- The demand for modern fasteners, nuts and bolts in manufacturing finished products, is like the demand for wood in manufacturing furniture, it is a derived demand which is essential for the products to be used for final consumption.
- Nuts and bolts have their own specific use but cannot be used without the other. A Nut is a a type of fastener with one threaded hole, a Bolt on the other hand is a metallic with around stem threaded into the hole of a nut. Both when used in conjunction are used to put two objects together and to function.
- The global fastener industry is highly fragmented and consists of many huge players contributing to its production like the USA, Germany, China, Japan and India. This market is expected to value at ₹ 7706 billion by the end of 2023.
- Because of a raising demand of fasteners in automotive industries along with the constructional and manufacturing industries in emerging economies who want to be addressed as “Developed Economies” like Indonesia, Brazil etc. India, is seeking to take advantage of the need for nuts and bolts particularly and generate demand from these nations in the forecasted periods
- And there’s no better time for you than now to get your toes dipped in this industry and this is how.
Market potential and uses
- The market for nuts and bolts is swamped by industrial and manufacturing companies who require nuts and bolts both as an intermediary product and to bring together a finished product.
- Moreover with the rising need of Indian industries to be technologically independent has made increased the demand for these fasteners for them to be self sufficient in terms of machines, equipment’s they own.
- The different types of nuts and bolts have made their applications implementative across all the industries and increased its potential in the following ways.
Types of Bolts & Nuts and their uses
Carriage bolt : With its round head is used to connect the prices of wood.
Machine screw bolt : It is used for the purpose of general utility.
Stud bolt : It is used when additional length is required.
J-bolt, U-bolt, eyebolt: These are used to support hanging items and have no heads.
Square / hex nut : It is used because of its square or hexed shape, thickness and the fact that it comes in varieties.
Wing nut : It is used when materials are used to be removed and replaced to often, it can be loosened or tightened by hand.
Log nut : Similar to square nut nut comes with threaded nylon inserts in order to prevent loosening.
The licenses require to enter into a nuts and bolts manufacturing business would be:
- Trade licence for local municipal authorities.
- MSME and SSI registration.
- Factory license.
- NOC by state pollution control board.
- GST registration.
- PAN, Aadhar card.
|1. Fixed capital investment
|₹ 20 lakhs
|2. Working capital investment
₹ 5 lakhs
|1) Net profit per year
|₹ 7 lakhs
|2) Return on investment
The consumer market for the nuts and bolt manufacturing business in India is widespread across the capital intensive industries, which means every exiting industry.
The target customers are as follows :
Transportation industries : Make use of nuts and bolts in railways, aircrafts , wagons, bicycles, automobiles etc.
Electronic industries: These apply the properties of nuts and bolts in manufacturing of transformers, electrical motors, fans etc.
Construction and building industries: There demand for nuts and bolts comes form the demand for construction of bridges, fabrication of various steel structures etc.
Other heavy and light industries: Industries like steel, wooden, furniture and machine tools, agricultural tools etc require nuts and bolts as their raw material to produce finished product.
The area required to set up a nut and bolt manufacturing business would be 1600 sq m.
Raw material, Machinery & Manpower required
The raw materials required to run a nuts and bolts business would be
- Wire/rod 6mm-18mm diameter
- Polishing material
- Packing material
- Water and electricity
The machinery involved in running a nuts and bolts making business is as follows
- Double stroke solid die cold forging machine
- Head trimming machine
- Thread rolling machine
- Wire pointing machine
- But tapping machine
- Steel polishing dyer machine
- Bull block wire drawing machine
- Cooler and boiler
The manpower required to run a nuts and bolts manufacturing business would be:
- 3- unskilled workers
- 2- semi skilled workers
- 6- skilled workers
- 1- accountant
- 1- production manager
Moreover these workers must also be provided with training in terms of machine usage, equipment handling, safety and precaution measures etc
Business model and growth
The business model of a nuts and bolts manufacturing business can be defined using 4 variants :
Value proposition: The unique selling point and the value which a nuts and bolts making business would provide you with is :
- It’s affordability and essentialism across every industry.
- The fact that it is in demand by the industries for producing machines for those industries who also demand nuts and bolts for conversion of raw materials to finished products.
Target consumers: The target consumers for your nuts and bolts making business would be:
- Transportation industries.
- Electrical industries.
- Automotive industries.
- Constructional industries.
- Households, garages.
- Metal and steel fabrication industries.
- Furniture and wood industries.
Competitor review: The competition in the nuts and bolts making industries is not as fierce as it has a vast market to cater to. However the leaders in this market in India are :
- Lakshmi precision screw ltd.
- KOVA fasteners pvt ltd.
- Sundaram fasteners ltd.
Marketing strategy: The marketing strategy for the nuts and bolts making business to increase its sales Would be.
- Sales promotion measures : Trade and cash discounts on bulk purchases.
- Differential predicting strategy to get long term contracts from industries by offering them price cuts etc.
The nuts and bolts making business has the potential and bears witness to the following growth prospects:
- The global CAGR of the nuts and bolts industry is expanding at the rate of 6.5% since 2018.
- The Indian nuts and bolts market is expected to be of a value of ₹460 billion by 2023 and expanding at a CAGR of 9.6% from 2018.
- India’s development and constructional sector go hand in hand thereby increasing the demand for these fasteners to become technologically independent and self sufficient.
The bits and bolts industry is likely to yield a profit margin of 8.5%.
Let’s get into the “nuts and bolts” of this business if you hadn’t made a decision to own one already:·
- Firstly, the use of nuts and bolts as products and also as auxiliary products has ensured implement of its applications across almost every industry in India.
- Secondly, the Make in India and local is vocal initiatives have encouraged all the industrial and MSMEs to set up plants for the products they’ve been importing thereby deriving the demand for nuts and bolt fasteners.
- Lastly, the minimal investment, high inventory turnover ration and bulk orders are to your advantage.
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