Detailed Project Report
HDPE Pipe Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹40.69 L
- Term loan from bank
- ₹36.62 L
- Promoter’s contribution
- ₹4.07 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-11.12 L
- Average DSCR
- -0.54
- 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
Extrude HDPE granules into water, irrigation, sewage and gas pipes up to 110 mm, cut to length or coiled.
| Main product or service | HDPE Pipe Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Water-supply and irrigation departments and their contractors
- Farmers and irrigation dealers
- Industries for effluent lines
- Mining and gas-distribution projects
- Government tenders
- Pipe and hardware dealers
- Direct supply to contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| HDPE pipe extrusion line — single-screw extruder, die, calibrator, chilled-water cooling tank, haul-off, cutter and winder (× 1 line) | 1 | 0 | 0 |
| Total plant and machinery (× —) | 1 | 38,75,000 | 38,75,000 |
| Total | 38,75,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — HDPE Pipes. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- HDPE granules — taken at ₹78 a kg; about ₹270.95 L a year in year 1
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 38.75 |
| Contingency | 1.94 |
| Total fixed capital | 40.69 |
| Working capital margin | 0.00 |
| Total project cost | 40.69 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.07 | 10.0 |
| Term loan from bank | 36.62 | 90.0 |
| Total | 40.69 | 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 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
| Insurance | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Total cost of operations | 3.90 | 3.90 | 3.90 | 3.90 | 3.90 | 3.90 | 3.90 |
| Operating profit (EBITDA) | -3.90 | -3.90 | -3.90 | -3.90 | -3.90 | -3.90 | -3.90 |
| Depreciation | 6.10 | 5.19 | 4.41 | 3.75 | 3.19 | 2.71 | 2.30 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 3.96 | 3.43 | 2.81 | 2.19 | 1.58 | 0.96 | 0.34 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -13.96 | -12.52 | -11.12 | -9.84 | -8.66 | -7.56 | -6.53 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -13.96 | -12.52 | -11.12 | -9.84 | -8.66 | -7.56 | -6.53 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -13.96 | -12.52 | -11.12 | -9.84 | -8.66 | -7.56 | -6.53 |
| Depreciation | 6.10 | 5.19 | 4.41 | 3.75 | 3.19 | 2.71 | 2.30 |
| Cash accruals (PAT + depreciation) | -7.86 | -7.33 | -6.71 | -6.09 | -5.47 | -4.85 | -4.23 |
| Term loan repaid | 2.82 | 5.63 | 5.63 | 5.63 | 5.63 | 5.63 | 5.63 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -10.68 | -12.97 | -12.35 | -11.73 | -11.11 | -10.49 | -9.87 |
| Cash and bank | -10.68 | -23.64 | -35.99 | -47.71 | -58.82 | -69.31 | -79.17 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.07 | 4.07 | 4.07 | 4.07 | 4.07 | 4.07 | 4.07 |
| Reserves and surplus | -13.96 | -26.48 | -37.60 | -47.44 | -56.10 | -63.66 | -70.20 |
| Term loan outstanding | 33.80 | 28.17 | 22.53 | 16.90 | 11.27 | 5.63 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 23.91 | 5.75 | -11.00 | -26.47 | -40.77 | -53.96 | -66.13 |
| Net fixed assets | 34.58 | 29.40 | 24.99 | 21.24 | 18.05 | 15.35 | 13.04 |
| 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 | -10.68 | -23.64 | -35.99 | -47.71 | -58.82 | -69.31 | -79.17 |
| Total assets | 23.91 | 5.75 | -11.00 | -26.47 | -40.77 | -53.96 | -66.13 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.57 | -0.43 | -0.46 | -0.50 | -0.54 | -0.59 | -0.65 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.54 |
|---|---|
| Lowest DSCR | -0.65 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 6.10 | 5.19 | 4.41 | 3.75 | 3.19 | 2.71 | 2.30 |
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 | 36.62 | 3.96 | 2.82 | 33.80 |
| 2 | 33.80 | 3.43 | 5.63 | 28.17 |
| 3 | 28.17 | 2.81 | 5.63 | 22.53 |
| 4 | 22.53 | 2.19 | 5.63 | 16.90 |
| 5 | 16.90 | 1.58 | 5.63 | 11.27 |
| 6 | 11.27 | 0.96 | 5.63 | 5.63 |
| 7 | 5.63 | 0.34 | 5.63 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- BIS ISI mark — water-supply buyers ask for it; check whether a Quality Control Order covers your pipe
- State Pollution Control Board consent where applicable
- Factory licence and fire NOC
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- SIDBI Stand-Up Mitra project profile — HDPE Pipes — https://www.standupmitra.in/Default/ViewFile/?id=1516711429172_HDPE%20Pipes.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.