Detailed Project Report
Copper Coated MS Welding Wire (SAW / MIG)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.83 L
- Term loan from bank
- ₹3.79 L
- Promoter’s contribution
- ₹0.58 L
- Subsidy
- ₹1.46 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.95 L
- Average DSCR
- -4.02
- 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
Draw mild steel wire rod down to fine gauges and coat it with copper to make welding wire for submerged-arc and MIG welding.
| Main product or service | Copper Coated MS Welding Wire (SAW / MIG) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Railways
- Ship builders
- Fertiliser, cement and petrochemical plants
- Water pipeline makers
- Fabrication workshops
- Direct supply to industrial buyers
- Welding-consumable dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Heavy-duty non-slip wire drawing machine, 24 in drum, 25 HP | 1 | 95,000 | 95,000 |
| Heavy-duty non-slip wire drawing machine, 22 in drum, 20 HP | 1 | 0 | 0 |
| Wire drawing machines, 12 in drum, up to 18 SWG, 5 HP (× 4) | 1 | 2,00,000 | 2,00,000 |
| Roller-type wire pointing machine, 10 mm to 2 mm | 1 | 25,000 | 25,000 |
| Butt welding machine, 6 mm to 2 mm wire | 1 | 40,000 | 40,000 |
| Heavy-duty reeling machines (× 2) | 1 | 65,000 | 65,000 |
| Electric annealing furnace, 20 kVA, with temperature controller | 1 | 0 | 0 |
| Pickling and copper coating baths with bus bars (× 3) | 1 | 0 | 0 |
| Wire polishing machine, 5 HP | 1 | 40,000 | 40,000 |
| Laboratory equipment and chemicals (× 1 lot) | 1 | 90,000 | 90,000 |
| Total | 5,55,000 |
Pre-filled from: DC-MSME project profile — Copper Coated M.S. Wire; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- EQ-grade MS wire rod, 6–8 mm — 20.5 MT a month at ₹18,000 a MT in the profile
- Copper coating chemicals, acids and anodes
- Masonite board spools — 400 a month at ₹20 each in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.55 |
| Contingency | 0.28 |
| Total fixed capital | 5.83 |
| Working capital margin | 0.00 |
| Total project cost | 5.83 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.58 | 10.0 |
| Subsidy | 1.46 | 25.0 |
| Term loan from bank | 3.79 | 65.0 |
| Total | 5.83 | 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 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 |
| Operating profit (EBITDA) | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 |
| Depreciation | 0.87 | 0.74 | 0.63 | 0.54 | 0.46 | 0.39 | 0.33 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.41 | 0.36 | 0.29 | 0.23 | 0.16 | 0.10 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.31 | -4.12 | -3.95 | -3.79 | -3.64 | -3.51 | -3.39 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.31 | -4.12 | -3.95 | -3.79 | -3.64 | -3.51 | -3.39 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.31 | -4.12 | -3.95 | -3.79 | -3.64 | -3.51 | -3.39 |
| Depreciation | 0.87 | 0.74 | 0.63 | 0.54 | 0.46 | 0.39 | 0.33 |
| Cash accruals (PAT + depreciation) | -3.44 | -3.38 | -3.32 | -3.25 | -3.19 | -3.12 | -3.06 |
| Term loan repaid | 0.29 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.73 | -3.96 | -3.90 | -3.84 | -3.77 | -3.71 | -3.64 |
| Cash and bank | -3.73 | -7.69 | -11.59 | -15.43 | -19.20 | -22.90 | -26.55 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.04 | 2.04 | 2.04 | 2.04 | 2.04 | 2.04 | 2.04 |
| Reserves and surplus | -4.31 | -8.43 | -12.38 | -16.17 | -19.82 | -23.33 | -26.72 |
| Term loan outstanding | 3.50 | 2.91 | 2.33 | 1.75 | 1.17 | 0.58 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.23 | -3.48 | -8.01 | -12.38 | -16.61 | -20.71 | -24.68 |
| Net fixed assets | 4.95 | 4.21 | 3.58 | 3.04 | 2.59 | 2.20 | 1.87 |
| 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 | -3.73 | -7.69 | -11.59 | -15.43 | -19.20 | -22.90 | -26.55 |
| Total assets | 1.23 | -3.48 | -8.01 | -12.38 | -16.61 | -20.71 | -24.68 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.31 | -3.23 | -3.46 | -3.74 | -4.06 | -4.44 | -4.90 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.02 |
|---|---|
| Lowest DSCR | -4.90 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.87 | 0.74 | 0.63 | 0.54 | 0.46 | 0.39 | 0.33 |
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 | 3.79 | 0.41 | 0.29 | 3.50 |
| 2 | 3.50 | 0.36 | 0.58 | 2.91 |
| 3 | 2.91 | 0.29 | 0.58 | 2.33 |
| 4 | 2.33 | 0.23 | 0.58 | 1.75 |
| 5 | 1.75 | 0.16 | 0.58 | 1.17 |
| 6 | 1.17 | 0.10 | 0.58 | 0.58 |
| 7 | 0.58 | 0.03 | 0.58 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent to establish and operate (acid pickling waste)
- Factory licence under the Factories Act
- BIS certification if a Quality Control Order covers the welding wire you make
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Copper Coated M.S. Wire — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch8.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.