§1What this business is
LM-5, LM-6 and LM-24 alloy ingots are melted in an oil-fired crucible furnace and poured into sand moulds or permanent (gravity die) moulds; the cooled castings are knocked out, fettled, tested, machined on a lathe and inspected. Runners and rejects go back to the furnace. Buyers include foundries (moulding flasks, core plates, patterns), fan makers (rotors), pump makers, railways, chemical, marine and electrical industries.
Capacity: 0.2 MT a day; 60 MT a year in the financial tables (report plans 60% in year 1 to 80% in year 5). The text separately sets a target of 120 tonnes a year.
§2Is it right for you?
Who it is for
Someone with foundry experience and orders from fan, pump or engineering firms.
Who it is not for
A beginner without casting skills or a buyer pipeline.
Advantages
- Aluminium is replacing iron, gunmetal and bronze in many parts
- Many buyer industries — fans, pumps, railways, foundries
- Foundry scrap is re-melted, so little waste
- Can move up to pistons, gear boxes and crank cases later
Drawbacks
- High break-even (52%) and very thin early profit
- Ingot prices follow world aluminium prices
- Furnace fumes and heat need pollution clearance
- Quality (porosity, composition) decides repeat orders
Skills you need
- Melting and pouring practice
- Sand control and moulding
- Composition testing and fettling
- Industrial sales
Why difficulty 3/5: Skilled foundry work with thin margins and a high break-even.
§3Market
Who buys
- Ferrous and non-ferrous foundries (flasks, core plates, patterns)
- Ceiling-fan makers (rotors)
- Pump makers, railways, breweries
- Chemical, marine and electrical industries
How it sells
- Direct job orders from manufacturers
- Engineering traders
Good to know
- The report says aluminium castings are gradually replacing gunmetal, bronze, stainless steel and grey-iron castings.
- Pressure die casting is left out of the scheme; only sand and gravity die casting are covered.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Oil-fired crucible melting furnace with crucibles and ladles | — | — |
| Sand moulds and permanent (gravity die) moulds | — | — |
| Automatic lathe for turning castings | — | — |
| Testing for mechanical and chemical properties | — | — |
| All plant and machinery (total; no item-wise costs printed) | — | ₹10.54 lakh |
From: PMEGP sample project report — Aluminium Castings Manufacturing Unit (prepared by Udyami/Samadhan)
- Aluminium and aluminium alloy ingots (LM-5, LM-6, LM-24)72 MT a year at an average ₹1,80,000/MT at full capacity
- Foundry sand, bentonite, die coats, degreaser and refractories₹1,30,000 a year
From: PMEGP sample project report — Aluminium Castings Manufacturing Unit (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Process and Product Development Centre (PPDC), Agra · Agra →
In our raw material database
Aluminium ingot, billet and wire rod (primary) →Aluminium scrap →
§5Licences & registration
- Udyam
- GST
- Pollution Control Board clearance (report lists it in the schedule)
- Factory licence
- Trade licence
- Fire NOC
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP sample project at ₹17.87 L; fits a MUDRA Tarun Plus loan; CGTMSE for collateral-free cover.
§7Money
How the investment is worked out: Plant & machinery ₹10.54 L + furniture ₹1.00 L + working capital ₹6.33 L = ₹17.87 L. Land and 2,000 sq ft shed own or rented. Finance: own ₹1.79 L, term loan ₹10.39 L, working capital ₹5.70 L.
Working capital: Working capital ₹6.33 L, of which ₹5.70 L is bank finance; 10 days each of ingots and finished castings.
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
- Aluminium price swings
- Casting defects and rejections
- Pollution-board conditions on furnaces
- Burns and fire hazards
§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 aluminium castings (foundry) 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 Aluminium Castings (Foundry)?
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.