§1What this business is
Dies are designed on CAD software, then tool steel is cut, turned, milled, ground, spark-eroded on wire-cut EDM and lapped to very close sizes. Parts are hardened, assembled into die sets (die block, punch plate, punches, stripper, pilots, guides) and tried out on a press. Buyers are auto-part, electrical, appliance and panel makers that stamp sheet metal.
Capacity: 200 tonnes of sheet-metal dies and tools a year; runs at 35% in year 1 and 70% in year 5. Selling prices ₹100–600 a kg depending on the die.
§2Is it right for you?
Who it is for
An ITI, diploma or engineering graduate who has worked in a tool room and knows sheet-metal pressing buyers.
Who it is not for
Someone without precision-machining experience.
Advantages
- Material is a small share of sales — gross margin over 60% in the report
- Auto, electrical and appliance makers need new dies and die spares all the time
- Buyers are moving from imported dies to Indian tool rooms (TAGMA, quoted in the report)
- Machines can also make precision parts when die orders are slow
Drawbacks
- About ₹1.13 crore of CNC, EDM and grinding machines
- Needs very skilled tool makers and CAD/CAM designers
- Each die is a one-off job with long design and trial time
- Buyers are concentrated in industrial clusters
Skills you need
- Die design on CAD/CAM
- CNC, wire-cut EDM and precision grinding
- Heat treatment of tool steel
- Quoting and trying out dies with buyers
Why difficulty 5/5: High-precision skilled work and over ₹2 crore of investment.
§3Market
Who buys
- Auto-component and pressed-part makers
- Electrical, electronics and appliance makers
- Panel and enclosure fabricators
- Sheet-metal machinery suppliers
How it sells
- Direct orders from pressing units
- Vendor registration with OEMs
Good to know
- The report names Mumbai, Bengaluru, Chennai, Pune, Hyderabad and NCR as the main tool-room clusters.
- Training centres named: Indo German Tool Room (Ahmedabad, Rajkot, Chennai) and CTTC Bhubaneswar.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hacksaw machines | 2 | ₹2,00,000 |
| CNC lathes | 2 | ₹10,00,000 |
| Precision CNC milling centre with attachments | 1 | ₹16,00,000 |
| Heavy-duty milling machines | 2 | ₹13,00,000 |
| Wire-cut EDM / spark erosion machines | 2 | ₹15,00,000 |
| Heavy-duty radial drill | 1 | ₹3,00,000 |
| Precision hydraulic grinding machines | 3 | ₹22,50,000 |
| Belt grinding/polishing machines | 2 | ₹1,60,000 |
| Lapping machines | 2 | ₹2,80,000 |
| Heat-treatment facility | 1 | ₹7,50,000 |
| 5-axis CNC measuring machine with granite block | 1 | ₹5,00,000 |
| Hydraulic press (for die trials) | 1 | ₹4,50,000 |
| Tools and gauges | 1 lot | ₹4,50,000 |
From: SIDBI Stand-Up Mitra project profile — Tool Room for Sheet Metal Die Making (2018) — private guide — confirm locally
- Tool steel (high-carbon, high-alloy grades)₹85 a kg for high-carbon alloys up to ₹450 a kg for high-grade die steels
- Heat-treatment and surface-treatment consumableshardening, nitriding, plating
- Scrap allowance10% of finished weight; scrap sells at ₹40–100 a kg
From: SIDBI Stand-Up Mitra project profile — Tool Room for Sheet Metal Die Making (2018) — private guide — confirm locally
Suppliers in Building Business Bazaar
Indo German Tool Room, Aurangabad · Chhatrapati Sambhajinagar →Central Tool Room, Ludhiana · Ludhiana →Central Institute of Tool Design, Hyderabad · Hyderabad →Central Tool Room & Training Centre (CTTC), Kolkata · Kolkata →Central Tool Room & Training Centre, Bhubaneswar · Bhubaneswar →Indo Danish Tool Room, Jamshedpur · Jamshedpur →Tool Room & Training Centre, Guwahati · Guwahati →MSME Technology Centre, Bhiwadi · Bhiwadi →MSME Technology Centre, Pudi, Vizag · Visakhapatnam →MSME Technology Centre, Bhopal · Bhopal →MSME Technology Centre, Rohtak · Rohtak →MSME Technology Centre, Kanpur · Kanpur →
In our raw material database
§5Licences & registration
- Udyam registration
- GST
- State industrial registration with the DIC
- Factory plan approval and fire NOC
- Chimney or blower for the heat-treatment furnace (pollution rules)
- IEC code for export
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
Too large for PMEGP; CGTMSE can guarantee the bank loan without collateral and Stand-Up India can fund SC/ST and women founders.
§7Money
How the investment is worked out: Land ₹30 L + building ₹60 L + plant & machinery ₹113.25 L + fixtures and electrical ₹4 L + preliminary ₹3.50 L + working-capital margin ₹11.79 L = ₹222.54 L. Finance: promoter ₹64.48 L, bank loan ₹158.06 L (70% of fixed assets).
Working capital: Gross ₹19.70 L (inventories ₹2.87 L, receivables ₹8.93 L, overheads ₹5.03 L, less creditors ₹2.87 L); own margin ₹11.79 L, bank ₹7.91 L. Low, because most value is machine time, not material.
Stand-Up Mitra profile uploaded in 2018; the year is not printed on the profile. Machinery and material prices 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
- Design errors that need rework
- Slow payment from large buyers
- Losing skilled tool makers
- Tool-steel price rise
§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 tool room for sheet metal dies 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 Tool Room for Sheet Metal Dies?
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.