Detailed Project Report
MS Wire Drawing Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹35.49 L
- Term loan from bank
- ₹23.07 L
- Promoter’s contribution
- ₹3.55 L
- Subsidy
- ₹8.87 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-9.39 L
- Average DSCR
- -0.82
- 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
Pulling mild steel wire rod through dies to make thinner bright wire for nails, binding wire, mesh and fasteners.
| Main product or service | MS Wire Drawing Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Wire nail, mesh and barbed wire makers
- Fastener, spring and cycle part makers
- Builders and hardware dealers (binding wire)
- Cable and electrode makers
- Direct supply to local factories
- Steel and hardware wholesalers
- Job work: drawing customers' rod for a charge
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Bull block wire drawing lines (× 2) | 1 | 13,00,000 | 13,00,000 |
| Wire rod breaking machine | 1 | 6,00,000 | 6,00,000 |
| Wire pointing and welding machine | 1 | 60,000 | 60,000 |
| Coilers and de-coilers (× 8) | 1 | 2,40,000 | 2,40,000 |
| Die repair and polishing machine | 1 | 1,50,000 | 1,50,000 |
| Annealing furnace | 1 | 4,50,000 | 4,50,000 |
| Pickling line | 1 | 2,50,000 | 2,50,000 |
| Surface treatment tank | 1 | 1,40,000 | 1,40,000 |
| Pillar drilling machine | 1 | 60,000 | 60,000 |
| Dies, tools, hand tools and gauges | 1 | 1,30,000 | 1,30,000 |
| NSIC list (no costs printed): four-block wire drawing unit, wire pointing machine, pickling, neutralising and washing tanks, de-scaling machine, hoisting equipment, butt welding machine, die polishing machine, flexible shaft grinder, platform weighing machine | 1 | 0 | 0 |
| Total | 33,80,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Wire Drawing; NSIC project profile — M.S. Wire Drawing. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Mild steel wire rod, 6 mm or 8 mm — the SIDBI profile takes ₹35 to ₹65 per kg for mild steel rod (2018)
- Sulphuric acid for pickling
- Drawing lubricant (powder soap)
- Drawing dies — tungsten carbide or diamond dies
- Fuel for the annealing furnace
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 33.80 |
| Contingency | 1.69 |
| Total fixed capital | 35.49 |
| Working capital margin | 0.00 |
| Total project cost | 35.49 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.55 | 10.0 |
| Subsidy | 8.87 | 25.0 |
| Term loan from bank | 23.07 | 65.0 |
| Total | 35.49 | 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 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 |
| Insurance | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 |
| Total cost of operations | 3.77 | 3.77 | 3.77 | 3.77 | 3.77 | 3.77 | 3.77 |
| Operating profit (EBITDA) | -3.77 | -3.77 | -3.77 | -3.77 | -3.77 | -3.77 | -3.77 |
| Depreciation | 5.32 | 4.52 | 3.85 | 3.27 | 2.78 | 2.36 | 2.01 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.50 | 2.16 | 1.77 | 1.38 | 0.99 | 0.60 | 0.21 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -11.59 | -10.46 | -9.39 | -8.42 | -7.54 | -6.73 | -5.99 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -11.59 | -10.46 | -9.39 | -8.42 | -7.54 | -6.73 | -5.99 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -11.59 | -10.46 | -9.39 | -8.42 | -7.54 | -6.73 | -5.99 |
| Depreciation | 5.32 | 4.52 | 3.85 | 3.27 | 2.78 | 2.36 | 2.01 |
| Cash accruals (PAT + depreciation) | -6.26 | -5.93 | -5.54 | -5.15 | -4.76 | -4.37 | -3.98 |
| Term loan repaid | 1.77 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -8.04 | -9.48 | -9.09 | -8.70 | -8.31 | -7.92 | -7.53 |
| Cash and bank | -8.04 | -17.52 | -26.61 | -35.31 | -43.61 | -51.53 | -59.06 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 12.42 | 12.42 | 12.42 | 12.42 | 12.42 | 12.42 | 12.42 |
| Reserves and surplus | -11.59 | -22.04 | -31.43 | -39.85 | -47.39 | -54.12 | -60.10 |
| Term loan outstanding | 21.29 | 17.75 | 14.20 | 10.65 | 7.10 | 3.55 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 22.13 | 8.12 | -4.81 | -16.78 | -27.87 | -38.15 | -47.68 |
| Net fixed assets | 30.17 | 25.64 | 21.80 | 18.53 | 15.75 | 13.39 | 11.38 |
| 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 | -8.04 | -17.52 | -26.61 | -35.31 | -43.61 | -51.53 | -59.06 |
| Total assets | 22.13 | 8.12 | -4.81 | -16.78 | -27.87 | -38.15 | -47.68 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.88 | -0.66 | -0.71 | -0.76 | -0.83 | -0.91 | -1.00 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.82 |
|---|---|
| Lowest DSCR | -1.00 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.32 | 4.52 | 3.85 | 3.27 | 2.78 | 2.36 | 2.01 |
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 | 23.07 | 2.50 | 1.77 | 21.29 |
| 2 | 21.29 | 2.16 | 3.55 | 17.75 |
| 3 | 17.75 | 1.77 | 3.55 | 14.20 |
| 4 | 14.20 | 1.38 | 3.55 | 10.65 |
| 5 | 10.65 | 0.99 | 3.55 | 7.10 |
| 6 | 7.10 | 0.60 | 3.55 | 3.55 |
| 7 | 3.55 | 0.21 | 3.55 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (acid pickling)
- BIS certification where a Quality Control Order applies to the wire grade
- Fire safety clearance from the local authority
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- SIDBI Stand-Up Mitra project profile — Wire Drawing — https://www.standupmitra.in/Default/ViewFile/?id=1516897503447_Wire%20Drawing.docx&path=ProjectProfile
- NSIC project profile — M.S. Wire Drawing — https://www.nsic.co.in/documents/pdfs/PProfiles/11.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.