Do you want to start a rubber band-making business? If yes, find here a detailed plan guide of the rubber band manufacturing business with the machine, manufacturing process, licenses required, and much more.
The rubber band is a useful consumable item for everyday use. Additionally, you can initiate the rubber band-making project by installing some simple machinery. The rubber band market potential is huge and the industry will grow at over 8% per annum this decade. Even, you can establish a rubber band manufacturing unit at home.
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Is Rubber Band Manufacturing Business Profitable?
Rubber bands are one of the most convenient products. Additionally, it is widely used in agriculture, automobile, packaging industry, and newspaper industry. It is also used as a household consumer durable item. The Rubber Product Manufacturing industry consists of a large number of small operators that typically focus on one particular product segment or market sector.
Accordingly, IBIS World estimates the three largest industry players to account for just under 11.0% of the industry’s revenue in 2015. The market is huge and there is an immense opportunity in establishing a rubber band manufacturing project.
Read: Top Profitable Manufacturing Business Ideas
The future for natural rubber looks bright. At 5.92 million tons per annum, natural rubber has 39 percent of the world’s rubber consumption of 15.14 million tons per annum. The rubber industry will grow at over 8 percent per annum this decade.
The primary reason is that the per capita consumption of rubber is 0.8 kg against 14 kg in the developed world. India is likely to become the world’s third-largest producer of natural rubber after Thailand and Indonesia, Rubber Board sources said.
10 Steps to Start a Rubber Band Manufacturing Business
1. Conduct Market Research
The first step toward starting a rubber band business is to Identify the demand for rubber products in the local market. Do market research and analyze the competition and understand the market trends. Furthermore, select the specific types of rubber products you want to manufacture.
2. Develop a Business Plan
If you are looking to establish a sustainable rubber band manufacturing company, it is essential to create a business plan document. You need to clearly articulate your business goals, target market, and product offerings. In addition, outline your financial projections, including startup costs, operational expenses, and revenue expectations.
3. Arrange Funds
Next is to assess your financial requirements and secure the necessary capital for your business. If you are short in budget, you will need to explore funding options such as self-financing, bank loans, or government schemes.
Also, do not forget to apply for a credit card to meet short-term expenses.
4. Register your Rubber Band Company & Procure Licenses
In starting a rubber band-making manufacturing business, your first step is registering your company. There are various structures you can opt for depending on the size of your business. It can be a sole proprietorship, partnership, or private limited company.
It is advised to talk to local concerned authorities and obtain the necessary licenses and permits to operate a rubber manufacturing business in India.
Some of the licenses include business registration, GST registration, factory license, pollution control clearance, and any other industry-specific permits. According to your manufacturing setup and establishment, you will need to apply for permission from the Pollution Control Board.
5. Rubber Band Unit Setup & Machinery
Rubber band-making machines are generally of two types. One is hand-operated and the other is motor-operated.
You can establish a rubber band-making unit in two ways. One is by using the rubber role as raw material and another is by preparing the rubber role in your own unit. In the second option, the project cost will be higher and you will earn a better margin also.
For the first option, you will need to purchase machines like a weighing machine, cutting machine, and packing machine. Basically, the manufacturing process is simple. Additionally, you can use the readymade rubber band role in this process. Cutting machines work automatically. Generally, it cuts rubber bands of a definite size.
For the second option, you will need to purchase machinery. The list includes a Cutting machine, Stirrer, Drying Stand, Grinder, Moulds, Dip-in Tanks, Vulcanizing Tank, Bucket, Cup, etc. However, the major raw materials are latex, whitener, chalk powder, titanium, rubber chemicals, and packing materials.
6. Hire Skilled Workforce
Determine the required workforce based on your production capacity and business needs. Hire skilled technicians, machine operators, and support staff with experience in rubber manufacturing. Provide appropriate training and create a positive work culture to maximize productivity and efficiency.
7. Rubber Band Manufacturing Process
The manufacturing process flows chart is as follows:
Processing the natural latex → Purification and making it into slabs → Squeezing the slabs to the required size → Mixing and milling → Heating and squeezing → Extrusion after heating → Curing in mandrels → Slicing to form rubber bands.
8. Quality Control for Rubber Band Making
Sample rubber bands from each batch are subjected to a variety of quality tests. One such test measures modulus, or how hard a band snaps back: a tight band should snap back forcefully when pulled while a band made to secure fragile objects should snap back more gently.
9. Have a Marketing Plan
It is advised to check out other rubber band companies and then plan your own marketing strategies. There are many rubber band companies that are selling in huge quantities online. Some of them are Sraj products, Ram Mali, Glitteria, Vibhu, and many more. You can check their products on Amazon.
Based on your budget, create a marketing plan that can promote your rubber band items in the best possible manner.
10. Establish Distribution Network
Another important step for the overall success of the rubber band business is to establish a distribution strategy to reach your target market effectively. You need to build relationships with distributors, retailers, or wholesalers to get your products to the market. Also, explore online platforms, trade fairs, and industry exhibitions to showcase your products and attract customers.
Next What Business Research Team
The Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium-scale businesses.