Detailed Project Report
Steel Re-Rolling Mill (MS Rounds, Angles, Channels, Tor Steel)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹44.61 L
- Term loan from bank
- ₹40.15 L
- Promoter’s contribution
- ₹4.46 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-11.92 L
- Average DSCR
- -0.50
- 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
Heat steel billets and scrap and roll them into rounds, flats, angles and twisted tor steel bars for building work.
| Main product or service | Steel Re-Rolling Mill (MS Rounds, Angles, Channels, Tor Steel) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Building contractors and builders
- Government construction works
- Steel traders and hardware dealers
- Fabricators
- Sale through steel stockists
- Direct supply to contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| 230 mm rolling mill set: 7 mill stands, pinion stand, couplings, flywheel, reduction gear and one set of rolls | 1 | 31,22,000 | 31,22,000 |
| Coal-fired reheating furnace, 13 × 2.75 × 2 m | 1 | 7,10,000 | 7,10,000 |
| Cooling bed, 13 × 2 m | 1 | 1,17,000 | 1,17,000 |
| Shearing machine, 37 mm, 20 HP | 1 | 2,20,000 | 2,20,000 |
| Cropping machine, 12.5–25 mm, 10 HP | 1 | 80,000 | 80,000 |
| Twisting machines for tor steel (one up to 16 mm, two up to 25 mm) (× 3) | 1 | 0 | 0 |
| Workshop machines: heavy lathe, shaper, pillar drill, grinder, welding set (× 1 lot) | 1 | 0 | 0 |
| 500 kVA step-down transformer with distribution and cables | 1 | 0 | 0 |
| Total | 42,49,000 |
Pre-filled from: DC-MSME project profile — M.S. Rounds, Angles, Channels, Tor Steel etc.; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Steel billets — 200 MT a month at ₹12,000 a MT in the profile
- Re-rollable scrap — 120 MT a month at ₹10,000 a MT in the profile
- Steam coal for the furnace — 30 MT a month in the profile
- Refractories, lubricants and rolls
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 42.49 |
| Contingency | 2.12 |
| Total fixed capital | 44.61 |
| Working capital margin | 0.00 |
| Total project cost | 44.61 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.46 | 10.0 |
| Term loan from bank | 40.15 | 90.0 |
| Total | 44.61 | 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 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 |
| Insurance | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Total cost of operations | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 |
| Operating profit (EBITDA) | -4.00 | -4.00 | -4.00 | -4.00 | -4.00 | -4.00 | -4.00 |
| Depreciation | 6.69 | 5.69 | 4.84 | 4.11 | 3.49 | 2.97 | 2.52 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 4.35 | 3.77 | 3.09 | 2.41 | 1.73 | 1.05 | 0.37 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -15.03 | -13.45 | -11.92 | -10.51 | -9.22 | -8.01 | -6.89 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -15.03 | -13.45 | -11.92 | -10.51 | -9.22 | -8.01 | -6.89 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -15.03 | -13.45 | -11.92 | -10.51 | -9.22 | -8.01 | -6.89 |
| Depreciation | 6.69 | 5.69 | 4.84 | 4.11 | 3.49 | 2.97 | 2.52 |
| Cash accruals (PAT + depreciation) | -8.34 | -7.76 | -7.08 | -6.40 | -5.72 | -5.04 | -4.36 |
| Term loan repaid | 3.09 | 6.18 | 6.18 | 6.18 | 6.18 | 6.18 | 6.18 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -11.43 | -13.94 | -13.26 | -12.58 | -11.90 | -11.22 | -10.54 |
| Cash and bank | -11.43 | -25.37 | -38.63 | -51.21 | -63.11 | -74.33 | -84.87 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.46 | 4.46 | 4.46 | 4.46 | 4.46 | 4.46 | 4.46 |
| Reserves and surplus | -15.03 | -28.48 | -40.40 | -50.91 | -60.13 | -68.14 | -75.03 |
| Term loan outstanding | 37.06 | 30.89 | 24.71 | 18.53 | 12.35 | 6.18 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 26.49 | 6.87 | -11.23 | -27.92 | -43.31 | -57.50 | -70.57 |
| Net fixed assets | 37.92 | 32.23 | 27.40 | 23.29 | 19.80 | 16.83 | 14.30 |
| 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 | -11.43 | -25.37 | -38.63 | -51.21 | -63.11 | -74.33 | -84.87 |
| Total assets | 26.49 | 6.87 | -11.23 | -27.92 | -43.31 | -57.50 | -70.57 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.54 | -0.40 | -0.43 | -0.47 | -0.51 | -0.55 | -0.61 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.50 |
|---|---|
| Lowest DSCR | -0.61 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 6.69 | 5.69 | 4.84 | 4.11 | 3.49 | 2.97 | 2.52 |
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 | 40.15 | 4.35 | 3.09 | 37.06 |
| 2 | 37.06 | 3.77 | 6.18 | 30.89 |
| 3 | 30.89 | 3.09 | 6.18 | 24.71 |
| 4 | 24.71 | 2.41 | 6.18 | 18.53 |
| 5 | 18.53 | 1.73 | 6.18 | 12.35 |
| 6 | 12.35 | 1.05 | 6.18 | 6.18 |
| 7 | 6.18 | 0.37 | 6.18 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent to establish and operate
- Factory licence under the Factories Act
- BIS certification under the steel Quality Control Order (for example IS 1786 bars, IS 2062 structural sections)
- 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 — M.S. Rounds, Angles, Channels, Tor Steel etc. — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch15.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.