Detailed Project Report
Metallic Valves (Cast Industrial and Water Valves)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹98.69 L
- Term loan from bank
- ₹88.82 L
- Promoter’s contribution
- ₹9.87 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-22.87 L
- Average DSCR
- -0.30
- 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
Melt brass, bronze, cast iron or steel in an induction furnace, cast valve bodies, machine and test them for water lines, refineries and power plants.
| Main product or service | Metallic Valves (Cast Industrial and Water Valves) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Municipal water supply, public health engineering and irrigation departments
- Petroleum refineries and power plants
- Food processing and pharmaceutical plants
- Hardware and sanitary dealers
- Tenders and rate contracts with government departments and PSUs
- Direct supply to plant builders and contractors
- Dealers and distributors of pipe fittings
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Induction furnace 75 kW / 150 kg, 1000 Hz, with control panel, hydraulic tilting and crucible | 1 | 20,00,000 | 20,00,000 |
| Power-operated moulding machine | 1 | 5,00,000 | 5,00,000 |
| Core oven / heating chamber | 1 | 3,00,000 | 3,00,000 |
| Moulding boxes and ladles (× 1 set) | 1 | 2,00,000 | 2,00,000 |
| Fettling equipment, patterns and tools (× 1 set) | 1 | 2,00,000 | 2,00,000 |
| Hot metal mixer, 1 tonne | 1 | 2,25,000 | 2,25,000 |
| Heat treatment furnace | 1 | 1,50,000 | 1,50,000 |
| General purpose lathe with 2 HP motor | 1 | 3,00,000 | 3,00,000 |
| Bench drilling machine 25 mm, metal cutting machine, bench grinder, pneumatic hand grinder, welding set | 1 | 2,74,000 | 2,74,000 |
| Electronic weighing machine up to 1,000 kg | 1 | 75,000 | 75,000 |
| Air compressor 15 HP with tank | 1 | 2,25,000 | 2,25,000 |
| Universal testing machine 600 kN | 1 | 10,00,000 | 10,00,000 |
| Optical emission spectrometer (Fe, Cu and Al base) | 1 | 25,00,000 | 25,00,000 |
| Radiography, magnetic particle and dye penetrant test equipment | 1 | 8,00,000 | 8,00,000 |
| Metallurgical microscope and universal hardness tester | 1 | 6,50,000 | 6,50,000 |
| Total | 93,99,000 |
Pre-filled from: DC-MSME import-substitution DPR — Valves Metallic. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Copper, zinc, tin, aluminium, MS, SS and cast iron scrap — 28.35 tonnes a month, ₹42.50 L
- Fluxes — ₹1.00 L a month
- Moulding sand — ₹0.50 L a month
- Rubber seats, valve sheets, stoppers and caps — ₹1.00 L a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 93.99 |
| Contingency | 4.70 |
| Total fixed capital | 98.69 |
| Working capital margin | 0.00 |
| Total project cost | 98.69 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 9.87 | 10.0 |
| Term loan from bank | 88.82 | 90.0 |
| Total | 98.69 | 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 | 1.97 | 1.97 | 1.97 | 1.97 | 1.97 | 1.97 | 1.97 |
| Insurance | 0.49 | 0.49 | 0.49 | 0.49 | 0.49 | 0.49 | 0.49 |
| Total cost of operations | 5.35 | 5.35 | 5.35 | 5.35 | 5.35 | 5.35 | 5.35 |
| Operating profit (EBITDA) | -5.35 | -5.35 | -5.35 | -5.35 | -5.35 | -5.35 | -5.35 |
| Depreciation | 14.80 | 12.58 | 10.70 | 9.09 | 7.73 | 6.57 | 5.58 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 9.61 | 8.33 | 6.83 | 5.32 | 3.82 | 2.32 | 0.81 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -29.76 | -26.26 | -22.87 | -19.76 | -16.90 | -14.23 | -11.74 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -29.76 | -26.26 | -22.87 | -19.76 | -16.90 | -14.23 | -11.74 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -29.76 | -26.26 | -22.87 | -19.76 | -16.90 | -14.23 | -11.74 |
| Depreciation | 14.80 | 12.58 | 10.70 | 9.09 | 7.73 | 6.57 | 5.58 |
| Cash accruals (PAT + depreciation) | -14.96 | -13.68 | -12.17 | -10.67 | -9.17 | -7.66 | -6.16 |
| Term loan repaid | 6.83 | 13.66 | 13.66 | 13.66 | 13.66 | 13.66 | 13.66 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -21.79 | -27.34 | -25.84 | -24.34 | -22.83 | -21.33 | -19.83 |
| Cash and bank | -21.79 | -49.13 | -74.97 | -99.31 | -122.14 | -143.47 | -163.30 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 9.87 | 9.87 | 9.87 | 9.87 | 9.87 | 9.87 | 9.87 |
| Reserves and surplus | -29.76 | -56.02 | -78.89 | -98.66 | -115.55 | -129.78 | -141.53 |
| Term loan outstanding | 81.99 | 68.32 | 54.66 | 40.99 | 27.33 | 13.66 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 62.09 | 22.17 | -14.37 | -47.79 | -78.35 | -106.25 | -131.66 |
| Net fixed assets | 83.89 | 71.30 | 60.61 | 51.52 | 43.79 | 37.22 | 31.64 |
| 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 | -21.79 | -49.13 | -74.97 | -99.31 | -122.14 | -143.47 | -163.30 |
| Total assets | 62.09 | 22.17 | -14.37 | -47.79 | -78.35 | -106.25 | -131.66 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.33 | -0.24 | -0.26 | -0.28 | -0.31 | -0.33 | -0.37 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.30 |
|---|---|
| Lowest DSCR | -0.37 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 14.80 | 12.58 | 10.70 | 9.09 | 7.73 | 6.57 | 5.58 |
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 | 88.82 | 9.61 | 6.83 | 81.99 |
| 2 | 81.99 | 8.33 | 13.66 | 68.32 |
| 3 | 68.32 | 6.83 | 13.66 | 54.66 |
| 4 | 54.66 | 5.32 | 13.66 | 40.99 |
| 5 | 40.99 | 3.82 | 13.66 | 27.33 |
| 6 | 27.33 | 2.32 | 13.66 | 13.66 |
| 7 | 13.66 | 0.81 | 13.66 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (foundry)
- BIS licence where the buyer or a quality control order asks for ISI-marked valves
- ISO 9001 certification, which most industrial buyers ask for
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Valves Metallic — https://dcmsme.gov.in/05_Metallic%20valves%20by%20Gajbhiye-converted.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.