Detailed Project Report
Automotive Air Filter Manufacturing
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹13.13 L
- Term loan from bank
- ₹8.53 L
- Promoter’s contribution
- ₹1.31 L
- Subsidy
- ₹3.28 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.29 L
- Average DSCR
- -1.89
- 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 engine air filters from steel canisters, cast caps and pleated filter paper for vehicles.
| Main product or service | Automotive Air Filter Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Vehicle owners at routine service
- Garages and service workshops
- Vehicle and engine makers
- Auto spare-parts dealers
- Direct supply to workshops and fleets
- Supply to vehicle makers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Treadle guillotine shearing machine (× —) | 1 | 0 | 0 |
| Power press (5 ton in the flow chart) (× —) | 1 | 0 | 0 |
| Tilting furnace, 10 kg aluminium, HSD-fired with 1 KVA blower (× —) | 1 | 0 | 0 |
| Lathe (adda type) with 1 KW motor (× —) | 1 | 0 | 0 |
| Milling machine (adda type) with 1 KW motor (× —) | 1 | 0 | 0 |
| Surface grinding machine, manual feed, 2 KW (× —) | 1 | 0 | 0 |
| Fly presses of different sizes (× —) | 1 | 0 | 0 |
| Motorised hand shearing machine (sheet cutter) (× —) | 1 | 0 | 0 |
| Spot welding machine 1 KVA and gas welding sets (× —) | 1 | 0 | 0 |
| Buffing machine (8" wheel) and bench drilling machine (13 mm) (× —) | 1 | 0 | 0 |
| Total plant and machinery (no item-wise prices printed) (× —) | 1 | 12,50,000 | 12,50,000 |
| Total | 12,50,000 |
Pre-filled from: PMEGP sample project report — Automotive Air Filter (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- CRCA sheets — for canisters and perforated barrels
- Cast aluminium / zinc or moulded plastic parts — top and bottom rims and enclosures
- Filter paper, non-woven fabric, wire mesh and PU foam — chosen for wet strength, porosity, particle retention and flow rate
- Rivets and fasteners — all materials are available in India, says the report
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 12.50 |
| Contingency | 0.63 |
| Total fixed capital | 13.13 |
| Working capital margin | 0.00 |
| Total project cost | 13.13 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.31 | 10.0 |
| Subsidy | 3.28 | 25.0 |
| Term loan from bank | 8.53 | 65.0 |
| Total | 13.13 | 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 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 |
| Insurance | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Total cost of operations | 3.21 | 3.21 | 3.21 | 3.21 | 3.21 | 3.21 | 3.21 |
| Operating profit (EBITDA) | -3.21 | -3.21 | -3.21 | -3.21 | -3.21 | -3.21 | -3.21 |
| Depreciation | 1.97 | 1.67 | 1.42 | 1.21 | 1.03 | 0.87 | 0.74 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.92 | 0.80 | 0.66 | 0.51 | 0.37 | 0.22 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.10 | -5.68 | -5.29 | -4.93 | -4.60 | -4.30 | -4.03 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.10 | -5.68 | -5.29 | -4.93 | -4.60 | -4.30 | -4.03 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.10 | -5.68 | -5.29 | -4.93 | -4.60 | -4.30 | -4.03 |
| Depreciation | 1.97 | 1.67 | 1.42 | 1.21 | 1.03 | 0.87 | 0.74 |
| Cash accruals (PAT + depreciation) | -4.13 | -4.01 | -3.86 | -3.72 | -3.58 | -3.43 | -3.29 |
| Term loan repaid | 0.66 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.79 | -5.32 | -5.18 | -5.03 | -4.89 | -4.74 | -4.60 |
| Cash and bank | -4.79 | -10.11 | -15.28 | -20.32 | -25.20 | -29.95 | -34.55 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.59 | 4.59 | 4.59 | 4.59 | 4.59 | 4.59 | 4.59 |
| Reserves and surplus | -6.10 | -11.78 | -17.07 | -22.00 | -26.60 | -30.90 | -34.93 |
| Term loan outstanding | 7.88 | 6.56 | 5.25 | 3.94 | 2.63 | 1.31 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 6.37 | -0.63 | -7.22 | -13.47 | -19.38 | -25.00 | -30.34 |
| Net fixed assets | 11.16 | 9.48 | 8.06 | 6.85 | 5.82 | 4.95 | 4.21 |
| 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 | -4.79 | -10.11 | -15.28 | -20.32 | -25.20 | -29.95 | -34.55 |
| Total assets | 6.37 | -0.63 | -7.22 | -13.47 | -19.38 | -25.00 | -30.34 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.03 | -1.52 | -1.63 | -1.76 | -1.91 | -2.09 | -2.31 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.89 |
|---|---|
| Lowest DSCR | -2.31 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.97 | 1.67 | 1.42 | 1.21 | 1.03 | 0.87 | 0.74 |
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 | 8.53 | 0.92 | 0.66 | 7.88 |
| 2 | 7.88 | 0.80 | 1.31 | 6.56 |
| 3 | 6.56 | 0.66 | 1.31 | 5.25 |
| 4 | 5.25 | 0.51 | 1.31 | 3.94 |
| 5 | 3.94 | 0.37 | 1.31 | 2.63 |
| 6 | 2.63 | 0.22 | 1.31 | 1.31 |
| 7 | 1.31 | 0.08 | 1.31 | 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 — Automotive Air Filter (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Automotive_Air_Filter_%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.