Tyre Retreading (By Cold Process)

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Product Code 300401000
Quality and Standards Manufacturers' own specifications
  • LCV Tyre Retreading
    Size-700×15-2400 Nos.
Production Capacity
  • Passenger Car Tyre Retreading
    Size-590×15-3600 Nos.
    3. Truck Tyre Retreading Size 300x20-3000
    Value : Rs. 124.8 Lakhs
Uploaded on May 2007


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

  • Production capacity is calculated on single shift of 8 hours a day for 300 working days in a year at 75% efficiency.
  • Capacity utilization is 60% during first year 80% in second year and full capacity utilization from 3 rd year onwards.
  • 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.
  • 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.
  • 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.
  • The project preparation cost, nonrefundable deposits, may be considered under the head of preoperative expenses.
  • The break even point is calculated on full capacity utilization.
  • Power at the rate of Rs. 5.5 /KW is taken.
  • The operation period of this project is estimated to be about 10 years considering technology obsolescence.

Implementation Schedule



Site selection preparation of project report and other formalities, application for loan and finance/ disbursement and, DIC registration etc. 6 months
Seeking quotation for machines, purchase, installation and power connection, obtaining clearances from Pollution Control Board and other Govt. bodies and agencies. 3 months
Procurement of raw material, recruitment of staff and labour and commercial production 3 months
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)

LCV Tyre retreading Size-700×15 2400 Nos.
Passenger Car Tyre Retreading Size-590×15 3600 Nos.
Truck Tyre Retreading Size-300×20 3000 Nos.
Motive Power 20 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

  • Proper maintenance of power operated equipments and machinery and fuel operated boiler and their judicious use.
  • Shed to be properly ventilated and covered with transparent sheet to have enough light in day time with minimum requirements of lighting.

Financial Aspects

Fixed Capital

(i) Land and Building
(i) Land 300 sq. mtr. @ Rs. 5000 per sq. mtr including registration 1500000
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. m
  • Hall cum shed 150 sq. mtrs. construction cost @ Rs.6000 per sq. mtr.
  • Stores, staff canteen etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr.
  • Water System (including Bore Well + over head tank etc)
Total civil cost= cost of land + building 3875000

(ii) Machinery and Equipment


Ind./ Imp.

Qty. Nos.


Total (In Rs.)

Buffing machine with dust collector builder tyre truck bonder/three tyre LCV/Passenger bonder with curing rims and Electric hoist Ind 1 750000 750000
Work bench Envelope/Tyre stand Gantry Ind. 1 60000 60000
Boiler cap. 300 kg/hrs. do 1 400000 400000
100 Ibs working pressure Air compressor fitted with 5 H P Motor do 1 70000 70000
Air conditioner do 1 50000 50000
Total 1330000
Electrification and Installation at 10% of the above cost 133000
Office Equipments and Furniture. LS 80000
Cost of Auxiliary items. i.e. pipe erection Electric fittings, Retreading, Tools, Mechanical Hoist with Trolley etc. 200000
Total 1743000
(iii) Pre-operative Expenses 50000
Total Fixed Capital Requirement (i)+(ii)+(iii) 5668000

B. Working Capital (per month)

(i) Personnel



Salary (Rs.)

Amount (In Rs.)

Manager 1 15000 15000
Supervisor (Technical) 1 10000 10000
Skilled Workers 5 7000 35000
Semi-skilled Workers 6 5000 30000
Un-skilled Workers/ Helper 3 3000 9000
Clerk cum Typist 1 6000 6000
Salesman 1 8000 8000
Office Assistant- cum-peon 1 3000 3000
Watchman 1 3000 3000
Total 119000

(ii) Raw Material (per month)





Total (In Rs.)

For Retreading 200 LCV Tyre in Precured System
Precured Tread Rubber 1000 Kg 110 110000
Cushion Compound 100 Ltr 100 10000
Vulcanising Solution 60 Ltr 90 5400
Envelope 200 Nos 10 2000
Total 127400
For Retreading 300 Passenger Car Tyre in Precured System
Precured Tread Rubber 900 kg 110 99000
Cushion Compound 105 Ltr 100 10500
Vulcanising Solution 75 Ltr 90 6750
Envelope 300 Nos 10 3000
Curing Bag 300 Nos 8 2400
Total 121650
For Retreading 250 Nos. Truck Tyre in Precured System
Precured Tread Rubber 2375 kg 110 261250
Cushion Compound 252 Ltr 100 25200
Valcanising Solution 250 Ltr 90 22500
Envelope 250 Nos 10 2500
Curing Bags 250 Nos 8 2000
Total 313450
Total Raw Material 562500

(iii) Utilities


(In Rs.)

Power @ Rs. 5.5 for 3600 units 19800
Fuel for Boiler 30000
Total 49800

(iv) Other Contingent Expenses


(In Rs.)

Postage and Stationery 3000
Insurance and Taxes 4000
Telephone 3000
Repair and Maintenance 5000
Publicity and Advertisement 10000
Travelling and Transport 15000
Renewal and Replacement 5000
Other Miscellaneous Expenses 15000
Total 60000
(v) Total Recurring Expenses (In Rs.)
Staff and Labour 119000
Raw Material 562500
Utilities 49800
Other Contingent Expenses 60000
Total 791300
(vi) Total Working Capital for 2 Months
Rs. 791300 x 2 = 1582600

C. Total Capital Investment

(i) Fixed Capital 5668000
(ii) Working Capital (for 2 month) 1582600
Total 7250600

Financial Analysis

Cost of Production (per year)

(In Rs.)

Recurring Expenses 9495600
Depreciation on Building @ 5 % 193750
Depreciation on Machinery @ 10% 133000
Depreciation on tool and Fixtures @ 20% 40000
Depreciation on Furniture and Office Equipments @ 20% 16000
Interest on Total Capital Investment @ 12% 870072
Total 10748422

Turnover (per year)

Precured Retreaded Charge for LCV
  Tyre size -700×15, 2400 Nos. × Rs. 1200
Passenger Car Tyre Size - 590×15
  3600 Nos. x Rs. 1000
For Truck Tyre Size - 300 × 20
  3000 Nos. x Rs. 2000
Total 12480000

Profit (per annum)

  Sales – Cost of Production

= 12480000– 10748422

  = 1731578

Net Profit Ratio

  Profit (per annum) × 100
  Sale (per annum)
  = 1731578× 100
  = 13.87

Rate of Return

  Profit (per annum) × 100
  Total Capital Investment
  1731578 ×100
  = 23.88

Break-even Point

Fixed Cost (per year)

(In Rs.)

Depreciation on Building @ 5 % 193750
Depreciation on Machinery @ 10% 133000
Depreciation on tool and Fixtures @ 20% 40000
Depreciation on Furniture and Office Equipments @ 20% 16000
Interest on Total Capital Investment @ 12% 870072
40% of Salary and Wages 571200
40% of Utilities and Other Contingent Expenses 527040
Total 2351062

B.E.P Fixed Cost x 100
Fixed Cost + Profit
  = 2351062 x 100
  = 2351062 + 1731578
  = 57.59

Addresses of Machinery Suppliers

  • M/s. Security Equipment Engineers
    48, Chetla, Road,
    Kolkata- 700027
  • M/s. Industrial Rubber Products
    20, Khanpara Road,
    Kolkata - 700065
  • M/s. Nandi and Co.
    125, Belilious Road,
    Howrah - 711101 (WB)
  • M/s. Chand and Co. Engineering Pvt. Ltd.
    3/18, Mahendra Road,
  • M/s. Die Hard Polimer Products
    117, Ghorkha Basi Road,
    Kolkata - 700028

Addresses of Raw Material Suppliers

  • Local Market
  • M/s. H. K. Agarwal and
    Co. Sevoke Road,
  • M/s. Beekay Hardware
    Tadong, Gangtok,
  • M/s. Cherry. Pvt. Ltd.
    31-A National Highway, Gangtok,
  • M/s. Vinod Enterprises
    Near Convey Ground, Tadong,

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com