§1What this business is
Steel billets are cut, induction-heated and forged into gear blanks, machined on CNC lathes, cut on gear-hobbing machines, induction-hardened, ground and lapped, then checked on gear-profile testers. Finished gears are assembled into gear boxes (speed reducers) for material handling, food and beverage plants, the auto sector and general machinery. The report prices small units at ₹1,200 and large gear boxes at ₹1,00,000 or more.
Capacity: 10,000 gears and gear boxes a year of different sizes and ratings.
§2Is it right for you?
Who it is for
An experienced gear or transmission engineer with strong finance and industrial sales contacts.
Who it is not for
A first-time founder or anyone without forging and gear-cutting experience.
Advantages
- Every conveyor, mixer, crane and machine needs a gear box
- Geared motors of 7.5–75 kW are a growing segment
- Forging in-house controls blank quality and cost
- Wide range of buyers across industries
Drawbacks
- Very large investment — over ₹3 crore
- Gear hobbing and grinding machines are costly
- Thin margin on a large turnover
- Established brands hold OEM contracts
Skills you need
- Gear design and metallurgy
- Forging, hobbing, heat treatment and grinding
- Gear profile inspection
- Industrial sales and after-sales service
Why difficulty 5/5: Over ₹3 crore investment, heavy machinery and deep technical skill.
§3Market
Who buys
- Material-handling and conveyor makers
- Food and beverage plant builders
- Auto and auto-component makers
- General machinery makers and maintenance departments
How it sells
- Direct OEM supply
- Power-transmission dealers
- Replacement sales to factories
Good to know
- The report says geared motors of 7.5–75 kW are the new trend, with 7.5–15 kW the largest segment.
- About 80% of the world's gearing is made from cast or forged blanks in near-final shape, according to the report.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Blank/billet cutting machines | 2 | ₹3,00,000 |
| Induction heaters for blanks | 2 | ₹5,00,000 |
| Pneumatic forging hammers | 2 | ₹14,00,000 |
| Mechanical forging hammers | 2 | ₹5,00,000 |
| Gear hobbing machines | 2 | ₹40,00,000 |
| Gear grinding machines | 2 | ₹36,00,000 |
| Heavy-duty milling machines | 2 | ₹11,00,000 |
| Induction heat-treatment units | 2 | ₹3,60,000 |
| Shot blasting machines | 2 | ₹2,40,000 |
| CNC lathes | 2 | ₹13,00,000 |
| Cylindrical grinder | 1 | ₹7,00,000 |
| Lapping machine | 1 | ₹8,00,000 |
| Lathe machines | 2 | ₹4,00,000 |
| Vertical lathe | 1 | ₹4,50,000 |
| Radial and pillar drilling machines | 2 | ₹4,00,000 |
| Gear profile inspection and testing machines | 3 | ₹3,00,000 |
| 5-axis CNC measuring machine | 1 | ₹6,50,000 |
| Die tools, gauges and miscellaneous tools | 1 lot | ₹7,00,000 |
From: SIDBI Stand-Up Mitra project profile — Gear Boxes (2018) — private guide — confirm locally
- Precision cast steel gear blanks₹60–350 a kg in the report
- Forged gear blanks or alloy steel billets₹120–300 a kg
- Bearings, housings, seals and lubricants for gear boxesbought in
From: SIDBI Stand-Up Mitra project profile — Gear Boxes (2018) — private guide — confirm locally
§5Licences & registration
- Udyam registration
- GST
- Factory licence and plan approval
- Fire NOC
- State Pollution Control Board consent for forging and heat treatment
- ESI and PF
- Company registration if set up as a company
- IEC code if you export
§6Schemes & subsidies
The ₹191.14 L loan is above Stand-Up India's ₹1 crore limit and PMEGP's ceiling; CGTMSE can guarantee loans up to ₹5 crore.
§7Money
How the investment is worked out: Land ₹25.00 L, building ₹45.00 L, plant and machinery ₹177.00 L (machines ₹170 L + tools ₹7 L), fixtures and electrical ₹4.85 L, preliminary expenses ₹3.00 L, working capital margin ₹64.38 L = ₹319.23 L.
Working capital: Gross working capital ₹141.49 L; margin ₹64.38 L, bank ₹77.12 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
- Steel price swings eating a thin margin
- Heat-treatment defects
- Slow ramp-up against a big loan
- Competition from established brands
§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 gear and gear box manufacturing 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), 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 Gear and Gear Box Manufacturing?
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.