Detailed Project Report
Electric Resistance Furnace Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.37 L
- Term loan from bank
- ₹2.19 L
- Promoter’s contribution
- ₹0.34 L
- Subsidy
- ₹0.84 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.50 L
- Average DSCR
- -6.81
- 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
Build made-to-order resistance-heated furnaces (up to 50 kW, about 1,000 °C) for factories, food and chemical plants and labs.
| Main product or service | Electric Resistance Furnace Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Engineering industries (heat treatment)
- Food processing industries
- Chemical processing industries
- Laboratories
- Direct orders from factories
- Referrals and industrial fairs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Power press | 1 | 50,000 | 50,000 |
| Drilling machine, 2" capacity (× 2) | 1 | 36,000 | 36,000 |
| Shearing machine, 1200 mm | 1 | 30,000 | 30,000 |
| Bending press | 1 | 26,000 | 26,000 |
| Spring coil winding machine | 1 | 26,000 | 26,000 |
| Arc welding set | 1 | 25,000 | 25,000 |
| Double-ended grinder 200 mm, 2 HP (× 2) | 1 | 20,000 | 20,000 |
| Air compressor with spray painting; chain pulley block 5 t; flexible grinder (× 1 each) | 1 | 48,000 | 48,000 |
| Testing: HV tester, digital micro-ohm meter, pyrometer, thermocouple test set, ammeters, voltmeters, wattmeters, multimeter, anemometer (× 1 lot) | 1 | 60,000 | 60,000 |
| Total | 3,21,000 |
Pre-filled from: DC-MSME project profile — Electric Furnace; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Refractory bricks — ₹1,10,000 a month
- Control panel assembly — 4 a month at ₹26,000 = ₹1,04,000
- Fire-clay bricks — 5,100 a month at ₹16 = ₹81,600
- Kanthal resistance wire — 8 kg a month at ₹4,000/kg = ₹32,000
- MS sheet (18 gauge) and MS channel — 1,300 kg + 450 kg a month = ₹38,050
- Thermocouples, thermostats, compensating cable — ₹19,375 a month
- Fire clay, paint, bolts, nuts, welding rods — ₹11,200 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.21 |
| Contingency | 0.16 |
| Total fixed capital | 3.37 |
| Working capital margin | 0.00 |
| Total project cost | 3.37 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.34 | 10.0 |
| Subsidy | 0.84 | 25.0 |
| Term loan from bank | 2.19 | 65.0 |
| Total | 3.37 | 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 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 |
| Operating profit (EBITDA) | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 |
| Depreciation | 0.51 | 0.43 | 0.37 | 0.31 | 0.26 | 0.22 | 0.19 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.24 | 0.21 | 0.17 | 0.13 | 0.09 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.71 | -3.60 | -3.50 | -3.41 | -3.32 | -3.25 | -3.18 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.71 | -3.60 | -3.50 | -3.41 | -3.32 | -3.25 | -3.18 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.71 | -3.60 | -3.50 | -3.41 | -3.32 | -3.25 | -3.18 |
| Depreciation | 0.51 | 0.43 | 0.37 | 0.31 | 0.26 | 0.22 | 0.19 |
| Cash accruals (PAT + depreciation) | -3.20 | -3.17 | -3.13 | -3.10 | -3.06 | -3.02 | -2.98 |
| Term loan repaid | 0.17 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.37 | -3.51 | -3.47 | -3.43 | -3.40 | -3.36 | -3.32 |
| Cash and bank | -3.37 | -6.88 | -10.35 | -13.78 | -17.17 | -20.53 | -23.85 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.18 | 1.18 | 1.18 | 1.18 | 1.18 | 1.18 | 1.18 |
| Reserves and surplus | -3.71 | -7.31 | -10.80 | -14.21 | -17.53 | -20.78 | -23.95 |
| Term loan outstanding | 2.02 | 1.69 | 1.35 | 1.01 | 0.67 | 0.34 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.50 | -4.44 | -8.28 | -12.02 | -15.68 | -19.26 | -22.77 |
| Net fixed assets | 2.86 | 2.44 | 2.07 | 1.76 | 1.50 | 1.27 | 1.08 |
| 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 | -3.37 | -6.88 | -10.35 | -13.78 | -17.17 | -20.53 | -23.85 |
| Total assets | -0.50 | -4.44 | -8.28 | -12.02 | -15.68 | -19.26 | -22.77 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -7.31 | -5.46 | -5.86 | -6.33 | -6.87 | -7.52 | -8.30 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.81 |
|---|---|
| Lowest DSCR | -8.30 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.51 | 0.43 | 0.37 | 0.31 | 0.26 | 0.22 | 0.19 |
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 | 2.19 | 0.24 | 0.17 | 2.02 |
| 2 | 2.02 | 0.21 | 0.34 | 1.69 |
| 3 | 1.69 | 0.17 | 0.34 | 1.35 |
| 4 | 1.35 | 0.13 | 0.34 | 1.01 |
| 5 | 1.01 | 0.09 | 0.34 | 0.67 |
| 6 | 0.67 | 0.06 | 0.34 | 0.34 |
| 7 | 0.34 | 0.02 | 0.34 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Trade licence from the local body
- State Pollution Control Board consent (welding and painting)
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)
- Stand-Up India
19 Sources
- DC-MSME project profile — Electric Furnace — https://www.dcmsme.gov.in/publications/pmryprof/electrical/ch11.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.