Detailed Project Report
Electrical Appliance Repair and Servicing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.72 L
- Term loan from bank
- ₹1.12 L
- Promoter’s contribution
- ₹0.17 L
- Subsidy
- ₹0.43 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.20 L
- Average DSCR
- -13.14
- 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
Service and repair fans, mixer-grinders, geysers, water heaters and electric irons, including motor rewinding.
| Main product or service | Electrical Appliance Repair and Servicing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Shops, offices and small hotels with fans, geysers and heaters
- Families in semi-urban and rural areas
- Walk-in workshop
- Tie-ups with appliance dealers for out-of-warranty work
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Motorised winding machine | 1 | 50,000 | 50,000 |
| Manual winding machine (× 2) | 1 | 45,000 | 45,000 |
| Bench drilling machine, ½ inch | 1 | 4,500 | 4,500 |
| Portable drilling machine | 1 | 3,500 | 3,500 |
| Bench grinder, 200 mm | 1 | 5,000 | 5,000 |
| Soldering machine (× 2) | 1 | 2,000 | 2,000 |
| High-voltage tester, 2.5 kV | 1 | 13,000 | 13,000 |
| Testing panel board | 1 | 9,000 | 9,000 |
| Clamp meter, 3½ digit | 1 | 3,000 | 3,000 |
| Megger, 500 V DC | 1 | 14,000 | 14,000 |
| Multimeter | 1 | 3,000 | 3,000 |
| Leakage current tester | 1 | 6,000 | 6,000 |
| Auto transformer, 10 A | 1 | 4,000 | 4,000 |
| Other instruments and meters (× lump sum) | 1 | 2,000 | 2,000 |
| Total | 1,64,000 |
Pre-filled from: DC-MSME project profile — Repair & Servicing of Electrical Appliances (MSME-DI New Delhi). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Super enamelled copper wire — 30 kg a month at ₹550 a kg
- Ball bearings — 50 a month at ₹235 each
- Heating elements for electric irons — 40 a month at ₹120 each
- Immersion heaters for geysers — 40 a month at ₹150 each
- Shafts, bushes, capacitors, field coils, armatures, carbon brushes — ₹8,000 a month
- Cables, insulation paper, hardware and accessories — ₹14,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.64 |
| Contingency | 0.08 |
| Total fixed capital | 1.72 |
| Working capital margin | 0.00 |
| Total project cost | 1.72 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.17 | 10.0 |
| Subsidy | 0.43 | 25.0 |
| Term loan from bank | 1.12 | 65.0 |
| Total | 1.72 | 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 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 |
| Operating profit (EBITDA) | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 |
| Depreciation | 0.26 | 0.22 | 0.19 | 0.16 | 0.13 | 0.11 | 0.10 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.12 | 0.10 | 0.09 | 0.07 | 0.05 | 0.03 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.30 | -3.25 | -3.20 | -3.15 | -3.11 | -3.07 | -3.03 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.30 | -3.25 | -3.20 | -3.15 | -3.11 | -3.07 | -3.03 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.30 | -3.25 | -3.20 | -3.15 | -3.11 | -3.07 | -3.03 |
| Depreciation | 0.26 | 0.22 | 0.19 | 0.16 | 0.13 | 0.11 | 0.10 |
| Cash accruals (PAT + depreciation) | -3.04 | -3.03 | -3.01 | -2.99 | -2.97 | -2.95 | -2.93 |
| Term loan repaid | 0.09 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.13 | -3.20 | -3.18 | -3.16 | -3.14 | -3.12 | -3.11 |
| Cash and bank | -3.13 | -6.33 | -9.51 | -12.67 | -15.82 | -18.94 | -22.05 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 |
| Reserves and surplus | -3.30 | -6.55 | -9.75 | -12.89 | -16.00 | -19.07 | -22.10 |
| Term loan outstanding | 1.03 | 0.86 | 0.69 | 0.52 | 0.34 | 0.17 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.67 | -5.09 | -8.45 | -11.78 | -15.05 | -18.29 | -21.50 |
| Net fixed assets | 1.46 | 1.24 | 1.06 | 0.90 | 0.76 | 0.65 | 0.55 |
| 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 | -3.13 | -6.33 | -9.51 | -12.67 | -15.82 | -18.94 | -22.05 |
| Total assets | -1.67 | -5.09 | -8.45 | -11.78 | -15.05 | -18.29 | -21.50 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -14.10 | -10.55 | -11.32 | -12.22 | -13.27 | -14.51 | -16.02 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -13.14 |
|---|---|
| Lowest DSCR | -16.02 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.26 | 0.22 | 0.19 | 0.16 | 0.13 | 0.11 | 0.10 |
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 | 1.12 | 0.12 | 0.09 | 1.03 |
| 2 | 1.03 | 0.10 | 0.17 | 0.86 |
| 3 | 0.86 | 0.09 | 0.17 | 0.69 |
| 4 | 0.69 | 0.07 | 0.17 | 0.52 |
| 5 | 0.52 | 0.05 | 0.17 | 0.34 |
| 6 | 0.34 | 0.03 | 0.17 | 0.17 |
| 7 | 0.17 | 0.01 | 0.17 | 0.00 |
17 Licences and registrations
- Udyam
- GST (if turnover crosses the limit)
- Shop and establishment registration
- Trade licence from the local body
- Pollution board NOC (the profile advises taking one)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- DC-MSME project profile — Repair & Servicing of Electrical Appliances (MSME-DI New Delhi) — https://dcmsme.gov.in/ELECTRICAL%20PRODUCTS/Repair%20&%20Servicing%20of%20Electrical%20Appliances.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.