Detailed Project Report
Squirrel Cage Induction Motor Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹39.75 L
- Term loan from bank
- ₹35.78 L
- Promoter’s contribution
- ₹3.98 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-10.93 L
- Average DSCR
- -0.54
- 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
Machine cast bodies and shafts, wind and varnish stators, die-cast aluminium rotors and assemble and test 5 HP three-phase electric motors.
| Main product or service | Squirrel Cage Induction Motor Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Pump, compressor, blower and machine makers (OEMs)
- Factories and workshops replacing motors
- Electrical dealers and distributors
- Farmers and agro-processing units
- Dealers and distributors of electrical goods
- Direct supply to OEMs
- Government and PSU tenders
- Repair and maintenance service for local industry
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Heavy duty centre lathe, 10 ft bed, 3 HP (× 2) | 1 | 5,96,000 | 5,96,000 |
| Heavy duty centre lathe, 6 ft bed, 2 HP (× 2) | 1 | 3,20,000 | 3,20,000 |
| Universal milling machine | 1 | 95,000 | 95,000 |
| Automatic cylindrical grinding machine, 600 mm | 1 | 3,50,000 | 3,50,000 |
| Shaping machine 24 inch stroke | 1 | 1,98,000 | 1,98,000 |
| Radial drilling machine 25 mm | 1 | 88,000 | 88,000 |
| Horizontal band saw 175 mm | 1 | 98,000 | 98,000 |
| Treadle guillotine shearing machine | 1 | 2,48,000 | 2,48,000 |
| Dynamic balancing machine 50 kg | 1 | 1,00,000 | 1,00,000 |
| Hydraulic power press 20 ton | 1 | 1,78,000 | 1,78,000 |
| Pit type electric furnace 20 kW with die-casting attachments | 1 | 1,60,000 | 1,60,000 |
| Semi-automatic coil winding machine | 1 | 1,20,000 | 1,20,000 |
| Motor winding baking oven, 500 kg (× 2) | 1 | 2,20,000 | 2,20,000 |
| Vacuum impregnation plant 5 kW | 1 | 3,00,000 | 3,00,000 |
| Power analysers (accuracy class 0.2 and 0.5) (× 2) | 1 | 3,75,000 | 3,75,000 |
| Hydraulic dynamometer 50 HP | 1 | 2,00,000 | 2,00,000 |
| Three-phase auto transformer 0–500 V, 40 A (× 2) | 1 | 1,40,000 | 1,40,000 |
| Total | 37,86,000 |
Pre-filled from: DC-MSME import-substitution DPR — Squirrel Cage Induction Motor. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Castings (body and end covers) — 12,500 kg a month at ₹40 a kg
- Shaft steel — 2,500 kg a month at ₹130 a kg
- Stampings (laminations) — 9,000 kg a month at ₹100 a kg
- Enamelled copper wire — 1,750 kg a month at ₹500 a kg
- Bearings — 1,000 a month at ₹350 each
- EC grade aluminium for rotors — 900 kg a month at ₹165 a kg
- Fans and fan covers — 500 pairs a month at ₹100
- Paint, varnish, insulating material, hardware and packing — about ₹1.68 L a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 37.86 |
| Contingency | 1.89 |
| Total fixed capital | 39.75 |
| Working capital margin | 0.00 |
| Total project cost | 39.75 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.98 | 10.0 |
| Term loan from bank | 35.78 | 90.0 |
| Total | 39.75 | 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 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 |
| Insurance | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Total cost of operations | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 | 3.87 |
| Operating profit (EBITDA) | -3.87 | -3.87 | -3.87 | -3.87 | -3.87 | -3.87 | -3.87 |
| Depreciation | 5.96 | 5.07 | 4.31 | 3.66 | 3.11 | 2.65 | 2.25 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 3.87 | 3.36 | 2.75 | 2.14 | 1.54 | 0.93 | 0.33 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -13.71 | -12.30 | -10.93 | -9.68 | -8.53 | -7.45 | -6.45 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -13.71 | -12.30 | -10.93 | -9.68 | -8.53 | -7.45 | -6.45 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -13.71 | -12.30 | -10.93 | -9.68 | -8.53 | -7.45 | -6.45 |
| Depreciation | 5.96 | 5.07 | 4.31 | 3.66 | 3.11 | 2.65 | 2.25 |
| Cash accruals (PAT + depreciation) | -7.75 | -7.23 | -6.62 | -6.02 | -5.41 | -4.81 | -4.20 |
| Term loan repaid | 2.75 | 5.50 | 5.50 | 5.50 | 5.50 | 5.50 | 5.50 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -10.50 | -12.73 | -12.13 | -11.52 | -10.92 | -10.31 | -9.71 |
| Cash and bank | -10.50 | -23.23 | -35.36 | -46.88 | -57.80 | -68.11 | -77.82 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.98 | 3.98 | 3.98 | 3.98 | 3.98 | 3.98 | 3.98 |
| Reserves and surplus | -13.71 | -26.01 | -36.94 | -46.62 | -55.14 | -62.60 | -69.05 |
| Term loan outstanding | 33.03 | 27.52 | 22.02 | 16.51 | 11.01 | 5.50 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 23.29 | 5.49 | -10.95 | -26.13 | -40.16 | -53.12 | -65.07 |
| Net fixed assets | 33.79 | 28.72 | 24.41 | 20.75 | 17.64 | 14.99 | 12.74 |
| 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 | -10.50 | -23.23 | -35.36 | -46.88 | -57.80 | -68.11 | -77.82 |
| Total assets | 23.29 | 5.49 | -10.95 | -26.13 | -40.16 | -53.12 | -65.07 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.58 | -0.44 | -0.47 | -0.51 | -0.55 | -0.60 | -0.66 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.54 |
|---|---|
| Lowest DSCR | -0.66 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.96 | 5.07 | 4.31 | 3.66 | 3.11 | 2.65 | 2.25 |
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 | 35.78 | 3.87 | 2.75 | 33.03 |
| 2 | 33.03 | 3.36 | 5.50 | 27.52 |
| 3 | 27.52 | 2.75 | 5.50 | 22.02 |
| 4 | 22.02 | 2.14 | 5.50 | 16.51 |
| 5 | 16.51 | 1.54 | 5.50 | 11.01 |
| 6 | 11.01 | 0.93 | 5.50 | 5.50 |
| 7 | 5.50 | 0.33 | 5.50 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- BIS licence for IS 12615 (check the current quality control order for electric motors)
- State Pollution Control Board consent
- Trade licence from the local body
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Squirrel Cage Induction Motor — https://dcmsme.gov.in/17_Squirrel%20Cage%20Induction%20Motor%20by%20PK%20Gupta.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.