Detailed Project Report
Gear and Gear Box Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹185.85 L
- Term loan from bank
- ₹167.27 L
- Promoter’s contribution
- ₹18.59 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-40.52 L
- Average DSCR
- -0.23
- 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, hob, harden and grind gears and assemble industrial gear boxes and geared motors for machines and conveyors.
| Main product or service | Gear and Gear Box Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Material-handling and conveyor makers
- Food and beverage plant builders
- Auto and auto-component makers
- General machinery makers and maintenance departments
- Direct OEM supply
- Power-transmission dealers
- Replacement sales to factories
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Blank/billet cutting machines (× 2) | 1 | 3,00,000 | 3,00,000 |
| Induction heaters for blanks (× 2) | 1 | 5,00,000 | 5,00,000 |
| Pneumatic forging hammers (× 2) | 1 | 14,00,000 | 14,00,000 |
| Mechanical forging hammers (× 2) | 1 | 5,00,000 | 5,00,000 |
| Gear hobbing machines (× 2) | 1 | 40,00,000 | 40,00,000 |
| Gear grinding machines (× 2) | 1 | 36,00,000 | 36,00,000 |
| Heavy-duty milling machines (× 2) | 1 | 11,00,000 | 11,00,000 |
| Induction heat-treatment units (× 2) | 1 | 3,60,000 | 3,60,000 |
| Shot blasting machines (× 2) | 1 | 2,40,000 | 2,40,000 |
| CNC lathes (× 2) | 1 | 13,00,000 | 13,00,000 |
| Cylindrical grinder | 1 | 7,00,000 | 7,00,000 |
| Lapping machine | 1 | 8,00,000 | 8,00,000 |
| Lathe machines (× 2) | 1 | 4,00,000 | 4,00,000 |
| Vertical lathe | 1 | 4,50,000 | 4,50,000 |
| Radial and pillar drilling machines (× 2) | 1 | 4,00,000 | 4,00,000 |
| Gear profile inspection and testing machines (× 3) | 1 | 3,00,000 | 3,00,000 |
| 5-axis CNC measuring machine | 1 | 6,50,000 | 6,50,000 |
| Die tools, gauges and miscellaneous tools (× 1 lot) | 1 | 7,00,000 | 7,00,000 |
| Total | 1,77,00,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Gear Boxes. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Precision cast steel gear blanks — ₹60–350 a kg in the report
- Forged gear blanks or alloy steel billets — ₹120–300 a kg
- Bearings, housings, seals and lubricants for gear boxes — bought in
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 177.00 |
| Contingency | 8.85 |
| Total fixed capital | 185.85 |
| Working capital margin | 0.00 |
| Total project cost | 185.85 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 18.59 | 10.0 |
| Term loan from bank | 167.27 | 90.0 |
| Total | 185.85 | 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 | 3.72 | 3.72 | 3.72 | 3.72 | 3.72 | 3.72 | 3.72 |
| Insurance | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 |
| Total cost of operations | 7.53 | 7.53 | 7.53 | 7.53 | 7.53 | 7.53 | 7.53 |
| Operating profit (EBITDA) | -7.53 | -7.53 | -7.53 | -7.53 | -7.53 | -7.53 | -7.53 |
| Depreciation | 27.88 | 23.70 | 20.14 | 17.12 | 14.55 | 12.37 | 10.51 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 18.10 | 15.69 | 12.86 | 10.03 | 7.19 | 4.36 | 1.53 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -53.51 | -46.91 | -40.52 | -34.67 | -29.27 | -24.26 | -19.57 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -53.51 | -46.91 | -40.52 | -34.67 | -29.27 | -24.26 | -19.57 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -53.51 | -46.91 | -40.52 | -34.67 | -29.27 | -24.26 | -19.57 |
| Depreciation | 27.88 | 23.70 | 20.14 | 17.12 | 14.55 | 12.37 | 10.51 |
| Cash accruals (PAT + depreciation) | -25.63 | -23.21 | -20.38 | -17.55 | -14.72 | -11.89 | -9.06 |
| Term loan repaid | 12.87 | 25.73 | 25.73 | 25.73 | 25.73 | 25.73 | 25.73 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -38.50 | -48.95 | -46.12 | -43.28 | -40.45 | -37.62 | -34.79 |
| Cash and bank | -38.50 | -87.44 | -133.56 | -176.84 | -217.30 | -254.92 | -289.71 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 18.59 | 18.59 | 18.59 | 18.59 | 18.59 | 18.59 | 18.59 |
| Reserves and surplus | -53.51 | -100.42 | -140.94 | -175.61 | -204.88 | -229.14 | -248.72 |
| Term loan outstanding | 154.40 | 128.67 | 102.93 | 77.20 | 51.47 | 25.73 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 119.48 | 46.83 | -19.42 | -79.83 | -134.83 | -184.83 | -230.13 |
| Net fixed assets | 157.97 | 134.28 | 114.14 | 97.01 | 82.46 | 70.09 | 59.58 |
| 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 | -38.50 | -87.44 | -133.56 | -176.84 | -217.30 | -254.92 | -289.71 |
| Total assets | 119.48 | 46.83 | -19.42 | -79.83 | -134.83 | -184.83 | -230.13 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.24 | -0.18 | -0.20 | -0.21 | -0.23 | -0.25 | -0.28 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.23 |
|---|---|
| Lowest DSCR | -0.28 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 27.88 | 23.70 | 20.14 | 17.12 | 14.55 | 12.37 | 10.51 |
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 | 167.27 | 18.10 | 12.87 | 154.40 |
| 2 | 154.40 | 15.69 | 25.73 | 128.67 |
| 3 | 128.67 | 12.86 | 25.73 | 102.93 |
| 4 | 102.93 | 10.03 | 25.73 | 77.20 |
| 5 | 77.20 | 7.19 | 25.73 | 51.47 |
| 6 | 51.47 | 4.36 | 25.73 | 25.73 |
| 7 | 25.73 | 1.53 | 25.73 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Factory licence and plan approval
- Fire NOC
- State Pollution Control Board consent for forging and heat treatment
- ESI and PF
- Company registration if set up as a company
- IEC code if you export
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- SIDBI Stand-Up Mitra project profile — Gear Boxes — https://www.standupmitra.in/Default/ViewFile/?id=1520963481983_Gear%20Boxes.docx&path=ProjectProfile
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.