Detailed Project Report
PVC Pipe Manufacturing Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.51 L
- Term loan from bank
- ₹3.58 L
- Promoter’s contribution
- ₹0.55 L
- Subsidy
- ₹1.38 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.89 L
- Average DSCR
- -4.24
- 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
PVC pipes for plumbing and farming — made on an extruder line.
| Main product or service | PVC Pipe Manufacturing Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Drinking-water supply schemes (pressure pipes, mostly 75–250 mm)
- Builders and plumbers (soil and waste pipes inside buildings, usually below 160 mm)
- Sewage and underground drainage works (160–630 mm)
- Underground electrical wiring
- Farmers for irrigation
- Plumbing and hardware dealers
- Direct supply to contractors and builders
- Government water and drainage works
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single-screw PVC pipe machine, 50 kg/hour (extruder, water tank, cutter, mixer and grinder) | 1 | 20 | 20 |
| of which: high-speed mixer | 1 | 2 | 2 |
| of which: extruder | 1 | 5,00,000 | 5,00,000 |
| of which: grinder | 1 | 25,000 | 25,000 |
| Dies for different pipe sizes | 1 | 0 | 0 |
| Total | 5,25,022 |
Pre-filled from: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: PVC Pipes; World Customs Organization – HS Nomenclature 2022, Chapter 39. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- PVC resin — ₹76 per kg
- Calcium (filler) — ₹10–15 per kg
- DOP (dioctyl phthalate) — ₹120 per kg
- P-wax (polyethylene / paraffin wax) — ₹100 per kg
- One-pack stabiliser — ₹135 per kg
- CPE (chlorinated polyethylene) — ₹105 per kg
- Optical brightener — ₹2,300 per kg; blended raw material averages ₹70–80 per kg
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.25 |
| Contingency | 0.26 |
| Total fixed capital | 5.51 |
| Working capital margin | 0.00 |
| Total project cost | 5.51 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.55 | 10.0 |
| Subsidy | 1.38 | 25.0 |
| Term loan from bank | 3.58 | 65.0 |
| Total | 5.51 | 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 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 |
| Operating profit (EBITDA) | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 |
| Depreciation | 0.83 | 0.70 | 0.60 | 0.51 | 0.43 | 0.37 | 0.31 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.39 | 0.34 | 0.28 | 0.21 | 0.15 | 0.09 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.23 | -4.06 | -3.89 | -3.74 | -3.60 | -3.48 | -3.36 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.23 | -4.06 | -3.89 | -3.74 | -3.60 | -3.48 | -3.36 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.23 | -4.06 | -3.89 | -3.74 | -3.60 | -3.48 | -3.36 |
| Depreciation | 0.83 | 0.70 | 0.60 | 0.51 | 0.43 | 0.37 | 0.31 |
| Cash accruals (PAT + depreciation) | -3.41 | -3.35 | -3.29 | -3.23 | -3.17 | -3.11 | -3.05 |
| Term loan repaid | 0.28 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.68 | -3.91 | -3.84 | -3.78 | -3.72 | -3.66 | -3.60 |
| Cash and bank | -3.68 | -7.59 | -11.43 | -15.21 | -18.94 | -22.60 | -26.20 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.93 | 1.93 | 1.93 | 1.93 | 1.93 | 1.93 | 1.93 |
| Reserves and surplus | -4.23 | -8.29 | -12.18 | -15.92 | -19.52 | -23.00 | -26.36 |
| Term loan outstanding | 3.31 | 2.76 | 2.21 | 1.65 | 1.10 | 0.55 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.00 | -3.60 | -8.05 | -12.34 | -16.49 | -20.52 | -24.44 |
| Net fixed assets | 4.69 | 3.98 | 3.39 | 2.88 | 2.45 | 2.08 | 1.77 |
| 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 | -3.68 | -7.59 | -11.43 | -15.21 | -18.94 | -22.60 | -26.20 |
| Total assets | 1.00 | -3.60 | -8.05 | -12.34 | -16.49 | -20.52 | -24.44 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.55 | -3.40 | -3.65 | -3.94 | -4.28 | -4.68 | -5.17 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.24 |
|---|---|
| Lowest DSCR | -5.17 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.83 | 0.70 | 0.60 | 0.51 | 0.43 | 0.37 | 0.31 |
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 | 3.58 | 0.39 | 0.28 | 3.31 |
| 2 | 3.31 | 0.34 | 0.55 | 2.76 |
| 3 | 2.76 | 0.28 | 0.55 | 2.21 |
| 4 | 2.21 | 0.21 | 0.55 | 1.65 |
| 5 | 1.65 | 0.15 | 0.55 | 1.10 |
| 6 | 1.10 | 0.09 | 0.55 | 0.55 |
| 7 | 0.55 | 0.03 | 0.55 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- UPPCB consent
- BIS IS 4985 (uPVC pipes) — ISI mark
- Factory licence (if 10+ workers with power)
- Industrial power connection
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: PVC Pipes — https://msme1connect.up.gov.in/Projectreport/Project%20Report638657113203520911.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 39 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0739_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.