Detailed Project Report
4T Engine Oil Blending Plant
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹10.15 L
- Term loan from bank
- ₹6.60 L
- Promoter’s contribution
- ₹1.02 L
- Subsidy
- ₹2.54 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.74 L
- Average DSCR
- -2.39
- 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
Blend base oil with additives into 4T motorcycle engine oil and fill it into 900 ml bottles.
| Main product or service | 4T Engine Oil Blending Plant |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Two-wheeler workshops and service centres
- Spare-parts and lubricant dealers
- Fleet and delivery-vehicle owners
- Lubricant distributors
- Auto-parts retailers
- Private-label supply
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Blending kettle, 2,500 litres | 1 | 4,50,000 | 4,50,000 |
| Filling machine, 500 ml – 5 litres | 1 | 1,25,000 | 1,25,000 |
| Sintex high-strength plastic tank (× 2) | 1 | 1,00,000 | 1,00,000 |
| Tank for finished blended lubricant (× 2) | 1 | 70,000 | 70,000 |
| Pipeline, valves and filter (× 1 set) | 1 | 50,000 | 50,000 |
| Base oil transfer pump | 1 | 45,000 | 45,000 |
| Sintex high-strength plastic tank, 3,000 litres | 1 | 35,000 | 35,000 |
| Induction sealing machine | 1 | 20,000 | 20,000 |
| Semi-automatic capping machine | 1 | 12,000 | 12,000 |
| 300 kg weigh-fill machine | 1 | 10,000 | 10,000 |
| Other equipment (× 1 lot) | 1 | 50,000 | 50,000 |
| Total | 9,67,000 |
Pre-filled from: PMEGP sample project report — 4T Oil Blending Plant (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Base oil — ₹55 a litre, 90% of the blend; 4,32,000 litres a year at full capacity
- Additive package — ₹300 a kg, 6% of the blend; 28,800 kg a year
- Viscosity index improver — ₹100 a kg, 5% of the blend; 24,000 kg a year
- Bottle with cap, label, induction seal, carton — ₹15.30 a bottle
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 9.67 |
| Contingency | 0.48 |
| Total fixed capital | 10.15 |
| Working capital margin | 0.00 |
| Total project cost | 10.15 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.02 | 10.0 |
| Subsidy | 2.54 | 25.0 |
| Term loan from bank | 6.60 | 65.0 |
| Total | 10.15 | 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 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.13 | 3.13 | 3.13 | 3.13 | 3.13 | 3.13 | 3.13 |
| Operating profit (EBITDA) | -3.13 | -3.13 | -3.13 | -3.13 | -3.13 | -3.13 | -3.13 |
| Depreciation | 1.52 | 1.29 | 1.10 | 0.94 | 0.80 | 0.68 | 0.57 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.71 | 0.62 | 0.51 | 0.40 | 0.28 | 0.17 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.37 | -5.05 | -4.74 | -4.46 | -4.21 | -3.98 | -3.77 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.37 | -5.05 | -4.74 | -4.46 | -4.21 | -3.98 | -3.77 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.37 | -5.05 | -4.74 | -4.46 | -4.21 | -3.98 | -3.77 |
| Depreciation | 1.52 | 1.29 | 1.10 | 0.94 | 0.80 | 0.68 | 0.57 |
| Cash accruals (PAT + depreciation) | -3.85 | -3.75 | -3.64 | -3.53 | -3.42 | -3.31 | -3.19 |
| Term loan repaid | 0.51 | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 | 1.02 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.36 | -4.77 | -4.66 | -4.54 | -4.43 | -4.32 | -4.21 |
| Cash and bank | -4.36 | -9.12 | -13.78 | -18.33 | -22.76 | -27.08 | -31.29 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 |
| Reserves and surplus | -5.37 | -10.42 | -15.16 | -19.62 | -23.84 | -27.82 | -31.59 |
| Term loan outstanding | 6.09 | 5.08 | 4.06 | 3.05 | 2.03 | 1.02 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.27 | -1.79 | -7.54 | -13.02 | -18.25 | -23.25 | -28.03 |
| Net fixed assets | 8.63 | 7.34 | 6.24 | 5.30 | 4.51 | 3.83 | 3.25 |
| 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 | -4.36 | -9.12 | -13.78 | -18.33 | -22.76 | -27.08 | -31.29 |
| Total assets | 4.27 | -1.79 | -7.54 | -13.02 | -18.25 | -23.25 | -28.03 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.56 | -1.92 | -2.06 | -2.22 | -2.41 | -2.64 | -2.91 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.39 |
|---|---|
| Lowest DSCR | -2.91 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.52 | 1.29 | 1.10 | 0.94 | 0.80 | 0.68 | 0.57 |
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 | 6.60 | 0.71 | 0.51 | 6.09 |
| 2 | 6.09 | 0.62 | 1.02 | 5.08 |
| 3 | 5.08 | 0.51 | 1.02 | 4.06 |
| 4 | 4.06 | 0.40 | 1.02 | 3.05 |
| 5 | 3.05 | 0.28 | 1.02 | 2.03 |
| 6 | 2.03 | 0.17 | 1.02 | 1.02 |
| 7 | 1.02 | 0.06 | 1.02 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Fire NOC and State Pollution Control Board consent (the report says fire/pollution registration as required)
- PESO licence if petroleum storage crosses the exempt limit
- BIS certification where a Quality Control Order covers your oil
- Trademark for your brand
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 — 4T Oil Blending Plant (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/4T_Oil_Blending_Plant_%28_Samadhan_Projects_%29.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.