§1What this business is
Friction materials (fibre, phenol resin, nitrile rubber, friction dust, fillers, abrasives and metal powder) are compounded and mixed, pre-formed in a hydraulic press, heat-moulded in a hot press, post-cured in an oven, then slit and ground on the inside and edges before inspection. The lining is fixed to a metal brake shoe and wears against the drum to slow the vehicle. Linings are consumables, so replacement demand is steady.
Capacity: 96 pieces a day on an 8-hour shift; 50% capacity in year 1.
§2Is it right for you?
Who it is for
Someone from the auto-parts trade who knows the replacement market and can run quality tests.
Who it is not for
Someone without testing skills; poor brakes can cost lives.
Advantages
- Linings wear out, so replacement demand never stops
- Gross margin of about 28–29% in the report
- Compact plant in a rented shed
- Large repair market for trucks, buses and tractors
Drawbacks
- Brake parts are safety items with strict quality norms
- The report's recipe uses asbestos, a health hazard that many buyers now refuse
- Big brands dominate vehicle-maker supply
- Dust from grinding needs good extraction
Skills you need
- Friction compound formulation
- Hot-press moulding and curing
- Grinding to size and quality testing
- Selling to auto-parts dealers and fleet garages
Why difficulty 4/5: Safety-critical product with mandatory standards and testing.
§3Market
Who buys
- Auto-parts retailers and garages
- Truck, bus and tractor fleet owners
- Brake-shoe assemblers
How it sells
- Auto-parts wholesalers in transport hubs
- Direct supply to fleets and workshops
- Online auto-parts sellers
Good to know
- The report says India's brake pads, shoes and linings market was projected to cross $3 billion by FY2023.
- The report expects sales of ₹69.60 lakh in year 1 rising to ₹122.28 lakh in year 5.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Mixer | 1 | ₹30,000 |
| Hydraulic pre-forming press | 1 | ₹5,80,000 |
| Hydraulic hot press machine | 1 | ₹5,00,000 |
| Box oven (post-curing) | 1 | ₹90,000 |
| ID grinding machine | 1 | ₹4,10,000 |
| Dust collector | 1 | ₹85,000 |
From: PMEGP sample project report — Brake Liner (prepared by Udyami/Samadhan)
- Asbestos fibre (as per the report)asbestos-free fibres are now widely asked for
- Phenol resin and nitrile butyl rubber (NBR)binders
- Friction dust, stiffener and friction adjusterslubricants, organic and inorganic fillers, abrasives, metal powder
- Carton boxespackaging ₹1.74 lakh in year 1; raw material ₹34.56 lakh in year 1
From: PMEGP sample project report — Brake Liner (prepared by Udyami/Samadhan)
§5Licences & registration
- BIS certification — brake linings are on BIS's compulsory list; confirm the current order
- State Pollution Control Board consent (dust)
- Udyam registration
- GST
- Factory licence if the worker count requires it
§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 back the loan.
§7Money
How the investment is worked out: Plant & machinery ₹16.95 lakh (including GST and transport) + other assets ₹1.00 lakh + working capital ₹4.41 lakh = ₹22.36 lakh. Premises rented (₹25,000 a month).
Working capital: Working capital ₹4.41 lakh, of which a bank limit of ₹3.96 lakh; 10 days of raw material and finished 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
Export council / board: CAPEXIL
- Many countries ban asbestos in brake parts; export only asbestos-free linings to such markets.
§9Risks — where people fail
- Product failure and liability
- Rules against asbestos-based products
- Price war with branded and imported linings
- Worker health from dust
§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 brake liner manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (BIS certification — brake linings are on BIS's compulsory list; confirm the current order, State Pollution Control Board consent (dust)), 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 Brake Liner Manufacturing?
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.