Auto Tubes and Flaps

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Product Code 374894000
Quality and Standards Auto Tubes and Flaps envisaged in the project will be made as per Consumers Specifications
Production Capacity: Qty. Auto Tubes 3,00,000 numbers
Auto Flaps 2,00,000 numbers
Uploaded on January 2006


The manufacture of auto tubes and flaps is possible well within the investment limit of small-scale industries and a good number of such units are working successfully in different parts of the country. Automobile continues to be the most popular conveyance for the masses and this is going to be so also for a long time to come. In a developing country like India, automobile forms an important mode of transport.

Market Potential

As auto continues to be the most popular mode of transport both in urban and rural areas, the demand for auto tubes and flaps is likely to increase day by- day. Moreover, this is a labour intensive type of unit and can be located in rural areas solving rural unemployment problem, Small Scale Auto Tubes and flaps units can also function as ancillaries to establish large scale manufacturers.

Basis and Presumptions

  • The estimates are drawn for a production capacity generally considered techno-economically viable for a model type of manufacturing activity.
  • The information supplied is based on standard type of manufacturing activities, utilizing conventional techniques of production.
  • The cost in respect of land and building, machinery and equipment, raw materials and the selling price of the finished products etc. are those generally obtained at the time of the preparation of the Project Report.
  • Where as some names of manufacturers/suppliers of machinery and equipments, raw materials are indicated at the end of the profile, these are by no means exclusive or exhaustive.

Implementation Schedule

In the project, land and building has been taken as rented and as such there is no problem of acquisition of land and other formalities. The entire plant and machinery and other equipments have to be purchased and installed. It may take about 3 to 6 months on an average for a concern to go into regular production.

Technical Aspects

Process of Manufacture

Auto tubes are manufactured by moulding method. First of all rubber along with other materials is properly mixed in the two roller mill or a ban bury mixer. This compounded rubber is fed into the extruder and the rubber compound takes the shape of long tube, then proper length of this green tube is cut and tube valve is fitted in this green tube and the end of the tubes are jointed by means of butt joining machine. This green tube is vulcanized in the mould having air pressure inside. After proper vulcanizing it is tested by filling specific amount of air inside for leakage, if any.

Auto flaps are manufactured by the pressure moulding technique in the mould, after making the rubber compound on a two roll mixing mill.

Financial Aspects

Fixed Capital

(i) Land and Building

Total Area 500 Sq. m. Price: Rs. 15,00,000.00
Covered Area 200 Sq. m. Price: Rs. 10,00,000.00
Total civil cost Rs. 25,00,000.00

(ii) Machinery and Equipments



Value (Rs.)

Rubber mixing mill 14" ×36" complete with reduction gear, safety devices, chilled cast iron roll with 20 H.P. 3 Phase motor. 2 15,00,00
Tube extrusion unit complete with reduction gear, size 6" dia with 10 H.P. motor. 1 2,00,000
Tube molding units complete with hydraulic 4 8,00,000
Valve tightening machine complete with electric motor and other accessories. 1 20,000
Valve nut punching machine. 1 25,000
Air removing machine complete with accessories. 1 90,000
Air compressor complete with 15 HP motor. 1 4,00,000
Moulding units for flaps complete with Hydraulic pump and other controls. 2 3,50,000
Boiler rating capacity 150 kg./hr at 150 psi pressure complete with all accessories and pump 1 6,00,000
Weighing balance and miscellaneous tools. 2 80,000
(i) Thickness gauge tester 1 5,000
(i) Hardness tester 1 15,000
(i) Tensile testing 1 1,00,000
(i) Compression testing apparatus 1 10,000
(i) Impact tester 1 20,000
(i) Abrador 1 20,000
(i) Ross flex machine 1 20,000
(i) Ageing block 1 50,000
Electrification and installation charges @ 10% of cost of machinery and equipment.   4,30,000
Cost of office equipments/ working table etc.   2,00,000
Generator, Transformer and accessories, water, pollution control devices etc.   15,00,000
Total erected cost of machinery and equipment   64,35,000

B. Working Capital (per month)

(i) Personnel Salary and Wages (per month)




Manager 1 15,000
Accountant/Storekeeper 2 12,000
Clerk-cum-Typist 1 5,000
Peon 2 6,000
Watchman 3 10,000
Technical Staff13000
Supervisor 1 8,000
Skilled workers 20 80,000
Unskilled workers 10 30,000
Total 1,64,000
Perquisites @ 22% of Salaries 36,080
Total 2,00,080
Say 2,00,000

(ii) Raw Materials Including Packaging Requirement (per month)


Indige-nous/ Imp-orted


Rate/ Kg.

Value (Rs.)

Smoked Natural Rubber Ind. 16000 60 9,60,000
Synthetic Rubber do 4000 120 4,80,000
China Clay do 4000 5 20,000
Carbon Black do 2000 50 1,00,000
Stearic Acid do 300 600 1,80,000
Zinc Oxide do 600 105 63,000
Sulphur do 400 40 16,000
Valve Fitting do 28,000 Nos. 2 56,000
Processing Oil do     10,000
Chemicals like Accelerator antioxidant etc. Ind.     20,000
Packing material and other expenses do     30,000
Total       19.35,000

(iii) Utilities (per month)



Power 50,000
Fuel 30,000
Water 5,000
Total 85,000

(iv) Other Contingent Expenses (per month)



Rent Nil
Postage and Stationery 5,000
Telephone 5,000
Advertisement and Publicity 20,000
Transport charges 30,000
Consumable stores 8,000
Repairs and Maintenance 8,000
Insurance 10,000
Miscellaneous expenditure 8,000
Sales expenses 20,000
Total 1,14,000

(iv) Total Recurring Expenditure (per month)



Staff and Labour 2,00,000
Raw Materials 19,35,000
Utilities 85,000
Other Contingent Expenses 1,14,000
Total 23,34,000
(vi) Total Working Capital (3 months basis) 93,36,000

C. Total Capital Investment

Fixed 89,35,000
Working Capital 93,36,000
Total 1,82,71,000

Machinery Utilization

The proposed project is based on two shifts basis with 16 hours working. Effective working hours will be 14 hours per day/shift. On an average 75% machine utilisation is assumed per shift.

Financial Analysis

Cost of Production (per annum)


Total Recurring Cost (per year) 93,96,000
Depreciation on machineries and equipment @10% 6,23,500
Depreciation on office equipment @ 20% 40,000
Interest on total investment @ 12% 21,92,520
Total 1,22,52,020
Say 1,22,52,000

Turnover ( per year )


Qty. MT

Rate per Kg.

Value (Rs.)

Tubes 3,00,000 50 1,50,00,000
Flap 2,00,000 20 40,00,000
Total 1,90,00.000

Net Profit (per year)


Turnover - Cost of production



Rs. 1,90,00,000 - Rs 1,22,52,000


Rs. 67,48,000

Net Profit Ratio


Net profit per year × 100

Turn Over






Rate of Return


Net profit per year

-----------------------× 100
Total investment


67,48,000 ×100



Break-even Point (% of Total Production Envisaged)

Fixed Cost


Depreciation on machinery and equipment 6,23,500
Depreciation on office equipment 40,000
Interest on total capital investment @ 12% per annum 21,92,520
Rent of building Nil

Fixed Cost


Insurance 1,20,000
40% of salary and wages 9,60,000
40% of other contingent expenses 5,47,200
Total 44,83,220
Say 44,83,000

Fixed cost × 100

Fixed cost + profit



44,83,000 + 67,48,000



Addresses of Machinery and Equipment Suppliers

  • M/s. Premier Industries
    Station Road, Sirhind,
  • M/s. Anant Industries
    Basis Road, Sirhind,
  • M/s. Anant Corporation
    Railway Road, Sirhind,
  • M/s. Sunrise Industries
    Railway Road, Sirhind,
  • M/s. Rubbermac Industries
    Outer bye pass, Sirhind,
  • M/s. Sohal Engg. Works
    Off. Haines Road,
  • M/s. Modern Tyre Moulds India (P) Ltd.
    Bhagat Singh Street,
    New Delhi-110055.

Addresses of Raw Material Suppliers

Rubber Chemicals

  • I.C.I. India Ltd.
    Post Box No. 310
    Crescent House,
    Ballard Estate,
  • M/s. Bayer India Ltd.
    Nagin Mahal,
    Veer Nariman Road,
  • M/s. Monsanto Chemicals of
    India Ltd.
    318, Asaf Ali Road,
    New Delhi

Carbon Black

  • M/s. United Carbon India Ltd.
    133, Mahatma Gandhi Road,
  • M/s. Phillips Carbon black Ltd.
    Udyog Bhawan, Ballard Estate,
  • Process Oil
    M/s. Indian Oil Co.
    Unity Building, J.G Road,
  • Zinc Oxide
    M/s. Kamani Metallic Oxide Pvt. Ltd.
    Nicols Road, Kamani Chamber,
  • Mineral Fillers and Synthetic Rubber
    M/s. Kila Chand Deva Chand Co. Pvt. Ltd.
    Rubber Division, 7,
    Jamshed Ji Tata Road,
  • Stearic Acid
    M/s. Godrej Soaps (P) Ltd.
    3/6, Delise Road,
  • Rubber (Natural)
    Rubber Board, Kottayam,
  • Tripur forest Development Corporation
  • Synthetic Rubber (SBR)
    M/s. Synthetics and Chemicals,
    Bareilly, U.P.

For further information please contact

Information Manager
TIMEIS Project