Detailed Project Report
Pulverizer (Grinding Machine) Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹9.71 L
- Term loan from bank
- ₹6.31 L
- Promoter’s contribution
- ₹0.97 L
- Subsidy
- ₹2.43 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.66 L
- Average DSCR
- -2.49
- 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
Cut, weld and machine steel plate into hammer-type pulverizers that grind spices, grain, feed and minerals.
| Main product or service | Pulverizer (Grinding Machine) Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Spice and chilli grinding units
- Flour, feed and herb processors
- Mineral and chemical grinding units
- New self-employed entrepreneurs setting up grinding units
- Direct sales to processors
- Food-machinery dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Lathe machine, 10 ft, 3 HP (× 3) | 1 | 3,75,000 | 3,75,000 |
| Milling machine, complete, 2 HP | 1 | 1,50,000 | 1,50,000 |
| TIG welding machine | 1 | 2,00,000 | 2,00,000 |
| Welding machine, 400 A (× 2) | 1 | 50,000 | 50,000 |
| Portable drilling machine | 1 | 30,000 | 30,000 |
| Angle hand grinder, large, 7 inch (× 3) | 1 | 45,000 | 45,000 |
| Angle hand grinder, small (× 3) | 1 | 15,000 | 15,000 |
| Gas cutting equipment (× 2 sets) | 1 | 10,000 | 10,000 |
| Jigs, fixtures, tools and testing equipment | 1 | 50,000 | 50,000 |
| Total | 9,25,000 |
Pre-filled from: DC-MSME project profile — Macro Pulverizer. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Mild-steel plate, 16 mm — 3 tonnes a month at ₹38,000 a tonne
- Mild-steel plate, 12 mm — 1.5 tonnes a month at ₹38,000 a tonne
- Paint and welding consumables — ₹16,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 9.25 |
| Contingency | 0.46 |
| Total fixed capital | 9.71 |
| Working capital margin | 0.00 |
| Total project cost | 9.71 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.97 | 10.0 |
| Subsidy | 2.43 | 25.0 |
| Term loan from bank | 6.31 | 65.0 |
| Total | 9.71 | 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 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 | 3.12 |
| Operating profit (EBITDA) | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 | -3.12 |
| Depreciation | 1.46 | 1.24 | 1.05 | 0.89 | 0.76 | 0.65 | 0.55 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.68 | 0.59 | 0.49 | 0.38 | 0.27 | 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 | -5.26 | -4.95 | -4.66 | -4.40 | -4.15 | -3.93 | -3.73 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.26 | -4.95 | -4.66 | -4.40 | -4.15 | -3.93 | -3.73 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.26 | -4.95 | -4.66 | -4.40 | -4.15 | -3.93 | -3.73 |
| Depreciation | 1.46 | 1.24 | 1.05 | 0.89 | 0.76 | 0.65 | 0.55 |
| Cash accruals (PAT + depreciation) | -3.81 | -3.71 | -3.61 | -3.50 | -3.39 | -3.29 | -3.18 |
| Term loan repaid | 0.49 | 0.97 | 0.97 | 0.97 | 0.97 | 0.97 | 0.97 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.29 | -4.69 | -4.58 | -4.47 | -4.37 | -4.26 | -4.15 |
| Cash and bank | -4.29 | -8.98 | -13.56 | -18.03 | -22.40 | -26.65 | -30.81 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.40 | 3.40 | 3.40 | 3.40 | 3.40 | 3.40 | 3.40 |
| Reserves and surplus | -5.26 | -10.22 | -14.88 | -19.27 | -23.43 | -27.36 | -31.09 |
| Term loan outstanding | 5.83 | 4.86 | 3.89 | 2.91 | 1.94 | 0.97 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.96 | -1.96 | -7.59 | -12.96 | -18.09 | -22.99 | -27.69 |
| Net fixed assets | 8.26 | 7.02 | 5.96 | 5.07 | 4.31 | 3.66 | 3.11 |
| 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 | -4.29 | -8.98 | -13.56 | -18.03 | -22.40 | -26.65 | -30.81 |
| Total assets | 3.96 | -1.96 | -7.59 | -12.96 | -18.09 | -22.99 | -27.69 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.67 | -2.00 | -2.14 | -2.31 | -2.51 | -2.75 | -3.03 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.49 |
|---|---|
| Lowest DSCR | -3.03 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.46 | 1.24 | 1.05 | 0.89 | 0.76 | 0.65 | 0.55 |
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 | 6.31 | 0.68 | 0.49 | 5.83 |
| 2 | 5.83 | 0.59 | 0.97 | 4.86 |
| 3 | 4.86 | 0.49 | 0.97 | 3.89 |
| 4 | 3.89 | 0.38 | 0.97 | 2.91 |
| 5 | 2.91 | 0.27 | 0.97 | 1.94 |
| 6 | 1.94 | 0.16 | 0.97 | 0.97 |
| 7 | 0.97 | 0.06 | 0.97 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence where the worker and power limits apply
- Trade licence from the local body
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
- DC-MSME project profile — Macro Pulverizer — https://www.dcmsme.gov.in/old/reports/mechanical/MacroPulverizer.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.