Detailed Project Report
Material Handling Equipment Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹201.50 L
- Term loan from bank
- ₹181.35 L
- Promoter’s contribution
- ₹20.15 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-43.69 L
- Average DSCR
- -0.22
- 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
Fabricate cranes, hoists, conveyors and lift trucks for factories and warehouses.
| Main product or service | Material Handling Equipment Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Food, pharma, agri-processing and chemical factories
- Warehouses and logistics firms
- Construction and infrastructure projects
- Direct sales to factories
- Tenders
- Through plant contractors and consultants
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Heavy duty lathe, 3.5 m bed (× 3) | 1 | 15,00,000 | 15,00,000 |
| Radial drill machine (× 2) | 1 | 9,00,000 | 9,00,000 |
| Laser / plasma plate cutting machine | 1 | 8,00,000 | 8,00,000 |
| Hydraulic press 800 T | 1 | 8,00,000 | 8,00,000 |
| Vertical lathe | 1 | 8,00,000 | 8,00,000 |
| TIG / MIG / SAW welding machine (× 3) | 1 | 7,50,000 | 7,50,000 |
| Jib cranes / hoists (× 3) | 1 | 6,00,000 | 6,00,000 |
| 3-roller plate bending machine (× 2) | 1 | 5,00,000 | 5,00,000 |
| Motor, rope and load test facility (× 1 set) | 1 | 5,00,000 | 5,00,000 |
| Shot blasting machine | 1 | 4,50,000 | 4,50,000 |
| X-ray test system | 1 | 4,50,000 | 4,50,000 |
| EOT crane | 1 | 4,50,000 | 4,50,000 |
| Heavy duty saw machine (× 2) | 1 | 4,00,000 | 4,00,000 |
| Ultrasonic / magnetic test systems | 1 | 3,50,000 | 3,50,000 |
| All main machines (× total) | 1 | 99,40,000 | 99,40,000 |
| Total | 1,91,90,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Manufacturing of Material Handling Equipments. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- MS sections, beams, flats and carbon alloy steel — the profile prices them at ₹35 to ₹90 a kg
- Gearboxes, electric drives, hydraulic and pneumatic systems — bought out to the system rating
- Wire ropes, wheels, welding consumables and paint
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 191.90 |
| Contingency | 9.60 |
| Total fixed capital | 201.50 |
| Working capital margin | 0.00 |
| Total project cost | 201.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 20.15 | 10.0 |
| Term loan from bank | 181.35 | 90.0 |
| Total | 201.50 | 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 | 4.03 | 4.03 | 4.03 | 4.03 | 4.03 | 4.03 | 4.03 |
| Insurance | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 | 1.01 |
| Total cost of operations | 7.92 | 7.92 | 7.92 | 7.92 | 7.92 | 7.92 | 7.92 |
| Operating profit (EBITDA) | -7.92 | -7.92 | -7.92 | -7.92 | -7.92 | -7.92 | -7.92 |
| Depreciation | 30.22 | 25.69 | 21.84 | 18.56 | 15.78 | 13.41 | 11.40 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 19.63 | 17.01 | 13.94 | 10.87 | 7.80 | 4.73 | 1.66 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -57.77 | -50.61 | -43.69 | -37.35 | -31.49 | -26.06 | -20.98 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -57.77 | -50.61 | -43.69 | -37.35 | -31.49 | -26.06 | -20.98 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -57.77 | -50.61 | -43.69 | -37.35 | -31.49 | -26.06 | -20.98 |
| Depreciation | 30.22 | 25.69 | 21.84 | 18.56 | 15.78 | 13.41 | 11.40 |
| Cash accruals (PAT + depreciation) | -27.55 | -24.92 | -21.86 | -18.79 | -15.72 | -12.65 | -9.58 |
| Term loan repaid | 13.95 | 27.90 | 27.90 | 27.90 | 27.90 | 27.90 | 27.90 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -41.50 | -52.82 | -49.75 | -46.69 | -43.62 | -40.55 | -37.48 |
| Cash and bank | -41.50 | -94.32 | -144.07 | -190.76 | -234.38 | -274.92 | -312.40 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 20.15 | 20.15 | 20.15 | 20.15 | 20.15 | 20.15 | 20.15 |
| Reserves and surplus | -57.77 | -108.38 | -152.08 | -189.43 | -220.92 | -246.98 | -267.96 |
| Term loan outstanding | 167.40 | 139.50 | 111.60 | 83.70 | 55.80 | 27.90 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 129.78 | 51.26 | -20.33 | -85.58 | -144.97 | -198.93 | -247.81 |
| Net fixed assets | 171.27 | 145.58 | 123.74 | 105.18 | 89.40 | 75.99 | 64.59 |
| 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 | -41.50 | -94.32 | -144.07 | -190.76 | -234.38 | -274.92 | -312.40 |
| Total assets | 129.78 | 51.26 | -20.33 | -85.58 | -144.97 | -198.93 | -247.81 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.24 | -0.18 | -0.19 | -0.20 | -0.22 | -0.24 | -0.27 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.22 |
|---|---|
| Lowest DSCR | -0.27 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 30.22 | 25.69 | 21.84 | 18.56 | 15.78 | 13.41 | 11.40 |
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 | 181.35 | 19.63 | 13.95 | 167.40 |
| 2 | 167.40 | 17.01 | 27.90 | 139.50 |
| 3 | 139.50 | 13.94 | 27.90 | 111.60 |
| 4 | 111.60 | 10.87 | 27.90 | 83.70 |
| 5 | 83.70 | 7.80 | 27.90 | 55.80 |
| 6 | 55.80 | 4.73 | 27.90 | 27.90 |
| 7 | 27.90 | 1.66 | 27.90 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence and factory plan approval
- ESI and PF registration
- State pollution board consent if your state lists fabrication with painting or shot blasting
- IEC code for exports
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 — Manufacturing of Material Handling Equipments — https://www.standupmitra.in/Default/ViewFile/?id=1520963926226_Material%20Handling%20Equipments.docx&path=ProjectProfile
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.