Detailed Project Report
Steel Tube Manufacturing Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹18.12 L
- Term loan from bank
- ₹11.78 L
- Promoter’s contribution
- ₹1.81 L
- Subsidy
- ₹4.53 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.20 L
- Average DSCR
- -1.42
- 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
Make welded steel tubes from sheet on a tube-making machine with cutting, pressing and finishing tools.
| Main product or service | Steel Tube Manufacturing Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Fabricators and furniture makers
- Scaffolding and construction contractors
- Dairy, food-processing and heat-exchanger equipment makers
- Automobile and bicycle part makers
- Direct supply to industrial buyers
- Steel and hardware dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Steel tube making machine | 1 | 9,00,000 | 9,00,000 |
| Guillotine shearing machine | 1 | 1,20,000 | 1,20,000 |
| Hand-operated shearing machine | 1 | 1,10,000 | 1,10,000 |
| Tapping machine | 1 | 1,11,000 | 1,11,000 |
| Special purpose production lathe | 1 | 95,000 | 95,000 |
| Power press with electric motor | 1 | 85,000 | 85,000 |
| Power hacksaw machine | 1 | 80,000 | 80,000 |
| Universal bending machine with electricals | 1 | 75,000 | 75,000 |
| Power press | 1 | 70,000 | 70,000 |
| Electric arc welding set | 1 | 25,000 | 25,000 |
| Bench drilling machine | 1 | 22,500 | 22,500 |
| Bench grinder | 1 | 20,090 | 20,090 |
| Portable hand drill | 1 | 11,900 | 11,900 |
| Total | 17,25,490 |
Pre-filled from: PMEGP sample project report — Steel Tube (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Steel sheet / strip — main raw material
- Sulphuric acid — for pickling
- Packaging material
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 17.25 |
| Contingency | 0.86 |
| Total fixed capital | 18.12 |
| Working capital margin | 0.00 |
| Total project cost | 18.12 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.81 | 10.0 |
| Subsidy | 4.53 | 25.0 |
| Term loan from bank | 11.78 | 65.0 |
| Total | 18.12 | 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 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 |
| Operating profit (EBITDA) | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 |
| Depreciation | 2.72 | 2.31 | 1.96 | 1.67 | 1.42 | 1.21 | 1.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.27 | 1.10 | 0.91 | 0.71 | 0.51 | 0.31 | 0.11 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.33 | -6.75 | -6.20 | -5.71 | -5.26 | -4.85 | -4.47 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.33 | -6.75 | -6.20 | -5.71 | -5.26 | -4.85 | -4.47 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.33 | -6.75 | -6.20 | -5.71 | -5.26 | -4.85 | -4.47 |
| Depreciation | 2.72 | 2.31 | 1.96 | 1.67 | 1.42 | 1.21 | 1.02 |
| Cash accruals (PAT + depreciation) | -4.61 | -4.44 | -4.24 | -4.04 | -3.84 | -3.64 | -3.44 |
| Term loan repaid | 0.91 | 1.81 | 1.81 | 1.81 | 1.81 | 1.81 | 1.81 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.51 | -6.25 | -6.05 | -5.85 | -5.65 | -5.45 | -5.25 |
| Cash and bank | -5.51 | -11.76 | -17.81 | -23.66 | -29.31 | -34.77 | -40.02 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.34 | 6.34 | 6.34 | 6.34 | 6.34 | 6.34 | 6.34 |
| Reserves and surplus | -7.33 | -14.07 | -20.27 | -25.98 | -31.24 | -36.09 | -40.55 |
| Term loan outstanding | 10.87 | 9.06 | 7.25 | 5.44 | 3.62 | 1.81 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.89 | 1.33 | -6.69 | -14.21 | -21.28 | -27.93 | -34.21 |
| Net fixed assets | 15.40 | 13.09 | 11.13 | 9.46 | 8.04 | 6.83 | 5.81 |
| 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 | -5.51 | -11.76 | -17.81 | -23.66 | -29.31 | -34.77 | -40.02 |
| Total assets | 9.89 | 1.33 | -6.69 | -14.21 | -21.28 | -27.93 | -34.21 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.53 | -1.14 | -1.23 | -1.32 | -1.44 | -1.57 | -1.74 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.42 |
|---|---|
| Lowest DSCR | -1.74 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.72 | 2.31 | 1.96 | 1.67 | 1.42 | 1.21 | 1.02 |
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 | 11.78 | 1.27 | 0.91 | 10.87 |
| 2 | 10.87 | 1.10 | 1.81 | 9.06 |
| 3 | 9.06 | 0.91 | 1.81 | 7.25 |
| 4 | 7.25 | 0.71 | 1.81 | 5.44 |
| 5 | 5.44 | 0.51 | 1.81 | 3.62 |
| 6 | 3.62 | 0.31 | 1.81 | 1.81 |
| 7 | 1.81 | 0.11 | 1.81 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- State Pollution Control Board consent (acid pickling)
- Factory licence
- BIS certification where a steel-products Quality Control Order covers your tube
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Steel Tube (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Steel_Tube_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.