§1What this business is
Link plates are cut from cold-rolled steel strip on power presses with progressive dies; rollers are drawn into cups and pierced, bushes are curled from strip and pins are cut on an automatic header. Parts are barrelled, carburised and heat-treated, coloured, assembled into blocks and then into chains, riveted, greased and packed. The profile makes 120-link chains for the most common motorcycle size to IS 11740:1986, for the replacement market and for vehicle makers.
Capacity: 3.42 lakh chains a year, worth ₹239.4 lakh at ₹70 a chain.
§2Is it right for you?
Who it is for
An engineer or auto-parts maker who knows heat treatment and has spare-parts dealer contacts.
Who it is not for
A first-time founder with no engineering background.
Advantages
- Chains wear out and are replaced — a steady spare-parts market
- Vehicle makers are a second market once quality is proven
- A BIS standard (IS 11740) sets a clear quality target
- One plant makes every part of the chain in-house
Drawbacks
- About ₹1 crore and 160 kW to start
- Heat treatment uses cyanide salts that need careful handling and pollution board permission
- Large branded chain makers lead the market
- Many special-purpose machines to keep running
Skills you need
- Press tools and progressive dies
- Case hardening and heat treatment
- Quality testing (hardness, fatigue)
- Selling to auto-parts dealers and vehicle makers
Why difficulty 4/5: High capital, precision press work and heat treatment.
§3Market
Who buys
- Auto spare-parts wholesalers and retailers (replacement market)
- Motorcycle makers (OEM supply)
How it sells
- Spare-parts dealer network
- Supply contracts with vehicle makers
Good to know
- The profile links demand to the growing number of motorcycles.
- Turnover in the profile is ₹239.4 lakh at ₹70 a chain.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Single-action power press, 75 tonne, with automatic feed | 2 | ₹4,00,000 |
| Single-action power press, 50 tonne, with automatic feed | 1 | ₹1,50,000 |
| Single-action power press, 10 tonne | 1 | ₹40,000 |
| Special-purpose roller cup punching machine | 2 | ₹1,30,000 |
| Special-purpose bush curling and cutting machine | 2 | ₹2,60,000 |
| Special-purpose bush making and sizing machine | 2 | ₹2,00,000 |
| Automatic header for rivet pins | 1 | ₹50,000 |
| Tumbling barrels | 4 | ₹1,30,000 |
| 30 kW electric rotary retort gas carburising furnace | 2 | ₹7,50,000 |
| 15 kW electric salt bath furnace | 2 | ₹2,50,000 |
| Automatic chain block assembly machine | 2 | ₹4,00,000 |
| Automatic chain assembly machine | 2 | ₹3,80,000 |
| Hardness testing machine | 1 | ₹1,00,000 |
| Chain fatigue testing machine | 1 | ₹75,000 |
| Pollution control equipment | — | ₹2,50,000 |
| Universal milling machine with dividing head | 1 | ₹2,00,000 |
From: DC-MSME project profile — Automotive Chain (Motorcycle Chain) (PMRY series, prepared by SISI) (2003)
- Medium carbon steel sheet, 19 SWG27 tonnes a month at ₹21,000 a tonne in the profile
- CRCA DD-grade steel strip, 19 SWG8.2 tonnes a month at ₹20,000 a tonne
- CR steel strip 11 mm × 1 mm with rounded edges5.5 tonnes a month at ₹30,000 a tonne (for bushes)
- Low carbon steel wire, 4.5 mm8.5 tonnes a month at ₹30,000 a tonne (for pins)
- Liquid carburising material and ammonia gas4,000 litres at ₹10 and 25 cylinders at ₹2,500 a month
- Packing cartons30,000 a month at ₹0.70 each
From: DC-MSME project profile — Automotive Chain (Motorcycle Chain) (PMRY series, prepared by SISI) (2003)
Suppliers in Building Business Bazaar
Avon Cycles Ltd · Ludhiana →Basant Mechanical Works · Ludhiana →Deep Industries · Ludhiana →Godly Machine Tools (P) Ltd · Ludhiana →Kalsi Machine Tools · Ludhiana →Milton Machine Tools · Sonipat →Raj Enterprises · Ludhiana →Research and Development · Ludhiana →Rolled Strips and Profiles Ltd · Karur →Sant Machine Tools Corporation · Ludhiana →Simplicity Furnaces Ltd · Delhi →Special Steels Ltd · Ludhiana →
§5Licences & registration
- Udyam registration
- GST
- State Pollution Control Board consent (the profile says permission is needed for heat treatment)
- Factory licence
- BIS certification only if a Quality Control Order covers your product — check the current BIS list
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Too big for PMEGP (₹50 lakh) and MUDRA (₹20 lakh); CGTMSE backs a loan without collateral and Stand-Up India gives SC/ST and women founders loans up to ₹1 crore.
§7Money
How the investment is worked out: Fixed capital ₹52.58 lakh (machinery and equipment ₹50.57 lakh including 10% for electrification and installation, office equipment ₹1 lakh, pre-operative expenses ₹1 lakh) + working capital for 3 months ₹47.58 lakh = ₹100.16 lakh. Buildings rented.
Working capital: ₹15.86 lakh a month, of which steel sheet, strip, wire and other materials are ₹13.705 lakh; 3 months = ₹47.58 lakh.
Prices from 2003 — machinery, material and wage costs will be much higher now.
§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) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Steel price swings
- Competition from established brands and imports
- Heat-treatment rejects
- Pollution compliance for cyanide salts
§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 motorcycle chain 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 Motorcycle Chain Manufacturing?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- DC-MSME project profile — Automotive Chain (Motorcycle Chain) (PMRY series, prepared by SISI) (2003)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.