Detailed Project Report
Steel Castings (Induction Furnace Foundry)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹78.33 L
- Term loan from bank
- ₹70.50 L
- Promoter’s contribution
- ₹7.83 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-18.75 L
- Average DSCR
- -0.35
- 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 steel scrap in an induction furnace and cast tough parts — valve bodies, pump casings, gears — for industry.
| Main product or service | Steel Castings (Induction Furnace Foundry) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Railways and their suppliers
- Cement, power and fertiliser plants
- Pump, valve and gear makers
- Chemical, pharma and dairy-equipment makers
- Direct orders against drawings
- Vendor registration with large buyers and PSUs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Medium-frequency induction melting furnace, 750 kg | 1 | 35,00,000 | 35,00,000 |
| Cooling tower, water softening plant, heat exchanger | 1 | 8,50,000 | 8,50,000 |
| Moulding machines (× 3) | 1 | 7,50,000 | 7,50,000 |
| Sand mixer, sieves etc. | 1 | 1,50,000 | 1,50,000 |
| Core moulding machines (× 2) | 1 | 50,000 | 50,000 |
| Sand reclamation system | 1 | 2,00,000 | 2,00,000 |
| Core baking oven | 1 | 70,000 | 70,000 |
| Ladles with heating system (× 2) | 1 | 60,000 | 60,000 |
| EOT crane | 1 | 3,50,000 | 3,50,000 |
| Shot blasting machine | 1 | 2,00,000 | 2,00,000 |
| Lathes, drilling and milling machines (× 2 + 1 + 1) | 1 | 5,00,000 | 5,00,000 |
| Metallurgical microscope and sample polishing machine (× 1 + 1) | 1 | 2,80,000 | 2,80,000 |
| Physical and chemical testing labs (× 1 lot each) | 1 | 5,00,000 | 5,00,000 |
| Total | 74,60,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Steel Castings. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Assorted steel scrap or ingots — the basic melting stock
- Ferro-alloys and micro-alloying additions — manganese, silicon, chromium, nickel, vanadium, molybdenum as the grade needs
- Moulding sand, fluxes, refractory powder and pattern material — consumables for moulds and cores
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 74.60 |
| Contingency | 3.73 |
| Total fixed capital | 78.33 |
| Working capital margin | 0.00 |
| Total project cost | 78.33 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 7.83 | 10.0 |
| Term loan from bank | 70.50 | 90.0 |
| Total | 78.33 | 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 | 1.57 | 1.57 | 1.57 | 1.57 | 1.57 | 1.57 | 1.57 |
| Insurance | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 |
| Total cost of operations | 4.84 | 4.84 | 4.84 | 4.84 | 4.84 | 4.84 | 4.84 |
| Operating profit (EBITDA) | -4.84 | -4.84 | -4.84 | -4.84 | -4.84 | -4.84 | -4.84 |
| Depreciation | 11.75 | 9.99 | 8.49 | 7.22 | 6.13 | 5.21 | 4.43 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 7.63 | 6.61 | 5.42 | 4.23 | 3.03 | 1.84 | 0.65 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -24.22 | -21.44 | -18.75 | -16.28 | -14.00 | -11.89 | -9.92 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -24.22 | -21.44 | -18.75 | -16.28 | -14.00 | -11.89 | -9.92 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -24.22 | -21.44 | -18.75 | -16.28 | -14.00 | -11.89 | -9.92 |
| Depreciation | 11.75 | 9.99 | 8.49 | 7.22 | 6.13 | 5.21 | 4.43 |
| Cash accruals (PAT + depreciation) | -12.47 | -11.45 | -10.26 | -9.06 | -7.87 | -6.68 | -5.48 |
| Term loan repaid | 5.42 | 10.85 | 10.85 | 10.85 | 10.85 | 10.85 | 10.85 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -17.89 | -22.30 | -21.10 | -19.91 | -18.72 | -17.52 | -16.33 |
| Cash and bank | -17.89 | -40.19 | -61.29 | -81.20 | -99.91 | -117.44 | -133.77 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.83 | 7.83 | 7.83 | 7.83 | 7.83 | 7.83 | 7.83 |
| Reserves and surplus | -24.22 | -45.65 | -64.40 | -80.68 | -94.68 | -106.57 | -116.49 |
| Term loan outstanding | 65.07 | 54.23 | 43.38 | 32.54 | 21.69 | 10.85 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 48.69 | 16.41 | -13.18 | -40.31 | -65.16 | -87.90 | -108.66 |
| Net fixed assets | 66.58 | 56.59 | 48.10 | 40.89 | 34.76 | 29.54 | 25.11 |
| 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 | -17.89 | -40.19 | -61.29 | -81.20 | -99.91 | -117.44 | -133.77 |
| Total assets | 48.69 | 16.41 | -13.18 | -40.31 | -65.16 | -87.90 | -108.66 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.37 | -0.28 | -0.30 | -0.32 | -0.35 | -0.38 | -0.42 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.35 |
|---|---|
| Lowest DSCR | -0.42 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 11.75 | 9.99 | 8.49 | 7.22 | 6.13 | 5.21 | 4.43 |
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 | 70.50 | 7.63 | 5.42 | 65.07 |
| 2 | 65.07 | 6.61 | 10.85 | 54.23 |
| 3 | 54.23 | 5.42 | 10.85 | 43.38 |
| 4 | 43.38 | 4.23 | 10.85 | 32.54 |
| 5 | 32.54 | 3.03 | 10.85 | 21.69 |
| 6 | 21.69 | 1.84 | 10.85 | 10.85 |
| 7 | 10.85 | 0.65 | 10.85 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent (foundries need dust and fume control)
- Factory licence and fire NOC
- High-tension electricity connection
- IEC code for export
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- SIDBI Stand-Up Mitra project profile — Steel Castings — https://www.standupmitra.in/Default/ViewFile/?id=1514557486630_Steel%20%20Castings.docx&path=ProjectProfile
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.