Detailed Project Report
Investment Casting (Lost Wax Process)
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹71.09 L
- Term loan from bank
- ₹63.98 L
- Promoter’s contribution
- ₹7.11 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-17.28 L
- Average DSCR
- -0.37
- 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
Make precise steel and alloy parts by coating wax patterns in ceramic, melting the wax out and pouring metal into the shell.
| Main product or service | Investment Casting (Lost Wax Process) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Industrial valve and pump makers
- Automobile part makers
- Defence and aerospace suppliers
- Chemical, pharma and dairy equipment makers
- Power generation equipment makers
- Direct supply against buyer drawings
- Exports through buyers in the US, Europe and Asia
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Medium-frequency induction furnace, 1,000 kg | 1 | 45,00,000 | 45,00,000 |
| Cooling tower, water softening plant and heat exchanger | 1 | 8,00,000 | 8,00,000 |
| Wax melting/holding furnace and moulding machine with wax injector | 1 | 1,50,000 | 1,50,000 |
| Wax tree table with refractory sprayer (× 2) | 1 | 70,000 | 70,000 |
| Ladles with heating system (× 2) | 1 | 70,000 | 70,000 |
| EOT crane | 1 | 3,50,000 | 3,50,000 |
| Shot blasting machine | 1 | 80,000 | 80,000 |
| Lathe machines (× 2) | 1 | 2,00,000 | 2,00,000 |
| Mould boxes and tools (× 1 lot) | 1 | 2,50,000 | 2,50,000 |
| Pollution control: dust precipitators, fume extractor, exhaust fans, hoods (× 1 lot) | 1 | 3,00,000 | 3,00,000 |
| Total | 67,70,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Investment Castings (Lost Wax Casting Process); DC-MSME project profile — Investment Casting. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Stainless, carbon, tool or alloy steel (ingots or graded scrap) — Stand-Up Mitra: ₹45 a kg for carbon steel to ₹250–400 a kg for high-grade alloys; DC-MSME: 81 MT of scrap a month at ₹40,000 a tonne
- Pattern wax of different grades — Stand-Up Mitra: ₹60 to ₹400 a kg; DC-MSME: 10 MT a month at ₹20,000 a tonne
- Refractory and ceramic shell materials — Stand-Up Mitra: ₹10 to ₹250 a kg
- Ferro-alloys — DC-MSME: ₹1,50,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 67.70 |
| Contingency | 3.39 |
| Total fixed capital | 71.09 |
| Working capital margin | 0.00 |
| Total project cost | 71.09 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 7.11 | 10.0 |
| Term loan from bank | 63.98 | 90.0 |
| Total | 71.09 | 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 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 |
| Insurance | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 |
| Total cost of operations | 4.66 | 4.66 | 4.66 | 4.66 | 4.66 | 4.66 | 4.66 |
| Operating profit (EBITDA) | -4.66 | -4.66 | -4.66 | -4.66 | -4.66 | -4.66 | -4.66 |
| Depreciation | 10.66 | 9.06 | 7.70 | 6.55 | 5.57 | 4.73 | 4.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 6.92 | 6.00 | 4.92 | 3.83 | 2.75 | 1.67 | 0.59 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -22.24 | -19.72 | -17.28 | -15.04 | -12.97 | -11.06 | -9.27 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -22.24 | -19.72 | -17.28 | -15.04 | -12.97 | -11.06 | -9.27 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -22.24 | -19.72 | -17.28 | -15.04 | -12.97 | -11.06 | -9.27 |
| Depreciation | 10.66 | 9.06 | 7.70 | 6.55 | 5.57 | 4.73 | 4.02 |
| Cash accruals (PAT + depreciation) | -11.58 | -10.66 | -9.57 | -8.49 | -7.41 | -6.33 | -5.24 |
| Term loan repaid | 4.92 | 9.84 | 9.84 | 9.84 | 9.84 | 9.84 | 9.84 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -16.50 | -20.50 | -19.42 | -18.33 | -17.25 | -16.17 | -15.09 |
| Cash and bank | -16.50 | -37.00 | -56.42 | -74.75 | -92.00 | -108.17 | -123.26 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.11 | 7.11 | 7.11 | 7.11 | 7.11 | 7.11 | 7.11 |
| Reserves and surplus | -22.24 | -41.96 | -59.24 | -74.28 | -87.26 | -98.32 | -107.58 |
| Term loan outstanding | 59.06 | 49.21 | 39.37 | 29.53 | 19.69 | 9.84 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 43.92 | 14.36 | -12.76 | -37.65 | -60.46 | -81.36 | -100.47 |
| Net fixed assets | 60.42 | 51.36 | 43.66 | 37.11 | 31.54 | 26.81 | 22.79 |
| 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 | -16.50 | -37.00 | -56.42 | -74.75 | -92.00 | -108.17 | -123.26 |
| Total assets | 43.92 | 14.36 | -12.76 | -37.65 | -60.46 | -81.36 | -100.47 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.39 | -0.29 | -0.32 | -0.34 | -0.37 | -0.40 | -0.45 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.37 |
|---|---|
| Lowest DSCR | -0.45 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 10.66 | 9.06 | 7.70 | 6.55 | 5.57 | 4.73 | 4.02 |
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 | 63.98 | 6.92 | 4.92 | 59.06 |
| 2 | 59.06 | 6.00 | 9.84 | 49.21 |
| 3 | 49.21 | 4.92 | 9.84 | 39.37 |
| 4 | 39.37 | 3.83 | 9.84 | 29.53 |
| 5 | 29.53 | 2.75 | 9.84 | 19.69 |
| 6 | 19.69 | 1.67 | 9.84 | 9.84 |
| 7 | 9.84 | 0.59 | 9.84 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent to establish and operate (furnace fumes and solid waste)
- Factory licence and factory plan approval under the Factories Act
- Fire safety NOC
- Import Export Code (IEC) from DGFT if you export
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 — Investment Castings (Lost Wax Casting Process) — https://www.standupmitra.in/Default/ViewFile/?id=1521212688291_Investment%20Casting.docx&path=ProjectProfile
- DC-MSME project profile — Investment Casting — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch14.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.