§1What this business is

Steel sheet is stamped and welded into crescent-shaped shoes, friction material is hot-pressed and bonded on, then the shoes are ground, riveted and packed. Inside a drum brake, the shoe is pushed out against the drum to slow the wheel. Rising sales of two-wheelers, passenger vehicles and light commercial vehicles keep demand growing, as the report notes.

Capacity: 500 sets a day on a 10-hour shift; 30% capacity in year 1.

§2Is it right for you?

Who it is for

Someone from an auto-parts cluster with press-shop and quality-testing experience.

Who it is not for

Someone without testing capability or an auto-parts sales network.

Advantages

  • Replacement part with steady demand
  • Low break-even (25%)
  • Machines are standard presses and welders
  • Large two-wheeler repair market

Drawbacks

  • Safety part with strict quality norms
  • Thin net margin (5.5–7.7% in the report)
  • The report uses asbestos-based friction material, a health hazard
  • Drum brakes are becoming less common on new vehicles, as the report notes

Skills you need

  • Press tool and stamping work
  • Welding and bonding
  • Dimensional and friction testing
  • Selling to auto-parts distributors

Why difficulty 4/5: Safety-critical part needing press-shop skill and testing.

§3Market

Who buys

  • Two-wheeler and vehicle repair garages
  • Auto-parts retailers
  • Fleet owners

How it sells

  • Auto-parts wholesalers and distributors
  • Online auto-parts sellers
  • Direct supply to service centres

Good to know

  • The report quotes a forecast 7.20% yearly growth in the automotive brake-shoe market for 2021–2028.
  • The report expects sales of ₹91.35 lakh in year 1 rising to ₹176.67 lakh in year 5.

§4Raw material & machinery

ItemQtyCost
Stamping press1₹4,25,000
Forging press1₹2,50,000
Hot press1₹4,50,000
Welding machine1₹1,70,000
Hand grinder1₹8,000
Riveting machine1₹3,00,000
Other equipment—₹50,000

From: PMEGP sample project report — Brake Shoe (prepared by Udyami/Samadhan)

  • Steel sheetsfor the shoe body
  • Asbestos-based friction material (as per the report)asbestos-free material is now widely preferred
  • Other chemicals (adhesives) and packingraw material together ₹59.40 lakh in year 1 of the report

From: PMEGP sample project report — Brake Shoe (prepared by Udyami/Samadhan)

§5Licences & registration

  1. BIS certification for brake parts where a compulsory order applies
  2. State Pollution Control Board consent
  3. Udyam registration
  4. GST
  5. Factory licence if the worker count requires it

We can do this registration for you

§6Schemes & subsidies

The report is a PMEGP sample. MUDRA and CGTMSE can back the loan.

§7Money

How the investment is worked out: Plant & machinery ₹16.53 lakh + furniture ₹0.60 lakh + working capital ₹5.86 lakh = ₹22.99 lakh. Land own or rented (not in the cost).

Working capital: Working capital ₹5.86 lakh, of which a bank loan of ₹5.28 lakh; 10 days of stock, 14 days' credit to buyers.

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

8708.30Brakes and servo-brakes and parts thereof, for motor vehicles

Export council / board: EEPC India

  • Many export markets ban asbestos in brake parts; use asbestos-free friction material for exports.

§9Risks — where people fail

  • Brake failure and liability
  • Shift from drum to disc brakes
  • Steel price swings
  • Rules on asbestos

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working brake shoe manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (BIS certification for brake parts where a compulsory order applies, State Pollution Control Board consent), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Shoe Manufacturing?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Brake Shoe (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.