Detailed Project Report
Bicycle Rim Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹9.43 L
- Term loan from bank
- ₹6.13 L
- Promoter’s contribution
- ₹0.94 L
- Subsidy
- ₹2.36 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.61 L
- Average DSCR
- -2.56
- 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
Roll-form CRCA steel strip into bicycle and rickshaw rims, weld, punch, polish and electroplate them.
| Main product or service | Bicycle Rim Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Bicycle and cycle-rickshaw makers and assemblers
- Bicycle-parts wholesalers
- Cycle repair shops (through dealers)
- Direct supply to cycle assemblers
- Sale through parts wholesalers in cycle markets
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Rim-forming machine with 6 pairs of forming rolls and 7.5 HP motor | 1 | 2,40,000 | 2,40,000 |
| Butt-welding machine | 1 | 60,000 | 60,000 |
| Seam-welding plant with electricals | 1 | 24,000 | 24,000 |
| Butt-weld grinding machine with 0.5 HP motor | 1 | 36,000 | 36,000 |
| Rim-rounding machine with 1 HP motor | 1 | 24,000 | 24,000 |
| Rim-straightening press with 3 HP motor | 1 | 30,000 | 30,000 |
| Power press for nipple holes with 3 HP motor | 1 | 66,000 | 66,000 |
| Valve-hole punching machine with 1.5 HP motor | 1 | 30,000 | 30,000 |
| Buffing addas with 1.5 HP motor (× 2) | 1 | 48,000 | 48,000 |
| Electroplating plant with acid tanks | 1 | 2,40,000 | 2,40,000 |
| Dies and punches, tools, jigs and fixtures | 1 | 1,00,000 | 1,00,000 |
| Total | 8,98,000 |
Pre-filled from: DC-MSME project profile — Bicycle Rims; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- CRCA steel strip in rolls (18 and 20 gauge) — ₹3,02,400 a month in the profile
- Electroplating chemicals — ₹60,000 a month
- Packing material — ₹1,800 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 8.98 |
| Contingency | 0.45 |
| Total fixed capital | 9.43 |
| Working capital margin | 0.00 |
| Total project cost | 9.43 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.94 | 10.0 |
| Subsidy | 2.36 | 25.0 |
| Term loan from bank | 6.13 | 65.0 |
| Total | 9.43 | 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 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 |
| Operating profit (EBITDA) | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 |
| Depreciation | 1.41 | 1.20 | 1.02 | 0.87 | 0.74 | 0.63 | 0.53 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.66 | 0.57 | 0.47 | 0.37 | 0.26 | 0.16 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.19 | -4.89 | -4.61 | -4.35 | -4.12 | -3.90 | -3.71 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.19 | -4.89 | -4.61 | -4.35 | -4.12 | -3.90 | -3.71 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.19 | -4.89 | -4.61 | -4.35 | -4.12 | -3.90 | -3.71 |
| Depreciation | 1.41 | 1.20 | 1.02 | 0.87 | 0.74 | 0.63 | 0.53 |
| Cash accruals (PAT + depreciation) | -3.78 | -3.69 | -3.59 | -3.48 | -3.38 | -3.28 | -3.17 |
| Term loan repaid | 0.47 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 | 0.94 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.25 | -4.63 | -4.53 | -4.43 | -4.32 | -4.22 | -4.11 |
| Cash and bank | -4.25 | -8.88 | -13.41 | -17.84 | -22.16 | -26.38 | -30.50 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 |
| Reserves and surplus | -5.19 | -10.09 | -14.69 | -19.05 | -23.16 | -27.07 | -30.77 |
| Term loan outstanding | 5.66 | 4.71 | 3.77 | 2.83 | 1.89 | 0.94 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.76 | -2.07 | -7.62 | -12.92 | -17.98 | -22.82 | -27.47 |
| Net fixed assets | 8.01 | 6.81 | 5.79 | 4.92 | 4.18 | 3.56 | 3.02 |
| 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 | -4.25 | -8.88 | -13.41 | -17.84 | -22.16 | -26.38 | -30.50 |
| Total assets | 3.76 | -2.07 | -7.62 | -12.92 | -17.98 | -22.82 | -27.47 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.75 | -2.05 | -2.20 | -2.38 | -2.58 | -2.83 | -3.12 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.56 |
|---|---|
| Lowest DSCR | -3.12 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.41 | 1.20 | 1.02 | 0.87 | 0.74 | 0.63 | 0.53 |
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 | 6.13 | 0.66 | 0.47 | 5.66 |
| 2 | 5.66 | 0.57 | 0.94 | 4.71 |
| 3 | 4.71 | 0.47 | 0.94 | 3.77 |
| 4 | 3.77 | 0.37 | 0.94 | 2.83 |
| 5 | 2.83 | 0.26 | 0.94 | 1.89 |
| 6 | 1.89 | 0.16 | 0.94 | 0.94 |
| 7 | 0.94 | 0.06 | 0.94 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent (electroplating)
- Factory licence (21 workers with power)
- IS 624 is the Indian Standard for bicycle rims — follow it, and take the BIS mark if buyers ask
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Bicycle Rims — https://www.dcmsme.gov.in/old/reports/mechanical/BicycleRims.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.