The study conducted in Hubli-Dharwad revealed that among the various items of cost involved in carrying inventory, the interest on carrying raw material was 58.10 per cent of total cost. It was because of high rate of interest paid by the agricultural implements manufacturing units. Hence, there is a need to reduce the rate of interest on working capital to increase the returns from the industry. The labour utilization was more in unit IV because of higher installed capacity. The processing cost per tonne of iron and steel processes was more in unit II because of production of various agricultural implements. The major cost items are cost of raw material, wages and carriage incurred, power and interest on working capital.