Detailed Project Report
Sodium Silicate (Water Glass)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹21.79 L
- Term loan from bank
- ₹19.61 L
- Promoter’s contribution
- ₹2.18 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.29 L
- Average DSCR
- -0.88
- 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
Fuse silica sand and soda ash in a glass tank furnace and dissolve the melt into liquid sodium silicate.
| Main product or service | Sodium Silicate (Water Glass) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Soap and detergent makers
- Silica gel, textile and pharmaceutical units
- Foundries and welding-electrode makers
- Ceramic, refractory and cement users
- Direct supply in drums or tankers
- Chemical traders and distributors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Glass tank furnace, 5 tonnes a day, 6 sq m melting area | 1 | 12,00,000 | 12,00,000 |
| Chimney, 60–75 ft | 1 | 1,00,000 | 1,00,000 |
| Oil-firing combustion equipment (burners, blowers, preheating) (× 1 set) | 1 | 2,00,000 | 2,00,000 |
| Dissolving tanks with agitators (× 2 sets) | 1 | 50,000 | 50,000 |
| Portable combustion analyser (imported) | 1 | 1,00,000 | 1,00,000 |
| Mild steel barrels, 200 litres (× 1000) | 1 | 4,00,000 | 4,00,000 |
| Oil storage tank, 10 kL | 1 | 25,000 | 25,000 |
| Total | 20,75,000 |
Pre-filled from: DC-MSME project profile — Sodium Silicate; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Soda ash (dense) — 45 tonnes a month at ₹9,266 a tonne
- Silica sand — 80 tonnes a month at ₹1,000 a tonne
- Furnace oil — 12 kL a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 20.75 |
| Contingency | 1.04 |
| Total fixed capital | 21.79 |
| Working capital margin | 0.00 |
| Total project cost | 21.79 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.18 | 10.0 |
| Term loan from bank | 19.61 | 90.0 |
| Total | 21.79 | 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 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.42 | 3.42 | 3.42 | 3.42 | 3.42 | 3.42 | 3.42 |
| Operating profit (EBITDA) | -3.42 | -3.42 | -3.42 | -3.42 | -3.42 | -3.42 | -3.42 |
| Depreciation | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 | 1.23 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.12 | 1.84 | 1.51 | 1.18 | 0.84 | 0.51 | 0.18 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.82 | -8.04 | -7.29 | -6.61 | -5.97 | -5.39 | -4.84 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.82 | -8.04 | -7.29 | -6.61 | -5.97 | -5.39 | -4.84 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.82 | -8.04 | -7.29 | -6.61 | -5.97 | -5.39 | -4.84 |
| Depreciation | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 | 1.23 |
| Cash accruals (PAT + depreciation) | -5.55 | -5.26 | -4.93 | -4.60 | -4.27 | -3.94 | -3.60 |
| Term loan repaid | 1.51 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -7.06 | -8.28 | -7.95 | -7.62 | -7.28 | -6.95 | -6.62 |
| Cash and bank | -7.06 | -15.34 | -23.28 | -30.90 | -38.19 | -45.14 | -51.76 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.18 | 2.18 | 2.18 | 2.18 | 2.18 | 2.18 | 2.18 |
| Reserves and surplus | -8.82 | -16.86 | -24.15 | -30.76 | -36.73 | -42.12 | -46.95 |
| Term loan outstanding | 18.10 | 15.08 | 12.07 | 9.05 | 6.03 | 3.02 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 11.46 | 0.41 | -9.90 | -19.53 | -28.52 | -36.92 | -44.78 |
| Net fixed assets | 18.52 | 15.74 | 13.38 | 11.37 | 9.67 | 8.22 | 6.98 |
| 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 | -7.06 | -15.34 | -23.28 | -30.90 | -38.19 | -45.14 | -51.76 |
| Total assets | 11.46 | 0.41 | -9.90 | -19.53 | -28.52 | -36.92 | -44.78 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.94 | -0.71 | -0.76 | -0.82 | -0.89 | -0.97 | -1.07 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.88 |
|---|---|
| Lowest DSCR | -1.07 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 | 1.23 |
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 | 19.61 | 2.12 | 1.51 | 18.10 |
| 2 | 18.10 | 1.84 | 3.02 | 15.08 |
| 3 | 15.08 | 1.51 | 3.02 | 12.07 |
| 4 | 12.07 | 1.18 | 3.02 | 9.05 |
| 5 | 9.05 | 0.84 | 3.02 | 6.03 |
| 6 | 6.03 | 0.51 | 3.02 | 3.02 |
| 7 | 3.02 | 0.18 | 3.02 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- State Pollution Control Board consent (furnace and batch-house dust)
- Factory licence
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Sodium Silicate — https://www.dcmsme.gov.in/publications/pmryprof/glass/ch23.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.