§1What this business is
Natural and synthetic rubber is mixed with fillers, chemicals and sulphur, milled into sheets, extruded into tread and sidewall, built on a tyre-building drum with bead wire and cord, and cured in moulds with steam. Tubes are extruded, joined and cured. Every tyre is inflation-tested.
Capacity: Rated output not printed; the report plans 40% use in year 1 rising to 60% in year 5 (year-1 sales ₹95.76 L).
§2Is it right for you?
Who it is for
Someone with rubber-processing experience and links to cycle dealers.
Who it is not for
A first-time founder with no technical background.
Advantages
- Bicycles are used in every village and town, so replacement demand is steady
- Raw rubber is produced in India
- Tubes and tyres both sell through the same dealers
- Rural and school-cycle schemes create bulk demand
Drawbacks
- Large brands dominate
- Rubber prices swing
- Many machines and process steps
- Curing needs a steam boiler and safety care
Skills you need
- Rubber compounding
- Moulding and curing
- Quality testing
- Dealer network in cycle trade
Why difficulty 4/5: Many process steps, a boiler, and strong brands in the market.
§3Market
Who buys
- Cycle repair shops
- Cycle dealers and wholesalers
- Bicycle assemblers
How it sells
- Cycle-parts wholesalers
- Direct supply to dealers
- Government cycle schemes through suppliers
Good to know
- Replacement demand from repair shops is the main market for small makers.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Steam boiler | 1 | — |
| Mixer mill | 1 | — |
| Rubber kneader | 1 | — |
| Mixer with heating | 1 | — |
| Roller press | 1 | — |
| Tyre building machine | 1 | — |
| Tyre curing press | 1 | — |
| Pre-cured tread machine | 1 | — |
| Tube curing machine | 1 | — |
| Tube joining machine | 1 | — |
| Inflation tester | 1 | — |
| Extruder | 1 | — |
| Total plant & machinery | — | ₹12.00 lakh |
From: PMEGP sample project report — bicycle tyre and tube (prepared by Udyami/Samadhan)
- Natural and synthetic rubbermain raw material
- Bead wire and cordtyre structure
- Chemicals, stearic acid, titanium, sulphurcompounding and curing
From: PMEGP sample project report — bicycle tyre and tube (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam
- GST
- Fire and pollution control board NOC
- Labour licence
- Rubber Board licence (for buying and using natural rubber)
- Boiler registration under the Boilers Act
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The report is a PMEGP sample; MUDRA and CGTMSE can cover the loan.
§7Money
How the investment is worked out: Samadhan sample report: machinery ₹12.00 L, other assets ₹1.50 L, working capital ₹6.67 L = ₹20.17 L. Premises rented (₹30,000–40,000 a month).
Working capital: Working capital ₹6.67 L, of which a bank loan of ₹6.00 L.
Year not printed on the report — check current machinery prices; a full tyre line usually costs more than this report shows, so get supplier quotes.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CAPEXIL
- Export markets for bicycle tyres include Africa and South Asia; buyers ask for test reports.
§9Risks — where people fail
- Rubber price rise
- Quality failures (bursts)
- Brand competition
- Boiler safety
§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 bicycle tyre and tube manufacturing unit 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 Bicycle Tyre and Tube Manufacturing Unit?
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.