Detailed Project Report
Alkyd Resin Plant
—
Prepared on: 29 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹25.88 L
- Term loan from bank
- ₹16.82 L
- Promoter’s contribution
- ₹2.59 L
- Subsidy
- ₹6.47 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.63 L
- Average DSCR
- -1.05
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Cook linseed oil, pentaerythritol and phthalic anhydride in a reactor to make alkyd resin for enamel paints.
| Main product or service | Alkyd Resin Plant |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Paint manufacturers (enamels, varnishes, anti-rust)
- Varnish and lacquer makers
- Direct supply in barrels to paint factories
- Chemical traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Reactor | 1 | 7,50,000 | 7,50,000 |
| Main condenser | 1 | 2,00,000 | 2,00,000 |
| Separator, blender, vent condenser and addition tank (× 1 each) | 1 | 3,00,000 | 3,00,000 |
| Resin pumps (reactor to blender, blender to filter) and oil pump (× 3) | 1 | 75,000 | 75,000 |
| Resin filter (sparkler) | 1 | 75,000 | 75,000 |
| Standby electric generator | 1 | 2,25,000 | 2,25,000 |
| Thermic fluid heating system | 1 | 2,75,000 | 2,75,000 |
| Cooling tower and pump | 1 | 3,00,000 | 3,00,000 |
| Water hydrant | 1 | 1,00,000 | 1,00,000 |
| Finished product tank and weighing scale (× 1 each) | 1 | 65,000 | 65,000 |
| Other equipment and hand tools | 1 | 1,00,000 | 1,00,000 |
| Total | 24,65,000 |
Pre-filled from: PMEGP sample project report — Alkyd Resin Manufacturing Unit (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Linseed oil — 360 MT a year at ₹1,00,000/MT at full capacity
- Phthalic anhydride — 150 MT a year at ₹65,000/MT
- Pentaerythritol — 60 MT a year at ₹1,20,000/MT
- Xylene — 5 MT a year at ₹88,000/MT
- Litharge — 0.15 MT a year at ₹1,50,000/MT
- Barrels (100 kg) — 5,400 a year at ₹150 each
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 24.65 |
| Contingency | 1.23 |
| Total fixed capital | 25.88 |
| Working capital margin | 0.00 |
| Total project cost | 25.88 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.59 | 10.0 |
| Subsidy | 6.47 | 25.0 |
| Term loan from bank | 16.82 | 65.0 |
| Total | 25.88 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 |
| Insurance | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Total cost of operations | 3.53 | 3.53 | 3.53 | 3.53 | 3.53 | 3.53 | 3.53 |
| Operating profit (EBITDA) | -3.53 | -3.53 | -3.53 | -3.53 | -3.53 | -3.53 | -3.53 |
| Depreciation | 3.88 | 3.30 | 2.81 | 2.38 | 2.03 | 1.72 | 1.46 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.82 | 1.58 | 1.29 | 1.01 | 0.72 | 0.44 | 0.15 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -9.23 | -8.40 | -7.63 | -6.92 | -6.28 | -5.69 | -5.15 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -9.23 | -8.40 | -7.63 | -6.92 | -6.28 | -5.69 | -5.15 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -9.23 | -8.40 | -7.63 | -6.92 | -6.28 | -5.69 | -5.15 |
| Depreciation | 3.88 | 3.30 | 2.81 | 2.38 | 2.03 | 1.72 | 1.46 |
| Cash accruals (PAT + depreciation) | -5.35 | -5.10 | -4.82 | -4.54 | -4.25 | -3.97 | -3.68 |
| Term loan repaid | 1.29 | 2.59 | 2.59 | 2.59 | 2.59 | 2.59 | 2.59 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.64 | -7.69 | -7.41 | -7.12 | -6.84 | -6.55 | -6.27 |
| Cash and bank | -6.64 | -14.34 | -21.74 | -28.87 | -35.71 | -42.26 | -48.53 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 9.06 | 9.06 | 9.06 | 9.06 | 9.06 | 9.06 | 9.06 |
| Reserves and surplus | -9.23 | -17.64 | -25.26 | -32.18 | -38.46 | -44.15 | -49.29 |
| Term loan outstanding | 15.53 | 12.94 | 10.35 | 7.76 | 5.18 | 2.59 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 15.36 | 4.36 | -5.85 | -15.36 | -24.22 | -32.50 | -40.23 |
| Net fixed assets | 22.00 | 18.70 | 15.90 | 13.51 | 11.48 | 9.76 | 8.30 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -6.64 | -14.34 | -21.74 | -28.87 | -35.71 | -42.26 | -48.53 |
| Total assets | 15.36 | 4.36 | -5.85 | -15.36 | -24.22 | -32.50 | -40.23 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.13 | -0.85 | -0.91 | -0.98 | -1.06 | -1.17 | -1.29 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.05 |
|---|---|
| Lowest DSCR | -1.29 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.88 | 3.30 | 2.81 | 2.38 | 2.03 | 1.72 | 1.46 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 16.82 | 1.82 | 1.29 | 15.53 |
| 2 | 15.53 | 1.58 | 2.59 | 12.94 |
| 3 | 12.94 | 1.29 | 2.59 | 10.35 |
| 4 | 10.35 | 1.01 | 2.59 | 7.76 |
| 5 | 7.76 | 0.72 | 2.59 | 5.18 |
| 6 | 5.18 | 0.44 | 2.59 | 2.59 |
| 7 | 2.59 | 0.15 | 2.59 | 0.00 |
17 Licences and registrations
- GST
- Udyam
- NOC from State Pollution Control Board
- Fire NOC
- Factory licence
- Petroleum/solvent storage licence if solvent stock exceeds exempt limits
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Alkyd Resin Manufacturing Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Alkyd_Resin_%28_Samadhan_Projects_%29.pdf
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.