§1What this business is
You set up a lathe, milling machine, shaper, drill, grinder and a welding-brazing set. Factories send you shafts, valve stems, pump and motor parts, castings and forgings to machine, or worn parts to rebuild. Most material is supplied by the customer, so you mostly sell machine time and skill. The report charges ₹100 a piece for very large lots up to ₹5,000 a piece for small lots with many operations.
Capacity: Job work on up to 25,000 components a year.
§2Is it right for you?
Who it is for
An ITI or diploma holder in fitting, turning or machining who has worked in a machine shop and knows local factories.
Who it is not for
Someone without machining skill who plans to hire all the skill — quality and tolerance problems lose customers fast.
Advantages
- Customers supply most of the material, so little money is tied up in stock
- Every industrial area needs repair and replacement parts for old machines
- The same machines can make many different parts
- Metal scrap sells at ₹20–80 a kg
Drawbacks
- Income depends on how many orders you win each month
- Needs highly skilled machinists, who are hard to keep
- Year 1 is a small loss in the report
- Payment from large factories can be slow
Skills you need
- Lathe, milling and grinding work to drawing tolerances
- Reading engineering drawings
- Welding, brazing and rebuilding worn parts
- Quoting job prices and winning orders from factories
Why difficulty 3/5: Simple to set up, but needs real machining skill and steady orders from factories.
§3Market
Who buys
- Pump, motor and valve makers
- Textile, paper, pharma, chemical, food and dairy plants
- Auto and stationary engine users
How it sells
- Direct job orders from factories
- Sub-contract work for OEM and ancillary units
Good to know
- The report says reputation, reliability and personal contact with factory buyers decide business volume.
- Areas without such workshops — parts of the North East, MP and Rajasthan — are named as having scope.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hacksaw machine | 1 | ₹30,000 |
| Lathe machine | 1 | ₹1,00,000 |
| Milling machine with attachments | 1 | ₹2,50,000 |
| Shaping machine | 1 | ₹40,000 |
| Pillar drill machine | 1 | ₹1,00,000 |
| Grinding and threading attachments | 1 | ₹60,000 |
| Welding and brazing set | 1 | ₹80,000 |
| Bench grinder | 1 | ₹25,000 |
| Tools and gauges | 1 lot | ₹30,000 |
| Miscellaneous tools | 1 lot | ₹25,000 |
| Electrical installation | 1 lot | ₹50,000 |
From: SIDBI Stand-Up Mitra project profile — Engineering Workshop (2018) — private guide — confirm locally
- Castings, forgings, steel rods, sections and platesmostly supplied by the customer for job work
- Cutting tools and consumablesbought at market rates
From: SIDBI Stand-Up Mitra project profile — Engineering Workshop (2018) — private guide — confirm locally
Suppliers in Building Business Bazaar
ODOP CFC — AKG Foundation For Innovation & Product Development →Central Institute of Tool Design, Hyderabad · Hyderabad →Central Tool Room & Training Centre (CTTC), Kolkata · Kolkata →Central Tool Room & Training Centre, Bhubaneswar · Bhubaneswar →Tool Room & Training Centre, Guwahati · Guwahati →MSME Technology Centre, Pudi, Vizag · Visakhapatnam →MSME Technology Centre, Bhopal · Bhopal →MSME Technology Centre, Rohtak · Rohtak →MSME Technology Centre, Kanpur · Kanpur →MSME Technology Centre, Baddi · Baddi →MSME Technology Centre, Durg · Durg →NSIC Technical Services Centre, Okhla · New Delhi →
§5Licences & registration
- Udyam registration (District Industries Centre)
- GST
- Factory licence and plan approval if the Factories Act applies
- ESI and PF once staff numbers cross the limits
- Ask the State Pollution Control Board whether consent is needed
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
Project cost ₹11.48 L fits PMEGP (manufacturing up to ₹50 L) and MUDRA; CGTMSE can cover the collateral-free loan.
§7Money
How the investment is worked out: Plant and machinery ₹7.40 L (machines ₹6.85 L + tools and gauges ₹0.55 L), fixtures and electrical installation ₹0.85 L, preliminary and pre-operative expenses ₹0.50 L, working capital margin ₹2.73 L = ₹11.48 L. No land or building — premises rented.
Working capital: Gross working capital ₹4.63 L; margin ₹2.73 L, bank finance ₹1.91 L.
Prices from 2018 — machinery and building costs will be higher now.
§8Export potential
Export council / board: Not verified yet
- No HS code or export body has been checked against an official list yet.
§9Risks — where people fail
- Not enough orders in the first year
- Rejection of parts that miss tolerance
- Losing skilled operators
- Slow payment from customers
§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 engineering workshop (job work and repairs) 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 (District Industries Centre), 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 Engineering Workshop (Job Work and Repairs)?
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.