Detailed Project Report
Chlorinated Paraffin (Chlorinated Heavy Normal Paraffin)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹15.49 L
- Term loan from bank
- ₹13.94 L
- Promoter’s contribution
- ₹1.55 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.02 L
- Average DSCR
- -1.18
- 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
Pass chlorine through heavy normal paraffin to make a plasticiser and flame retardant for PVC, paints and metal-working oils, with hydrochloric acid as a by-product.
| Main product or service | Chlorinated Paraffin (Chlorinated Heavy Normal Paraffin) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- PVC compounders and cable makers (secondary plasticiser)
- Paint, rubber and textile units (flame retardant)
- Metal-working oil and foundry units
- Direct sale in drums or tankers
- Chemical traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| MS lead-bonded reactor, 4 tonnes | 1 | 3,50,000 | 3,50,000 |
| HCl gas absorption column, 9 ft | 1 | 2,00,000 | 2,00,000 |
| HDPE packed absorption column | 1 | 1,00,000 | 1,00,000 |
| Milk-of-lime storage tank, HDPE, 3,000 litres | 1 | 25,000 | 25,000 |
| Heavy normal paraffin storage tank, 20 KL | 1 | 1,50,000 | 1,50,000 |
| Chlorinated paraffin aeration tank, 6,000 litres | 1 | 1,00,000 | 1,00,000 |
| Cooling tower, 100 TR | 1 | 1,50,000 | 1,50,000 |
| DG set | 1 | 1,00,000 | 1,00,000 |
| Chlorine storage yard with chain-pulley arrangement | 1 | 1,00,000 | 1,00,000 |
| Stainless-steel concentration vessel, 7,000 litres | 1 | 1,00,000 | 1,00,000 |
| Air compressor with 7.5 HP motor | 1 | 50,000 | 50,000 |
| Effluent treatment plant | 1 | 50,000 | 50,000 |
| Total | 14,75,000 |
Pre-filled from: DC-MSME project profile — Chlorinated Heavy Normal Paraffin; World Customs Organization – HS Nomenclature 2022, Chapter 38. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Heavy normal paraffin — 38 tonnes a month at ₹23,000 a tonne in the report
- Chlorine — 133 tonnes a month at ₹7,000 a tonne (as printed)
- Lime — 2 tonnes a month at ₹4,000 a tonne
- Stabiliser (epoxidised soyabean oil) — 1.2 tonnes a month at ₹80,000 a tonne
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 14.75 |
| Contingency | 0.74 |
| Total fixed capital | 15.49 |
| Working capital margin | 0.00 |
| Total project cost | 15.49 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.55 | 10.0 |
| Term loan from bank | 13.94 | 90.0 |
| Total | 15.49 | 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 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.27 | 3.27 | 3.27 | 3.27 | 3.27 | 3.27 | 3.27 |
| Operating profit (EBITDA) | -3.27 | -3.27 | -3.27 | -3.27 | -3.27 | -3.27 | -3.27 |
| Depreciation | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.51 | 1.31 | 1.07 | 0.84 | 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 | -7.10 | -6.55 | -6.02 | -5.53 | -5.08 | -4.66 | -4.27 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.10 | -6.55 | -6.02 | -5.53 | -5.08 | -4.66 | -4.27 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.10 | -6.55 | -6.02 | -5.53 | -5.08 | -4.66 | -4.27 |
| Depreciation | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
| Cash accruals (PAT + depreciation) | -4.78 | -4.57 | -4.34 | -4.10 | -3.87 | -3.63 | -3.39 |
| Term loan repaid | 1.07 | 2.14 | 2.14 | 2.14 | 2.14 | 2.14 | 2.14 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.85 | -6.72 | -6.48 | -6.25 | -6.01 | -5.78 | -5.54 |
| Cash and bank | -5.85 | -12.57 | -19.05 | -25.30 | -31.31 | -37.08 | -42.62 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 |
| Reserves and surplus | -7.10 | -13.65 | -19.67 | -25.19 | -30.27 | -34.94 | -39.21 |
| Term loan outstanding | 12.87 | 10.72 | 8.58 | 6.43 | 4.29 | 2.14 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 7.32 | -1.38 | -9.54 | -17.21 | -24.44 | -31.24 | -37.66 |
| Net fixed assets | 13.16 | 11.19 | 9.51 | 8.08 | 6.87 | 5.84 | 4.96 |
| 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 | -5.85 | -12.57 | -19.05 | -25.30 | -31.31 | -37.08 | -42.62 |
| Total assets | 7.32 | -1.38 | -9.54 | -17.21 | -24.44 | -31.24 | -37.66 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.27 | -0.95 | -1.02 | -1.10 | -1.19 | -1.30 | -1.44 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.18 |
|---|---|
| Lowest DSCR | -1.44 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
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 | 13.94 | 1.51 | 1.07 | 12.87 |
| 2 | 12.87 | 1.31 | 2.14 | 10.72 |
| 3 | 10.72 | 1.07 | 2.14 | 8.58 |
| 4 | 8.58 | 0.84 | 2.14 | 6.43 |
| 5 | 6.43 | 0.60 | 2.14 | 4.29 |
| 6 | 4.29 | 0.36 | 2.14 | 2.14 |
| 7 | 2.14 | 0.13 | 2.14 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate
- PESO licence for storing chlorine containers under the Gas Cylinders Rules
- On-site emergency plan under the hazardous-chemical rules
- Factory licence if your worker count crosses the Factories Act limit
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Chlorinated Heavy Normal Paraffin — https://www.dcmsme.gov.in/publications/pmryprof/chemical/ch8.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 38 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0638_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.