§1What this business is
Latex is mixed with whitener, chalk powder, titanium dioxide and rubber chemicals in a ball mill, dipped on PVC pipe moulds in an automatic dipping machine, cured in a stainless-steel tank, sliced into bands and packed. The report plans 150 kg a day. Newspapers, banks, shops, post offices and packers are steady users.
Capacity: 150 kg a day, 45,000 kg a year (300 days); year 1 at 65%.
§2Is it right for you?
Who it is for
Someone who can sell to stationery wholesalers and bulk users like banks and packers.
Who it is not for
Someone expecting high margins on a small volume.
Advantages
- Everyday product used by offices, shops and packers
- Compact machine set (₹10 L)
- Sold by weight, easy to price
- Long shelf life if stored cool
Drawbacks
- High break-even (48%) and thin first-year profit
- Latex prices move with the rubber market
- Cheap low-grade bands compete
- Low price per kg means volume selling
Skills you need
- Latex compounding
- Machine operation and curing
- Bulk buyer sales
- Cost control
Why difficulty 2/5: Simple product, but you must sell a lot at a low price per kg.
§3Market
Who buys
- Newspaper distributors (named in the report)
- Offices, banks and post offices
- Shops, packers and industry
How it sells
- Stationery wholesalers
- Direct bulk supply
Good to know
- Year-1 selling price ₹150 a kg, rising ₹5 a year in the report.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Ball mill | 1 | — |
| PVC pipe moulds | set | — |
| Automatic dipping machine | 1 | — |
| Stainless-steel vulcanisation tank | 1 | — |
| Cutting machine | 1 | — |
| Polythene packing machine | 1 | — |
| Whole set with tools | 1 set | ₹10.00 lakh |
From: PMEGP sample project report — Rubber Bands (prepared by Udyami/Samadhan)
- Latex, whitener, chalk powder, titanium dioxide, rubber chemicals₹75–90 per 1 kg packet; ₹80 a kg in year 1
- Packing materialfor 1 kg packets
From: PMEGP sample project report — Rubber Bands (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- GST
- Udyam registration (the report calls it optional)
- Trademark for the brand if needed
- State Pollution Control Board consent
§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
PMEGP fits; MUDRA covers the ₹12.90 L of bank loans; CGTMSE for a collateral-free loan; Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: Samadhan report ₹14.33 L = plant and machinery ₹10.00 L, furniture ₹1.00 L, working capital ₹3.33 L; land own or rented. The PMEGP list shows this report twice, once at ₹22.00 L, but the PDF prints ₹14.33 L.
Working capital: Working capital ₹3.33 L; bank demand ₹3.00 L. 15 days of raw material and finished goods.
Year not printed on the report — check current machinery and raw-material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Exports are possible in bulk packs; compete on consistent stretch and colour.
§9Risks — where people fail
- Latex price rise
- Bands that snap or stick
- Price competition
- Low capacity use keeps losses high
§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 rubber bands unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (GST, Udyam registration (the report calls it optional)), 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 Rubber Bands?
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.