Project report for tyre retrading industry

Why to Start a Tyre Retreading Business?

• High Demand - Many trucks, buses, and heavy vehicles use retreaded tyres to save money. Transport companies often retread tyres 2–3 times before buying new ones.
• Cost Saving for Customers - Retreaded tyres cost 30–50% less than new ones but work almost the same. This makes them a preferred choice for fleet operators and logistics firms.
• Low Investment - You can start a small retreading unit with ₹10–20 lakhs, depending on the setup. Most of this cost goes into machines, shed, and basic raw materials.
• Good Profit Margin - Profit per tyre can be ₹300–₹700, with margins of 20–25%. A unit can process 20–50 tyres per day, depending on capacity.
• Fast-Growing Market - India uses more than 14 million retreaded tyres every year. The market is expected to grow by 8–10% annually.
• Eco-Friendly Option - Retreading reduces rubber waste and saves raw material, helping the environment. One retreaded tyre saves up to 25 kg of rubber and 60 litres of oil.
• Less Raw Material Need - You reuse old tyre casing, so material cost is low. Only tread rubber and bonding materials are needed, which are cheap.
• Growing Transport Sector - More transport means more tyre wear — so, higher need for retreading. India has over 25 million commercial vehicles, and this number is rising every year.
• Job Creation - You can create jobs for 5–10 workers in a small unit. Skilled jobs include buffing, curing, inspection, and machine operation.
• Government Support - Focus on MSME and recycling businesses gives extra support and loans. You may get help under schemes like PMEGP and Mudra Loans.

Financial Overview of Tyre Retreading Business

• Initial Investment - A small unit needs ₹10–20 lakhs. This covers machinery, shed setup, working capital, and licensing.
• Machinery Cost - Basic retreading machines cost around ₹5–8 lakhs. Includes buffing machine, curing chamber, and inspection tools.
• Building/Shed Setup - Requires 1000–1500 sq. ft. space. Shed setup may cost ₹2–3 lakhs, depending on location.
• Raw Material Cost (Monthly) - Tread rubber, gum, patches, and consumables cost around ₹1–2 lakhs/month. Cost varies by number of tyres processed.
• Labour Cost (Monthly) - For 5–10 workers, salaries can be around ₹60,000–₹1.2 lakhs/month. Skilled labour needed for quality work.
• Tyres Processed (Monthly) - Small unit can retread 500–1000 tyres/month. Depends on shift timings and efficiency.
• Revenue Estimate (Monthly) - Average retreading charge is ₹800–₹1,200/tyre. Monthly revenue can be ₹4–10 lakhs, depending on tyre volume.
• Profit Margin - Net profit per tyre is around ₹300–₹700. Monthly profit may range from ₹1–3 lakhs, after all expenses.
• Break-Even Period - Most businesses recover investment in 12–18 months. Fast recovery possible with high tyre volume and steady customers.
• Expansion Scope - Profits can grow by adding more machines or shifts. Targeting transport hubs increases regular orders.

Best Project Report for Tyre Retreading Industry to Kickstart your Business