Detailed Project Report
Mild Steel (MS) Ingots — Induction Furnace
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹127.79 L
- Term loan from bank
- ₹115.01 L
- Promoter’s contribution
- ₹12.78 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-28.76 L
- Average DSCR
- -0.27
- 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
Melt mild steel scrap in an induction furnace and cast ingots that re-rolling mills turn into bars, angles and channels.
| Main product or service | Mild Steel (MS) Ingots — Induction Furnace |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Steel re-rolling mills making rounds, flats, channels, angles and twisted bars
- Direct sale to re-rolling mills in the district
- Sale through steel brokers and traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Medium-frequency induction melting furnace, 1,000 kg, 750 kW, with voltage stabiliser and water-cooled leads | 1 | 85,00,000 | 85,00,000 |
| EOT crane, 7.5 tonne | 1 | 20,00,000 | 20,00,000 |
| Water pump and pipeline | 1 | 5,00,000 | 5,00,000 |
| Cooling tower | 1 | 2,00,000 | 2,00,000 |
| Compressor | 1 | 1,80,000 | 1,80,000 |
| Welding transformer | 1 | 80,000 | 80,000 |
| Drilling machine, 1 inch | 1 | 30,000 | 30,000 |
| Flexible shaft grinders | 1 | 30,000 | 30,000 |
| Cast iron duplex moulds 4 × 4 × 56 inch | 1 | 3,00,000 | 3,00,000 |
| Measuring tools | 1 | 50,000 | 50,000 |
| Water softening plant | 1 | 1,50,000 | 1,50,000 |
| Power connection with cables and transformers | 1 | 1,50,000 | 1,50,000 |
| Total | 1,21,70,000 |
Pre-filled from: DC-MSME project profile — M.S. Ingots. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- MS scrap of various qualities — 100 tonnes a month at ₹30,000 a tonne = ₹30,00,000; from local scrap traders
- Consumables — dolomite, limestone, ferro-alloys, refractories, ramming mass, petroleum coke — ₹1,00,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 121.70 |
| Contingency | 6.09 |
| Total fixed capital | 127.79 |
| Working capital margin | 0.00 |
| Total project cost | 127.79 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 12.78 | 10.0 |
| Term loan from bank | 115.01 | 90.0 |
| Total | 127.79 | 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 | 2.56 | 2.56 | 2.56 | 2.56 | 2.56 | 2.56 | 2.56 |
| Insurance | 0.64 | 0.64 | 0.64 | 0.64 | 0.64 | 0.64 | 0.64 |
| Total cost of operations | 6.07 | 6.07 | 6.07 | 6.07 | 6.07 | 6.07 | 6.07 |
| Operating profit (EBITDA) | -6.07 | -6.07 | -6.07 | -6.07 | -6.07 | -6.07 | -6.07 |
| Depreciation | 19.17 | 16.29 | 13.85 | 11.77 | 10.01 | 8.50 | 7.23 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 12.45 | 10.79 | 8.84 | 6.89 | 4.95 | 3.00 | 1.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -37.69 | -33.15 | -28.76 | -24.74 | -21.03 | -17.58 | -14.36 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -37.69 | -33.15 | -28.76 | -24.74 | -21.03 | -17.58 | -14.36 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -37.69 | -33.15 | -28.76 | -24.74 | -21.03 | -17.58 | -14.36 |
| Depreciation | 19.17 | 16.29 | 13.85 | 11.77 | 10.01 | 8.50 | 7.23 |
| Cash accruals (PAT + depreciation) | -18.52 | -16.86 | -14.91 | -12.97 | -11.02 | -9.08 | -7.13 |
| Term loan repaid | 8.85 | 17.69 | 17.69 | 17.69 | 17.69 | 17.69 | 17.69 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -27.37 | -34.55 | -32.61 | -30.66 | -28.71 | -26.77 | -24.82 |
| Cash and bank | -27.37 | -61.92 | -94.53 | -125.19 | -153.91 | -180.67 | -205.50 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 12.78 | 12.78 | 12.78 | 12.78 | 12.78 | 12.78 | 12.78 |
| Reserves and surplus | -37.69 | -70.84 | -99.61 | -124.34 | -145.37 | -162.95 | -177.31 |
| Term loan outstanding | 106.16 | 88.47 | 70.77 | 53.08 | 35.39 | 17.69 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 81.25 | 30.40 | -16.05 | -58.49 | -97.21 | -132.48 | -164.53 |
| Net fixed assets | 108.62 | 92.32 | 78.48 | 66.70 | 56.70 | 48.19 | 40.96 |
| 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 | -27.37 | -61.92 | -94.53 | -125.19 | -153.91 | -180.67 | -205.50 |
| Total assets | 81.25 | 30.40 | -16.05 | -58.49 | -97.21 | -132.48 | -164.53 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.29 | -0.21 | -0.23 | -0.25 | -0.27 | -0.29 | -0.32 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.27 |
|---|---|
| Lowest DSCR | -0.32 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 19.17 | 16.29 | 13.85 | 11.77 | 10.01 | 8.50 | 7.23 |
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 | 115.01 | 12.45 | 8.85 | 106.16 |
| 2 | 106.16 | 10.79 | 17.69 | 88.47 |
| 3 | 88.47 | 8.84 | 17.69 | 70.77 |
| 4 | 70.77 | 6.89 | 17.69 | 53.08 |
| 5 | 53.08 | 4.95 | 17.69 | 35.39 |
| 6 | 35.39 | 3.00 | 17.69 | 17.69 |
| 7 | 17.69 | 1.05 | 17.69 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- Consent to establish and operate from the State Pollution Control Board
- High-tension power connection sanction from the electricity distribution company
- BIS licence where the Steel Quality Control Order covers your ingots
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — M.S. Ingots — https://www.dcmsme.gov.in/old/reports/METProducts/MSIngots.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.