Detailed Project Report
Industrial Lubricators (Automatic Oil and Grease Feeders)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹11.24 L
- Term loan from bank
- ₹10.11 L
- Promoter’s contribution
- ₹1.12 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.16 L
- Average DSCR
- -1.57
- 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 and assemble lubricators that feed measured oil or grease to bearings and compressed-air tools in factories.
| Main product or service | Industrial Lubricators (Automatic Oil and Grease Feeders) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Steel, oil and gas, automobile and textile plants
- Machine-tool, pump, compressor and valve makers
- Railways, shipbuilding, power and defence units
- Packaging and consumer-goods factories
- Direct sales to factory maintenance departments
- Supply to machine builders as original equipment
- Industrial and hydro-pneumatic dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Lathe machine | 1 | 2,50,000 | 2,50,000 |
| Riveting machine | 1 | 1,20,000 | 1,20,000 |
| MIG and arc welding machine | 1 | 60,000 | 60,000 |
| Power hacksaw metal-cutting machine, 1 HP | 1 | 40,000 | 40,000 |
| Weighing machines (× 2) | 1 | 15,000 | 15,000 |
| Cut-off machine | 1 | 12,000 | 12,000 |
| Compressor with spray gun for painting | 1 | 12,000 | 12,000 |
| Hand grinding machines (× 2) | 1 | 9,000 | 9,000 |
| Bench grinding machine | 1 | 8,000 | 8,000 |
| Hand press machine | 1 | 8,000 | 8,000 |
| Hand drill machines (× 2) | 1 | 6,000 | 6,000 |
| Surface plates, tool holders, vices, tools and dies, jigs and fixtures, measuring instruments and gauges (× 1 lot) | 1 | 2,50,000 | 2,50,000 |
| Work tables, storage racks, trolleys, office furniture and electrical fittings (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Computer, printer and software (× 1 set) | 1 | 80,000 | 80,000 |
| Total | 10,70,000 |
Pre-filled from: DC-MSME import-substitution DPR — Lubricators. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Mild steel, stainless steel, brass and aluminium sections, rods, bars and PVC material — about 500 kg a month at an average ₹400 a kg = ₹2,00,000
- Bought-out items: filter, container, valve, flow meter, washer, motor, screws, springs, fasteners, hose pipe and accessories — ₹10,000 a unit for 100 units a month = ₹10,00,000
- Primers, paints and packaging materials — ₹1,000 a unit = ₹1,00,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 10.70 |
| Contingency | 0.54 |
| Total fixed capital | 11.24 |
| Working capital margin | 0.00 |
| Total project cost | 11.24 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.12 | 10.0 |
| Term loan from bank | 10.11 | 90.0 |
| Total | 11.24 | 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 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 |
| Operating profit (EBITDA) | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 |
| Depreciation | 1.69 | 1.43 | 1.22 | 1.03 | 0.88 | 0.75 | 0.64 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.09 | 0.95 | 0.78 | 0.61 | 0.43 | 0.26 | 0.09 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.94 | -5.54 | -5.16 | -4.80 | -4.48 | -4.17 | -3.89 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.94 | -5.54 | -5.16 | -4.80 | -4.48 | -4.17 | -3.89 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.94 | -5.54 | -5.16 | -4.80 | -4.48 | -4.17 | -3.89 |
| Depreciation | 1.69 | 1.43 | 1.22 | 1.03 | 0.88 | 0.75 | 0.64 |
| Cash accruals (PAT + depreciation) | -4.26 | -4.11 | -3.94 | -3.77 | -3.60 | -3.42 | -3.25 |
| Term loan repaid | 0.78 | 1.56 | 1.56 | 1.56 | 1.56 | 1.56 | 1.56 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.03 | -5.66 | -5.49 | -5.32 | -5.15 | -4.98 | -4.81 |
| Cash and bank | -5.03 | -10.70 | -16.19 | -21.51 | -26.67 | -31.65 | -36.45 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
| Reserves and surplus | -5.94 | -11.48 | -16.64 | -21.44 | -25.92 | -30.09 | -33.98 |
| Term loan outstanding | 9.33 | 7.78 | 6.22 | 4.67 | 3.11 | 1.56 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.52 | -2.58 | -9.29 | -15.65 | -21.68 | -27.41 | -32.85 |
| Net fixed assets | 9.55 | 8.12 | 6.90 | 5.86 | 4.99 | 4.24 | 3.60 |
| 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 | -5.03 | -10.70 | -16.19 | -21.51 | -26.67 | -31.65 | -36.45 |
| Total assets | 4.52 | -2.58 | -9.29 | -15.65 | -21.68 | -27.41 | -32.85 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.69 | -1.26 | -1.35 | -1.46 | -1.59 | -1.74 | -1.92 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.57 |
|---|---|
| Lowest DSCR | -1.92 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.69 | 1.43 | 1.22 | 1.03 | 0.88 | 0.75 | 0.64 |
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 | 10.11 | 1.09 | 0.78 | 9.33 |
| 2 | 9.33 | 0.95 | 1.56 | 7.78 |
| 3 | 7.78 | 0.78 | 1.56 | 6.22 |
| 4 | 6.22 | 0.61 | 1.56 | 4.67 |
| 5 | 4.67 | 0.43 | 1.56 | 3.11 |
| 6 | 3.11 | 0.26 | 1.56 | 1.56 |
| 7 | 1.56 | 0.09 | 1.56 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory approval and ESI and PF registration as the workforce grows
- Trade licence from the local body
- Importer-Exporter Code if you export
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Lubricators — https://dcmsme.gov.in/46_Lubricators%20by%20D%20Mitra.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.