Detailed Project Report
Stainless Steel Watch Strap Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.85 L
- Term loan from bank
- ₹2.50 L
- Promoter’s contribution
- ₹0.38 L
- Subsidy
- ₹0.96 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.59 L
- Average DSCR
- -5.99
- 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
Press stainless steel scrap into links and assemble metal watch straps for watch makers and the repair market.
| Main product or service | Stainless Steel Watch Strap Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Watch companies (the reports name Titan, HMT, Maxima, Allwyn and Timex)
- Small watch assembly units
- Watch shops for replacement straps
- Supply contracts with watch makers
- Watch-parts wholesalers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Inclinable power press, 10 tonne, 5 HP | 1 | 80,000 | 80,000 |
| Power press, 2 HP (× 2) | 1 | 80,000 | 80,000 |
| Bench drill, 12 mm | 1 | 8,000 | 8,000 |
| Buffing lathe, 1 HP | 1 | 20,000 | 20,000 |
| Disc and belt sand grinding machine | 1 | 20,000 | 20,000 |
| Pedestal grinder, 200 mm | 1 | 10,000 | 10,000 |
| Surface grinder, 550 × 200 mm table | 1 | 65,000 | 65,000 |
| Work bench, vice, hand tools, dies, punches, measuring tools (× 1 lot) | 1 | 50,000 | 50,000 |
| Installation and electrification (10%) (× —) | 1 | 33,300 | 33,300 |
| Total | 3,66,300 |
Pre-filled from: PMEGP sample project report — Stainless Steel Watch Strap Unit (prepared by Udyami/Samadhan); PMEGP sample project report — Steel Watch Strap (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Stainless steel sheet scrap, 16–30 SWG — 36 MT a year at ₹60,000 per MT = ₹21.60 L at full capacity
- Spring bars and link bars — 4,320 at ₹55 = ₹2.38 L a year
- Packaging — ₹5 a strap
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.66 |
| Contingency | 0.18 |
| Total fixed capital | 3.85 |
| Working capital margin | 0.00 |
| Total project cost | 3.85 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.38 | 10.0 |
| Subsidy | 0.96 | 25.0 |
| Term loan from bank | 2.50 | 65.0 |
| Total | 3.85 | 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 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 |
| Operating profit (EBITDA) | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 |
| Depreciation | 0.58 | 0.49 | 0.42 | 0.35 | 0.30 | 0.26 | 0.22 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.27 | 0.23 | 0.19 | 0.15 | 0.11 | 0.07 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.82 | -3.70 | -3.59 | -3.48 | -3.38 | -3.30 | -3.22 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.82 | -3.70 | -3.59 | -3.48 | -3.38 | -3.30 | -3.22 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.82 | -3.70 | -3.59 | -3.48 | -3.38 | -3.30 | -3.22 |
| Depreciation | 0.58 | 0.49 | 0.42 | 0.35 | 0.30 | 0.26 | 0.22 |
| Cash accruals (PAT + depreciation) | -3.25 | -3.21 | -3.17 | -3.13 | -3.08 | -3.04 | -3.00 |
| Term loan repaid | 0.19 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.44 | -3.60 | -3.55 | -3.51 | -3.47 | -3.43 | -3.38 |
| Cash and bank | -3.44 | -7.03 | -10.59 | -14.10 | -17.57 | -20.99 | -24.38 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 |
| Reserves and surplus | -3.82 | -7.52 | -11.11 | -14.59 | -17.97 | -21.27 | -24.49 |
| Term loan outstanding | 2.31 | 1.92 | 1.54 | 1.15 | 0.77 | 0.38 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.17 | -4.26 | -8.23 | -12.09 | -15.86 | -19.54 | -23.14 |
| Net fixed assets | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 | 1.23 |
| 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 | -3.44 | -7.03 | -10.59 | -14.10 | -17.57 | -20.99 | -24.38 |
| Total assets | -0.17 | -4.26 | -8.23 | -12.09 | -15.86 | -19.54 | -23.14 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.43 | -4.81 | -5.16 | -5.57 | -6.05 | -6.62 | -7.30 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.99 |
|---|---|
| Lowest DSCR | -7.30 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.58 | 0.49 | 0.42 | 0.35 | 0.30 | 0.26 | 0.22 |
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 | 2.50 | 0.27 | 0.19 | 2.31 |
| 2 | 2.31 | 0.23 | 0.38 | 1.92 |
| 3 | 1.92 | 0.19 | 0.38 | 1.54 |
| 4 | 1.54 | 0.15 | 0.38 | 1.15 |
| 5 | 1.15 | 0.11 | 0.38 | 0.77 |
| 6 | 0.77 | 0.07 | 0.38 | 0.38 |
| 7 | 0.38 | 0.02 | 0.38 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trade licence
- Factory licence if worker numbers cross the limit
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Stainless Steel Watch Strap Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Stainless_Steel_Watch_Strap_Unit_%28_Samadhan_Projects_%29.pdf
- PMEGP sample project report — Steel Watch Strap (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Steel_Watch_Strap_DPR_%28_Samadhan_Projects_%29.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.