Favourability of Factors of Fraenkische Production in India

Pipe Industry

Pipelines have been used since many decades. They were constructed in different parts of the world to convey water for drinking and irrigation.

Perhaps the first use was by ancient agriculturalists. They used pipe like structures to divert water from streams and rivers into their fields. There is some evidence suggesting that the Chinese used reed pipe for transporting water, around 2000 B.C. Pipes made of clay that were used by other ancient civilizations have been discovered. In tropical countries, bamboo pipes were used to transport fluid that mainly consisted of water. The first lead pipes were constructed during the beginning of the A.D century in Europe. Colonial Americans used wood for a similar purpose. In 1652, the manufacturing of the first water transportation pipes was made in Boston using hollow logs.

History of Pipe Production

Welded steel pipe can be traced back to the early 1800s during the dawn of the modern day. In 1815, William Murdock invented a coal burning lamp system. To fit the entire city of London with these lights, Murdock joined together the barrels from discarded muskets. He used this continuous pipeline to transport the coal gas. When his lighting system proved successful a greater demand was created for long metal tubes. To produce enough tubes to meet this demand, a variety of inventors set to work on developing new pipe making processes.

An early notable method for producing metal tubes quickly and inexpensively was patented by James Russell in 1824. In his method, tubes were created by joining together opposite edges of a flat iron strip. The metal was first heated until it was malleable. Using a drop hammer, the edges folded together and welded. The pipe was finished by passing it through a groove and rolling mill.

Russell's method was not used long because in the next year, Comelius Whitehouse developed a better method for making metal tubes. This process, called the butt-weld process is the basis for our current pipe-making procedures. In his method, thin sheets of iron were heated and drawn through a cone-shaped opening. As the metal went through the opening, its edges curled up and created a pipe shape. The two ends were welded together to finish the pipe. The first manufacturing plant to use this process in the United States was opened in 1832 in Philadelphia.

Gradually, improvements were made in the Whitehouse method. One of the most important innovations was introduced by John Moon in 1911. He suggested the continuous process method in which a manufacturing plant could produce pipe in an unending stream. He built machinery for this specific purpose and many pipe manufacturing facilities adopted it.

While the welded tube processes were being developed, a need for seamless metal pipes arouse. Seamless pipes are those which do not have a welded seam. They were first made by drilling a hole through the center of a solid cylinder. This method was developed during the late 1800s. These types of pipes were perfect for bicycle frames because they have thin walls, are lightweight but are strong. In 1895, the first plant to produce seamless tubes was built. As bicycle manufacturing gave way to auto manufacturing, seamless tubes were still needed for gasoline and oil lines. This demand was made even greater as larger oil deposits were found.

Various methods for manufacturing were developed as the ordinary steel pipes went on to be more improved in quality and quantity. A major milestone was the dawn into the century of steel pipe, which greatly increased the strength of pipes of all sizes. The development of high-strength steel pipes made it possible to transport natural gas and oil over long distances.

The application of welding to join pipes in the 1920s made it possible to construct leak proof, high-pressure, large-diameter pipelines. Today, most high-pressure piping consists of steel pipe with welded joints.

Major innovations since 1950 include introduction of ductile iron and large-diameter concrete pressure pipes for water; use of polyvinyl chloride (PVC) pipe for sewers.

Steel pipes are long, hollow tubes that are used for various application. They are produced by two distinct methods which result in either a welded or seamless pipe. The raw steel is first converted to a more workable form. The pipe is formed by stretching the steel out into a seamless tube or forcing the edges together and sealing the joint by welding. Steel pipe production processes were started in the early 18th century, and they have steadily evolved into the modern processes we use today. Steel pipes are produced in the millions and used either in the domestic market or exported.

Steel pipes are found in a variety of places. Since they are strong, they are used underground for transporting water and gas throughout cities and towns. They are also employed in construction to protect electrical wires. While steel pipes are strong, they can also be lightweight.

How is it Made?

A/C pipe is manufactured by the Hatchek/ Mazza process from intimately mixed aqueous slurry of portland cement (80-85%) and a mixture of relatively long and medium grade chrysotile asbestos fibres (15-20%). The slurry is made more and more viscous by dewatering the mixture by a machine using a rotary sieve cylinder and a continuous felt to produce a very thin layer of asbestos cement which is wrapped around a mandrel (on which it will be forged on) under pressure until a pipe with the desired wall thickness is produced. The mandrel is then extracted and the pipe is cured by passing through a tunnel-like low temperature oven followed by immersion in or spraying with water, or by autoclaving. On completion of curing, once the pipe is strengthened the ends of the pipe lengths are cut and finished to receive couplings that are produced by cutting larg outer diameter pipe into sections.

PVC pipes are made out of a material known as polyvinyl chloride, a durable, strong plastic-like substance. The variation of uses is all the way from plumbing to construction. The pipe is designed to be have a standard. All pipes are designed around specific requirements with better standardization so as to ensure that multiple pipe sections will fit together. The ends of the pipe can either be smooth or grooved (like a screw). Additionally, there are several different pipe sizes ranging from very small (one-fourth inch) to very large (10 feet).

PVC pipes are created by starting with a molten mixture of the material and shaping them around a cast. The casts are made to be the exact width of the pipe so as to create a base of foundry. The mixture is poured into this cast and surrounded by an outer shell which will act as a light forge. The complete set is then placed into an oven to be baked. Once the pipe has solidified, it is cooled and moved into finishing where it is checked for quality. Sections of the pipe are then cut based on common sizes and needs. The sections are then coated in a chlorine solution to prevent harmful bacteria from growing and destroying the piped causing leaks in them, during shipping and use. Once the coating is dried, the ends of each section are finished. If the pipe is a smooth connection, the top of the pipe is sanded down to ensure a perfectly flat surface. For fitted pipes, a machine engraves a series of grooves into the pipe. As the grooves are cut, high-pressured water is sprayed on the pipe to remove excess PVC fragments. After the grooves are added, the ends are smooth and the sections are sent into testing.

Why India

India’s rise in recent years is the most recognized development in the world economy. India has emerged as one of the fastest growing economies in the world. With an increase in investment and robust macroeconomic fundamentals, the future outlook for India is definitely optimistic.

The importance of infrastructure for sustained economic development is well known. India could reach its full potentials, if it improves the infrastructure facilities, which are at present not adequate to meet the escalating demand of the economy.

Pipelines are very important for the development of a country’s infrastructure. Pipelines are used in transportation of oil, gas and water and it is cheaper and faster as compared to conventional modes of transport like rail and road. With the increasing oil prices, cheaper transportation will add to the feasibility of use of oil and gas.

The Indian Pipe Industry is among the top three manufacturing centres after Japan and Europe. With the rapidly increasing economic growth, providing adequate infrastructure facilities to a heavily populated country like India becomes extremely important. Failure to meet the country’s infrastructure demand will retard India’s growth process.

However, the penetration level of pipelines in oil and gas transportation is very low compared globally. The pipeline network of India for oil and gas transport stood at 13,517 kms in April 2006. Sanitation levels are also lower at 33% in India compared to 100% in France. Of 140 mn hectares of cultivable land, only 40% of the land is irrigated. The low penetration levels represent the huge opportunity for the growth of the pipe industry in India making it favourable for Fraenkische.

When Exploration & Production projects for oil and gas companies which were previously slowed down because of the global financial crisis resume their operations then there will be tremendous increase in the demand for new pipelines. This new surge in demand will be promising for the future growth of Indian pipe industry. The upward trend in the Indian pipe industry is expected to persist in the next 3-5 years on the basis of high oil and gas discoveries worldwide and also the increased efforts by Government of India on infrastructure development for laying pipelines for oil and gas transport, water and sewage transport and irrigation facilities.

Purpose of the Study:

A comparative analysis of pipelines production in India vis-a-vis another nation (like China or a European nation)

With the final result of a rating of India as a production location

• (a) In general and
• (b) In particular for plastic pipes

Research Questions (Targets):

What are hurdles for setting up a production in India versus the other country (which probably China would be a good comparative)?

Is it difficult to set up a plant (i.e. get money into India, get permissions for production, ease of employing people and difficulty to potentially firing them)?

A Are there local producers in India, or would one have to import; if we have to import then are there high tariffs on the goods (Ease of access to PE / PP raw materials)?

Are there points which are especially in favour or to the detriment of plastic production (load share and no continuous electricity supply)?

Are there relative cost advantages (with respect to labour or is the gap narrowing vis a vis China)?

Are many plastic pipe companies producing in India – why / why not?

 

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