§1What this business is
An auger is the spiral boring bit a carpenter uses to make clean, deep holes in wood. Hand augers are now a small share; most are sold as auger or multi-boring drill bits for electric drills and boring machines used in furniture and modular-kitchen work. The unit cuts high speed steel rod on a band saw, forms the spiral flutes and point on a multi-axis CNC machine, lathe and milling machine, hardens the bits in a heat treatment furnace, grinds the cutting edges on a tool and cutter grinder and packs them. The standard is IS 2852:1998. The DPR prices a bit at ₹400.
Capacity: 500 bits a day, 25 days a month — 1,50,000 bits a year worth ₹6.00 crore at ₹400 each. Use rises from 60% in year 1 to 90% in year 4.
§2Is it right for you?
Who it is for
A tool-room engineer or cutting-tool trader who understands heat treatment and has dealer contacts.
Who it is not for
Anyone without machining and heat-treatment experience.
Advantages
- Furniture and modular-kitchen work uses boring bits every day and wears them out
- India imports interchangeable tools of this class worth over 120 million US dollars a year
- A power auger bit bores about 20 times faster than a hand auger at a similar price
- The same machines can make other wood-boring and router bits
Drawbacks
- Needs about ₹1.42 crore, half of it for one multi-axis CNC machine
- High speed steel costs ₹800 a kg and is 60% of production cost
- The DPR sets aside 15–20% of sales for marketing
- Cheap imported bits and established tool brands dominate hardware shops
Skills you need
- CNC machining and tool grinding
- Heat treatment of high speed steel
- Hardness and dimension testing to IS 2852
- Building a dealer network for hand and power tools
Why difficulty 4/5: Precision CNC work and heat treatment, in a market held by imports and big brands.
§3Market
Who buys
- Carpenters and furniture workshops
- Office furniture and modular-kitchen makers
- Hardware and power-tool dealers
- Construction and metal-working users of drill bits
How it sells
- Hardware and tool distributors
- Direct supply to furniture factories
- Online tool marketplaces
Good to know
- The DPR says hand augers now hold hardly 10% of the carpentry boring market; power drill bits traded as augers have replaced them.
- India's imports under HS 820790 (interchangeable tools) were between 120.8 and 147.8 million US dollars a year in the ITC table quoted in the DPR.
- The DPR sets marketing cost at 15–20% of sales.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Multi-axis CNC machine | 1 | ₹50,00,000 |
| Heat treatment unit with case-carburising furnace and charging trays | 1 | ₹20,00,000 |
| Surface grinder | 1 | ₹14,00,000 |
| Milling machine | 1 | ₹5,40,000 |
| Power hydraulic press | 1 | ₹4,60,000 |
| Lathe / turret machine | 1 | ₹2,60,000 |
| Tool and cutter grinder | 1 | ₹2,40,000 |
| Automatic band saw machine | 1 | ₹1,60,000 |
| Generator 15 KVA | 1 | ₹3,20,000 |
| Measuring instruments and testing equipment | — | ₹1,60,000 |
From: DC-MSME import-substitution DPR — Auger, Carpenter (2021)
- High speed steel3,200 kg a month at ₹800 a kg
- Coolant and quenching oil₹1,00,000 a month
- Packing material₹2,00,000 a month
From: DC-MSME import-substitution DPR — Auger, Carpenter (2021)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (heat treatment and quenching oil)
- Fire safety clearance
- BIS licence if you want the ISI mark under IS 2852
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At ₹1.42 crore the project is above the PMEGP ceiling of ₹50 L for manufacturing. CGTMSE can back the machinery loan and working capital without collateral.
§7Money
How the investment is worked out: Fixed capital ₹1,08,40,000 (machinery and equipment ₹1,07,00,000, installation and transport ₹1,40,000; the 2,500 sq ft shed is rented) + working capital for 1 month ₹33,70,000 = ₹1,42,10,000.
Working capital: Working capital ₹33,70,000 for one month: high speed steel 3,200 kg at ₹800 a kg ₹25,60,000, coolant and quenching oil ₹1,00,000, packing ₹2,00,000, salaries ₹2,90,000, utilities ₹1,40,000 and other expenses ₹80,000.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Bits breaking or going blunt because of wrong heat treatment
- Tool steel price rises
- Price pressure from imported bits
- Slow dealer payments
§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 carpenter's auger and wood drill bits 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Carpenter's Auger and Wood Drill Bits?
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.