Detailed Project Report
Malleable Iron Castings (Pipe Fittings and Auto Parts)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹9.26 L
- Term loan from bank
- ₹6.02 L
- Promoter’s contribution
- ₹0.93 L
- Subsidy
- ₹2.32 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.58 L
- Average DSCR
- -2.60
- 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
Cast white iron and anneal it for days so it becomes tough and bendable — for pipe fittings, lamp-post brackets and vehicle parts.
| Main product or service | Malleable Iron Castings (Pipe Fittings and Auto Parts) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Pipe-fitting traders and plumbing dealers
- Automobile and truck part makers
- Railway and lamp-post bracket buyers
- Bicycle and sewing machine makers
- Dealers and wholesalers of pipe fittings
- Direct supply to part makers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Oil-fired rotary furnace, 1 MT, with 5 HP motor (× 2) | 1 | 2,00,000 | 2,00,000 |
| Oil-fired annealing furnace, 2 × 4 × 3.5 m, with fan | 1 | 1,75,000 | 1,75,000 |
| Moulding machines, 3 HP (× 4) | 1 | 1,50,000 | 1,50,000 |
| Core sand mixer, 100 kg | 1 | 35,000 | 35,000 |
| Gyratory sieve shaker, 24 in | 1 | 40,000 | 40,000 |
| Sand muller, 100 kg | 1 | 32,000 | 32,000 |
| Coal-fired core baking oven, 2 × 2 × 3.5 m | 1 | 25,000 | 25,000 |
| Lathe, 6 in | 1 | 40,000 | 40,000 |
| Shaping machine, 24 in stroke | 1 | 55,000 | 55,000 |
| Rockwell hardness tester | 1 | 20,000 | 20,000 |
| Chemical testing equipment (× 1 lot) | 1 | 50,000 | 50,000 |
| Diesel generator set, 10 kVA | 1 | 60,000 | 60,000 |
| Total | 8,82,000 |
Pre-filled from: DC-MSME project profile — Malleable Iron Casting; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Pig iron — 30 MT a month at ₹10,800 a MT in the profile
- Steel scrap — 20 MT a month at ₹9,200 a MT in the profile
- Ferro-alloys, fluxes and limestone
- Hard coke, steam coal and furnace oil — 4 MT coke, 8 MT steam coal and 2,000 litres of furnace oil a month in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 8.82 |
| Contingency | 0.44 |
| Total fixed capital | 9.26 |
| Working capital margin | 0.00 |
| Total project cost | 9.26 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.93 | 10.0 |
| Subsidy | 2.32 | 25.0 |
| Term loan from bank | 6.02 | 65.0 |
| Total | 9.26 | 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 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.11 | 3.11 | 3.11 | 3.11 | 3.11 | 3.11 | 3.11 |
| Operating profit (EBITDA) | -3.11 | -3.11 | -3.11 | -3.11 | -3.11 | -3.11 | -3.11 |
| Depreciation | 1.39 | 1.18 | 1.00 | 0.85 | 0.73 | 0.62 | 0.52 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.65 | 0.56 | 0.46 | 0.36 | 0.26 | 0.16 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.15 | -4.86 | -4.58 | -4.33 | -4.10 | -3.88 | -3.69 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.15 | -4.86 | -4.58 | -4.33 | -4.10 | -3.88 | -3.69 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.15 | -4.86 | -4.58 | -4.33 | -4.10 | -3.88 | -3.69 |
| Depreciation | 1.39 | 1.18 | 1.00 | 0.85 | 0.73 | 0.62 | 0.52 |
| Cash accruals (PAT + depreciation) | -3.76 | -3.68 | -3.57 | -3.47 | -3.37 | -3.27 | -3.17 |
| Term loan repaid | 0.46 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.23 | -4.60 | -4.50 | -4.40 | -4.30 | -4.19 | -4.09 |
| Cash and bank | -4.23 | -8.83 | -13.33 | -17.73 | -22.02 | -26.22 | -30.31 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 |
| Reserves and surplus | -5.15 | -10.01 | -14.59 | -18.91 | -23.01 | -26.89 | -30.58 |
| Term loan outstanding | 5.56 | 4.63 | 3.70 | 2.78 | 1.85 | 0.93 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.65 | -2.14 | -7.64 | -12.89 | -17.91 | -22.73 | -27.34 |
| Net fixed assets | 7.87 | 6.69 | 5.69 | 4.83 | 4.11 | 3.49 | 2.97 |
| 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 | -4.23 | -8.83 | -13.33 | -17.73 | -22.02 | -26.22 | -30.31 |
| Total assets | 3.65 | -2.14 | -7.64 | -12.89 | -17.91 | -22.73 | -27.34 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.79 | -2.09 | -2.24 | -2.42 | -2.63 | -2.87 | -3.17 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.60 |
|---|---|
| Lowest DSCR | -3.17 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.39 | 1.18 | 1.00 | 0.85 | 0.73 | 0.62 | 0.52 |
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 | 6.02 | 0.65 | 0.46 | 5.56 |
| 2 | 5.56 | 0.56 | 0.93 | 4.63 |
| 3 | 4.63 | 0.46 | 0.93 | 3.70 |
| 4 | 3.70 | 0.36 | 0.93 | 2.78 |
| 5 | 2.78 | 0.26 | 0.93 | 1.85 |
| 6 | 1.85 | 0.16 | 0.93 | 0.93 |
| 7 | 0.93 | 0.06 | 0.93 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board NOC and consent to operate (foundry)
- Factory licence under the Factories Act
- BIS certification if your fittings fall under a Quality Control Order (malleable pipe fittings are covered by IS 1879)
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
- DC-MSME project profile — Malleable Iron Casting — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch16.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.