Detailed Project Report
Automobile Gear Manufacturing
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.80 L
- Term loan from bank
- ₹10.92 L
- Promoter’s contribution
- ₹1.68 L
- Subsidy
- ₹4.20 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.96 L
- Average DSCR
- -1.52
- 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
Forge, machine and harden gears for vehicles and machines in a semi-automatic engineering unit.
| Main product or service | Automobile Gear Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Automobile and auto-component makers
- Machine, crane and construction equipment makers
- Replacement parts market
- Direct supply to OEM vendors
- Auto-parts and transmission dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Blank / billet cutting machines (× —) | 1 | 0 | 0 |
| Induction heater for blanks (× —) | 1 | 0 | 0 |
| Pneumatic forging hammer and mechanical forging hammer (× —) | 1 | 0 | 0 |
| Gear hobbing machine (× —) | 1 | 0 | 0 |
| Gear grinding machine (× —) | 1 | 0 | 0 |
| Heavy-duty milling machine (× —) | 1 | 0 | 0 |
| Induction heat-treatment unit (× —) | 1 | 0 | 0 |
| Shot blasting machine (× —) | 1 | 0 | 0 |
| CNC lathe, lathe and vertical lathe (× —) | 1 | 0 | 0 |
| Cylindrical grinder and lapping machine (× —) | 1 | 0 | 0 |
| Radial and pillar drilling machines (× —) | 1 | 0 | 0 |
| CNC 5-axis measuring machine and gear profile inspection equipment (× —) | 1 | 0 | 0 |
| Total plant and machinery (no item-wise prices printed) (× —) | 1 | 16,00,000 | 16,00,000 |
| Total | 16,00,000 |
Pre-filled from: PMEGP sample project report — Automobile Gear (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Alloy steel bars, billets or forgings — the most common gear material for its strength-to-weight ratio and low cost
- Non-ferrous alloys, cast iron, powder-metallurgy blanks and plastics — used for some gear types; blanks can be die cast, investment cast or sintered
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.00 |
| Contingency | 0.80 |
| Total fixed capital | 16.80 |
| Working capital margin | 0.00 |
| Total project cost | 16.80 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.68 | 10.0 |
| Subsidy | 4.20 | 25.0 |
| Term loan from bank | 10.92 | 65.0 |
| Total | 16.80 | 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 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 |
| Operating profit (EBITDA) | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 |
| Depreciation | 2.52 | 2.14 | 1.82 | 1.55 | 1.32 | 1.12 | 0.95 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.18 | 1.02 | 0.84 | 0.65 | 0.47 | 0.28 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.00 | -6.47 | -5.96 | -5.50 | -5.09 | -4.70 | -4.35 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.00 | -6.47 | -5.96 | -5.50 | -5.09 | -4.70 | -4.35 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.00 | -6.47 | -5.96 | -5.50 | -5.09 | -4.70 | -4.35 |
| Depreciation | 2.52 | 2.14 | 1.82 | 1.55 | 1.32 | 1.12 | 0.95 |
| Cash accruals (PAT + depreciation) | -4.48 | -4.32 | -4.14 | -3.95 | -3.77 | -3.58 | -3.40 |
| Term loan repaid | 0.84 | 1.68 | 1.68 | 1.68 | 1.68 | 1.68 | 1.68 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.32 | -6.00 | -5.82 | -5.63 | -5.45 | -5.26 | -5.08 |
| Cash and bank | -5.32 | -11.33 | -17.15 | -22.78 | -28.23 | -33.49 | -38.57 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.88 | 5.88 | 5.88 | 5.88 | 5.88 | 5.88 | 5.88 |
| Reserves and surplus | -7.00 | -13.47 | -19.43 | -24.93 | -30.02 | -34.72 | -39.07 |
| Term loan outstanding | 10.08 | 8.40 | 6.72 | 5.04 | 3.36 | 1.68 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.96 | 0.81 | -6.83 | -14.01 | -20.78 | -27.16 | -33.19 |
| Net fixed assets | 14.28 | 12.14 | 10.32 | 8.77 | 7.45 | 6.34 | 5.39 |
| 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 | -5.32 | -11.33 | -17.15 | -22.78 | -28.23 | -33.49 | -38.57 |
| Total assets | 8.96 | 0.81 | -6.83 | -14.01 | -20.78 | -27.16 | -33.19 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.63 | -1.22 | -1.31 | -1.41 | -1.54 | -1.68 | -1.85 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.52 |
|---|---|
| Lowest DSCR | -1.85 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.52 | 2.14 | 1.82 | 1.55 | 1.32 | 1.12 | 0.95 |
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 | 10.92 | 1.18 | 0.84 | 10.08 |
| 2 | 10.08 | 1.02 | 1.68 | 8.40 |
| 3 | 8.40 | 0.84 | 1.68 | 6.72 |
| 4 | 6.72 | 0.65 | 1.68 | 5.04 |
| 5 | 5.04 | 0.47 | 1.68 | 3.36 |
| 6 | 3.36 | 0.28 | 1.68 | 1.68 |
| 7 | 1.68 | 0.10 | 1.68 | 0.00 |
17 Licences and registrations
- GST
- Fire NOC
- Pollution control NOC (if applicable)
- Udyam registration
- BIS certification
- Labour licence
- Trademark (optional)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- PMEGP sample project report — Automobile Gear (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Automobile_Gear_%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.