Detailed Project Report
Stainless Steel Ingots (Induction Furnace)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹30.36 L
- Term loan from bank
- ₹27.32 L
- Promoter’s contribution
- ₹3.04 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-9.03 L
- Average DSCR
- -0.67
- 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
Melt stainless steel scrap in an induction furnace, adjust the alloy, and cast ingots for re-rolling mills and SS foundries.
| Main product or service | Stainless Steel Ingots (Induction Furnace) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Stainless steel re-rolling mills
- SS casting foundries
- Sheet and strip makers for utensil and auto industries
- Direct supply to re-rollers
- Metal traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Medium-frequency induction melting furnace, 500 kg / 250 KW, hydraulic tilting | 1 | 20,31,000 | 20,31,000 |
| Water cooling system with heat exchanger, pumps, cooling tower and tanks | 1 | 0 | 0 |
| Auxiliary transformer | 1 | 2,00,000 | 2,00,000 |
| EOT crane, 7.5 MT, with rails and structure | 1 | 4,40,000 | 4,40,000 |
| Cast iron ingot moulds (× 15) | 1 | 1,05,000 | 1,05,000 |
| Ladles of 50, 500 and 750 kg (× 3) | 1 | 15,000 | 15,000 |
| Chemical testing equipment (× 1 lot) | 1 | 1,00,000 | 1,00,000 |
| Grinders, drill, welding transformer and weighing machine (× 1 lot) | 1 | 0 | 0 |
| Total | 28,91,000 |
Pre-filled from: DC-MSME project profile — S.S. Ingots; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Stainless steel scrap of various grades — 60 MT a month at ₹35,000 a tonne in the profile
- Ferro-alloys, mainly ferro-chrome — ₹75,000 a month in the profile
- Refractories and ramming mass
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 28.91 |
| Contingency | 1.45 |
| Total fixed capital | 30.36 |
| Working capital margin | 0.00 |
| Total project cost | 30.36 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.04 | 10.0 |
| Term loan from bank | 27.32 | 90.0 |
| Total | 30.36 | 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 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 |
| Insurance | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
| Total cost of operations | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 |
| Operating profit (EBITDA) | -3.64 | -3.64 | -3.64 | -3.64 | -3.64 | -3.64 | -3.64 |
| Depreciation | 4.55 | 3.87 | 3.29 | 2.80 | 2.38 | 2.02 | 1.72 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.96 | 2.56 | 2.10 | 1.64 | 1.18 | 0.71 | 0.25 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -11.15 | -10.07 | -9.03 | -8.07 | -7.19 | -6.37 | -5.61 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -11.15 | -10.07 | -9.03 | -8.07 | -7.19 | -6.37 | -5.61 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -11.15 | -10.07 | -9.03 | -8.07 | -7.19 | -6.37 | -5.61 |
| Depreciation | 4.55 | 3.87 | 3.29 | 2.80 | 2.38 | 2.02 | 1.72 |
| Cash accruals (PAT + depreciation) | -6.60 | -6.20 | -5.74 | -5.28 | -4.81 | -4.35 | -3.89 |
| Term loan repaid | 2.10 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -8.70 | -10.40 | -9.94 | -9.48 | -9.02 | -8.55 | -8.09 |
| Cash and bank | -8.70 | -19.10 | -29.04 | -38.52 | -47.54 | -56.09 | -64.19 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.04 | 3.04 | 3.04 | 3.04 | 3.04 | 3.04 | 3.04 |
| Reserves and surplus | -11.15 | -21.22 | -30.25 | -38.32 | -45.51 | -51.88 | -57.49 |
| Term loan outstanding | 25.22 | 21.02 | 16.81 | 12.61 | 8.41 | 4.20 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 17.10 | 2.83 | -10.40 | -22.68 | -34.07 | -44.65 | -54.46 |
| Net fixed assets | 25.80 | 21.93 | 18.64 | 15.85 | 13.47 | 11.45 | 9.73 |
| 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 | -8.70 | -19.10 | -29.04 | -38.52 | -47.54 | -56.09 | -64.19 |
| Total assets | 17.10 | 2.83 | -10.40 | -22.68 | -34.07 | -44.65 | -54.46 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.72 | -0.54 | -0.58 | -0.62 | -0.68 | -0.74 | -0.82 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.67 |
|---|---|
| Lowest DSCR | -0.82 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 4.55 | 3.87 | 3.29 | 2.80 | 2.38 | 2.02 | 1.72 |
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 | 27.32 | 2.96 | 2.10 | 25.22 |
| 2 | 25.22 | 2.56 | 4.20 | 21.02 |
| 3 | 21.02 | 2.10 | 4.20 | 16.81 |
| 4 | 16.81 | 1.64 | 4.20 | 12.61 |
| 5 | 12.61 | 1.18 | 4.20 | 8.41 |
| 6 | 8.41 | 0.71 | 4.20 | 4.20 |
| 7 | 4.20 | 0.25 | 4.20 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board NOC and consent to operate (induction furnace)
- Factory licence under the Factories Act
- High-tension power connection approval
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 — S.S. Ingots — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch21.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.