Detailed Project Report
Magnesite Refractory Bricks
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹54.93 L
- Term loan from bank
- ₹49.43 L
- Promoter’s contribution
- ₹5.49 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-14.01 L
- Average DSCR
- -0.43
- 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
Crush dead-burnt magnesite, press it into bricks and fire them at 1,500°C for steel and non-ferrous furnace linings.
| Main product or service | Magnesite Refractory Bricks |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Iron and steel plants
- Steel-melting and foundry units
- Non-ferrous metal smelters and refiners
- Furnace builders and repair contractors
- Direct supply against plant tenders and purchase orders
- Sale through refractory dealers and furnace contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Jaw crusher 12" × 12" with 15 HP motor | 1 | 2,20,000 | 2,20,000 |
| Perforated pan mill, 7 ft pan, with 30 HP motor | 1 | 2,50,000 | 2,50,000 |
| Impact grinder, 18" disc, with 30 HP motor | 1 | 2,20,000 | 2,20,000 |
| Vibrating screen 4 ft × 2 ft with 2 HP motor | 1 | 20,000 | 20,000 |
| Rotary screen with different meshes, 5 HP motor | 1 | 40,000 | 40,000 |
| Bucket elevator with 5 HP motor | 1 | 40,000 | 40,000 |
| Drum-type electromagnetic separator | 1 | 40,000 | 40,000 |
| Double-shaft U mixer with 10 HP motor | 1 | 70,000 | 70,000 |
| Horizontal pug mill with wire-cutting table, 20 HP motor | 1 | 2,70,000 | 2,70,000 |
| Friction screw press, 21" stroke, with 15 HP motor (× 2) | 1 | 1,50,000 | 1,50,000 |
| Screw-type hand press with die (× 2) | 1 | 50,000 | 50,000 |
| Shuttle kiln | 1 | 33,60,000 | 33,60,000 |
| Platform weighing machine and thermocouple | 1 | 30,000 | 30,000 |
| Water pumping set with pipe fittings, 2 HP motor (× 1 set) | 1 | 50,000 | 50,000 |
| Testing equipment (drying oven, chemical balance, platinum crucible, cold MOR testing machine and others) | 1 | 1,50,000 | 1,50,000 |
| Energy-conservation instruments (energy meter, power-factor meter, Orsat apparatus) | 1 | 46,000 | 46,000 |
| Pollution equipment (vacuum cleaner, dust collector) | 1 | 25,000 | 25,000 |
| Dies and moulds | 1 | 2,00,000 | 2,00,000 |
| Total | 52,31,000 |
Pre-filled from: DC-MSME project profile — Magnesite Refractory Bricks; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Dead-burnt magnesite (powder and clinker) — 500 tonnes a month at ₹5,000 a tonne
- Binder — caustic magnesia, sulphite lye, magnesium sulphate or milk of lime — named in the process; no cost printed
- Furnace oil for the kiln — 15,300 litres a month at ₹50 a litre in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 52.31 |
| Contingency | 2.62 |
| Total fixed capital | 54.93 |
| Working capital margin | 0.00 |
| Total project cost | 54.93 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 5.49 | 10.0 |
| Term loan from bank | 49.43 | 90.0 |
| Total | 54.93 | 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 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 |
| Insurance | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Total cost of operations | 4.25 | 4.25 | 4.25 | 4.25 | 4.25 | 4.25 | 4.25 |
| Operating profit (EBITDA) | -4.25 | -4.25 | -4.25 | -4.25 | -4.25 | -4.25 | -4.25 |
| Depreciation | 8.24 | 7.00 | 5.95 | 5.06 | 4.30 | 3.66 | 3.11 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 5.35 | 4.64 | 3.80 | 2.96 | 2.13 | 1.29 | 0.45 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -17.84 | -15.89 | -14.01 | -12.28 | -10.68 | -9.20 | -7.81 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -17.84 | -15.89 | -14.01 | -12.28 | -10.68 | -9.20 | -7.81 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -17.84 | -15.89 | -14.01 | -12.28 | -10.68 | -9.20 | -7.81 |
| Depreciation | 8.24 | 7.00 | 5.95 | 5.06 | 4.30 | 3.66 | 3.11 |
| Cash accruals (PAT + depreciation) | -9.60 | -8.89 | -8.05 | -7.22 | -6.38 | -5.54 | -4.71 |
| Term loan repaid | 3.80 | 7.61 | 7.61 | 7.61 | 7.61 | 7.61 | 7.61 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -13.41 | -16.49 | -15.66 | -14.82 | -13.98 | -13.15 | -12.31 |
| Cash and bank | -13.41 | -29.90 | -45.56 | -60.38 | -74.36 | -87.51 | -99.82 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.49 | 5.49 | 5.49 | 5.49 | 5.49 | 5.49 | 5.49 |
| Reserves and surplus | -17.84 | -33.73 | -47.74 | -60.02 | -70.70 | -79.89 | -87.71 |
| Term loan outstanding | 45.63 | 38.03 | 30.42 | 22.82 | 15.21 | 7.61 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 33.28 | 9.78 | -11.83 | -31.71 | -49.99 | -66.80 | -82.21 |
| Net fixed assets | 46.69 | 39.68 | 33.73 | 28.67 | 24.37 | 20.72 | 17.61 |
| 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 | -13.41 | -29.90 | -45.56 | -60.38 | -74.36 | -87.51 | -99.82 |
| Total assets | 33.28 | 9.78 | -11.83 | -31.71 | -49.99 | -66.80 | -82.21 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.46 | -0.35 | -0.37 | -0.40 | -0.44 | -0.48 | -0.53 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.43 |
|---|---|
| Lowest DSCR | -0.53 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 8.24 | 7.00 | 5.95 | 5.06 | 4.30 | 3.66 | 3.11 |
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 | 49.43 | 5.35 | 3.80 | 45.63 |
| 2 | 45.63 | 4.64 | 7.61 | 38.03 |
| 3 | 38.03 | 3.80 | 7.61 | 30.42 |
| 4 | 30.42 | 2.96 | 7.61 | 22.82 |
| 5 | 22.82 | 2.13 | 7.61 | 15.21 |
| 6 | 15.21 | 1.29 | 7.61 | 7.61 |
| 7 | 7.61 | 0.45 | 7.61 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (kiln emissions and dust)
- Factory licence and plan approval
- ESI and PF registration
- BIS standards such as IS 1749 where buyers ask for certified bricks
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Magnesite Refractory Bricks — https://www.dcmsme.gov.in/old/reports/glass/MagRefractoryBricks.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.