§1What this business is
Rubber with reclaimed rubber and chemicals is mixed on a mixing mill and kneader, drawn into sheets in an extruder, and pressed into tread patterns in a pre-cured tread rubber (PCTR) press. Retreaders buff worn tyres and bond these treads on, giving trucks, buses and taxis a cheaper second life for their tyres.
Capacity: 400 kg a day, 1,20,000 kg a year (8-hour shift, 300 days); year 1 at 65%.
§2Is it right for you?
Who it is for
Someone with rubber or tyre-trade experience and contacts with retreaders and transport fleets.
Who it is not for
Someone with no rubber-compounding knowledge.
Advantages
- Retreading saves fleet owners money, so demand is steady
- The report puts India's retreading industry at over ₹5,000 crore a year with about 20,000 retreaders
- Good profit from year 1 (₹9.67 lakh after tax)
- Environment-friendly — tyre casings are reused
Drawbacks
- High machinery cost (₹30 lakh)
- Rubber and chemical prices swing
- Quality failures on the road damage reputation
- Half the retreading market is unorganised and price-driven
Skills you need
- Rubber compounding
- Extruder and press operation
- Quality testing of treads
- Selling to retreaders and fleets
Why difficulty 4/5: Large machinery, rubber chemistry and road-safety quality make it demanding.
§3Market
Who buys
- Tyre retreading shops
- Truck, bus and taxi fleet owners
- Transport companies and state transport undertakings
How it sells
- Direct sale to retreaders
- Tyre dealers and distributors
- Contracts with fleets
Good to know
- The report says retreading in India is split about 50:50 between organised and unorganised players.
- It notes a casing can take new treads two or three times, depending on its condition.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Mixing mill | — | ₹6.00 lakh |
| Kneader machine | — | ₹9.00 lakh |
| Extruder machine (6-inch) | — | ₹5.00 lakh |
| PCTR (pre-cured tread rubber) press | — | ₹10.00 lakh |
From: PMEGP sample project report — Tread Rubber (prepared by Udyami/Samadhan)
- Rejected rubber₹40–60 a kg
- Reclaim rubber₹30 a kg
- Chemicals₹50–200 a kg or litre
- China clay₹5 a kg
- Average raw material cost₹75–85 a kg of tread (₹75 in year 1 of the report)
From: PMEGP sample project report — Tread Rubber (prepared by Udyami/Samadhan)
In our raw material database
Carbon black →Natural rubber →Styrene butadiene rubber (SBR) →
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board NOC
- Factory licence if worker count crosses the limit
- BIS certification if a quality control order covers your tread rubber
- Trademark for the brand
§6Schemes & subsidies
PMEGP fits this ₹37.67 lakh manufacturing project; CGTMSE gives collateral-free cover.
§7Money
How the investment is worked out: Sample report total ₹37.67 lakh: plant & machinery ₹30.00 lakh, furniture & fixtures ₹1.00 lakh, working capital ₹6.67 lakh. Land own or rented. Finance: term loan ₹27.90 lakh, working-capital loan ₹6.00 lakh, own share ₹3.77 lakh.
Working capital: Working capital ₹6.67 lakh (bank ₹6.00 lakh).
Year not printed on the sample report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CAPEXIL
- Get an IEC and register with CAPEXIL (rubber products panel) before exporting.
§9Risks — where people fail
- Rubber price swings
- Tread failures and claims
- Competition from big tread makers
- Power cuts stopping curing
§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 tread rubber (pre-cured tread) making 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 Tread Rubber (Pre-cured Tread) Making?
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.