§1What this business is
Iron is melted in an oil-fired rotary furnace and poured into sand moulds made on a pin-lift moulding machine; the castings are cleaned, ground and drilled. A brake drum holds the brake shoes that stop the wheel. Drums go to two-wheeler makers and the spare-parts market.
Capacity: 400 tonnes a year.
§2Is it right for you?
Who it is for
Someone with foundry experience near an auto-parts cluster.
Who it is not for
Someone new to metal casting.
Advantages
- Brake parts are replaced regularly
- Foundry workers are found in many industrial towns
- Low equipment cost
- The same foundry can cast other auto parts
Drawbacks
- Needs a lot of working capital
- Foundries face strict pollution rules
- Vehicle makers demand tight quality
- Many two-wheelers now use disc brakes
Skills you need
- Melting and moulding
- Metal testing
- Machining and finishing
- Selling to vehicle makers and dealers
Why difficulty 4/5: Foundry work needs skill, pollution clearance and quality testing.
§3Market
Who buys
- Two-wheeler makers and their suppliers
- Spare-parts dealers and garages
How it sells
- Direct supply to vehicle-part makers
- Auto spare-parts wholesalers
Good to know
- The profile is written for motorcycle, scooter and moped brake drums.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Oil-fired rotary furnace | — | — |
| Sand muller and mixer | — | — |
| Vibrating sieve machine | — | — |
| Hand-operated pin-lift moulding machine | — | — |
| Core and mould drying oven | — | — |
| Platform weighing machine | — | — |
| Flexible shaft grinder | — | — |
| Drilling machine | — | — |
| Double-ended pedestal grinder | — | — |
| Air compressor | — | — |
| Gear pump for furnace oil | — | — |
| Cast iron / fabricated plate mould boxes, patterns and foundry tools | — | — |
| Electrical installation and office equipment | — | — |
| Equipment total | — | ₹4,05,000 |
From: KVIC Project Profile — Cast Iron Brake Drums (PMEGP)
- Metal for casting (not itemised in the profile)raw material ₹72.00 lakh a year at full capacity
- Furnace oilfor the oil-fired rotary furnace
- Moulding sand and cores
- Packing material₹25,000 a year
From: KVIC Project Profile — Cast Iron Brake Drums (PMEGP)
Suppliers in Building Business Bazaar
Beco Engineering Co · Mumbai →Commercial Engineering Works · Howrah →Federal Engineers · Thana →National Iron Traders · Coimbatore →NR Traders · Coimbatore →PA Ponnusamy and Chandran Co · Coimbatore →
In our raw material database
§5Licences & registration
- Udyam
- GST
- Pollution Control Board consent (foundries are on the polluting list — check your state's category)
- Factory licence
- Fire safety NOC
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits the ₹17.45 L project; MUDRA covers loans up to ₹20 L; CGTMSE for a loan without collateral.
§7Money
How the investment is worked out: Equipment ₹4,05,000 (oil-fired rotary furnace, sand muller and mixer, vibrating sieve, hand-operated pin-lift moulding machine, core and mould drying oven, platform weighing machine, flexible shaft grinder, drill, double-ended pedestal grinder, air compressor, furnace-oil gear pump, mould boxes, patterns and foundry tools, electricals, office equipment) + working capital ₹13,40,000 = ₹17,45,000. Own land; shed not costed.
Working capital: Working capital ₹13.40 L — most of the money is in metal and furnace oil.
Year not printed on the KVIC profile — check current machinery prices.
§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 code on the DGFT site.
§9Risks — where people fail
- Pollution consent problems
- Scrap and furnace oil prices
- Casting defects
- Shift to disc brakes
§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 cast iron brake drums (small foundry) 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 Cast Iron Brake Drums (Small Foundry)?
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.