Detailed Project Report
Incentive Spirometer Manufacturing
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹19.69 L
- Term loan from bank
- ₹12.80 L
- Promoter’s contribution
- ₹1.97 L
- Subsidy
- ₹4.92 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.49 L
- Average DSCR
- -1.33
- 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
Mould and assemble three-ball lung exercisers (incentive spirometers) for hospitals and home care.
| Main product or service | Incentive Spirometer Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Hospitals and nursing homes
- Patients after surgery and COPD patients (home care)
- Physiotherapy clinics
- Surgical and medical-supply distributors
- Chemists and online pharmacies
- Hospital tenders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Vertical mixer | 1 | 1,25,000 | 1,25,000 |
| Injection moulding machine | 1 | 5,50,000 | 5,50,000 |
| Automatic corrugated pipe making machine | 1 | 6,00,000 | 6,00,000 |
| Planetary saw | 1 | 4,00,000 | 4,00,000 |
| Paper printing machine | 1 | 1,00,000 | 1,00,000 |
| Industrial cooling unit | 1 | 1,00,000 | 1,00,000 |
| Total | 18,75,000 |
Pre-filled from: PMEGP sample project report — Spirometer (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Medical-grade thermoplastic — for the body; raw material ₹34.56 L in year 1 (report)
- EVA corrugated medical breathing tubes — made in-house on the pipe machine
- Mouthpiece and 12 mm OD pneumatic air-line connector — bought-in parts
- Coloured polyethylene balls, 1–6 g — three per unit, colour-coded
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 18.75 |
| Contingency | 0.94 |
| Total fixed capital | 19.69 |
| Working capital margin | 0.00 |
| Total project cost | 19.69 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.97 | 10.0 |
| Subsidy | 4.92 | 25.0 |
| Term loan from bank | 12.80 | 65.0 |
| Total | 19.69 | 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 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 |
| Insurance | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Total cost of operations | 3.37 | 3.37 | 3.37 | 3.37 | 3.37 | 3.37 | 3.37 |
| Operating profit (EBITDA) | -3.37 | -3.37 | -3.37 | -3.37 | -3.37 | -3.37 | -3.37 |
| Depreciation | 2.95 | 2.51 | 2.13 | 1.81 | 1.54 | 1.31 | 1.11 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.39 | 1.20 | 0.98 | 0.77 | 0.55 | 0.33 | 0.12 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.71 | -7.08 | -6.49 | -5.95 | -5.46 | -5.02 | -4.60 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.71 | -7.08 | -6.49 | -5.95 | -5.46 | -5.02 | -4.60 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.71 | -7.08 | -6.49 | -5.95 | -5.46 | -5.02 | -4.60 |
| Depreciation | 2.95 | 2.51 | 2.13 | 1.81 | 1.54 | 1.31 | 1.11 |
| Cash accruals (PAT + depreciation) | -4.76 | -4.57 | -4.36 | -4.14 | -3.92 | -3.71 | -3.49 |
| Term loan repaid | 0.98 | 1.97 | 1.97 | 1.97 | 1.97 | 1.97 | 1.97 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.74 | -6.54 | -6.32 | -6.11 | -5.89 | -5.67 | -5.46 |
| Cash and bank | -5.74 | -12.28 | -18.61 | -24.72 | -30.61 | -36.28 | -41.74 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.89 | 6.89 | 6.89 | 6.89 | 6.89 | 6.89 | 6.89 |
| Reserves and surplus | -7.71 | -14.79 | -21.28 | -27.24 | -32.70 | -37.72 | -42.32 |
| Term loan outstanding | 11.81 | 9.84 | 7.88 | 5.91 | 3.94 | 1.97 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 10.99 | 1.94 | -6.52 | -14.44 | -21.87 | -28.86 | -35.43 |
| Net fixed assets | 16.73 | 14.22 | 12.09 | 10.28 | 8.74 | 7.43 | 6.31 |
| 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 | -5.74 | -12.28 | -18.61 | -24.72 | -30.61 | -36.28 | -41.74 |
| Total assets | 10.99 | 1.94 | -6.52 | -14.44 | -21.87 | -28.86 | -35.43 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.42 | -1.06 | -1.14 | -1.23 | -1.34 | -1.46 | -1.62 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.33 |
|---|---|
| Lowest DSCR | -1.62 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.95 | 2.51 | 2.13 | 1.81 | 1.54 | 1.31 | 1.11 |
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 | 12.80 | 1.39 | 0.98 | 11.81 |
| 2 | 11.81 | 1.20 | 1.97 | 9.84 |
| 3 | 9.84 | 0.98 | 1.97 | 7.88 |
| 4 | 7.88 | 0.77 | 1.97 | 5.91 |
| 5 | 5.91 | 0.55 | 1.97 | 3.94 |
| 6 | 3.94 | 0.33 | 1.97 | 1.97 |
| 7 | 1.97 | 0.12 | 1.97 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Medical device manufacturing licence under the Medical Devices Rules, 2017 (applied for on the CDSCO online portal)
- ISO 13485 quality system (buyers usually ask)
- State Pollution Control Board consent to establish and operate
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 — Spirometer (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Spirometer_DPR_%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.