Detailed Project Report
Forged Hand Tools (Pliers, Wrenches and Screwdrivers)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1,064.71 L
- Term loan from bank
- ₹958.24 L
- Promoter’s contribution
- ₹106.47 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-218.54 L
- Average DSCR
- -0.15
- 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
Forge, heat-treat, grind and polish steel into pliers, wrenches and screwdrivers for mechanics, electricians and export buyers.
| Main product or service | Forged Hand Tools (Pliers, Wrenches and Screwdrivers) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Tool and hardware wholesalers
- Automobile workshops and garages
- Factories and maintenance departments
- Overseas importers of hand tools
- Distributors and hardware dealers
- Export orders
- Contract manufacturing for tool brands
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Forging hammers, 2 tonne (× 2) | 1 | 2,59,60,000 | 2,59,60,000 |
| Vertical machining centre (1300 x 700, 4-axis) (× 3) | 1 | 1,50,45,000 | 1,50,45,000 |
| Coiling press, 400 tonne | 1 | 76,70,000 | 76,70,000 |
| Wire-cut electro-discharge machines (× 2) | 1 | 71,27,000 | 71,27,000 |
| Electric coil heaters (× 3) | 1 | 70,80,000 | 70,80,000 |
| Heating furnaces (× 2) | 1 | 47,20,000 | 47,20,000 |
| Trimming press, 150 tonne | 1 | 47,20,000 | 47,20,000 |
| Plasma cutting machine (3500 x 8500 mm) | 1 | 35,40,000 | 35,40,000 |
| Blanking press, 100 tonne | 1 | 29,50,000 | 29,50,000 |
| Electro-discharge machines (EDM) (× 2) | 1 | 28,67,000 | 28,67,000 |
| Cylindrical grinding machines (internal and external) (× 2) | 1 | 35,28,000 | 35,28,000 |
| Lathes (6 feet), hydraulic surface grinder and shaper (× 4) | 1 | 38,88,000 | 38,88,000 |
| Grinding machines and polishing machines (× 20) | 1 | 23,60,000 | 23,60,000 |
| Design software | 1 | 14,16,000 | 14,16,000 |
| Air compressors, 250 kVA DG set and 400 kVA transformer with panel (× 4) | 1 | 40,19,000 | 40,19,000 |
| Spectrophotometer and crack detector (× 2) | 1 | 45,11,000 | 45,11,000 |
| Total | 10,14,01,000 |
Pre-filled from: DC-MSME import-substitution DPR — Hand Tools – Mechanical. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Steel — 4,000 kg a day, 1,04,000 kg a month at ₹65 a kg = ₹67.60 L a month (₹811.20 L a year at full capacity)
- Electroplating and packaging — done by outside units, as the report plans
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1,014.01 |
| Contingency | 50.70 |
| Total fixed capital | 1,064.71 |
| Working capital margin | 0.00 |
| Total project cost | 1,064.71 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 106.47 | 10.0 |
| Term loan from bank | 958.24 | 90.0 |
| Total | 1,064.71 | 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 | 21.29 | 21.29 | 21.29 | 21.29 | 21.29 | 21.29 | 21.29 |
| Insurance | 5.32 | 5.32 | 5.32 | 5.32 | 5.32 | 5.32 | 5.32 |
| Total cost of operations | 29.50 | 29.50 | 29.50 | 29.50 | 29.50 | 29.50 | 29.50 |
| Operating profit (EBITDA) | -29.50 | -29.50 | -29.50 | -29.50 | -29.50 | -29.50 | -29.50 |
| Depreciation | 159.71 | 135.75 | 115.39 | 98.08 | 83.37 | 70.86 | 60.23 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 103.72 | 89.87 | 73.65 | 57.43 | 41.22 | 25.00 | 8.78 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -292.92 | -255.11 | -218.54 | -185.01 | -154.08 | -125.36 | -98.51 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -292.92 | -255.11 | -218.54 | -185.01 | -154.08 | -125.36 | -98.51 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -292.92 | -255.11 | -218.54 | -185.01 | -154.08 | -125.36 | -98.51 |
| Depreciation | 159.71 | 135.75 | 115.39 | 98.08 | 83.37 | 70.86 | 60.23 |
| Cash accruals (PAT + depreciation) | -133.21 | -119.36 | -103.15 | -86.93 | -70.71 | -54.50 | -38.28 |
| Term loan repaid | 73.71 | 147.42 | 147.42 | 147.42 | 147.42 | 147.42 | 147.42 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -206.93 | -266.78 | -250.57 | -234.35 | -218.14 | -201.92 | -185.70 |
| Cash and bank | -206.93 | -473.71 | -724.28 | -958.63 | -1,176.77 | -1,378.69 | -1,564.39 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 106.47 | 106.47 | 106.47 | 106.47 | 106.47 | 106.47 | 106.47 |
| Reserves and surplus | -292.92 | -548.04 | -766.57 | -951.58 | -1,105.66 | -1,231.02 | -1,329.54 |
| Term loan outstanding | 884.53 | 737.11 | 589.69 | 442.26 | 294.84 | 147.42 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 698.08 | 295.54 | -70.41 | -402.85 | -704.35 | -977.13 | -1,223.07 |
| Net fixed assets | 905.00 | 769.25 | 653.87 | 555.79 | 472.42 | 401.56 | 341.32 |
| 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 | -206.93 | -473.71 | -724.28 | -958.63 | -1,176.77 | -1,378.69 | -1,564.39 |
| Total assets | 698.08 | 295.54 | -70.41 | -402.85 | -704.35 | -977.13 | -1,223.07 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.17 | -0.12 | -0.13 | -0.14 | -0.16 | -0.17 | -0.19 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.15 |
|---|---|
| Lowest DSCR | -0.19 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 159.71 | 135.75 | 115.39 | 98.08 | 83.37 | 70.86 | 60.23 |
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 | 958.24 | 103.72 | 73.71 | 884.53 |
| 2 | 884.53 | 89.87 | 147.42 | 737.11 |
| 3 | 737.11 | 73.65 | 147.42 | 589.69 |
| 4 | 589.69 | 57.43 | 147.42 | 442.26 |
| 5 | 442.26 | 41.22 | 147.42 | 294.84 |
| 6 | 294.84 | 25.00 | 147.42 | 147.42 |
| 7 | 147.42 | 8.78 | 147.42 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- Consent to Establish and Consent to Operate from the State Pollution Control Board (red or orange category)
- Fire NOC and Importer-Exporter Code for exports
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Hand Tools – Mechanical — https://dcmsme.gov.in/40_Hand%20Tools%20Mech%20by%20Vinay%20Adlakha.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.