Detailed Project Report
Automobile Silencer Manufacturing
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹21.32 L
- Term loan from bank
- ₹13.85 L
- Promoter’s contribution
- ₹2.13 L
- Subsidy
- ₹5.33 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.79 L
- Average DSCR
- -1.24
- 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 exhaust silencers (mufflers) from aluminised or stainless steel sheet for the vehicle spare-parts market.
| Main product or service | Automobile Silencer Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Vehicle owners replacing rusted silencers
- Garages and service workshops
- Vehicle and component makers
- Auto spare-parts dealers
- Direct supply to garages
- Supply to component makers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| KVIC equipment set: shearing machine (4' blade, 16 SWG, 5 HP), power press 30 MT, power press 5 MT, fly press no. 18, sheet bending roll (2 HP), 8" bench grinder, edge folding machine, spot and gas welding equipment, work benches and racks, measuring instruments, tools, jigs and fixtures, office equipment, electrification and installation at 15% (× 1 set) | 1 | 6,30,000 | 6,30,000 |
| Sheet metal shearing machine (4 blades, 16 SWG, 5 HP) (× —) | 1 | 0 | 0 |
| Power press, 30 tons, 3 HP (× —) | 1 | 0 | 0 |
| Edge folding machine (× —) | 1 | 0 | 0 |
| Three-roller sheet bending machine (× —) | 1 | 0 | 0 |
| Oxy-acetylene gas welding kit (× —) | 1 | 0 | 0 |
| Spot welding machine (× —) | 1 | 0 | 0 |
| Samadhan total plant and machinery (no item-wise prices printed) (× —) | 1 | 14,00,000 | 14,00,000 |
| Total | 20,30,000 |
Pre-filled from: KVIC Project Profile — Automobile Silencer (PMEGP); PMEGP sample project report — Automobile Silencer (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Aluminised steel sheet — the most common silencer material; holds strength up to 677°C and resists oxidation
- Stainless steel sheet — good strength and heat dissipation; easy to gas weld
- MS tubing — welded to the silencer halves as required
- Raw material (all) — ₹12,00,000 a year in the KVIC profile, plus labels and packing ₹75,000
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 20.30 |
| Contingency | 1.02 |
| Total fixed capital | 21.32 |
| Working capital margin | 0.00 |
| Total project cost | 21.32 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.13 | 10.0 |
| Subsidy | 5.33 | 25.0 |
| Term loan from bank | 13.85 | 65.0 |
| Total | 21.32 | 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 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.41 | 3.41 | 3.41 | 3.41 | 3.41 | 3.41 | 3.41 |
| Operating profit (EBITDA) | -3.41 | -3.41 | -3.41 | -3.41 | -3.41 | -3.41 | -3.41 |
| Depreciation | 3.20 | 2.72 | 2.31 | 1.96 | 1.67 | 1.42 | 1.21 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.50 | 1.30 | 1.06 | 0.83 | 0.60 | 0.36 | 0.13 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.11 | -7.43 | -6.79 | -6.21 | -5.68 | -5.19 | -4.75 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.11 | -7.43 | -6.79 | -6.21 | -5.68 | -5.19 | -4.75 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.11 | -7.43 | -6.79 | -6.21 | -5.68 | -5.19 | -4.75 |
| Depreciation | 3.20 | 2.72 | 2.31 | 1.96 | 1.67 | 1.42 | 1.21 |
| Cash accruals (PAT + depreciation) | -4.91 | -4.71 | -4.48 | -4.24 | -4.01 | -3.77 | -3.54 |
| Term loan repaid | 1.07 | 2.13 | 2.13 | 2.13 | 2.13 | 2.13 | 2.13 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.98 | -6.84 | -6.61 | -6.37 | -6.14 | -5.91 | -5.67 |
| Cash and bank | -5.98 | -12.82 | -19.43 | -25.81 | -31.95 | -37.85 | -43.52 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.46 | 7.46 | 7.46 | 7.46 | 7.46 | 7.46 | 7.46 |
| Reserves and surplus | -8.11 | -15.54 | -22.33 | -28.53 | -34.21 | -39.40 | -44.15 |
| Term loan outstanding | 12.79 | 10.66 | 8.53 | 6.39 | 4.26 | 2.13 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 12.14 | 2.58 | -6.34 | -14.68 | -22.49 | -29.81 | -36.69 |
| Net fixed assets | 18.12 | 15.40 | 13.09 | 11.13 | 9.46 | 8.04 | 6.83 |
| 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 | -5.98 | -12.82 | -19.43 | -25.81 | -31.95 | -37.85 | -43.52 |
| Total assets | 12.14 | 2.58 | -6.34 | -14.68 | -22.49 | -29.81 | -36.69 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.33 | -0.99 | -1.07 | -1.15 | -1.25 | -1.37 | -1.51 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.24 |
|---|---|
| Lowest DSCR | -1.51 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.20 | 2.72 | 2.31 | 1.96 | 1.67 | 1.42 | 1.21 |
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 | 13.85 | 1.50 | 1.07 | 12.79 |
| 2 | 12.79 | 1.30 | 2.13 | 10.66 |
| 3 | 10.66 | 1.06 | 2.13 | 8.53 |
| 4 | 8.53 | 0.83 | 2.13 | 6.39 |
| 5 | 6.39 | 0.60 | 2.13 | 4.26 |
| 6 | 4.26 | 0.36 | 2.13 | 2.13 |
| 7 | 2.13 | 0.13 | 2.13 | 0.00 |
17 Licences and registrations
- MSME Udyam registration
- BIS certification
- ISO certification
- Factory licence
- GST registration
- Fire safety NOC
- Pollution control NOC
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)
19 Sources
- KVIC Project Profile — Automobile Silencer (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/AUTOMOBILE_SILENCER_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.pdf
- PMEGP sample project report — Automobile Silencer (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Automobile_Silencer_%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.