Detailed Project Report
Brake Shoe Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.36 L
- Term loan from bank
- ₹11.28 L
- Promoter’s contribution
- ₹1.74 L
- Subsidy
- ₹4.34 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.06 L
- Average DSCR
- -1.48
- 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
Stamp, weld and bond friction lining onto steel shoes for drum brakes of two-wheelers and vehicles.
| Main product or service | Brake Shoe Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Two-wheeler and vehicle repair garages
- Auto-parts retailers
- Fleet owners
- Auto-parts wholesalers and distributors
- Online auto-parts sellers
- Direct supply to service centres
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Stamping press | 1 | 4,25,000 | 4,25,000 |
| Forging press | 1 | 2,50,000 | 2,50,000 |
| Hot press | 1 | 4,50,000 | 4,50,000 |
| Welding machine | 1 | 1,70,000 | 1,70,000 |
| Hand grinder | 1 | 8,000 | 8,000 |
| Riveting machine | 1 | 3,00,000 | 3,00,000 |
| Other equipment | 1 | 50,000 | 50,000 |
| Total | 16,53,000 |
Pre-filled from: PMEGP sample project report — Brake Shoe (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 87. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Steel sheets — for the shoe body
- Asbestos-based friction material (as per the report) — asbestos-free material is now widely preferred
- Other chemicals (adhesives) and packing — raw material together ₹59.40 lakh in year 1 of the report
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.53 |
| Contingency | 0.83 |
| Total fixed capital | 17.36 |
| Working capital margin | 0.00 |
| Total project cost | 17.36 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.74 | 10.0 |
| Subsidy | 4.34 | 25.0 |
| Term loan from bank | 11.28 | 65.0 |
| Total | 17.36 | 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 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 |
| Operating profit (EBITDA) | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 |
| Depreciation | 2.60 | 2.21 | 1.88 | 1.60 | 1.36 | 1.16 | 0.98 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.22 | 1.06 | 0.87 | 0.68 | 0.49 | 0.29 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.14 | -6.58 | -6.06 | -5.59 | -5.16 | -4.76 | -4.40 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.14 | -6.58 | -6.06 | -5.59 | -5.16 | -4.76 | -4.40 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.14 | -6.58 | -6.06 | -5.59 | -5.16 | -4.76 | -4.40 |
| Depreciation | 2.60 | 2.21 | 1.88 | 1.60 | 1.36 | 1.16 | 0.98 |
| Cash accruals (PAT + depreciation) | -4.54 | -4.37 | -4.18 | -3.99 | -3.80 | -3.61 | -3.42 |
| Term loan repaid | 0.87 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 | 1.74 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.40 | -6.11 | -5.92 | -5.73 | -5.53 | -5.34 | -5.15 |
| Cash and bank | -5.40 | -11.51 | -17.43 | -23.15 | -28.69 | -34.03 | -39.18 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.07 | 6.07 | 6.07 | 6.07 | 6.07 | 6.07 | 6.07 |
| Reserves and surplus | -7.14 | -13.72 | -19.79 | -25.37 | -30.53 | -35.30 | -39.70 |
| Term loan outstanding | 10.41 | 8.68 | 6.94 | 5.21 | 3.47 | 1.74 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.35 | 1.03 | -6.77 | -14.09 | -20.99 | -27.49 | -33.62 |
| Net fixed assets | 14.75 | 12.54 | 10.66 | 9.06 | 7.70 | 6.55 | 5.56 |
| 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 | -5.40 | -11.51 | -17.43 | -23.15 | -28.69 | -34.03 | -39.18 |
| Total assets | 9.35 | 1.03 | -6.77 | -14.09 | -20.99 | -27.49 | -33.62 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.59 | -1.19 | -1.27 | -1.37 | -1.49 | -1.63 | -1.80 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.48 |
|---|---|
| Lowest DSCR | -1.80 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.60 | 2.21 | 1.88 | 1.60 | 1.36 | 1.16 | 0.98 |
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 | 11.28 | 1.22 | 0.87 | 10.41 |
| 2 | 10.41 | 1.06 | 1.74 | 8.68 |
| 3 | 8.68 | 0.87 | 1.74 | 6.94 |
| 4 | 6.94 | 0.68 | 1.74 | 5.21 |
| 5 | 5.21 | 0.49 | 1.74 | 3.47 |
| 6 | 3.47 | 0.29 | 1.74 | 1.74 |
| 7 | 1.74 | 0.10 | 1.74 | 0.00 |
17 Licences and registrations
- BIS certification for brake parts where a compulsory order applies
- State Pollution Control Board consent
- Udyam registration
- GST
- Factory licence if the worker count requires it
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
- PMEGP sample project report — Brake Shoe (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Brake_Shoe_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 87 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1787_2022e.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.