A grooving machine is used to finish plain lock seams in sheet metal cylinders, like stove pipe or other round ducting.
The "hand made" equivalent of the grooving machine is a hand groover and conductor stake.
The process goes like this:
1. Make locks (180-degree bends) on edges of flat stock with a bar folder. The locks are typically 1/4" to 3/8" wide.
2. Make cylinder out of the flat stock with a slip-roll forming machine.
3. Hook the locks on the two edges of the formed cylinder together.
4. Flatten and groove the locked edges with the grooving machine.
I'll try to find a couple of illustrations of the process.