PRINTING

Outlook of the Global Warehouse drums

Market
The global market for warehouse drums and barrels will grow at a steady rate during the forecast
period and will post a moderate CAGR of over 2% by 2020. Drums and barrels are used across

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several industries including chemicals and petroleum, food, and pharmaceuticals. The market is
witnessing growing demand from all these industries; however, the major demand is from the
chemicals and petroleum industry. Most petroleum and chemical industries have increasingly
started using shale gas as a low-cost feedstock for the production of many chemicals. This rapidly
expanding industry has its own set of needs for packaging and transportation to the point of sale
and end-markets. Moreover, as chemicals are more sensitive to external conditions of temperature,
pressure, and moisture, effective packaging must be ensured for their safe transportation. Since
warehouse drums and barrels offer an excellent insulating effect, they are ideal for packaging
chemicals.
An important trend spurring the growth prospects for this market is the growing popularity and
increasing adoption of biodegradable rigid plastic for packaging. Biodegradable plastics are easily
decomposed by microorganisms, thereby reducing the detrimental effect they have on the
environment compared to conventional plastics. Biodegradable plastics are made from renewable
materials and petrochemicals with biodegradable activities. Also, with the implementation of
stringent environmental mandates worldwide, vendors are envisaged to rapidly switch to
biodegradable plastic drums and barrels to avoid hefty penalties.

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