§1What this business is
Low-carbon alloy-steel bar is cut, heated and forged under a pneumatic power hammer, trimmed on a power press, heat-treated in an oil-fired furnace, shot-blasted and checked for hardness. The KVIC profile notes the blanks carry enough machining allowance for the gear maker to finish them.
Capacity: 15,000 blanks a year.
§2Is it right for you?
Who it is for
Someone with forging or machine-shop experience near an engineering cluster.
Who it is not for
A first-time founder with no engineering background.
Advantages
- Steady engineering demand from gear and gearbox makers
- Repeat B2B orders once quality is approved
- Same hammer and dies can forge other blanks
- Fits near auto and tractor component clusters
Drawbacks
- Very thin margin (₹2.18 L at full capacity)
- Hot, noisy, heavy work
- High wage bill (₹8.64 L a year)
- Depends on a few large customers
Skills you need
- Forging and die handling
- Heat treatment
- Hardness and dimension checks
- Selling to component makers
Why difficulty 4/5: Heavy hot-forging work, tight quality checks and a thin margin.
§3Market
Who buys
- Gear makers
- Engine and gearbox makers
- Auto and tractor component suppliers
How it sells
- Direct B2B supply against drawings
- Job work for larger forging units
Good to know
- The profile says blanks are made with machining allowances added to the dimensions.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Pneumatic power hammer, 300 kg, with 20 HP motor | 1 | — |
| Trimming power press with 3 HP motor | 1 | — |
| Oil-fired pre-heating furnace (annealing, normalising) with 5 HP motor | 1 | — |
| Shot-blasting chamber with 7.5 HP motor | 1 | — |
| Power hacksaw with 1 HP motor | 1 | — |
| Rockwell hardness tester | 1 | — |
| Double-ended pedestal grinder with 2 HP motor | 1 | — |
| Platform weighing machine, 500 kg | 1 | — |
| Forging dies, tools and equipment | 1 lot | — |
From: KVIC Project Profile — Forging Blanks for Spur Gears (PMEGP)
- Low-carbon alloy-steel barsraw material ₹13.44 L a year in the profile
- Furnace oilfor the oil-fired furnace
- Labels and packing material₹25,000 a year
From: KVIC Project Profile — Forging Blanks for Spur Gears (PMEGP)
Suppliers in Building Business Bazaar
Central Institute of Hand Tools, Jalandhar · Jalandhar →Indian Oil Corporation · Delhi →
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence (depends on workers and power)
- State Pollution Control Board consent (CTE/CTO)
- Fire NOC
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
A KVIC model profile for PMEGP; at ₹17.88 L it also fits MUDRA, CGTMSE and Stand-Up India.
§7Money
How the investment is worked out: Equipment ₹13.28 L (pneumatic power hammer 300 kg with 20 HP motor, trimming power press, oil-fired pre-heating furnace, shot-blasting chamber, power hacksaw, Rockwell hardness tester, double-ended pedestal grinder, 500 kg platform scale, forging dies and tools, installation and electrification at 10%, office equipment) + working capital ₹4.60 L = ₹17.88 L. Own land.
Working capital: Working capital ₹4.60 L; steel and other raw material ₹13.44 L a year.
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
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Steel price rise
- Rejections for cracks or poor hardness
- Worker safety around hammer and furnace
- Slow auto-sector orders
§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 forging blanks for spur gears 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 Forging Blanks for Spur Gears?
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.