§1What this business is
Mild-steel wire in coils is fed into an automatic bending machine that straightens it, cuts it and bends it into joined links. The open chain is pickled in acid and washed, then each link is closed on an electro-mechanical butt-welding machine and deburred. Chains are calibrated, load-tested to Indian Standards and packed in wooden cases of about 50 kg. Link chain is used in cranes, chain drives, conveyors, road transport, railways, fishing, shipping, dairies and farms.
Capacity: 300 tonnes of 8, 10 and 12 mm link chain a year, worth ₹1.50 crore (single shift, 300 working days).
§2Is it right for you?
Who it is for
An engineer or steel trader who can buy wire rod well and sell to crane makers, transporters and hardware wholesalers.
Who it is not for
A first-time founder with a small budget and no steel-buying contacts.
Advantages
- Chain is needed wherever goods are lifted, tied or pulled
- The profile says very few units in the country make butt-welded link chain
- One plant handles 5 to 12 mm wire by changing tools
- Running a second shift improves the return, as the profile suggests
Drawbacks
- The plant alone costs ₹33.50 L
- Profit is under 10% of sales, so steel price swings hurt
- Lifting chain must pass calibration and load tests
- Acid pickling needs careful handling and disposal
Skills you need
- Setting bending and butt-welding machines
- Load testing and calibration of chain
- Buying wire rod at the right price
- Selling to industrial and hardware buyers
Why difficulty 4/5: Costly special plant, thin margin and load-bearing quality to maintain.
§3Market
Who buys
- Makers of cranes, chain pulley blocks and conveyors
- Road transporters and railways
- Fishing and shipping trade
- Dairies and farms
How it sells
- Direct supply to equipment makers
- Hardware and industrial wholesalers
Good to know
- The profile lists makers of butt-welded link chain at Dewas, Indore, Raipur, Ghaziabad, Nashik, Mumbai and Kolkata.
- Selling price in the profile: ₹50,000 a tonne.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| MS butt-welded link making plant for 5 to 12 mm wire (each set: 1 bending machine and 2 electro-mechanical welding machines) | 2 sets | ₹33,50,000 |
| Tumbling barrel with reduction gearbox and 5 HP motor | 2 | ₹50,000 |
| Gas welding equipment with torch | 1 | ₹15,000 |
| Double-ended pedestal grinder, 10 inch wheel, 1 HP motor | 1 | ₹10,000 |
| Pickling tank, locally fabricated | 2 | ₹10,000 |
| Platform weighing machine | 1 | ₹15,000 |
| Link calibrating machine with 3 HP motor | 1 | ₹50,000 |
| Load testing machine with 5 HP motor | 1 | ₹1,00,000 |
| Dies, tools and fixtures | — | ₹1,50,000 |
From: DC-MSME project profile — Link Chain (2010)
- Mild-steel wire rod, 8, 10 and 12 mm25.3 tonnes a month at ₹32,000 a tonne
- Welding material and consumables₹15,000 a month
- Wooden packing cases and PP strips500 a month at ₹40 each
From: DC-MSME project profile — Link Chain (2010)
§5Licences & registration
- Udyam registration
- GST registration
- Factory licence where the worker and power limits apply
- Trade licence from the local body
- State Pollution Control Board consent (acid pickling)
- BIS standards for link chain (IS 2429, IS 3109, IS 6216) to follow for testing
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 ₹72.58 L the project is above the PMEGP ceiling of ₹50 lakh for manufacturing. A bank term loan with CGTMSE cover (loans up to ₹10 crore) fits better.
§7Money
How the investment is worked out: Fixed capital ₹42.25 L (two link-making plant sets ₹33.50 L, other machines and testing equipment ₹2.50 L, electrification and installation ₹3.75 L, dies and tools ₹1.50 L, office equipment ₹0.50 L, pre-operative ₹0.50 L) + working capital for 3 months ₹30.33 L = ₹72.58 L. Shed is rented.
Working capital: Working capital for 3 months is ₹30.33 L. Wire rod is the main cost: 25.3 tonnes a month at ₹32,000 a tonne, about ₹8.10 L out of a monthly running cost of ₹10.11 L.
Prices from 2010 — machinery costs will be higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Engineering goods are promoted for export by EEPC India.
§9Risks — where people fail
- Wire rod price rising faster than chain price
- A weak weld failing under load
- Acid from pickling harming workers or drains
- Long credit asked by large buyers
§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 ms welded link chain manufacturing 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 MS Welded Link Chain Manufacturing?
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.