Detailed Project Report
Motorcycle Chain Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹39.53 L
- Term loan from bank
- ₹35.58 L
- Promoter’s contribution
- ₹3.95 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-10.89 L
- Average DSCR
- -0.55
- 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
Press, heat-treat and assemble roller chains for motorcycles on special-purpose machines.
| Main product or service | Motorcycle Chain Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Auto spare-parts wholesalers and retailers (replacement market)
- Motorcycle makers (OEM supply)
- Spare-parts dealer network
- Supply contracts with vehicle makers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single-action power press, 75 tonne, with automatic feed (× 2) | 1 | 4,00,000 | 4,00,000 |
| Single-action power press, 50 tonne, with automatic feed | 1 | 1,50,000 | 1,50,000 |
| Single-action power press, 10 tonne | 1 | 40,000 | 40,000 |
| Special-purpose roller cup punching machine (× 2) | 1 | 1,30,000 | 1,30,000 |
| Special-purpose bush curling and cutting machine (× 2) | 1 | 2,60,000 | 2,60,000 |
| Special-purpose bush making and sizing machine (× 2) | 1 | 2,00,000 | 2,00,000 |
| Automatic header for rivet pins | 1 | 50,000 | 50,000 |
| Tumbling barrels (× 4) | 1 | 1,30,000 | 1,30,000 |
| 30 kW electric rotary retort gas carburising furnace (× 2) | 1 | 7,50,000 | 7,50,000 |
| 15 kW electric salt bath furnace (× 2) | 1 | 2,50,000 | 2,50,000 |
| Automatic chain block assembly machine (× 2) | 1 | 4,00,000 | 4,00,000 |
| Automatic chain assembly machine (× 2) | 1 | 3,80,000 | 3,80,000 |
| Hardness testing machine | 1 | 1,00,000 | 1,00,000 |
| Chain fatigue testing machine | 1 | 75,000 | 75,000 |
| Pollution control equipment | 1 | 2,50,000 | 2,50,000 |
| Universal milling machine with dividing head | 1 | 2,00,000 | 2,00,000 |
| Total | 37,65,000 |
Pre-filled from: DC-MSME project profile — Automotive Chain (Motorcycle Chain) (PMRY series, prepared by SISI); World Customs Organization – HS Nomenclature 2022, Chapter 73. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Medium carbon steel sheet, 19 SWG — 27 tonnes a month at ₹21,000 a tonne in the profile
- CRCA DD-grade steel strip, 19 SWG — 8.2 tonnes a month at ₹20,000 a tonne
- CR steel strip 11 mm × 1 mm with rounded edges — 5.5 tonnes a month at ₹30,000 a tonne (for bushes)
- Low carbon steel wire, 4.5 mm — 8.5 tonnes a month at ₹30,000 a tonne (for pins)
- Liquid carburising material and ammonia gas — 4,000 litres at ₹10 and 25 cylinders at ₹2,500 a month
- Packing cartons — 30,000 a month at ₹0.70 each
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 37.65 |
| Contingency | 1.88 |
| Total fixed capital | 39.53 |
| Working capital margin | 0.00 |
| Total project cost | 39.53 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.95 | 10.0 |
| Term loan from bank | 35.58 | 90.0 |
| Total | 39.53 | 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 | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 |
| Insurance | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Total cost of operations | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 |
| Operating profit (EBITDA) | -3.87 | -3.87 | -3.87 | -3.87 | -3.87 | -3.87 | -3.87 |
| Depreciation | 5.93 | 5.04 | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 3.85 | 3.34 | 2.73 | 2.13 | 1.53 | 0.93 | 0.33 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -13.65 | -12.25 | -10.89 | -9.64 | -8.49 | -7.43 | -6.43 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -13.65 | -12.25 | -10.89 | -9.64 | -8.49 | -7.43 | -6.43 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -13.65 | -12.25 | -10.89 | -9.64 | -8.49 | -7.43 | -6.43 |
| Depreciation | 5.93 | 5.04 | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 |
| Cash accruals (PAT + depreciation) | -7.72 | -7.21 | -6.60 | -6.00 | -5.40 | -4.80 | -4.19 |
| Term loan repaid | 2.74 | 5.47 | 5.47 | 5.47 | 5.47 | 5.47 | 5.47 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -10.46 | -12.68 | -12.08 | -11.47 | -10.87 | -10.27 | -9.67 |
| Cash and bank | -10.46 | -23.13 | -35.21 | -46.69 | -57.56 | -67.83 | -77.50 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.95 | 3.95 | 3.95 | 3.95 | 3.95 | 3.95 | 3.95 |
| Reserves and surplus | -13.65 | -25.89 | -36.78 | -46.42 | -54.92 | -62.35 | -68.78 |
| Term loan outstanding | 32.84 | 27.37 | 21.89 | 16.42 | 10.95 | 5.47 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 23.15 | 5.43 | -10.93 | -26.05 | -40.02 | -52.92 | -64.82 |
| Net fixed assets | 33.60 | 28.56 | 24.28 | 20.64 | 17.54 | 14.91 | 12.67 |
| 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 | -10.46 | -23.13 | -35.21 | -46.69 | -57.56 | -67.83 | -77.50 |
| Total assets | 23.15 | 5.43 | -10.93 | -26.05 | -40.02 | -52.92 | -64.82 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.59 | -0.44 | -0.47 | -0.51 | -0.55 | -0.60 | -0.67 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.55 |
|---|---|
| Lowest DSCR | -0.67 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.93 | 5.04 | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 |
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 | 35.58 | 3.85 | 2.74 | 32.84 |
| 2 | 32.84 | 3.34 | 5.47 | 27.37 |
| 3 | 27.37 | 2.73 | 5.47 | 21.89 |
| 4 | 21.89 | 2.13 | 5.47 | 16.42 |
| 5 | 16.42 | 1.53 | 5.47 | 10.95 |
| 6 | 10.95 | 0.93 | 5.47 | 5.47 |
| 7 | 5.47 | 0.33 | 5.47 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent (the profile says permission is needed for heat treatment)
- Factory licence
- BIS certification only if a Quality Control Order covers your product — check the current BIS list
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Automotive Chain (Motorcycle Chain) (PMRY series, prepared by SISI) — https://www.dcmsme.gov.in/publications/pmryprof/mechanical/ch3.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 73 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1573_2022e.pdf
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.