How to Start a Nut and Bolt Manufacturing Business in India
Contents 8 sections
- Do you need a BIS licence to make nuts and bolts?
- What does it cost to start a nut and bolt manufacturing business?
- Which machines does a nut and bolt unit need?
- How are nuts and bolts made, step by step?
- How much profit can a fastener unit make, and what moves it?
- Is there demand for Indian-made fasteners?
- What should you settle before buying machines?
- Frequently asked questions
A nut and bolt manufacturing business turns steel wire rod and hexagonal bar into fasteners on cold-forging, thread-rolling and nut-forming machines. Two published project reports describe a small unit making 0.75 to 1.2 tonnes a day, costing about ₹54 lakh to ₹74 lakh depending on whether working capital is counted. The bigger decision is certification. Hexagon bolts and nuts need a BIS licence before they can be sold in India, and only very small units are exempt. A plant sized like either report is above that limit. This page covers what the licence involves, what machines and raw material cost, and what to settle before you buy equipment.
Do you need a BIS licence to make nuts and bolts?
Yes, for the 19 product standards in the Bolts, Nuts and Fasteners (Quality Control) Order, 2024, which was published on 12 July 2024, according to Lakshmikumaran & Sridharan's summary of the order. The list includes IS 1363 and IS 1364 hexagon head bolts, screws and nuts. Makers must hold a licence and carry the Standard Mark. The dates for general, small and micro enterprises were 1 August 2024, 1 November 2024 and 1 February 2025, so all have passed.
Goods made only for export are exempt. So is an Udyam-registered unit whose plant and machinery cost no more than ₹25 lakh and whose previous-year turnover is no more than ₹2 crore, certified by a chartered accountant. Both project reports used below put machinery above that line (₹45.6 lakh and ₹33 lakh). Check the gazette text before relying on any exemption.
Rules may ease. KNN reported on 6 May 2026 that the Ministry of Steel was seeking suggestions on easing certification for fasteners, including more time and exemptions for smaller units. Relief notified in June 2026 covered drywall, chipboard and wood screws, not hexagon bolts and nuts. No change to the 2024 fastener order had been notified as of October 2026, in the sources checked.
| Requirement | Status as of October 2026 |
|---|---|
| BIS licence and Standard Mark | Mandatory for listed standards unless exempt. BIS inspects the factory and tests samples, including at a BIS-authorised laboratory (ELP Law summary) |
| Udyam, GST | Udyam is needed to claim the exemption; GST is needed to invoice buyers |
| Factory and trade licence | Issued locally; the DCMSME profile lists both |
| State pollution board consent | Depends on process. In the Assam board's copy of the CPCB list, pickling, electroplating and galvanizing are Red; wire drawing, forging and oil-fired heat treatment are Orange. Ask your state board |
What does it cost to start a nut and bolt manufacturing business?
The DCMSME nuts and bolts project profile, prepared by the MSME-Development Institute, Ranchi, is undated and cites trade data to 2019-20, so treat its prices as old. The NPCS (Niir Project Consultancy Services) report "Nuts & Bolts (M.S. Fasteners)" gives a second view.
| Item | DCMSME profile | NPCS report |
|---|---|---|
| Capacity | 360 tonnes a year, one shift | 625 kg bolts and 125 kg nuts a day |
| Plant and machinery | ₹45.62 lakh | ₹33 lakh |
| Cost as listed | ₹74.45 lakh with ₹19.67 lakh working capital | ₹54 lakh, no working capital line |
| Return | 33.2% in year 1 | 27% |
| Break-even | 51.4% of capacity in year 1 | 71% |
The profile's ₹54.77 lakh fixed cost is machinery, ₹6 lakh of construction, ₹1.35 lakh of other assets and ₹1.8 lakh of preliminary expenses. That makes it the like-for-like figure for the NPCS ₹54 lakh. The profile does not itemise BIS licence fees, laboratory testing or a plating line, so add quotes for those.
Which machines does a nut and bolt unit need?
| Machine | What it does | Cost (₹ lakh) |
|---|---|---|
| Double-stroke cold forging machine | Forms the bolt head | 8.05 |
| Head trimming machine | Trims the head to a hexagon | 5.41 |
| Thread rolling machine | Rolls the bolt thread | 4.83 |
| Automatic nut forming plant (4) | Forms nut blanks | 14.38 |
| Nut tapping machine (4) | Cuts the internal thread | 2.53 |
| Bull block wire drawing machine | Draws rod to size | 1.15 |
| Oil-fired and tempering furnaces | Harden and temper | 2.65 |
| Dies, gauges, polishing barrel, other | Tooling, finishing, safety | 2.49 |
These sum to ₹41.5 lakh; installation at 10% brings it to ₹45.6 lakh. Plating or galvanizing is not on the list. Done in-house it falls in the Red pollution category above, so many units send it out and pay for it per batch.
How are nuts and bolts made, step by step?
- Straighten and pickle the rod, then draw the wire to size.
- Cut to length and cold-head the bolt head.
- Trim the head to a hexagon and point the end.
- Roll the thread.
- For high-tensile bolts, hot-forge, harden at 800-900°C, temper at 400-500°C, then plate or coat.
- For nuts, cut hexagonal rod into blanks, form or drill them, tap the thread and deburr.
- Polish in a barrel, gauge and test against the standard, then pack.
Wire drawing is shared with wire nail manufacturing, so a unit there can compare equipment.
How much profit can a fastener unit make, and what moves it?
The DCMSME profile shows year 1 sales of ₹153 lakh from 180 tonnes sold at ₹85,000 a tonne, with pre-tax profit of ₹35.28 lakh and ₹24.70 lakh after tax. Raw material is ₹91.64 lakh, or 60% of sales, with wire rod priced at about ₹48,000 a tonne. A 10% rise in rod cost removes about ₹9.2 lakh, roughly a quarter of the pre-tax profit.
Treat these as best cases. They assume every tonne sells at the profile's price and carry no BIS testing or dealer credit. NPCS has consulted since 1994 and has produced more than 5,000 project reports across 40+ sectors.
Is there demand for Indian-made fasteners?
The Global Trade Research Initiative (GTRI), in figures reported by PTI, said India imported about USD 1.1 billion of steel fasteners in 2024, with China the largest source at USD 306 million. GTRI said India makes standard fasteners but depends on imports for high-end ones, and named construction, automobiles, railways, defence and energy among the users. A new unit making standard hexagon bolts and nuts competes on certification, price and delivery, not on special grades. The guides on auto components and metal fabrication cover two buyer groups.
What should you settle before buying machines?
- List your products against the 19 standards and note which need the Standard Mark.
- Have a chartered accountant test the exemption against your machinery cost and turnover.
- Ask your state pollution board which category your pickling, plating and furnaces fall in.
- Get three buyers to name sizes and monthly tonnes.
- Quote the full line, plating included, and compare with ₹45.6 lakh.
The detailed project report guide lists what a bank expects, and MSME schemes and startup funding show finance options. An NPCS project report covers plant economics, machinery, raw material and working capital in the format banks and PMEGP, Mudra and NABARD-linked programmes ask for. A consultation can help match your product list to the certification you will need. More ideas sit in steel and metal manufacturing.
Frequently asked questions
How much does it cost to start a nut and bolt manufacturing business?
About ₹54 lakh to ₹74 lakh for a small unit making 0.75 to 1.2 tonnes a day. The DCMSME profile totals ₹74.45 lakh including ₹19.67 lakh of working capital. The other report used here lists ₹54 lakh with no working capital line. BIS fees, testing and plating are extra.
Is a BIS licence compulsory for nut and bolt manufacturing?
Yes for the 19 standards in the 2024 order, including IS 1363 and IS 1364 hexagon bolts and nuts, unless you make only for export or qualify for the Udyam exemption. Easing was under discussion in May 2026, but no change to the fastener order had been notified by October 2026 in the sources checked.
Can I start with less than ₹25 lakh of machinery?
Possibly. An Udyam-registered unit with machinery up to ₹25 lakh and previous-year turnover up to ₹2 crore is exempt, so a single-product start with fewer machines can stay below the limit. Because the test uses the previous year, growth can end the exemption. Confirm with a chartered accountant and the gazette text.
Is the nut and bolt business profitable?
It can be, but margins follow rod cost. The DCMSME profile shows year 1 pre-tax profit of ₹35.28 lakh on ₹153 lakh of sales at 50% capacity use, with raw material at 60% of sales. A 10% rise in rod cost removes about a quarter of that profit, and the profile's prices are dated.
How much space and how many workers does it need?
The DCMSME profile uses a 1,500 sq ft shed with store, office and lab on a leased plot of 20 decimal, and 14 staff. It budgets ₹25,000 a month for electricity and ₹1.81 lakh a month for wages including perquisites. State factory and pollution rules may ask for more.
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