§1What this business is
Natural and synthetic rubber are mixed with fillers and chemicals on a two-roll mill, extruded into a long green tube, cut to length, fitted with a valve and butt-joined. The tube is vulcanised in a mould with air pressure inside and leak-tested. Flaps are pressure-moulded from compounded rubber. The report makes 1,50,000 tubes and 1,00,000 flaps a year to buyers' specifications, for the replacement market and as an ancillary to large tyre makers.
Capacity: 1,50,000 tubes (₹50 each) and 1,00,000 flaps (₹25 each) a year = ₹1.00 Cr; single shift.
§2Is it right for you?
Who it is for
Someone from the rubber or tyre trade with dealer contacts.
Who it is not for
Someone without rubber-compounding knowledge — poor compounds cause bursts and returns.
Advantages
- Every vehicle tyre needs a tube or flap, and they wear out
- Labour-intensive and suited to rural locations, as the report notes
- Can work as an ancillary to large tyre makers
Drawbacks
- Natural rubber price swings move the margin
- Tubeless tyres are reducing tube demand in cars
- BIS certification is needed for automotive tubes
Skills you need
- Rubber compounding and mixing
- Extrusion, joining and vulcanising
- Leak, hardness and tensile testing
Why difficulty 3/5: Established process, but rubber prices and BIS testing need attention.
§3Market
Who buys
- Tyre and tube dealers in the replacement market
- Large tyre makers (as an ancillary)
How it sells
- Auto spare-parts wholesalers
- Puncture and tyre repair shops
Good to know
- The report says vehicles remain the most popular transport in towns and villages, so tube demand will rise.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Rubber mixing mill 14" × 36" with 20 HP motor | 2 | ₹5,00,000 |
| Tube extrusion unit, 6" dia, 10 HP | 1 | ₹75,000 |
| Tube moulding units with hydraulics | 4 | ₹4,00,000 |
| Valve tightening machine | 1 | ₹10,000 |
| Valve nut punching machine | 1 | ₹15,000 |
| Air removing machine | 1 | ₹40,000 |
| Air compressor with 15 HP motor | 1 | ₹40,000 |
| Flap moulding units with hydraulic pump | 2 | ₹1,50,000 |
| Boiler, 150 kg/hr at 150 psi | 1 | ₹2,50,000 |
| Weighing balance and tools | 2 | ₹40,000 |
| Transformer and accessories | 1 | ₹1,00,000 |
From: DC-MSME project profile — Auto Tubes and Flaps (2003)
- Smoked natural rubber8,000 kg a month at ₹40 a kg in the report
- Synthetic rubber2,000 kg a month at ₹80 a kg
- Carbon black1,000 kg a month at ₹20 a kg
- Zinc oxide300 kg a month at ₹70 a kg
- China clay, stearic acid, sulphur, processing oil, acceleratorssmaller quantities, all Indian
- Tube valves14,000 a month
From: DC-MSME project profile — Auto Tubes and Flaps (2003)
Suppliers in Building Business Bazaar
Anant Industries · Sirhind →Carbon Black i. M/s. United Carbon India Ltd. · Mumbai →Godrej Soaps Pvt. Ltd · Mumbai →Kamani Metallic Oxide Limited · Mumbai →Kilachand Devachand Co. Pvt Ltd · Mumbai →Modern Tyre Moulds India Pvt Ltd · Delhi →Premier Industry · Sirhind →Rubber Chemicals i. I.C.I. India Ltd. · Mumbai →Rubber (Natural) · Kottayam →Rubbermac Industries · Sirhind →Sohal Engg. Works · Mumbai →Sunrise Industries · Sirhind →
§5Licences & registration
- Udyam registration
- GST registration
- BIS certification under the Quality Control Order for automotive tyres and tubes — check the current list with BIS
- State Pollution Control Board consent to establish and operate, where the state requires it
- Boiler registration under the Boilers Act
- Factory licence if your worker count crosses the Factories Act limit
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (₹38.31 L, under the ₹50 L manufacturing limit); MUDRA up to ₹20 L; CGTMSE for a loan without collateral; Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Machinery and equipment ₹18.61 L (incl. boiler, testing equipment, electrification ₹1.49 L, transformer ₹1.00 L) + working capital for 3 months ₹19.70 L = ₹38.31 L. Building rented (₹10,000 a month).
Working capital: Working capital for 3 months ₹19.70 L; rubber and chemicals ₹5.64 L a month.
Prices from 2003 — machinery, material and selling prices will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Not verified yet
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- The export promotion council for rubber goods has not been checked yet.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Rubber price spikes
- Burst or leak complaints
- Boiler and mill accidents
§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 auto tubes and flaps unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), 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 Auto Tubes and Flaps?
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.