The nut and bolt manufacturing business has gained popularity due to the rapid Industrialization and introduction of the Capital Intensive Techniques in the Industries that are used as the Industrial fasteners to connect various machines and structures.
The nut is used as a fastener consisting of a threaded hole used in concomitance with the mating bolt to fasten together multiple parts. While a bolt is described as a threaded fastener that consists of an external male threads that needs a female thread like a nut. Both nut and bolt when used in concomitance, place two objects together and in use. Nut and bolt are complementary to each other having different uses but they are used together in manufacturing the finished products, manufacturing of furniture, and are essential for making the final products that can be used for consumption.
The Nut and bolt making business is a highly shivering industry in the Global market consisting of huge players like the USA, China, Germany, India, and Japan that are contributing greatly to the production and marketing of the nut and bolt making business. With the expansion of the nut and bolt making business globally, the nut and bolt market is expected to rise by $7706 Billion by the year 2023.
With the evolution of the automobile industry, the demand for the nut and bolt is also expected to rise at a rapid rate by the Developed economies. Not only the Automobile Industry, the manufacturing, and construction business has emerged as a huge market base for the demand of the nut and bolt all across the world. India, on the other hand, is geared up to take advantage of this booming opportunity by expanding and encouraging the nut and bolt Making Business in India.
Market Trends
The rapid growth of the global industrial manufacturing industries has caused a rising demand for fasteners in both automotive and construction businesses, which has led to the expansion of the nut and bolt manufacturing business across the world. India has established various fastener manufacturing units manufacturing various range and varieties of the fasteners. With the introduction of the globalized policies by the Indian government, the Indian nut and bolt manufacturers can reach a global market easily while it has also attracted the global market to enter into the Indian markets. The nut and bolt business in India is expected to rise to about INR 460 Billion by 2023. The significant growth of the automobile industry in India has been contributing to the automobile specific nut and bolt making business.
The mounting demands of the automobiles and the construction industries are expected to expand the global nut and bolt making business by 5.5 percent by the year 2026. The versatile nature of the nuts and bolts almost used in every industry including domestic use has fueled the growth of the nut and bolt making business in India. Asia alone is expected to give a major boom to the nut and bolt businesses in the coming 4-5 years adding up about $7.5 Billion to the fastener manufacturing industry.
The growth of the nut and bolt making business is dependent on many other industries like the electrical industry, transportation industries, construction industries, etc. Therefore, the growth of other industries will have a positive impact on the growth of the nut and bolt manufacturing business. Many Indian nut and bolt manufacturers have managed to influence and put their mark on the global platform due to the high market potential of the nut and bolt making business.
License Required to Start a Nut and Bolt Manufacturing Business in India
Following are the license that a person needs to acquire before starting his Nut and Bolt Manufacturing Business in India-
1- He must acquire a Trade License from the Local Municipal Authorities.
2- He must obtain a Factory License.
3- He must register the nut and bolt making business with the MSME or SSI to obtain the Government subsidies.
4- He must obtain a Pollution Control Certificate.
5- GST Registration is a must. Therefore, the GST number must be acquired by him.
Registration
If any person intends to start a nut and bolt manufacturing business in India, he must register his firm in case of a small and medium partnership or proprietorship.
In case of setting up a One Person Company, then such person must register his nut and bolt making business as a Proprietorship.
For establishing an operation in partnership, such nut and bolt manufacturing business must be registered with the Registrar of Companies (ROC) as a Limited Liability Partnership (LLP) or a Private Limited Company.
Location or Area for Starting Nut and Bolt Manufacturing Business in India
If you want to start a nut and bolt manufacturing business, you must select a suitable location and area to ensure the easy accessibility of the raw materials and market availability. One has to make sure that the area or the location you choose, must possess the essential facilities including a drainage system, adequate water supply, and electricity availability. A person willing to start a Nut and Bolt Manufacturing Business must also make sure that he selects an Industrial area; it must not be a residential area. A minimum requirement for setting up this business is about 1000 square feet area.
Raw Materials Required
The raw materials that are required for starting a nut and bolt manufacturing business are given below-
- Hexagonal Rod
- Carbon Steel
- Brass
- Stainless Steel
- Aluminum Alloy
- Nickel Alloy
- Polishing Material
- Packaging Material
Types of Machinery
Following are the types of machinery that are required to establish a Nut and Bolt Manufacturing Business-
- Thread rolling machine
- A wire pointing machine
- A but trapping machine
- Cold forging machine
- A head trimming machine
- A dyer machine
- A steel polishing machine
- Cooler
- Boiler
- A Bull block wire drawing machine
Manpower Requirement
The nut and bolt business requires the manpower together with the proper training of the machine usage, how to handle the equipment, and training how to handle them with proper care and precautions.
Following are the manpower that is required to start a nut and bolt manufacturing business-
- Three unskilled labors
- 2 semi-skilled labors
- 6 skilled labors
- One accountant for handling the accounts department
- One Production manager
Variants to keep in mind before starting a Nut and Bolt Manufacturing Business
Before establishing your nut and bolt manufacturing business, the person must keep the following variants in mind and make a business plan for the growth and expansion of his Business-
- One must analyze why customers should buy or use their products. Whether their products are affordable or not and many other factors that affect the value proposition of his nut and bolt manufacturing business.
- The customers must be targeted to increase the demand of the Nut and Bolt Manufacturing Business. Following are the targets to be set;
- The electrical industry
- The transportation industry
- The automobiles industry
- The construction industry
- Households, domestic, and garages
- Furniture making and the wood industry
- The metal industry
- The steel fabricating industry
- With the vast market demand of the nut and bolt, one must always review his competition to cater to the prevalent market needs and requirements.
- Making a proper marketing strategy is one of the most important steps to start a nut and bolt manufacturing business in India. Various measures must be taken to promote sales and increase the long-term contracts from various leading industries.
Investment and Profit Margin
Before starting a nut and bolt manufacturing business, a person must make sure that he arranges a Fixed Capital Investment of Rupees 20 lakh and a Working Capital Investment of Rupees 5 Lakh. The Investment required for starting a business can also be availed by the banks through loans or our Organization Aatmnirbhar Sena.
The Aatmnirbhar Sena is also providing financial assistance to the budding and young entrepreneurs who are willing to establish their nut and bolt manufacturing business and helping the Indian Government in making India Self-reliant.
The net profit that can be obtained from starting the nut and bolt making business is about Rupees 7 lakh per year while the investment return on the business is more than 21 percent.
One of the major reasons for the expansion of this form of Business is the versatile nature of the nuts and bolts as they are the intermediary products that to a greater extent ensure their applications in almost every industry in India.
The Process Required for Manufacturing the Nuts and Bolts
Following steps are involved in the nut and bolt manufacturing business-
Step 1- The Cold Heading
- The cold heading process of the nut and bolt manufacturing requires the straightening of the wires that is made to pass from the straightening machine.
- The wires after straightening are required to cut into predefined shapes and sizes.
- The heading machine then creates a screw head consisting of open or closed dies. About 150 to 600 screw blanks are made through the cold heading machine per minute.
Step 2- The Thread Rolling
- A vibrating hopper is used to cut the thread dies using a Reciprocating die method, centerless cylindrical method, or planetary rotary die methods. All these three methods can be used for cutting the thread dies.
Step 3- Packaging of Nuts and Bolts
- The nuts and bolts when produced are packed into a proper cartoon packed box to be dispatched for the further sale of the nut and bolt making business.
Target Market Base for Starting a Nut and Bolt Manufacturing Business
The consumer market base for starting a nut and bolt manufacturing business in India is affected by the Capital Intensive technique that is widespread all over the Indian market.
The customers to be targeted by the nut and bolt making business are as following-
- Electronic Industries including transformer manufacturing, fans, motors, electrical motors, etc.
- The Transport Industries including the manufacturing of nuts and bolts in aircraft, airplanes, railways, bicycles, wagons, automobiles, etc.
- The Construction Industries including the construction of buildings, bridges, steel structures, etc.
- Other Heavy and Light Industries including the manufacturing of steel or wood made furniture, machine tools, agricultural tools, domestic items, etc.
Conclusion
The nut and bolt manufacturing business is a huge market and according to the CAGR global report, the nuts and bolt industry is expected to witness a growth rate of 6.5 percent since the year 2018. While the nut and bolt making business of India have expanded at a CAGR rate of 9.6 percent from the year 2018 adding a value of Rupees 460 Billion to the Nut and Bolt market by the year 2023. The increased demand for the nuts and bolt in India has made the country to be technologically independent and self-reliant and fulfilling the vision of our Prime Minister Shri Narendra Modi.
The Indian Government’s ‘’Make in India’’ and ‘’Vocal for Local’’ initiatives have also positively affected the growth and expansion of the nut and bolt making business in India. Owing to the ‘’Make in India’’ initiative of the government, a wide range of nuts and bolts are now manufactured in India providing a wide market base for the exhaust bolts, socket head caps, weld nuts, square nuts, hexagon nuts, and many others.
These Governmental Initiatives have been successful in encouraging and motivating all the MSME’s and businessmen to set up their own business. This in turn will help in the economic development of the nation as these initiatives are helping to absorb the unemployed young minds and diverting their capabilities in the right direction thus, creating Sustainable growth and removing poverty in India. Since the nut and bolt manufacturing business involves a low investment with higher turnover thus, it is an opportunity for the young and aspiring businessmen to dive into this business and create a mark and fulfill their dreams.
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