§1What this business is
Rubber cord is a continuous solid rubber section, round or shaped, that buyers cut and join into gaskets, O-rings and seals. Natural or synthetic rubber is weighed and mixed with carbon black, china clay, process oil, zinc oxide, stearic acid and sulphur on a two-roll mixing mill. The compound is fed to an automatic extruder with a vulcaniser, and the cured cord comes out in the shape of the die. Users are automobile, hydraulic and pneumatic, electrical, oil and gas, chemical and aerospace industries. The DPR sells cord at ₹1.80 L a tonne.
Capacity: 300 MT of rubber cord a year worth ₹540 L at full capacity; 60% in year 1, 70% in year 2 and 80% from year 3 (300 working days).
§2Is it right for you?
Who it is for
A rubber technologist or rubber-goods trader who already knows the industrial buyers.
Who it is not for
Anyone expecting a high margin from a commodity rubber product.
Advantages
- Only two main machines — a mixing mill and an extruder with vulcaniser
- Rubber, fillers and chemicals are available in India
- One line makes many sizes and profiles by changing the die
- Seals and gaskets are needed by nearly every engineering industry
Drawbacks
- Rubber is about three-quarters of the selling price, so the margin is thin
- Net profit in the first year is only ₹8.16 L on ₹324 L of sales
- Two months of raw material must be stocked
- Imports and exports of this item are both small, so the market is mostly domestic
Skills you need
- Rubber compounding and mixing
- Extrusion and cure control
- Testing hardness, tensile strength and dimensions
- Industrial selling to OEMs and dealers
Why difficulty 3/5: A short process, but rubber compounding skill and tight cost control decide the profit.
§3Market
Who buys
- Automobile and auto-component makers
- Hydraulic and pneumatic equipment makers
- Electrical, oil and gas, and chemical plants
- Gasket and seal fabricators and industrial hardware dealers
How it sells
- Direct supply to OEMs against drawings
- Industrial rubber goods dealers
- Maintenance contracts with factories
Good to know
- Imports of vulcanised rubber cord were ₹171.20 crore, ₹176.62 crore and ₹157.50 crore in 2017-18 to 2019-20; exports were ₹184.86 crore, ₹166.22 crore and ₹142.08 crore.
- The DPR's selling price is ₹1.80 L a tonne.
- Standard quoted: IS 5192 (Part 2):1994 for extruded natural rubber compounds.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Automatic extruder 2½ inch, 10 HP motor, with vulcaniser and accessories | 1 | ₹17,24,000 |
| Mixing mill 12 x 30 inch, cast iron rolls, 30 HP motor and reduction gear | 1 | ₹8,50,000 |
| Platform weighing machine | 1 | ₹1,10,000 |
| Tools and fixtures | — | ₹2,50,000 |
| Electrification | — | ₹3,50,000 |
| Diesel genset 35 KVA | 1 | ₹4,00,000 |
| Testing laboratory and pollution control equipment | — | ₹9,00,000 |
| Fire-fighting equipment | — | ₹3,50,000 |
From: DC-MSME import-substitution DPR — Rubber Cord (2021)
- Rubber (natural or synthetic)13,125 kg a month at ₹170 a kg
- Fillers (china clay, carbon black, whiting, process oil)5,250 kg a month at ₹65 a kg
- Chemicals (stearic acid, zinc oxide, paraffin wax, pine resin, sulphur)7,875 kg a month at ₹55 a kg
- Packaging and consumables₹2.50 L a month
From: DC-MSME import-substitution DPR — Rubber Cord (2021)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent
- Rubber Board registration as a rubber goods manufacturer
- Fire safety clearance; BIS certification where a buyer asks for it
Start it in your state
Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.
§6Schemes & subsidies
At ₹1.31 crore the project is above the PMEGP ceiling of ₹50 L for manufacturing. CGTMSE can back the term loan and cash credit without collateral.
§7Money
How the investment is worked out: Fixed capital ₹89.21 L (civil construction ₹18.00 L, machinery and equipment ₹48.96 L including GST, installation and freight, supporting equipment ₹18.35 L, pre-operative ₹3.90 L; land of 1,500 sq m is on lease) + working capital ₹41.93 L (margin ₹10.48 L + bank finance ₹31.45 L) = ₹131.14 L. The DPR calls ₹99.69 L (fixed capital plus working capital margin) the cost of project. The investment shown is the DPR’s own cost of project.
Working capital: Working capital ₹41.93 L in year 1 — 60 days of raw material (₹39.06 L) and 30 days of other expenses (₹2.87 L); the bank funds 75%. Raw material at full capacity costs ₹32.55 L a month.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CAPEXIL
- 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
- Natural rubber price swings
- Under-cured or off-size cord rejected by buyers
- Dependence on a few industrial customers
- Fire in the rubber and oil store
§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 vulcanised rubber cord 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
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Vulcanised Rubber Cord?
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.