§1What this business is
Alloy steel wire is straightened, cut and cold-headed in automatic heading machines; the heads are trimmed, threads are rolled, and the screws are sorted, heat-treated, gauged, hardness-tested and packed. Allen screws (M3 to M20) join parts of dies, fixtures and machines and are tightened with an Allen key; the report follows IS 2269 and IS 1367 thread standards.
Capacity: 0.5 MT a day; 150 MT a year in the financial tables (report plans 65% in year 1 to 85% in year 5). The technical section separately states about 345 tonnes a year.
§2Is it right for you?
Who it is for
A mechanical engineer or fastener trader with contacts in industrial areas.
Who it is not for
Someone without metalworking or quality-control knowledge.
Advantages
- Every machine shop, die maker and assembler uses Allen screws
- Steady industrial demand, says the report
- Proven, standard process with Indian Standards to follow
- Scrap also sells
Drawbacks
- Gross margin only 15–18%
- Alloy steel wire prices move with the steel market
- Large brands and imports compete on quality
- Heat treatment must be right or screws fail
Skills you need
- Cold heading and thread rolling
- Heat treatment and hardness testing
- Die and tool maintenance
- Industrial sales
Why difficulty 3/5: Standard engineering process; profit depends on quality and steel prices.
§3Market
Who buys
- Die and fixture makers
- Machine builders and maintenance shops
- Automobile and engineering units
How it sells
- Hardware and fastener dealers
- Direct supply to factories
Good to know
- The report says only one or two such units existed in the MSME-DI Kanpur area, so market potential is good.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Automatic double-stroke cold heading machine, 5–10 mm dia, 7.5 HP | 1 | ₹1,50,000 |
| Automatic double-stroke cold heading machine, 10–35 mm dia, 10 HP | 1 | ₹2,00,000 |
| Automatic screw-head trimming machine, 5 HP | 2 | ₹1,00,000 |
| Automatic cold thread rolling machine, 5 HP | 2 | ₹1,50,000 |
| Oil-fired furnace with blower and oil tank | 1 | ₹1,00,000 |
| Hardness tester | 1 | ₹50,000 |
| Centre lathe, 1,550 mm bed | 1 | ₹1,00,000 |
| Pillar drilling machine and double-ended bench grinder | 1 each | ₹50,000 |
| Dies, tools and accessories | — | ₹80,000 |
| Installation and electrification | — | ₹1,00,000 |
From: PMEGP sample project report — Allen Screws (prepared by Udyami/Samadhan)
- Alloy steel wire, 5–10 mm80 MT a year at ₹50,000/MT at full capacity
- Alloy steel wire, 10–35 mm80 MT a year at ₹50,000/MT
From: PMEGP sample project report — Allen Screws (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST
- Trade licence
- Pollution consent (oil-fired furnace; report advises proper chimney height)
- BIS certification if fasteners fall under a quality control order
§6Schemes & subsidies
PMEGP (report shows own margin 10% general, 5% special); CGTMSE for collateral-free cover.
§7Money
How the investment is worked out: Two totals are printed: ₹23.15 L on the summary page, and ₹24.13 L in the cost table (building & civil work for 2,000 sq ft ₹3.50 L + plant & machinery ₹11.80 L + furniture ₹0.75 L + pre-operative ₹0.35 L + working capital ₹7.73 L). Finance: own ₹2.41 L, term loan ₹14.76 L, working capital ₹6.95 L.
Working capital: Working capital ₹7.73 L, of which ₹6.95 L is bank finance; 15 days each of raw material and finished goods.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: EEPC India
- The report prints no HS code; confirm the ITC(HS) line with DGFT before exporting.
§9Risks — where people fail
- Steel wire price rises
- Quality rejections
- Import competition
- Credit to dealers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working allen screws (socket head cap screws) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Allen Screws (Socket Head Cap Screws)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.