Detailed Project Report
Ball Pen Ink Manufacturing
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.36 L
- Term loan from bank
- ₹1.54 L
- Promoter’s contribution
- ₹0.24 L
- Subsidy
- ₹0.59 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.31 L
- Average DSCR
- -9.63
- 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 metal-complex dyes with castor or stand oil, varnish and driers to make viscous ink for ball pen refills.
| Main product or service | Ball Pen Ink Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Ball pen and refill manufacturers
- Stationery makers
- Direct supply to pen makers in bulk containers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Mixing machine with motor, 10 litres per 8 hours | 1 | 0 | 0 |
| Platform weighing machine, 50 kg | 1 | 0 | 0 |
| Triple roll mill | 1 | 0 | 0 |
| Stainless steel shovel and scraper knife (× —) | 1 | 0 | 0 |
| HDPP storage tank for varnish and oil | 1 | 0 | 0 |
| Ford cup and rectangular glass sheet for testing (× —) | 1 | 0 | 0 |
| Exhaust fan, power connection, electrification and installation at 15% (× —) | 1 | 0 | 0 |
| Total equipment (× —) | 1 | 2,25,000 | 2,25,000 |
| Total | 2,25,000 |
Pre-filled from: KVIC Project Profile — Ball Pen Ink (PMEGP). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Metal-complex dyes (e.g. reflux blue) — chosen to match the buyer's shade
- Castor oil or stand oil, varnishes and driers — raw material total ₹24,96,000 a year at full capacity
- Labels and packing material — ₹75,000 a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.25 |
| Contingency | 0.11 |
| Total fixed capital | 2.36 |
| Working capital margin | 0.00 |
| Total project cost | 2.36 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.24 | 10.0 |
| Subsidy | 0.59 | 25.0 |
| Term loan from bank | 1.54 | 65.0 |
| Total | 2.36 | 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 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.94 | 2.94 | 2.94 | 2.94 | 2.94 | 2.94 | 2.94 |
| Operating profit (EBITDA) | -2.94 | -2.94 | -2.94 | -2.94 | -2.94 | -2.94 | -2.94 |
| Depreciation | 0.35 | 0.30 | 0.26 | 0.22 | 0.18 | 0.16 | 0.13 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.17 | 0.14 | 0.12 | 0.09 | 0.07 | 0.04 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.46 | -3.38 | -3.31 | -3.25 | -3.19 | -3.14 | -3.09 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.46 | -3.38 | -3.31 | -3.25 | -3.19 | -3.14 | -3.09 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.46 | -3.38 | -3.31 | -3.25 | -3.19 | -3.14 | -3.09 |
| Depreciation | 0.35 | 0.30 | 0.26 | 0.22 | 0.18 | 0.16 | 0.13 |
| Cash accruals (PAT + depreciation) | -3.11 | -3.08 | -3.06 | -3.03 | -3.01 | -2.98 | -2.95 |
| Term loan repaid | 0.12 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.22 | -3.32 | -3.29 | -3.27 | -3.24 | -3.22 | -3.19 |
| Cash and bank | -3.22 | -6.54 | -9.84 | -13.10 | -16.34 | -19.56 | -22.75 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 |
| Reserves and surplus | -3.46 | -6.84 | -10.16 | -13.41 | -16.60 | -19.73 | -22.82 |
| Term loan outstanding | 1.42 | 1.18 | 0.95 | 0.71 | 0.47 | 0.24 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.22 | -4.84 | -8.39 | -11.87 | -15.30 | -18.67 | -21.99 |
| Net fixed assets | 2.01 | 1.71 | 1.45 | 1.23 | 1.05 | 0.89 | 0.76 |
| 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 | -3.22 | -6.54 | -9.84 | -13.10 | -16.34 | -19.56 | -22.75 |
| Total assets | -1.22 | -4.84 | -8.39 | -11.87 | -15.30 | -18.67 | -21.99 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -10.34 | -7.73 | -8.30 | -8.95 | -9.72 | -10.64 | -11.74 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -9.63 |
|---|---|
| Lowest DSCR | -11.74 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.35 | 0.30 | 0.26 | 0.22 | 0.18 | 0.16 | 0.13 |
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 | 1.54 | 0.17 | 0.12 | 1.42 |
| 2 | 1.42 | 0.14 | 0.24 | 1.18 |
| 3 | 1.18 | 0.12 | 0.24 | 0.95 |
| 4 | 0.95 | 0.09 | 0.24 | 0.71 |
| 5 | 0.71 | 0.07 | 0.24 | 0.47 |
| 6 | 0.47 | 0.04 | 0.24 | 0.24 |
| 7 | 0.24 | 0.01 | 0.24 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State pollution board consent (small chemical unit)
- Fire safety clearance for storing flammable materials, as required locally
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 — Ball Pen Ink (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/BALL_PEN_INK_%28_POLYMER_AND_CHEMICAL_BASED_INDUSTRY_%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.