How Much Does it Cost to Set Up a Rubber Manufacturing Unit in India?

Introduction

The rubber manufacturing industry has existed for a long time in Indian society and is also growing largely owing to the increasing demand for rubber and the goods manufactured from it. Rubber is a pretty good product because it has not just one but several uses. India is the world's largest producer of rubber and the third-largest consumer of rubber.

So starting a rubber manufacturing unit in India is pretty profitable and smart because rubber has several different uses for the Indians and has huge demand in the Indian market. Rubber has huge commercial significance, and it has become a part of daily life usage.

If you're planning to start a rubber manufacturing unit then maybe you're wondering where to start from, and so gradually the first step is to invest, you have to know how much your startup should cost. Having proper knowledge about your business before starting it is a very vital step for achieving desired goals and success.

Rubber Manufacturing Units

Rubber manufacturing units are of various types so you should decide what type of rubber manufacturing unit you wish to be. The types of rubber manufacturing units are:

Balloon manufacturing
Eraser making
Hospital rubber consumable
Latex rubber thread
Rubber band manufacturing
Rubber conveyor belt manufacturing
Rubber floor mat manufacturing
Rubber gaskets making
Rubber gloves making
Rubber stamp making
Rubber toys manufacturing
Slipper manufacturing
Rubber carpet manufacturing
Rubber shoemaking

Investment differs depending on what kind of rubber manufacturing unit you decide to start. Detailed information about the same is given below.

The Initial Startup Cost for Rubber Manufacturing Unit in India

1. Elastic rubber band manufacturing industry

This industry is highly in demand and profitable too. Elastic rubber bands are useful for a variety of activities, for example, packaging processes, agricultural, automotive and press industries.

Starting the rubber band manufacturing as a small-scale industry the costs involved in setting up the industry should be, Rs,1,50,000 for machinery and equipment, and the raw materials should cost about Rs20,000 to Rs30,000.

Packaging costs should be Rs 5000 to Rs10,000. Marketing of the product will involve costs of Rs 5000 to Rs10000. A summation of all the required steps would lead to a total investment of Rs1,80,000 to Rs2,00,000 for setting up an elastic rubber band manufacturing industry.

2. Balloon manufacturing industry

This industry has huge potential because balloons are a very famous thing for children to play with for fun. It is also used in different types of events like birthday parties, anniversaries, get-together parties, office parties, different celebrations, sports events, functions and so many other things.

If you want to start balloon manufacturing on a Household scale then your total investment should be below 5lacs. If you plan on starting a small-scale industry then your investment in the balloon manufacturing industry should be between 5-10 lacs.

If you're planning on employing more people in your small-scale rubber manufacturing unit, investment should be almost 25lacs. But a large-scale manufacturing unit will require an investment of 4 to 6crore.

3. Eraser-making business

This industry has a high potential market in the country and also can be exported to other countries as well. In the Indian market, the demand for good-quality erasers has been increasing day by day.

Not only separately they are also attached to the end of a lot of pencils nowadays which the children are hugely fond of. They are manufactured in different shapes, and sizes. This is a product used by children to erase writing mistakes.

The machinery for eraser making should cost from 3lakhs to 10 lakhs depending on the manufacturing ability of the company. The sulphur required costs 300rs per 120gms. For a small-scale eraser-making industry, Rs3 to Rs5 lakh investment is enough, and for a medium-scale, the investment of Rs12-Rs15 lakh is enough.

4. Rubber moulding industry

The requirements for starting the rubber moulding Industry in India are firstly an area of 170- 500 square metres. The workforce initially should be about 10-11 people or more depending on the production capacity and target decided. The rubber moulding industry is one of the most important manufacturing industries in the country.

The tyre rubber business requires 50 to 60 lakhs Indian rupees if the manufacturer wants to make profits of 4 to 6 lakhs per month. Most of the rubber products manufactured are consumed by industrial sectors like the Automobile sector, two-wheeler tyres, shoe industry, latex industries etc.

5. Rubber toy-making Industry

The rubber toy-making Industry is gaining more popularity in Indian society day by day. The initial requirements of starting the industry are power consumption, transportation cost, and packaging.

The one-day production cost of manufacturing rubber toy-making Industry is 21420 Rs on an average. You also need a good dealer network so that you can earn plenty on an average a huge profit of 70,000 Indian Rupees to 1,90,000 Indian Rupees.

The cost of the toy manufacturing machinery is 10 to 15 lakhs, and the mould should cost around 50,000 Rs to 1,00,000 Rs. The total investment should be around 15 to 16 lakhs.

6. Rubber shoes manufacturing business

The most investment required in this type of business is the investment in buying expensive machinery. The cost of machinery is 5 to 8 lakhs. The overall investment in the manufacturing business is about 10-12 lakh if it is small-scale.

7. Rubber stamp manufacturing business

This business requires an investment of a minimum of Rs 5 lacs.

8. Rubber gloves manufacturing business

This business is important and also helpful to the health care centres, this is considered a hospital rubber consumer product, and the investment cost is 2325 lakhs in total.

9. Rubber floor mat manufacturing

This business is also very much in demand due to the increasing quality of life. For the production of 300000 sq. Ft of a floor mat, per year the investment of approx Rs. 4crore should be induced.