Detailed Project Report
Tread Rubber (Pre-cured Tread) Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹31.50 L
- Term loan from bank
- ₹20.48 L
- Promoter’s contribution
- ₹3.15 L
- Subsidy
- ₹7.88 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-8.66 L
- Average DSCR
- -0.90
- 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
Mix, extrude and press rubber into pre-cured treads that tyre retreaders bond onto worn tyres.
| Main product or service | Tread Rubber (Pre-cured Tread) Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Tyre retreading shops
- Truck, bus and taxi fleet owners
- Transport companies and state transport undertakings
- Direct sale to retreaders
- Tyre dealers and distributors
- Contracts with fleets
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Mixing mill | 1 | 6,00,000 | 6,00,000 |
| Kneader machine | 1 | 9,00,000 | 9,00,000 |
| Extruder machine (6-inch) | 1 | 5,00,000 | 5,00,000 |
| PCTR (pre-cured tread rubber) press | 1 | 10,00,000 | 10,00,000 |
| Total | 30,00,000 |
Pre-filled from: PMEGP sample project report — Tread Rubber (prepared by Udyami/Samadhan); DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Rejected rubber — ₹40–60 a kg
- Reclaim rubber — ₹30 a kg
- Chemicals — ₹50–200 a kg or litre
- China clay — ₹5 a kg
- Average raw material cost — ₹75–85 a kg of tread (₹75 in year 1 of the report)
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 30.00 |
| Contingency | 1.50 |
| Total fixed capital | 31.50 |
| Working capital margin | 0.00 |
| Total project cost | 31.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.15 | 10.0 |
| Subsidy | 7.88 | 25.0 |
| Term loan from bank | 20.48 | 65.0 |
| Total | 31.50 | 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 | 0.63 | 0.63 | 0.63 | 0.63 | 0.63 | 0.63 | 0.63 |
| Insurance | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 |
| Total cost of operations | 3.67 | 3.67 | 3.67 | 3.67 | 3.67 | 3.67 | 3.67 |
| Operating profit (EBITDA) | -3.67 | -3.67 | -3.67 | -3.67 | -3.67 | -3.67 | -3.67 |
| Depreciation | 4.73 | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.22 | 1.92 | 1.57 | 1.23 | 0.88 | 0.53 | 0.19 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -10.61 | -9.60 | -8.66 | -7.80 | -7.01 | -6.30 | -5.64 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -10.61 | -9.60 | -8.66 | -7.80 | -7.01 | -6.30 | -5.64 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -10.61 | -9.60 | -8.66 | -7.80 | -7.01 | -6.30 | -5.64 |
| Depreciation | 4.73 | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 |
| Cash accruals (PAT + depreciation) | -5.88 | -5.59 | -5.24 | -4.89 | -4.55 | -4.20 | -3.86 |
| Term loan repaid | 1.58 | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -7.46 | -8.74 | -8.39 | -8.04 | -7.70 | -7.35 | -7.01 |
| Cash and bank | -7.46 | -16.20 | -24.59 | -32.63 | -40.33 | -47.68 | -54.69 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 |
| Reserves and surplus | -10.61 | -20.21 | -28.87 | -36.66 | -43.68 | -49.98 | -55.61 |
| Term loan outstanding | 18.90 | 15.75 | 12.60 | 9.45 | 6.30 | 3.15 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 19.32 | 6.56 | -5.24 | -16.19 | -26.35 | -35.80 | -44.59 |
| Net fixed assets | 26.78 | 22.76 | 19.34 | 16.44 | 13.98 | 11.88 | 10.10 |
| 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 | -7.46 | -16.20 | -24.59 | -32.63 | -40.33 | -47.68 | -54.69 |
| Total assets | 19.32 | 6.56 | -5.24 | -16.19 | -26.35 | -35.80 | -44.59 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.97 | -0.72 | -0.78 | -0.84 | -0.91 | -1.00 | -1.10 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.90 |
|---|---|
| Lowest DSCR | -1.10 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 4.73 | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 |
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 | 20.48 | 2.22 | 1.58 | 18.90 |
| 2 | 18.90 | 1.92 | 3.15 | 15.75 |
| 3 | 15.75 | 1.57 | 3.15 | 12.60 |
| 4 | 12.60 | 1.23 | 3.15 | 9.45 |
| 5 | 9.45 | 0.88 | 3.15 | 6.30 |
| 6 | 6.30 | 0.53 | 3.15 | 3.15 |
| 7 | 3.15 | 0.19 | 3.15 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board NOC
- Factory licence if worker count crosses the limit
- BIS certification if a quality control order covers your tread rubber
- Trademark for the brand
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Tread Rubber (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Tread_Rubber_%28_Samadhan_Projects_%29.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.