Detailed Project Report
Aluminium Conductors (AAC, AAAC, ACSR)
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹61.60 L
- Term loan from bank
- ₹55.44 L
- Promoter’s contribution
- ₹6.16 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-15.36 L
- Average DSCR
- -0.40
- 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
Draw aluminium rod into wire and strand it into bare overhead conductors for power lines.
| Main product or service | Aluminium Conductors (AAC, AAAC, ACSR) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- State electricity boards and power distribution companies
- Transmission and distribution line contractors
- Rural electrification projects
- Government and utility tenders
- Supply to EPC line contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pintle-type multilayer stranding machine (61 strands) (× 1 set) | 1 | 24,00,000 | 24,00,000 |
| High-speed tubular stranding machine (× 1 set) | 1 | 12,00,000 | 12,00,000 |
| Wire drawing machine, 11 dies (× 1 set) | 1 | 11,00,000 | 11,00,000 |
| Wire drawing machine, 3 dies, with spooling (× 1 set) | 1 | 3,60,000 | 3,60,000 |
| Pit-type solution treatment furnace (× 1 set) | 1 | 2,25,000 | 2,25,000 |
| Ageing furnace (× 1 set) | 1 | 65,000 | 65,000 |
| Pointing machine, butt welding machine, electric crane, solution tank, die polisher (× 1 set each) | 1 | 69,000 | 69,000 |
| Tensile testing machine (× 1 set) | 1 | 2,80,000 | 2,80,000 |
| Torsion, wrapping and resistance test equipment, balance and micrometer (× 1 set each) | 1 | 1,68,000 | 1,68,000 |
| Total | 58,67,000 |
Pre-filled from: DC-MSME project profile — Aluminium Conductors AAC, AAAC, ACSR; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Aluminium rod, EC grade (IS 5484) — 25 t a month at ₹87,850/t = ₹21.96 L
- Aluminium alloy rod — 10 t a month at ₹92,750/t = ₹9.28 L
- Galvanised steel wire (for ACSR core) — 4 t a month at ₹28,000/t = ₹1.12 L
- Wooden drums, lubricants and sundries — ₹70,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 58.67 |
| Contingency | 2.93 |
| Total fixed capital | 61.60 |
| Working capital margin | 0.00 |
| Total project cost | 61.60 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 6.16 | 10.0 |
| Term loan from bank | 55.44 | 90.0 |
| Total | 61.60 | 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 | 1.23 | 1.23 | 1.23 | 1.23 | 1.23 | 1.23 | 1.23 |
| Insurance | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Total cost of operations | 4.42 | 4.42 | 4.42 | 4.42 | 4.42 | 4.42 | 4.42 |
| Operating profit (EBITDA) | -4.42 | -4.42 | -4.42 | -4.42 | -4.42 | -4.42 | -4.42 |
| Depreciation | 9.24 | 7.85 | 6.68 | 5.67 | 4.82 | 4.10 | 3.49 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 6.00 | 5.20 | 4.26 | 3.32 | 2.38 | 1.45 | 0.51 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -19.66 | -17.47 | -15.36 | -13.42 | -11.63 | -9.97 | -8.41 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -19.66 | -17.47 | -15.36 | -13.42 | -11.63 | -9.97 | -8.41 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -19.66 | -17.47 | -15.36 | -13.42 | -11.63 | -9.97 | -8.41 |
| Depreciation | 9.24 | 7.85 | 6.68 | 5.67 | 4.82 | 4.10 | 3.49 |
| Cash accruals (PAT + depreciation) | -10.42 | -9.62 | -8.68 | -7.74 | -6.80 | -5.87 | -4.93 |
| Term loan repaid | 4.26 | 8.53 | 8.53 | 8.53 | 8.53 | 8.53 | 8.53 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -14.69 | -18.15 | -17.21 | -16.27 | -15.33 | -14.40 | -13.46 |
| Cash and bank | -14.69 | -32.84 | -50.05 | -66.32 | -81.65 | -96.05 | -109.51 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.16 | 6.16 | 6.16 | 6.16 | 6.16 | 6.16 | 6.16 |
| Reserves and surplus | -19.66 | -37.14 | -52.49 | -65.91 | -77.54 | -87.51 | -95.92 |
| Term loan outstanding | 51.18 | 42.65 | 34.12 | 25.59 | 17.06 | 8.53 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 37.68 | 11.67 | -12.21 | -34.16 | -54.32 | -72.82 | -89.76 |
| Net fixed assets | 52.36 | 44.51 | 37.83 | 32.16 | 27.33 | 23.23 | 19.75 |
| 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 | -14.69 | -32.84 | -50.05 | -66.32 | -81.65 | -96.05 | -109.51 |
| Total assets | 37.68 | 11.67 | -12.21 | -34.16 | -54.32 | -72.82 | -89.76 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.43 | -0.32 | -0.35 | -0.37 | -0.40 | -0.44 | -0.49 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.40 |
|---|---|
| Lowest DSCR | -0.49 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 9.24 | 7.85 | 6.68 | 5.67 | 4.82 | 4.10 | 3.49 |
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 | 55.44 | 6.00 | 4.26 | 51.18 |
| 2 | 51.18 | 5.20 | 8.53 | 42.65 |
| 3 | 42.65 | 4.26 | 8.53 | 34.12 |
| 4 | 34.12 | 3.32 | 8.53 | 25.59 |
| 5 | 25.59 | 2.38 | 8.53 | 17.06 |
| 6 | 17.06 | 1.45 | 8.53 | 8.53 |
| 7 | 8.53 | 0.51 | 8.53 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- BIS certification to IS 398 (utilities buy to this standard)
- State Pollution Control Board consent
- Factory licence
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Aluminium Conductors AAC, AAAC, ACSR — https://www.dcmsme.gov.in/publications/pmryprof/electrical/ch1.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.