Starta a Tyre Retreading (By Cold Process) Unit

(242) Starta a Tyre Retreading (By Cold Process)  Unit


Retreading of damaged tyre is done by conventional hot matrix curing in most cases. But recently a new technology has been developed called “Precured Tread Rubber Retreading Process” which is commonly known as “Cold Process Retreading”. In this process, the Precured Tread Rubber already has a tread pattern on it eliminating the need for a tread matrix at vulcanizing stage. Tread Rubber is precured along with other raw materials and manufactured in the factory under controlled conditions and given a well researched pattern ensuring that the transporter gets a reliable perfectly finish product. Retreading Tyre by precured method gives 50% more mileage than the tyre retreaded by conventional process.

Market Potential
The market demand of tyre retreading by cold process is increasing day by day. There is a good scope for setting up units for tyre retreading by cold process using procured tread rubbers.
Basis and Presumptions
This project profile has been prepared based on the following presumptions:

1. Production capacity is calculated on single shift of 8 hours a day for 300 working days in a year at 75% efficiency.

2. Capacity utilization is 60% during first year 80% in second year and full capacity utilization from 3 rd year onwards.
3. The salaries and wages, cost of raw material, utilities, cost of the shed etc. are based on prevailing rates in and around local region hence cost factor is likely to vary with location of the units.
4. Interest on terms loan and working capital has been taken @ 12% on an average. The rate may vary depending upon policy of financial institutions and agencies from time to time.

5. The cost of machinery and equipments refers to particular make and model and prices are approximate to those ruling at the preparation of the same.

6. The project preparation cost, nonrefundable deposits, may be considered under the head of preoperative expenses.

7. The break even point is calculated on full capacity utilization.

8. Power at the rate of Rs. 5.5 /KW is taken.

9. The operation period of this project is estimated to be about 10 years considering technology obsolescence.
Implementation Schedule
1.Site selection preparation of project report and other formalities, application for loan and finance/ disbursement and, DIC registration etc.6 months
2.Seeking quotation for machines, purchase, installation and power connection, obtaining clearances from Pollution Control Board and other Govt. bodies and agencies.3 months
3.Procurement of raw material, recruitment of staff and labour and commercial production3 months
4.Total period required for commencing commercial production.12 months
Technical Aspects
Process of Manufacture
The tyre coming from the customers is cleaned dully. Dust and mud are removed. The casing is inspected for cuts, ply section, condition of beads etc., and based on the condition of the casing, the tyre is selected or rejected. Under inflated conditions the selected tyre's crown area is buffed to the required texture and contour. This is for better bonding of procured rubber to the casing. The buffed casing is mounted on the tread building machine. Cushion compound is applied on the buffed tread area over which the procured tread rubber is applied and stickled using rollers. The joint portion of the procured tread rubber is stepped to avoid possible opening during curing of the tyre. The build up of the tyre is covered by a rubber envelope and placed in the “bonder” and the bonder steam is passed at specific temperature, which cures the cushion compound to complete the bonding of the tread on the casing.
Quality Control and Standards 

No such standard is available but the treading will be done as per the specifications fixed by tyre manufacturers.
Production Capacity (per annum)
1. LCV Tyre retreading Size-700×152400 Nos.
2. Passenger Car Tyre Retreading Size-590×153600 Nos.
3. Truck Tyre Retreading Size-300×203000 Nos.

Motive Power20 HP.
Pollution Control
Tyre Retreading work generally should not be done in public place and NOC from Pollution Control Board may be obtained.
Energy Conservation
All efforts are to be put in for optimum utilization of power. The following measures can be adopted to conserve power and save energy:

1. Proper maintenance of power operated equipments and machinery and fuel operated boiler and their judicious use.

2. Shed to be properly ventilated and covered with transparent sheet to have enough light in day time with minimum requirements of lighting.
Financial Aspects
A Fixed Capital
(i) Land and BuildingAmount
(In Rs.)
(i) Land 300 sq. mtr. @ Rs. 5000 per sq. mtr including registration1500000
ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr.300000
(iii) Total built-up area 250 sq. mtrs. as follows:
Administrative building 50 sq. mtrs. construction cost @ Rs. 7,500 per sq. m375000
Hall cum shed 150 sq. mtrs. construction cost @ Rs.6000 per sq. mtr.900000
Stores, staff canteen etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr.300000
Water System (including Bore Well + over head tank etc)500000
Total civil cost= cost of land + building3875000
(ii) Machinery and Equipment
Sl. No.ParticularInd./ Imp.Qty. Nos.Price(Rs.)Total
(In Rs.)
1.Buffing machine with dust collector builder tyre truck bonder/three tyre LCV/Passenger bonder with curing rims and Electric hoistInd1750000750000
2.Work bench Envelope/Tyre stand GantryInd.16000060000
3.Boiler cap. 300 kg/hrs.do1400000400000
4.100 Ibs working pressure Air compressor fitted with 5 H P Motordo17000070000
5.Air conditionerdo15000050000
Electrification and Installation at 10% of the above cost133000
Office Equipments and Furniture. LS80000
Cost of Auxiliary items. i.e. pipe erection Electric fittings, Retreading, Tools, Mechanical Hoist with Trolley etc.200000
(iii) Pre-operative Expenses50000
Total Fixed Capital Requirement (i)+(ii)+(iii)5668000
B. Working Capital (per month)

(1) Personnel
Sl.No.DesignationNos.Salary (Rs.)Amount
(In Rs.)
2.Supervisor (Technical)11000010000
3.Skilled Workers5700035000
4.Semi-skilled Workers6500030000
5.Un-skilled Workers/ Helper330009000
6.Clerk cum Typist160006000
8.Office Assistant- cum-peon130003000
(ii) Raw Material (per month)
Sl. No.ParticularQty.UnitPrice(Rs.)/UnitTotal
(In Rs.)
a) For Retreading 200 LCV Tyre in Precured System
i)Precured Tread Rubber1000Kg110110000
ii)Cushion Compound100Ltr10010000
iii)Vulcanising Solution60Ltr905400
b) For Retreading 300 Passenger Car Tyre in Precured System
i)Precured Tread Rubber900kg11099000
ii)Cushion Compound105Ltr10010500
iii)Vulcanising Solution75Ltr906750
v)Curing Bag300Nos82400
c) For Retreading 250 Nos. Truck Tyre in Precured System
i)Precured Tread Rubber2375kg110261250
ii)Cushion Compound252Ltr10025200
iii)Valcanising Solution250Ltr9022500
v)Curing Bags250Nos82000
Total Raw Material(a)+(b)+(c)562500

(iii) Utilities (per month)(In Rs.)
Power @ Rs. 5.5 for 3600 units19800
Fuel for Boiler30000

(iv) Other Contingent Expenses(In Rs.)
2. Postage and Stationery3000
3. Insurance and Taxes4000
4. Telephone3000
5. Repair and Maintenance5000
6. Publicity and Advertisement10000
7. Travelling and Transport15000
8. Renewal and Replacement5000
9. Other Miscellaneous Expenses15000

(v) Total Recurring Expenses(In Rs.)
1. Staff and Labour119000
2. Raw Material562500
3. Utilities49800
4. Other Contingent Expenses60000

(vi) Total Working Capital for 2 Months
Rs. 791300 x 2 =1582600
C. Total Capital Investment
1. Fixed Capital5668000
2. Working Capital (for 2 month)1582600
Financial Analysis
(1) Cost of Production (per annum)(In Rs.)
1. Recurring Expenses9495600
2 Depreciation on Building @ 5 %193750
3. Depreciation on Machinery @ 10%133000
4. Depreciation on tool and Fixtures @ 20%40000
5. Depreciation on Furniture and Office Equipments @ 20%16000
6. Interest on Total Capital Investment @ 12%870072
(2) Turnover (per annum)
Precured Retreaded Charge for LCV
Tyre size -700×15, 2400 Nos. × Rs. 1200
b) Passenger Car Tyre Size - 590×15
3600 Nos. x Rs. 1000
c) For Truck Tyre Size - 300 × 20
3000 Nos. x Rs. 2000

(3) Profit (per annum)Sales – Cost of Production
=12480000– 10748422
(4) Net Profit Ratio=Profit (per annum) × 100
Sale (per annum)
=1731578× 100
(5) Rate of Return=Profit (per annum) × 100
Total Capital Investment
1731578 ×100
(6) Break-even Point
Fixed Cost(In Rs.)
1 Depreciation on Building @ 5 %193750
2. Depreciation on Machinery @ 10%133000
3. Depreciation on tool and Fixtures @ 20%40000
4. Depreciation on Furniture and Office Equipments @ 20%16000
5. Interest on Total Capital Investment @ 12%870072
6. 40% of Salary and Wages571200
7. 40% of Utilities and Other Contingent Expenses527040

Fixed Cost x 100
Fixed Cost + Profit
2351062 x 100
2351062 + 1731578
Addresses of Machinery Suppliers 

1. M/s. Security Equipment Engineers
48, Chetla, Road,
Kolkata- 700027

2. M/s. Industrial Rubber Products
20, Khanpara Road,
Kolkata - 700065

3. M/s. Nandi and Co.
125, Belilious Road,
Howrah - 711101 (WB)

4. M/s. Chand and Co. Engineering Pvt. Ltd.
3/18, Mahendra Road,

5. M/s. Die Hard Polimer Products
117, Ghorkha Basi Road,
Kolkata - 700028
Addresses of Raw Material Suppliers
1. Local Market

2. M/s. H. K. Agarwal and
Co. Sevoke Road,

3. M/s. Beekay Hardware
Tadong, Gangtok,

4. M/s. Cherry. Pvt. Ltd.
31-A National Highway, Gangtok,

5. M/s. Vinod Enterprises
Near Convey Ground, Tadong,


  1. Amazing information posted here. One can also get the details of tyre shops in sinhgad road only at Shree Tyres.


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