Detailed Project Report
Galvanised Steel (GI) Wire
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹42.53 L
- Term loan from bank
- ₹27.64 L
- Promoter’s contribution
- ₹4.25 L
- Subsidy
- ₹10.63 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-10.68 L
- Average DSCR
- -0.72
- 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 to size and coat it with zinc for poles, sleepers, precast products and fencing.
| Main product or service | Galvanised Steel (GI) Wire |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Precast concrete makers — railway sleepers, electric and telephone poles, pipes, door and window frames
- Strand makers for electrical, railway and shipping use
- Fencing and household users
- Direct B2B supply
- Steel and hardware traders
- Government and PSU tenders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Bull-block heavy-duty wire drawing machine, 750 mm drum, with motor | 1 | 4,00,000 | 4,00,000 |
| Bull-block heavy-duty wire drawing machine, 600 mm drum, with motor | 1 | 3,00,000 | 3,00,000 |
| Multi-stage wire drawing machine, 4 dies in a row | 1 | 2,00,000 | 2,00,000 |
| Pickling tank, 2 m × 8 m × 2 m | 1 | 1,00,000 | 1,00,000 |
| Oil-fired lead bath furnace, 6 m × 1 m × ½ m, with 7.5 HP blower and quenching tank | 1 | 6,20,000 | 6,20,000 |
| Oil-fired zinc furnace, 3 m × 1 m × ½ m, with 5 HP blower and fluxing tank | 1 | 7,15,000 | 7,15,000 |
| Water rinsing tank | 1 | 40,000 | 40,000 |
| Take-up machine with 12 spools, variable speed | 1 | 4,70,000 | 4,70,000 |
| Effluent treatment plant (neutralising and filtering tanks, water cooling) | 1 | 7,80,000 | 7,80,000 |
| Overhead crane, 2 tonne | 1 | 3,00,000 | 3,00,000 |
| Lathe, 4 ft bed, with motor | 1 | 75,000 | 75,000 |
| Other equipment and hand tools (× LS) | 1 | 50,000 | 50,000 |
| Total | 40,50,000 |
Pre-filled from: PMEGP sample project report — Galvanized MS Wire (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 72. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- MS wire rod, 6–8 mm — 1,000 tonnes a year at ₹35,000 a tonne = ₹350.00 L at full capacity
- Lead — 5 tonnes at ₹1,50,000 a tonne = ₹7.50 L
- Zinc — 50 tonnes at ₹2,00,000 a tonne = ₹100.00 L
- Furnace oil — 100 KL at ₹30,000 = ₹30.00 L
- Charcoal, oil, asbestos and other materials — ₹1.50 L a year (lump sum)
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 40.50 |
| Contingency | 2.03 |
| Total fixed capital | 42.53 |
| Working capital margin | 0.00 |
| Total project cost | 42.53 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.25 | 10.0 |
| Subsidy | 10.63 | 25.0 |
| Term loan from bank | 27.64 | 65.0 |
| Total | 42.53 | 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 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 |
| Insurance | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Total cost of operations | 3.94 | 3.94 | 3.94 | 3.94 | 3.94 | 3.94 | 3.94 |
| Operating profit (EBITDA) | -3.94 | -3.94 | -3.94 | -3.94 | -3.94 | -3.94 | -3.94 |
| Depreciation | 6.38 | 5.42 | 4.61 | 3.92 | 3.33 | 2.83 | 2.41 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.99 | 2.59 | 2.12 | 1.66 | 1.19 | 0.72 | 0.25 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -13.31 | -11.96 | -10.68 | -9.52 | -8.46 | -7.49 | -6.60 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -13.31 | -11.96 | -10.68 | -9.52 | -8.46 | -7.49 | -6.60 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -13.31 | -11.96 | -10.68 | -9.52 | -8.46 | -7.49 | -6.60 |
| Depreciation | 6.38 | 5.42 | 4.61 | 3.92 | 3.33 | 2.83 | 2.41 |
| Cash accruals (PAT + depreciation) | -6.93 | -6.54 | -6.07 | -5.60 | -5.13 | -4.66 | -4.20 |
| Term loan repaid | 2.13 | 4.25 | 4.25 | 4.25 | 4.25 | 4.25 | 4.25 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -9.06 | -10.79 | -10.32 | -9.85 | -9.38 | -8.92 | -8.45 |
| Cash and bank | -9.06 | -19.85 | -30.17 | -40.02 | -49.41 | -58.32 | -66.77 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 14.88 | 14.88 | 14.88 | 14.88 | 14.88 | 14.88 | 14.88 |
| Reserves and surplus | -13.31 | -25.27 | -35.95 | -45.46 | -53.93 | -61.42 | -68.02 |
| Term loan outstanding | 25.52 | 21.26 | 17.01 | 12.76 | 8.51 | 4.25 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 27.09 | 10.88 | -4.05 | -17.82 | -30.54 | -42.28 | -53.14 |
| Net fixed assets | 36.15 | 30.72 | 26.12 | 22.20 | 18.87 | 16.04 | 13.63 |
| 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 | -9.06 | -19.85 | -30.17 | -40.02 | -49.41 | -58.32 | -66.77 |
| Total assets | 27.09 | 10.88 | -4.05 | -17.82 | -30.54 | -42.28 | -53.14 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.77 | -0.58 | -0.62 | -0.67 | -0.72 | -0.79 | -0.88 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.72 |
|---|---|
| Lowest DSCR | -0.88 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 6.38 | 5.42 | 4.61 | 3.92 | 3.33 | 2.83 | 2.41 |
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 | 27.64 | 2.99 | 2.13 | 25.52 |
| 2 | 25.52 | 2.59 | 4.25 | 21.26 |
| 3 | 21.26 | 2.12 | 4.25 | 17.01 |
| 4 | 17.01 | 1.66 | 4.25 | 12.76 |
| 5 | 12.76 | 1.19 | 4.25 | 8.51 |
| 6 | 8.51 | 0.72 | 4.25 | 4.25 |
| 7 | 4.25 | 0.25 | 4.25 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent (CTE/CTO)
- Factory licence (depends on workers and power)
- Fire NOC
- BIS certification where the Steel Quality Control Order covers your wire grade
- Trademark for your brand (optional)
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
- PMEGP sample project report — Galvanized MS Wire (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Galvanized_steel_wire_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 72 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1572_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.