§1What this business is
A job shop with CNC turning, CNC milling, EDM, grinding, lapping and welding that machines castings and forgings supplied by customers into finished parts, and repairs dies and moulds. Customers are ancillary units and primary manufacturers who need tight tolerances.
Capacity: Job work up to 1,00,000 components a year; ₹100 a piece for large volumes to ₹5,000 a piece for small, multi-operation jobs.
§2Is it right for you?
Who it is for
A tool-room or CNC professional near an industrial cluster with ancillary customers.
Who it is not for
Someone without machining experience or customer contacts.
Advantages
- Customers supply the material — low stock risk
- Precision work pays better than general machining
- Steady demand from auto and engineering clusters
- Die and mould repair adds high-value jobs
Drawbacks
- ₹1 crore+ investment with ₹10.10 L yearly interest
- Depends on a few large customers
- Skilled CNC operators are hard to keep
- Rejections cost money and trust
Skills you need
- CNC programming and setting
- Measurement and quality control
- Quoting job work
- Customer management
Why difficulty 4/5: Needs CNC skill, costly machines and steady industrial customers.
§3Market
Who buys
- Ancillary units of automobile and engineering firms
- Primary manufacturers needing precision parts
- Die and mould users
How it sells
- Direct job-work contracts
- Vendor registration with large companies
Good to know
- The profile says good precision machining facilities are hard to find in normal engineering workshops.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| EDM machine | 1 | ₹9,00,000 |
| Precision CNC milling machine with attachments | 1 | ₹8,50,000 |
| CNC lathe machine | 1 | ₹6,00,000 |
| Heavy duty milling machine | 1 | ₹5,00,000 |
| Heavy duty pillar drill | 1 | ₹3,00,000 |
| Precision grinding / threading attachments | 1 | ₹2,50,000 |
| Welding and brazing set | 2 | ₹1,60,000 |
| Belt grinding and polishing machine | 1 | ₹1,00,000 |
| Lapping machine | 1 | ₹90,000 |
| Hacksaw machine | 1 | ₹80,000 |
| Tools and gauges | 1 lot | ₹2,00,000 |
From: SIDBI Stand-Up Mitra project profile — CNC Engineering Workshop (2018) — private guide — confirm locally
- Castings and forgingssupplied by customers — the profile books almost no material cost
- Cutting tools, inserts and wearing partsbought at market rates
- Coolants, lubricants and welding consumables
From: SIDBI Stand-Up Mitra project profile — CNC Engineering Workshop (2018) — private guide — confirm locally
Suppliers in Building Business Bazaar
Indo German Tool Room, Aurangabad · Chhatrapati Sambhajinagar →Indo German Tool Room, Ahmedabad · Ahmedabad →Indo German Tool Room, Indore · Indore →Central Tool Room, Ludhiana · Ludhiana →Central Institute of Tool Design, Hyderabad · Hyderabad →Central Tool Room & Training Centre (CTTC), Kolkata · Kolkata →Central Tool Room & Training Centre, Bhubaneswar · Bhubaneswar →Indo Danish Tool Room, Jamshedpur · Jamshedpur →Tool Room & Training Centre, Guwahati · Guwahati →MSME Technology Centre, Bhiwadi · Bhiwadi →MSME Technology Centre, Pudi, Vizag · Visakhapatnam →MSME Technology Centre, Bhopal · Bhopal →
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence when worker numbers cross the limit
- ESI and PF registration
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Too large for PMEGP as costed; a bank term loan with CGTMSE cover fits; Stand-Up India for eligible founders.
§7Money
How the investment is worked out: Land ₹15.00 L + building ₹35.00 L + plant and machinery ₹41.05 L + fixtures and electricals ₹2.65 L + preliminary ₹2.50 L + working-capital margin ₹8.04 L = ₹104.24 L.
Working capital: Gross working capital ₹14.73 L; margin ₹8.04 L. Material is supplied by customers, so stock is small; receivables ₹7.35 L are the main need.
Prices from 2018 — machinery, material and salary figures will be higher now.
§8Export potential
A job-work service on customers' material; the unit has no goods of its own to export.
§9Risks — where people fail
- Order loss when a big customer cuts volume
- Machine breakdown
- Payment delays
- Operator turnover
§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 cnc engineering workshop (precision job work) 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
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 CNC Engineering Workshop (Precision Job Work)?
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.