Detailed Project Report
Auto Tubes and Flaps
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.01 L
- Term loan from bank
- ₹11.06 L
- Promoter’s contribution
- ₹1.70 L
- Subsidy
- ₹4.25 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.00 L
- Average DSCR
- -1.50
- 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
Mix and extrude rubber into inner tubes and press-mould tyre flaps for vehicles.
| Main product or service | Auto Tubes and Flaps |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Tyre and tube dealers in the replacement market
- Large tyre makers (as an ancillary)
- Auto spare-parts wholesalers
- Puncture and tyre repair shops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Rubber mixing mill 14" × 36" with 20 HP motor (× 2) | 1 | 5,00,000 | 5,00,000 |
| Tube extrusion unit, 6" dia, 10 HP | 1 | 75,000 | 75,000 |
| Tube moulding units with hydraulics (× 4) | 1 | 4,00,000 | 4,00,000 |
| Valve tightening machine | 1 | 10,000 | 10,000 |
| Valve nut punching machine | 1 | 15,000 | 15,000 |
| Air removing machine | 1 | 40,000 | 40,000 |
| Air compressor with 15 HP motor | 1 | 40,000 | 40,000 |
| Flap moulding units with hydraulic pump (× 2) | 1 | 1,50,000 | 1,50,000 |
| Boiler, 150 kg/hr at 150 psi | 1 | 2,50,000 | 2,50,000 |
| Weighing balance and tools (× 2) | 1 | 40,000 | 40,000 |
| Transformer and accessories | 1 | 1,00,000 | 1,00,000 |
| Total | 16,20,000 |
Pre-filled from: DC-MSME project profile — Auto Tubes and Flaps; World Customs Organization – HS Nomenclature 2022, Chapter 40. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Smoked natural rubber — 8,000 kg a month at ₹40 a kg in the report
- Synthetic rubber — 2,000 kg a month at ₹80 a kg
- Carbon black — 1,000 kg a month at ₹20 a kg
- Zinc oxide — 300 kg a month at ₹70 a kg
- China clay, stearic acid, sulphur, processing oil, accelerators — smaller quantities, all Indian
- Tube valves — 14,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.20 |
| Contingency | 0.81 |
| Total fixed capital | 17.01 |
| Working capital margin | 0.00 |
| Total project cost | 17.01 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.70 | 10.0 |
| Subsidy | 4.25 | 25.0 |
| Term loan from bank | 11.06 | 65.0 |
| Total | 17.01 | 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 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 |
| Operating profit (EBITDA) | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 |
| Depreciation | 2.55 | 2.17 | 1.84 | 1.57 | 1.33 | 1.13 | 0.96 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.20 | 1.04 | 0.85 | 0.66 | 0.48 | 0.29 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.05 | -6.51 | -6.00 | -5.53 | -5.11 | -4.73 | -4.37 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.05 | -6.51 | -6.00 | -5.53 | -5.11 | -4.73 | -4.37 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.05 | -6.51 | -6.00 | -5.53 | -5.11 | -4.73 | -4.37 |
| Depreciation | 2.55 | 2.17 | 1.84 | 1.57 | 1.33 | 1.13 | 0.96 |
| Cash accruals (PAT + depreciation) | -4.50 | -4.34 | -4.16 | -3.97 | -3.78 | -3.59 | -3.41 |
| Term loan repaid | 0.85 | 1.70 | 1.70 | 1.70 | 1.70 | 1.70 | 1.70 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.35 | -6.04 | -5.86 | -5.67 | -5.48 | -5.29 | -5.11 |
| Cash and bank | -5.35 | -11.40 | -17.25 | -22.92 | -28.40 | -33.70 | -38.80 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 | 5.95 |
| Reserves and surplus | -7.05 | -13.56 | -19.56 | -25.10 | -30.21 | -34.94 | -39.31 |
| Term loan outstanding | 10.21 | 8.51 | 6.80 | 5.10 | 3.40 | 1.70 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.11 | 0.89 | -6.81 | -14.04 | -20.85 | -27.28 | -33.35 |
| Net fixed assets | 14.46 | 12.29 | 10.45 | 8.88 | 7.55 | 6.42 | 5.45 |
| 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 | -5.35 | -11.40 | -17.25 | -22.92 | -28.40 | -33.70 | -38.80 |
| Total assets | 9.11 | 0.89 | -6.81 | -14.04 | -20.85 | -27.28 | -33.35 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.61 | -1.21 | -1.30 | -1.40 | -1.52 | -1.66 | -1.83 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.50 |
|---|---|
| Lowest DSCR | -1.83 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.55 | 2.17 | 1.84 | 1.57 | 1.33 | 1.13 | 0.96 |
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 | 11.06 | 1.20 | 0.85 | 10.21 |
| 2 | 10.21 | 1.04 | 1.70 | 8.51 |
| 3 | 8.51 | 0.85 | 1.70 | 6.80 |
| 4 | 6.80 | 0.66 | 1.70 | 5.10 |
| 5 | 5.10 | 0.48 | 1.70 | 3.40 |
| 6 | 3.40 | 0.29 | 1.70 | 1.70 |
| 7 | 1.70 | 0.10 | 1.70 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- BIS certification under the Quality Control Order for automotive tyres and tubes — check the current list with BIS
- State Pollution Control Board consent to establish and operate, where the state requires it
- Boiler registration under the Boilers Act
- Factory licence if your worker count crosses the Factories Act limit
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Auto Tubes and Flaps — https://www.dcmsme.gov.in/publications/pmryprof/chemical/ch3.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 40 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0740_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.