Detailed Project Report
Asbestos Cement Pressure Pipes and Fittings
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹76.98 L
- Term loan from bank
- ₹69.28 L
- Promoter’s contribution
- ₹7.70 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-18.47 L
- Average DSCR
- -0.35
- 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
Make AC pressure pipes and fittings from cement and chrysotile asbestos for water supply, drainage and irrigation.
| Main product or service | Asbestos Cement Pressure Pipes and Fittings |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Government water-supply and public health departments
- Irrigation departments
- Building contractors
- Pipe dealers
- Government tenders
- Supply to contractors
- Dealers in building materials
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pipe-making machine with mandrels (80 mm, 4 m) and 30 HP motor | 1 | 43,12,000 | 43,12,000 |
| Vacuum pump with 30 HP motor | 1 | 2,30,000 | 2,30,000 |
| Mixer with 10 HP motor (× 2) | 1 | 1,72,000 | 1,72,000 |
| Curing tanks (× 10) | 1 | 1,50,000 | 1,50,000 |
| Pipe moulds (× 22) | 1 | 18,92,000 | 18,92,000 |
| Cost of fittings (× 1 lot) | 1 | 2,30,000 | 2,30,000 |
| Installation and electrification (× 1 lot) | 1 | 3,45,000 | 3,45,000 |
| Total | 73,31,000 |
Pre-filled from: DC-MSME project profile — Asbestos Pressure Pipes and Fittings; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Ordinary Portland cement — 230 tonnes a month in the profile
- Chrysotile (long-fibre) asbestos — 25 tonnes a month; the profile says it is mostly imported, generally from Brazil
- Lubricants — small monthly quantity
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 73.31 |
| Contingency | 3.67 |
| Total fixed capital | 76.98 |
| Working capital margin | 0.00 |
| Total project cost | 76.98 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 7.70 | 10.0 |
| Term loan from bank | 69.28 | 90.0 |
| Total | 76.98 | 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 | 1.54 | 1.54 | 1.54 | 1.54 | 1.54 | 1.54 | 1.54 |
| Insurance | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Total cost of operations | 4.80 | 4.80 | 4.80 | 4.80 | 4.80 | 4.80 | 4.80 |
| Operating profit (EBITDA) | -4.80 | -4.80 | -4.80 | -4.80 | -4.80 | -4.80 | -4.80 |
| Depreciation | 11.55 | 9.81 | 8.34 | 7.09 | 6.03 | 5.12 | 4.35 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 7.50 | 6.50 | 5.32 | 4.15 | 2.98 | 1.81 | 0.64 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -23.85 | -21.12 | -18.47 | -16.05 | -13.81 | -11.73 | -9.79 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -23.85 | -21.12 | -18.47 | -16.05 | -13.81 | -11.73 | -9.79 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -23.85 | -21.12 | -18.47 | -16.05 | -13.81 | -11.73 | -9.79 |
| Depreciation | 11.55 | 9.81 | 8.34 | 7.09 | 6.03 | 5.12 | 4.35 |
| Cash accruals (PAT + depreciation) | -12.30 | -11.30 | -10.13 | -8.96 | -7.78 | -6.61 | -5.44 |
| Term loan repaid | 5.33 | 10.66 | 10.66 | 10.66 | 10.66 | 10.66 | 10.66 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -17.63 | -21.96 | -20.79 | -19.61 | -18.44 | -17.27 | -16.10 |
| Cash and bank | -17.63 | -39.59 | -60.38 | -79.99 | -98.44 | -115.71 | -131.80 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.70 | 7.70 | 7.70 | 7.70 | 7.70 | 7.70 | 7.70 |
| Reserves and surplus | -23.85 | -44.96 | -63.44 | -79.48 | -93.30 | -105.03 | -114.82 |
| Term loan outstanding | 63.95 | 53.29 | 42.63 | 31.97 | 21.32 | 10.66 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 47.80 | 16.02 | -13.11 | -39.81 | -64.28 | -86.67 | -107.13 |
| Net fixed assets | 65.43 | 55.61 | 47.27 | 40.18 | 34.15 | 29.03 | 24.68 |
| 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 | -17.63 | -39.59 | -60.38 | -79.99 | -98.44 | -115.71 | -131.80 |
| Total assets | 47.80 | 16.02 | -13.11 | -39.81 | -64.28 | -86.67 | -107.13 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.37 | -0.28 | -0.30 | -0.32 | -0.35 | -0.39 | -0.43 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.35 |
|---|---|
| Lowest DSCR | -0.43 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 11.55 | 9.81 | 8.34 | 7.09 | 6.03 | 5.12 | 4.35 |
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 | 69.28 | 7.50 | 5.33 | 63.95 |
| 2 | 63.95 | 6.50 | 10.66 | 53.29 |
| 3 | 53.29 | 5.32 | 10.66 | 42.63 |
| 4 | 42.63 | 4.15 | 10.66 | 31.97 |
| 5 | 31.97 | 2.98 | 10.66 | 21.32 |
| 6 | 21.32 | 1.81 | 10.66 | 10.66 |
| 7 | 10.66 | 0.64 | 10.66 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Factory licence
- State Pollution Control Board consent to establish and operate
- BIS certification for AC pressure pipes
- Compliance with asbestos handling rules under factory law
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 — Asbestos Pressure Pipes and Fittings — https://www.dcmsme.gov.in/publications/pmryprof/glass/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.