§1What this business is
A rubber compound (crepe rubber, natural rubber, resin, carbon black, castor oil and filler) is milled, thinned with solvent and spread evenly on black cotton fabric. The coated cloth is slit to width, wound into rolls, labelled and packed. The tape covers wire joints in house wiring and is also used by cable, motor and oven makers. The report follows BIS standards IS:1923 and IS:2448.
Capacity: 750 rolls a day, 2,25,000 rolls a year at full capacity (8 hours, 300 days); the text also states 2.64 lakh rolls. Year 1 at 70%.
§2Is it right for you?
Who it is for
Someone who knows the electrical trade and its dealers and can manage a solvent-based process safely.
Who it is not for
Someone who cannot store and handle flammable solvents safely.
Advantages
- Everyday item sold in every electrical shop
- Small machine set (₹9 lakh)
- Only 7 HP of power
- Simple, repeatable process
Drawbacks
- Plastic PVC tapes compete hard on price
- Solvent (benzene) is flammable and harmful
- The recipe uses asbestos powder, a known health hazard; safer fillers should be checked
- Price-sensitive market with many small brands
Skills you need
- Rubber compounding and milling
- Coating control (even spread)
- Testing breakdown voltage and adhesion
- Selling to electrical wholesalers
Why difficulty 3/5: Machines are few, but solvent safety and price competition need care.
§3Market
Who buys
- Electricians and electrification contractors
- Cable, motor and oven makers
- Households
How it sells
- Electrical shops
- Electrical wholesalers and distributors
- Direct supply to contractors
Good to know
- The report sells all output at an average ₹20 a roll.
- Raw material at full capacity costs ₹4.62 lakh a year in the report.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Mixing mill, 25 cm × 50 cm, with accessories | 1 | ₹3,84,000 |
| Double-roll spreading machine | 1 | ₹2,70,000 |
| Slitting machine | 1 | ₹54,000 |
| Sigma mixer | 1 | ₹54,000 |
| Miscellaneous tools and equipment | 1 | ₹60,000 |
| HV breakdown tester, laboratory oven, adhesion and pin-hole testing equipment | 1 | ₹78,000 |
From: PMEGP sample project report — Black Insulating Tape (prepared by Udyami/Samadhan)
- Benzene (solvent)3,000 litres a year at ₹85 a litre — the largest raw material cost
- Asbestos powder743 kg a year at ₹70 a kg
- Castor oil300 litres a year at ₹100 a litre
- Crepe rubber and natural rubber188 kg at ₹200 and 75 kg at ₹150 a kg a year
- Resin, carbon black and zinc oxide187 kg, 8 kg and 8 kg a year
- Black cotton fabric, 54 inches wideevenly woven, free from defects
- Labels and polyethylene film1,50,000 labels and 100 kg of film a year
From: PMEGP sample project report — Black Insulating Tape (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST
- State Pollution Control Board consent (solvent use)
- Fire NOC
- Factory licence if the worker count requires it
- BIS standard IS:1923 (followed in the report)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The report is a PMEGP sample (margin money 10% general, 5% special category). MUDRA and CGTMSE can back the loan.
§7Money
How the investment is worked out: Building & civil work (2,000 sq ft) ₹4.00 lakh + plant & machinery ₹9.00 lakh + furniture ₹0.46 lakh + pre-operative ₹0.50 lakh + working capital ₹4.04 lakh = ₹18.00 lakh.
Working capital: Working capital ₹4.04 lakh, of which bank finance ₹3.63 lakh; 60 days of raw material stock.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- An IEC from DGFT is needed before exporting.
§9Risks — where people fail
- Fire from solvent
- Worker health from solvent and filler dust
- Competition from PVC tape
- Rubber and solvent price swings
§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 black insulating tape (cotton) 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), 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 Black Insulating Tape (Cotton)?
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.