Detailed Project Report
Hydraulic Valve Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹56.96 L
- Term loan from bank
- ₹51.27 L
- Promoter’s contribution
- ₹5.70 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-14.42 L
- Average DSCR
- -0.42
- 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
Machine valve bodies and spools to close tolerances and assemble directional, flow and pressure valves for hydraulic machines.
| Main product or service | Hydraulic Valve Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Earth-moving, mining and construction equipment makers
- Tractor and farm machinery makers
- Press, machine-tool and steel-plant equipment makers
- Hydraulic repair and spares dealers
- Direct OEM supply
- Hydraulic system integrators and dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Blank cutting machine | 1 | 75,000 | 75,000 |
| Precision lathe | 1 | 2,50,000 | 2,50,000 |
| CNC machining centre | 1 | 9,00,000 | 9,00,000 |
| CNC turret lathe | 1 | 6,50,000 | 6,50,000 |
| Milling machine | 1 | 3,50,000 | 3,50,000 |
| Shot blasting/tumbling machine | 1 | 1,50,000 | 1,50,000 |
| Cylindrical grinder | 1 | 5,00,000 | 5,00,000 |
| Pillar drilling machine | 1 | 1,50,000 | 1,50,000 |
| Online laser measuring machine | 1 | 2,50,000 | 2,50,000 |
| 5-axis CNC measuring machine | 1 | 6,50,000 | 6,50,000 |
| Clean room air-handling plant | 1 | 3,50,000 | 3,50,000 |
| Air compressor plant | 1 | 2,50,000 | 2,50,000 |
| MIG welding machine | 1 | 1,50,000 | 1,50,000 |
| Die tools and gauges (× 1 lot) | 1 | 3,00,000 | 3,00,000 |
| Miscellaneous tools (× 1 lot) | 1 | 1,50,000 | 1,50,000 |
| Electrical installation (× 1 lot) | 1 | 3,00,000 | 3,00,000 |
| Total | 54,25,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Hydraulic Valves. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Carbon and alloy steels — ₹60–200 a kg in the report
- Valve-body castings and forgings (aluminium, bronze, steel) — forged rods and bars ₹60–140 a kg
- Seals and gaskets — ₹30–850 or more a set
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 54.25 |
| Contingency | 2.71 |
| Total fixed capital | 56.96 |
| Working capital margin | 0.00 |
| Total project cost | 56.96 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 5.70 | 10.0 |
| Term loan from bank | 51.27 | 90.0 |
| Total | 56.96 | 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 | 1.14 | 1.14 | 1.14 | 1.14 | 1.14 | 1.14 | 1.14 |
| Insurance | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Total cost of operations | 4.30 | 4.30 | 4.30 | 4.30 | 4.30 | 4.30 | 4.30 |
| Operating profit (EBITDA) | -4.30 | -4.30 | -4.30 | -4.30 | -4.30 | -4.30 | -4.30 |
| Depreciation | 8.54 | 7.26 | 6.17 | 5.25 | 4.46 | 3.79 | 3.22 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 5.55 | 4.81 | 3.94 | 3.07 | 2.21 | 1.34 | 0.47 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -18.40 | -16.37 | -14.42 | -12.62 | -10.97 | -9.43 | -8.00 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -18.40 | -16.37 | -14.42 | -12.62 | -10.97 | -9.43 | -8.00 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -18.40 | -16.37 | -14.42 | -12.62 | -10.97 | -9.43 | -8.00 |
| Depreciation | 8.54 | 7.26 | 6.17 | 5.25 | 4.46 | 3.79 | 3.22 |
| Cash accruals (PAT + depreciation) | -9.85 | -9.11 | -8.24 | -7.38 | -6.51 | -5.64 | -4.77 |
| Term loan repaid | 3.94 | 7.89 | 7.89 | 7.89 | 7.89 | 7.89 | 7.89 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -13.80 | -17.00 | -16.13 | -15.26 | -14.40 | -13.53 | -12.66 |
| Cash and bank | -13.80 | -30.80 | -46.93 | -62.19 | -76.59 | -90.12 | -102.78 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.70 | 5.70 | 5.70 | 5.70 | 5.70 | 5.70 | 5.70 |
| Reserves and surplus | -18.40 | -34.77 | -49.19 | -61.81 | -72.78 | -82.22 | -90.21 |
| Term loan outstanding | 47.32 | 39.44 | 31.55 | 23.66 | 15.77 | 7.89 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 34.62 | 10.36 | -11.94 | -32.46 | -51.31 | -68.63 | -84.52 |
| Net fixed assets | 48.42 | 41.16 | 34.98 | 29.73 | 25.27 | 21.48 | 18.26 |
| 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 | -13.80 | -30.80 | -46.93 | -62.19 | -76.59 | -90.12 | -102.78 |
| Total assets | 34.62 | 10.36 | -11.94 | -32.46 | -51.31 | -68.63 | -84.52 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.45 | -0.34 | -0.36 | -0.39 | -0.43 | -0.47 | -0.52 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.42 |
|---|---|
| Lowest DSCR | -0.52 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 8.54 | 7.26 | 6.17 | 5.25 | 4.46 | 3.79 | 3.22 |
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 | 51.27 | 5.55 | 3.94 | 47.32 |
| 2 | 47.32 | 4.81 | 7.89 | 39.44 |
| 3 | 39.44 | 3.94 | 7.89 | 31.55 |
| 4 | 31.55 | 3.07 | 7.89 | 23.66 |
| 5 | 23.66 | 2.21 | 7.89 | 15.77 |
| 6 | 15.77 | 1.34 | 7.89 | 7.89 |
| 7 | 7.89 | 0.47 | 7.89 | 0.00 |
17 Licences and registrations
- Udyam registration (District Industries Centre)
- GST
- Factory licence and plan approval
- ESI and PF
- State Pollution Control Board consent if you do chrome plating or painting in-house
- IEC code if you export
18 Government schemes that may apply
- Stand-Up India
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- SIDBI Stand-Up Mitra project profile — Hydraulic Valves — https://www.standupmitra.in/Default/ViewFile/?id=1521471763738_Hydraulic%20Valves.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.