Detailed Project Report
Seamless MS Pipe Sockets and Fittings
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹26.89 L
- Term loan from bank
- ₹17.48 L
- Promoter’s contribution
- ₹2.69 L
- Subsidy
- ₹6.72 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.81 L
- Average DSCR
- -1.02
- 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
Machining and threading sockets from seamless mild steel pipe — fittings with no weld seam, for lines that carry fluids under pressure.
| Main product or service | Seamless MS Pipe Sockets and Fittings |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Chemical and process industries
- Fertiliser and petrochemical plants
- Oil installations
- Ship-building and repair yards
- Direct supply to plants and their piping contractors
- Industrial pipe and fitting stockists
- Vendor registration and tenders of large buyers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Guillotine shearing machine, 1250 mm × 4 mm, 7.5 HP | 1 | 2,00,000 | 2,00,000 |
| Hand operated lever shearing machine, 30 cm | 1 | 50,000 | 50,000 |
| Power press, 75 tonnes, 7.5 HP | 1 | 1,75,000 | 1,75,000 |
| Power press, 50 tonnes, 5 HP | 1 | 1,40,000 | 1,40,000 |
| Electric arc welding set, 350 amps | 1 | 40,000 | 40,000 |
| Special purpose production lathe, 900 mm bed (× 6) | 1 | 12,00,000 | 12,00,000 |
| Tapping machine, up to 100 mm diameter (× 2) | 1 | 1,50,000 | 1,50,000 |
| Power press, 10 tonnes, 2 HP | 1 | 50,000 | 50,000 |
| Power hacksaw machine, 18 inch (× 2) | 1 | 30,000 | 30,000 |
| Bench drilling machine (× 2) | 1 | 40,000 | 40,000 |
| Bench grinder | 1 | 14,000 | 14,000 |
| Tools, tackles, fixtures and measuring tools | 1 | 60,000 | 60,000 |
| Portable hand drilling machine, ½ inch (× 2) | 1 | 16,000 | 16,000 |
| Universal bending machine | 1 | 1,60,000 | 1,60,000 |
| Double ended grinding machine, ½ HP (× 2) | 1 | 36,000 | 36,000 |
| Laboratory equipment and chemicals | 1 | 2,00,000 | 2,00,000 |
| Total | 25,61,000 |
Pre-filled from: DC-MSME project profile — Seamless Pipe Fittings. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- MS seamless pipes of assorted lengths and diameters — 5,000 kg a month at ₹40 per kg (2002)
- Consumables: grease, oil, lubricants and packing material — ₹40,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 25.61 |
| Contingency | 1.28 |
| Total fixed capital | 26.89 |
| Working capital margin | 0.00 |
| Total project cost | 26.89 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.69 | 10.0 |
| Subsidy | 6.72 | 25.0 |
| Term loan from bank | 17.48 | 65.0 |
| Total | 26.89 | 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 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
| Insurance | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Total cost of operations | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 |
| Operating profit (EBITDA) | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 |
| Depreciation | 4.03 | 3.43 | 2.91 | 2.48 | 2.11 | 1.79 | 1.52 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.89 | 1.64 | 1.34 | 1.05 | 0.75 | 0.46 | 0.16 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -9.48 | -8.62 | -7.81 | -7.08 | -6.41 | -5.80 | -5.23 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -9.48 | -8.62 | -7.81 | -7.08 | -6.41 | -5.80 | -5.23 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -9.48 | -8.62 | -7.81 | -7.08 | -6.41 | -5.80 | -5.23 |
| Depreciation | 4.03 | 3.43 | 2.91 | 2.48 | 2.11 | 1.79 | 1.52 |
| Cash accruals (PAT + depreciation) | -5.44 | -5.19 | -4.90 | -4.60 | -4.30 | -4.01 | -3.71 |
| Term loan repaid | 1.34 | 2.69 | 2.69 | 2.69 | 2.69 | 2.69 | 2.69 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.79 | -7.88 | -7.58 | -7.29 | -6.99 | -6.70 | -6.40 |
| Cash and bank | -6.79 | -14.67 | -22.25 | -29.54 | -36.54 | -43.23 | -49.63 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 9.41 | 9.41 | 9.41 | 9.41 | 9.41 | 9.41 | 9.41 |
| Reserves and surplus | -9.48 | -18.10 | -25.91 | -32.98 | -39.39 | -45.19 | -50.43 |
| Term loan outstanding | 16.13 | 13.45 | 10.76 | 8.07 | 5.38 | 2.69 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 16.07 | 4.76 | -5.74 | -15.51 | -24.60 | -33.09 | -41.01 |
| Net fixed assets | 22.86 | 19.43 | 16.51 | 14.04 | 11.93 | 10.14 | 8.62 |
| 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 | -6.79 | -14.67 | -22.25 | -29.54 | -36.54 | -43.23 | -49.63 |
| Total assets | 16.07 | 4.76 | -5.74 | -15.51 | -24.60 | -33.09 | -41.01 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.10 | -0.82 | -0.88 | -0.95 | -1.03 | -1.13 | -1.25 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.02 |
|---|---|
| Lowest DSCR | -1.25 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 4.03 | 3.43 | 2.91 | 2.48 | 2.11 | 1.79 | 1.52 |
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 | 17.48 | 1.89 | 1.34 | 16.13 |
| 2 | 16.13 | 1.64 | 2.69 | 13.45 |
| 3 | 13.45 | 1.34 | 2.69 | 10.76 |
| 4 | 10.76 | 1.05 | 2.69 | 8.07 |
| 5 | 8.07 | 0.75 | 2.69 | 5.38 |
| 6 | 5.38 | 0.46 | 2.69 | 2.69 |
| 7 | 2.69 | 0.16 | 2.69 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (the profile advises taking an NOC)
- BIS certification where a Quality Control Order applies
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 — Seamless Pipe Fittings — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch22.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.