§1What this business is
A worn tyre whose body is still sound is cleaned, inspected, buffed, coated with cushion compound and fitted with a precured tread strip, then cured with steam in a bonder. The report models car tyres. Transporters, taxi owners and car owners use retreads because they cost less than new tyres.
Capacity: 20 car tyres a day, 6,000 a year (8 hours, 300 days); the plan runs at 70% in year 1 and 90% in year 5.
§2Is it right for you?
Who it is for
Someone from the tyre or transport trade with links to fleet owners and taxi operators.
Who it is not for
Someone without contacts among transporters, or who cannot judge whether a tyre casing is safe to retread.
Advantages
- A retread costs less than a new tyre, so transporters keep coming back
- Service business — the customer brings the tyre body
- Demand grows with the number of vehicles on the road
- The precured process gives a factory-made tread pattern
Drawbacks
- Break-even is high at 55% — you need steady volume
- Tread rubber is the biggest cost and its price moves with rubber prices
- Badly damaged casings must be rejected, which loses jobs
- Customers fear safety problems from poorly done retreads
Skills you need
- Inspecting casings for cuts, ply damage and bead condition
- Running the buffer, builder, bonder and boiler
- Quality control of curing temperature and time
- Selling to fleet owners and tyre dealers
Why difficulty 3/5: Steam curing and casing inspection need skill, and the 55% break-even needs steady customers.
§3Market
Who buys
- Transporters and fleet owners
- Taxi and car owners
- Bus and truck operators (the report notes retreading is spreading in commercial vehicles)
How it sells
- Direct work for local transporters
- Tyre dealers and tyre shops that collect worn tyres
- Repeat contracts with fleets
Good to know
- The report says a retreaded tyre costs about 30% less than a new one and performs up to 80% of a new tyre.
- It says retreading in India is about half precured (cold) and half conventional (hot) process.
- Rising use of radial truck and bus tyres is named as the biggest growth driver.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Buffing machine with dust collector, builder, tyre bonder (truck / three-tyre LCV / passenger) with curing rims and electric hoist | 1 | ₹8,50,000 |
| Work bench, envelope / tyre stand and gantry | 1 | ₹75,000 |
| Boiler, 300 kg/hr | 1 | ₹4,50,000 |
| Air compressor, 100 lbs working pressure, with 5 HP motor | 1 | ₹70,000 |
| Auxiliary items: pipe erection, electric fittings, retreading tools, mechanical hoist with trolley | lump sum | ₹1,00,000 |
From: PMEGP sample project report — Automobile Tyre Retreading (prepared by Udyami/Samadhan)
- Precured tread rubber28 MT a year at full capacity, ₹1,15,000 per MT
- Cushion compound2,800 litres a year, ₹120 per litre
- Vulcanising solution100 litres a year, ₹120 per litre
- Envelope6,000 pieces a year, ₹30 each
From: PMEGP sample project report — Automobile Tyre Retreading (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Pyrol Tecnics · Coimbatore →Shree Nagalakshmi Pyrolysis Private Limited · Coimbatore →Sumathi Enterprises · Dharmapuri →Lotus Carbon · Dindigul →Thiram Industries Private Limited · Erode →Prime Industries · Erode →Sri Venkateswara Hi- Tech Fuels · Kallakurichi →Sri Navaladiyan Industries · Karur →TV Sundram Iyengar & Sons Private Limited · Madurai →Balaji Rubber Products · Namakkal →Eskegie Reclaims Private Limited · Namakkal →Eswar Rubber Products Pvt Ltd · Namakkal →
In our raw material database
Carbon black →Natural rubber →Styrene butadiene rubber (SBR) →
§5Licences & registration
- GST registration (named in the report)
- Udyam registration (the report names Udyog Aadhaar, now replaced by Udyam)
- Trademark for your brand name (optional, named in the report)
- Boiler registration with the state boiler inspectorate if your boiler is covered by the Boilers Act
- State pollution board consent and trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (the report was prepared for it), MUDRA for loans up to ₹20 L and CGTMSE for a collateral-free loan.
§7Money
How the investment is worked out: Plant and machinery ₹15.45 L + furniture and fixtures ₹1.25 L + working capital ₹5.56 L = ₹22.26 L; land and building own or rented (not costed).
Working capital: Working capital ₹5.56 L in the project cost (bank working capital ₹5.00 L): 15 days of raw material and 15 days of finished tyres.
Year not printed on the report — check current machinery and raw-material prices.
§8Export potential
Retreading is a local service; the report does not discuss exports.
§9Risks — where people fail
- Tread separation leading to complaints and lost trust
- Rubber price swings
- Low volume keeps the unit below break-even
- Boiler and steam safety
§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 tyre retreading unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (GST registration (named in the report), Udyam registration (the report names Udyog Aadhaar, now replaced by Udyam)), 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 Tyre Retreading Unit?
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.