What is a brake shoe project report?
A brake shoe project report is a detailed project report (DPR) for a unit that presses steel shoes and bonds or rivets friction lining onto them for drum brakes. It sets out the process, machinery, raw materials, market, project cost, means of finance, five-year projections, DSCR and break-even that a lender needs.
Entrepreneurs and auto parts traders use it to size the unit and apply for a term loan or PMEGP; banks use it to judge whether the unit can repay.
Also known as: brake shoe manufacturing project report, project report on brake shoe, brake shoe business plan, automobile brake shoes DPR.
What a bank checks in a brake shoe project report
Credit officers test a brake shoe report against a few numbers that show whether the unit can carry its loan. These are the values in our sample report and the reason each one is checked.
Lining and steel shoes take more than half of every rupee of sales. A report showing far less is usually pricing shoes too high or ignoring lining waste.
Spare parts distributors expect long credit. In the sample, money owed by buyers is the largest current asset, so it sets the size of the cash credit limit.
DSCR (debt service coverage ratio) is cash earned divided by loan instalments. Year 2 is the tightest year, as full principal repayment begins, so banks look at it, not only the 1.70 average.
The unit covers all its costs at 43% of capacity. Production starts at 60%, which leaves a cushion if orders from distributors slow down.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, vehicle range and buyers.
Brake shoe manufacturing plant cost in India
Cost depends on daily output, how many vehicle models you cover and whether you press your own steel shoes. The third tier is the unit in our sample report; the first two are indicative ranges.
Small unit
₹40–90 lakh
About 300–600 pieces per day, two-wheeler and three-wheeler shoes
- Machinery and dies₹15–35 lakh
- Shed and fit-out (or rent)₹10–25 lakh
- Working capital margin₹5–15 lakh
Lower end fits PMEGP or Mudra, subject to limits
Mid-size unit
₹1.5–3 crore
About 800–1,200 pieces per day, range up to car and LCV shoes
- Machinery and dies₹0.8–1.5 crore
- Land and building₹40–90 lakh
- Working capital margin₹15–30 lakh
MSME term loan, often with CGTMSE cover
Larger unit
₹405 lakh
1,700 pieces per day, 5,10,000 pieces per year
- Plant and machinery₹198 lakh
- Land and building₹127 lakh
- Working capital margin₹32 lakh
Term loan ₹304 lakh (75%), promoter ₹101 lakh
Small and mid-size ranges are indicative and exclude land unless stated. Costs vary with location, die count and machine make.
Is a brake shoe unit profitable? Sample plant economics
The sample report models a 1,700 pieces per day unit working 300 days a year, starting at 60% capacity and reaching 80% in Year 5. The average selling price across its range is taken at ₹203 per piece, before GST.
| Land and site development | 27.84 |
|---|---|
| Building and civil works | 99.17 |
| Plant and machinery | 197.87 |
| Other fixed assets | 24.91 |
| Contingencies | 14.85 |
| Preliminary and pre-operative | 9.12 |
| Working capital margin | 31.59 |
| Total | 405.35 |
| Promoter's contribution (25%) | 101.34 |
|---|---|
| Term loan from bank (75%) | 304.01 |
| Cash credit limit (separate) | 94.78 |
| Total project cost | 405.35 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Brake shoe manufacturing process
A drum brake shoe is a curved steel shoe with friction lining on its outer face. Most MSME units buy moulded lining and run the six steps below; larger units also mix and mould their own friction material.
- Shoe pressing
Steel sheet is blanked and formed on a power press into the curved table and the web, which are then welded or pressed together.
- Lining preparation
Moulded lining arcs are cut to length, chamfered at the ends and drilled where the design uses rivets.
- Bonding or riveting
The shoe table is shot blasted and coated with heat-curing adhesive, and the lining is clamped on in a fixture or riveted for heavy-duty shoes.
- Curing
Clamped shoes go into an oven for a fixed time and temperature, so the adhesive reaches full bond strength.
- Lining grinding
The lining face is ground to the drum radius and thickness, so the shoe beds in evenly and does not judder.
- Testing and packing
Batch samples are shear tested and checked for size, then shoes are painted, marked and packed in pairs.
Raw materials for brake shoes
Friction lining is half of raw material cost in our sample. Lining grade must suit each vehicle's drum size and load, so units buy from tested suppliers instead of on price alone, and keep about 30 days of stock.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Brake lining material | 50% | 190.22 |
| Steel shoe frames | 35% | 133.15 |
| Rivets and adhesives | 15% | 57.07 |
| Total | 100% | 380.44 |
Machinery needed for brake shoe making
The power press with dies is the largest item in the sample. Every shoe size needs its own dies and bonding fixtures, so the machinery budget grows with the number of vehicle models you cover.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Power press with dies | Blanks and forms the shoe table and web | 49.47 |
| Hydraulic bonding press | Clamps lining to the shoe under set pressure | 39.57 |
| Curing oven | Sets the bonding adhesive | 29.68 |
| Grinding machine | Grinds lining to drum radius and thickness | 29.68 |
| Riveting machines | Fix lining on heavy-duty shoes | 19.79 |
| Testing equipment | Shear strength and size checks | 29.68 |
| Total plant and machinery | 197.87 | |
Costs are the sample report's estimates for a 1,700 pieces per day unit. Get current quotations before you finalise.
Who buys brake shoes in India?
Most brake shoes are sold as replacement parts, because linings wear out and are changed several times in a vehicle's life. Drum brakes are still common on the rear wheels of two-wheelers and small cars, and on three-wheelers, e-rickshaws, tractors and light commercial vehicles.
A new unit usually starts in the replacement trade and moves into vehicle maker supply once its testing record and quality systems are in place.
- Automotive spare parts distributors and wholesalers
- Two-wheeler and three-wheeler service workshops
- E-rickshaw and three-wheeler assemblers
- Tractor and farm equipment dealers
- Fleet operators and transport companies
Where a new unit wins: a wide range of part numbers. Distributors prefer one supplier who covers many models, so your die list and catalogue often count for more than a small price difference.
Licences, BIS standards and GST for brake shoes
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| HSN code and GST | HSN 8708 30 (brakes and their parts). Auto parts carry 18% GST from 22 September 2025; brake assemblies and parts for tractors are at 5% |
| Brake lining standards | BIS IS 2742 series, including Part 4 (coefficient of friction) and Part 7 (shear test for drum brake shoe assemblies) |
| Replacement linings | BIS IS 17132:2025 covers replacement brake lining assemblies and drum brake linings for power-driven vehicles |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; asbestos-based units fall in the Red category, so plan on asbestos-free lining |
| Factory licence | Under the Factories Act where worker and power thresholds apply; rules vary by state |
Standards and tax rates checked in October 2026. Confirm with BIS whether certification is compulsory for your product before you start production.
Mistakes that weaken a brake shoe project report
- One average price for every shoe
Two-wheeler shoes sell for much less than car, LCV or tractor shoes. Revenue must follow your real product mix, or sales and DSCR come out too high.
- No budget for new dies
Each shoe size needs its own press dies and bonding fixtures. Pricing only the first set under-states capital cost as the range grows.
- Leaving out testing and rejections
Shoes that fail the shear test are scrapped along with their lining. Allow for rejections and test costs in running cost.
- Ignoring distributor credit
Without 60 days of debtors in working capital, the cash credit limit is too small and the unit runs short in its first year.
- Pricing the plan on asbestos lining
Asbestos-based production puts the unit in the Red pollution category. Cost the project on asbestos-free lining from the start.
How NPCS helps you set up a brake shoe unit
- Vehicle range and capacityChoose the shoe sizes and daily output that suit your market and budget.
- Machinery, dies and lining supplyCompare presses, bonding lines and lining suppliers, and get quotations.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender asks for.
- Standards and approvalsThe BIS tests, pollution consent and approvals list for your state.
NPCS's client list includes 28 automotive component assignments, 2 of them for brake shoes, prepared by the NPCS project team led by founder Ajay Kumar Gupta.
What's inside the brake shoe sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS brake shoe project reports
These are brake shoe project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Brake Shoe | Brake Shoe (Aluminium Based):2000 NOs/Day , Brake Shoe (Mild Steel Based) : 2000 NOs/Day | ₹1.48 crore | 28% | 65% | Get this report |
| Automobile Brake Shoes | Mild Steel Brake Shoe : 2625 Pcs./Day, Aluminium Brake Shoe: 875 Pcs./Day | ₹1.63 crore | 67% | 41% | Get this report |
| Brake Shoe | 4000 Nos./Day | ₹2.06 crore | 30.6% | 48% | Get this report |
| Automobile Brake Shoes | 4000 Nos./Day | ₹2.93 crore | 55% | 39% | Get this report |
| Auto Brake Pad and Auto Brake Shoe | Auto Brake Pads:3,600,000 Nos. Per Annum, Auto Brake Shoes:720,000 Nos. Per Annum | ₹14.22 crore | 27% | 45% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Brake Shoe project report: frequently asked questions
How much does it cost to start a brake shoe manufacturing unit?
A small unit making two-wheeler and three-wheeler shoes needs roughly ₹40–90 lakh. A mid-size unit costs about ₹1.5–3 crore, and a 1,700 pieces per day unit about ₹4 crore including land and building. Our sample report models that last unit at ₹405 lakh. These are indicative figures; your real cost depends on the vehicle range, dies and location.
What raw materials are used to make brake shoes?
The main inputs are friction lining, pressed steel shoe frames, and rivets and bonding adhesive. In our sample report lining is 50% of raw material cost, steel shoes 35% and rivets and adhesives 15%. Linings should be asbestos-free and tested to the BIS IS 2742 series of brake lining standards.
Which machines are needed for brake shoe making?
You need a power press with dies to form the shoe, a hydraulic bonding press, a curing oven, a lining grinding machine, riveting machines and shear testing equipment. In our sample the full set costs ₹197.87 lakh, and the power press with dies is the largest item. Units that mix their own lining also need mixers and moulding presses.
Is brake shoe manufacturing profitable?
In our illustrative sample, a 1,700 pieces per day unit earns a 20% return on investment in Year 3. It breaks even at 43% of capacity and pays back in about 3.8 years. Real profit depends on your product mix, the price of bought-in lining, how well the dies are used and the credit you give distributors.
What is the difference between a brake shoe and a brake pad?
A brake shoe is a curved steel shoe with lining that presses outward against the inside of a drum. A brake pad is a flat backing plate with friction material that clamps a disc. Many two-wheelers, three-wheelers, tractors and light commercial vehicles still use drum brakes on at least one axle, so shoes remain a regular replacement part.
What is the HSN code and GST rate for brake shoes?
Brake shoes fitted with lining are classified under HSN 8708 30, brakes and their parts. From 22 September 2025, auto parts carry a uniform GST rate of 18%, while brake assemblies and their parts for tractors are taxed at 5%. Friction material sold on its own falls under a different heading, so confirm the classification with your tax adviser.
Can I get a PMEGP or Mudra loan for a brake shoe unit?
Yes, if the project fits the scheme. PMEGP covers manufacturing projects up to ₹50 lakh, with a margin-money subsidy of 15–35% depending on your category and location. Mudra suits smaller loans. Larger units usually take an MSME term loan, often with CGTMSE guarantee cover of up to ₹10 crore. Every lender asks for a project report with projections and DSCR.
Is the brake shoe project report PDF free, and can I use it for a loan?
Yes, the sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not taken from a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, vehicle range, location and scheme.
Sources and references
- Recommendations of the 56th Meeting of the GST CouncilGST Council, Ministry of Finance (PIB), checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate)Central Board of Indirect Taxes and Customs, checked Oct 2026
- Indian Standards: automotive brake systems and steering systemBureau of Indian Standards, checked Oct 2026
- IS 17132:2025 Replacement brake lining assemblies and drum brake liningsBureau of Indian Standards, checked Oct 2026
- Notification of amendments to Indian Standards including IS 2742 brake liningsBureau of Indian Standards, Gazette of India, checked Oct 2026
- Categorisation of industries into Red, Orange, Green and WhitePollution Control Board, Assam, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP) guideDistrict Industries Centre, Ganjam, Government of Odisha, checked Oct 2026
- Credit Guarantee Fund Trust for Micro and Small EnterprisesCGTMSE, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.