Detailed Project Report
Hand Pump Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.96 L
- Term loan from bank
- ₹11.67 L
- Promoter’s contribution
- ₹1.80 L
- Subsidy
- ₹4.49 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.17 L
- Average DSCR
- -1.44
- 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
Cast, finish and assemble cast-iron hand pumps for rural drinking-water supply.
| Main product or service | Hand Pump Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- State water-supply and rural development departments
- Water-supply contractors
- Hardware and pump dealers
- Households and farms
- Government tenders
- Dealers in hardware and pumps
- Direct sale of spare parts
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Die casting machine | 1 | 10,00,000 | 10,00,000 |
| Pickling plant | 1 | 3,50,000 | 3,50,000 |
| Riveting machine and air compressor | 1 | 20,000 | 20,000 |
| Buffing machine | 1 | 10,000 | 10,000 |
| Heating chamber (for powder-coat curing) | 1 | 1,80,000 | 1,80,000 |
| Laser or pad printing machine (optional) | 1 | 1,50,000 | 1,50,000 |
| Total | 17,10,000 |
Pre-filled from: PMEGP sample project report — Handpump (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Cast iron (pig iron, scrap) — for pump body, handle, cap and base
- Piston valve, pump rod, nuts, bolts, washers, pins — bought-out parts
- Rubber gaskets and cup leathers — for sealing and the plunger
- Paint or powder coating — for finishing
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 17.10 |
| Contingency | 0.86 |
| Total fixed capital | 17.96 |
| Working capital margin | 0.00 |
| Total project cost | 17.96 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.80 | 10.0 |
| Subsidy | 4.49 | 25.0 |
| Term loan from bank | 11.67 | 65.0 |
| Total | 17.96 | 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 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 |
| Operating profit (EBITDA) | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 |
| Depreciation | 2.69 | 2.29 | 1.95 | 1.65 | 1.41 | 1.20 | 1.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.26 | 1.09 | 0.90 | 0.70 | 0.50 | 0.30 | 0.11 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.29 | -6.71 | -6.17 | -5.68 | -5.24 | -4.83 | -4.45 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.29 | -6.71 | -6.17 | -5.68 | -5.24 | -4.83 | -4.45 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.29 | -6.71 | -6.17 | -5.68 | -5.24 | -4.83 | -4.45 |
| Depreciation | 2.69 | 2.29 | 1.95 | 1.65 | 1.41 | 1.20 | 1.02 |
| Cash accruals (PAT + depreciation) | -4.59 | -4.42 | -4.23 | -4.03 | -3.83 | -3.63 | -3.44 |
| Term loan repaid | 0.90 | 1.80 | 1.80 | 1.80 | 1.80 | 1.80 | 1.80 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.49 | -6.22 | -6.02 | -5.82 | -5.63 | -5.43 | -5.23 |
| Cash and bank | -5.49 | -11.71 | -17.73 | -23.55 | -29.18 | -34.61 | -39.84 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.28 | 6.28 | 6.28 | 6.28 | 6.28 | 6.28 | 6.28 |
| Reserves and surplus | -7.29 | -14.00 | -20.17 | -25.85 | -31.09 | -35.92 | -40.37 |
| Term loan outstanding | 10.77 | 8.98 | 7.18 | 5.39 | 3.59 | 1.80 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.77 | 1.26 | -6.70 | -14.18 | -21.21 | -27.84 | -34.08 |
| Net fixed assets | 15.26 | 12.97 | 11.03 | 9.37 | 7.97 | 6.77 | 5.76 |
| 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 | -5.49 | -11.71 | -17.73 | -23.55 | -29.18 | -34.61 | -39.84 |
| Total assets | 9.77 | 1.26 | -6.70 | -14.18 | -21.21 | -27.84 | -34.08 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.54 | -1.15 | -1.24 | -1.33 | -1.45 | -1.59 | -1.75 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.44 |
|---|---|
| Lowest DSCR | -1.75 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.69 | 2.29 | 1.95 | 1.65 | 1.41 | 1.20 | 1.02 |
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 | 11.67 | 1.26 | 0.90 | 10.77 |
| 2 | 10.77 | 1.09 | 1.80 | 8.98 |
| 3 | 8.98 | 0.90 | 1.80 | 7.18 |
| 4 | 7.18 | 0.70 | 1.80 | 5.39 |
| 5 | 5.39 | 0.50 | 1.80 | 3.59 |
| 6 | 3.59 | 0.30 | 1.80 | 1.80 |
| 7 | 1.80 | 0.11 | 1.80 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- State pollution board consent and fire NOC (the report lists both)
- Trade licence
- BIS certification (listed in the report; India Mark II pumps for government supply are made to IS 9301)
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 — Handpump (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/handpump_%28_Samadhan_Projects_%29.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.