Detailed Project Report
Non-Ferric Alum (Aluminium Sulphate)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹94.50 L
- Term loan from bank
- ₹85.05 L
- Promoter’s contribution
- ₹9.45 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-22.02 L
- Average DSCR
- -0.31
- 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
Digest bauxite in sulphuric acid to make iron-free alum for water treatment and paper mills.
| Main product or service | Non-Ferric Alum (Aluminium Sulphate) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Water boards and municipal water works
- Paper mills (sizing)
- Effluent-treatment plants
- Dyeing units
- Government tenders
- Direct supply to paper mills
- Chemical traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Jaw crusher, single toggle (× 3) | 1 | 7,20,000 | 7,20,000 |
| Swing-hammer pulveriser (× 2) | 1 | 8,20,000 | 8,20,000 |
| MS lead-lined digester tank (× 4) | 1 | 16,00,000 | 16,00,000 |
| Settling tanks (× 5) | 1 | 5,00,000 | 5,00,000 |
| Evaporation tanks (× 5) | 1 | 5,00,000 | 5,00,000 |
| Coal-fired boiler, water softener, moulds, balance, tanks, electricals and installation (× lot) | 1 | 48,60,000 | 48,60,000 |
| Total | 90,00,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Non-Ferric Alum; World Customs Organization – HS Nomenclature 2022, Chapter 28. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Bauxite (60% Al2O3, Fe2O3 under 3%) — 4.0 tons per 10 tons of alum; Jamnagar bauxite named as the best source
- Sulphuric acid, 98% — 5.5 tons per 10 tons of alum
- Water — 60,000 litres per 10 tons of alum
- Fuel — 480 litres per 10 tons of alum
- Flaked glue and black ash (barium sulphide) — settling aids
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 90.00 |
| Contingency | 4.50 |
| Total fixed capital | 94.50 |
| Working capital margin | 0.00 |
| Total project cost | 94.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 9.45 | 10.0 |
| Term loan from bank | 85.05 | 90.0 |
| Total | 94.50 | 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 | 1.89 | 1.89 | 1.89 | 1.89 | 1.89 | 1.89 | 1.89 |
| Insurance | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 |
| Total cost of operations | 5.24 | 5.24 | 5.24 | 5.24 | 5.24 | 5.24 | 5.24 |
| Operating profit (EBITDA) | -5.24 | -5.24 | -5.24 | -5.24 | -5.24 | -5.24 | -5.24 |
| Depreciation | 14.18 | 12.05 | 10.24 | 8.71 | 7.40 | 6.29 | 5.35 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 9.21 | 7.98 | 6.54 | 5.10 | 3.66 | 2.22 | 0.78 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -28.62 | -25.27 | -22.02 | -19.05 | -16.30 | -13.75 | -11.37 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -28.62 | -25.27 | -22.02 | -19.05 | -16.30 | -13.75 | -11.37 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -28.62 | -25.27 | -22.02 | -19.05 | -16.30 | -13.75 | -11.37 |
| Depreciation | 14.18 | 12.05 | 10.24 | 8.71 | 7.40 | 6.29 | 5.35 |
| Cash accruals (PAT + depreciation) | -14.45 | -13.22 | -11.78 | -10.34 | -8.90 | -7.46 | -6.02 |
| Term loan repaid | 6.54 | 13.08 | 13.08 | 13.08 | 13.08 | 13.08 | 13.08 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -20.99 | -26.30 | -24.86 | -23.42 | -21.99 | -20.55 | -19.11 |
| Cash and bank | -20.99 | -47.29 | -72.16 | -95.58 | -117.57 | -138.11 | -157.22 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 9.45 | 9.45 | 9.45 | 9.45 | 9.45 | 9.45 | 9.45 |
| Reserves and surplus | -28.62 | -53.89 | -75.91 | -94.96 | -111.26 | -125.01 | -136.38 |
| Term loan outstanding | 78.51 | 65.42 | 52.34 | 39.25 | 26.17 | 13.08 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 59.33 | 20.98 | -14.12 | -46.25 | -75.64 | -102.47 | -126.93 |
| Net fixed assets | 80.33 | 68.28 | 58.03 | 49.33 | 41.93 | 35.64 | 30.29 |
| 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 | -20.99 | -47.29 | -72.16 | -95.58 | -117.57 | -138.11 | -157.22 |
| Total assets | 59.33 | 20.98 | -14.12 | -46.25 | -75.64 | -102.47 | -126.93 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.33 | -0.25 | -0.27 | -0.29 | -0.31 | -0.34 | -0.38 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.31 |
|---|---|
| Lowest DSCR | -0.38 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 14.18 | 12.05 | 10.24 | 8.71 | 7.40 | 6.29 | 5.35 |
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 | 85.05 | 9.21 | 6.54 | 78.51 |
| 2 | 78.51 | 7.98 | 13.08 | 65.42 |
| 3 | 65.42 | 6.54 | 13.08 | 52.34 |
| 4 | 52.34 | 5.10 | 13.08 | 39.25 |
| 5 | 39.25 | 3.66 | 13.08 | 26.17 |
| 6 | 26.17 | 2.22 | 13.08 | 13.08 |
| 7 | 13.08 | 0.78 | 13.08 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- BIS certification to IS 299 — water boards usually ask for it
- State Pollution Control Board consent (chemical unit)
- Factory licence and hazardous-chemical rules
18 Government schemes that may apply
- Stand-Up India
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- SIDBI Stand-Up Mitra project profile — Non-Ferric Alum — https://www.standupmitra.in/Default/ViewFile/?id=1521213659775_Non-%20Feric%20Alum.docx&path=ProjectProfile
- World Customs Organization – HS Nomenclature 2022, Chapter 28 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0628_2022e.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.