Detailed Project Report
Control Pipes for Two-Wheelers (Throttle and Gear Pipes)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹8.05 L
- Term loan from bank
- ₹5.23 L
- Promoter’s contribution
- ₹0.81 L
- Subsidy
- ₹2.01 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.36 L
- Average DSCR
- -2.96
- 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
Cut, grind and slot ERW steel pipe into the throttle and gear control pipes that sit on a two-wheeler handlebar.
| Main product or service | Control Pipes for Two-Wheelers (Throttle and Gear Pipes) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Two-wheeler makers (original equipment)
- Tier-1 vendors who supply handlebar and control assemblies
- Auto spare-parts dealers
- Direct supply against the vehicle maker's drawing and purchase order
- Sale through spare-parts wholesalers for the replacement market
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Centreless grinding machine (grinding capacity 50 mm dia, 500 mm length) | 1 | 4,50,000 | 4,50,000 |
| Lathe (adda), 1,000 mm bed, with 2 HP motor | 1 | 40,000 | 40,000 |
| Milling machine (adda) with 1 HP motor (× 2) | 1 | 80,000 | 80,000 |
| Bench grinder | 1 | 8,000 | 8,000 |
| Buffing machine, 8-inch wheel | 1 | 6,000 | 6,000 |
| Bench drilling machine, 13 mm capacity | 1 | 8,000 | 8,000 |
| Dies, punches, jigs and fixtures, hand tools and measuring instruments | 1 | 75,000 | 75,000 |
| Office furniture, computer with UPS and printer | 1 | 1,00,000 | 1,00,000 |
| Total | 7,67,000 |
Pre-filled from: DC-MSME project profile — Control Pipes for Two Wheelers; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- ERW steel pipes — 2,000 m a month at ₹36 a metre (₹72,000)
- Zinc plating done by an outside plater — ₹25,000 a month
- Packing material and consumables — ₹10,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.67 |
| Contingency | 0.38 |
| Total fixed capital | 8.05 |
| Working capital margin | 0.00 |
| Total project cost | 8.05 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.81 | 10.0 |
| Subsidy | 2.01 | 25.0 |
| Term loan from bank | 5.23 | 65.0 |
| Total | 8.05 | 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 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 |
| Operating profit (EBITDA) | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 |
| Depreciation | 1.21 | 1.03 | 0.87 | 0.74 | 0.63 | 0.54 | 0.46 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.57 | 0.49 | 0.40 | 0.31 | 0.23 | 0.14 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.86 | -4.60 | -4.36 | -4.14 | -3.94 | -3.75 | -3.58 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.86 | -4.60 | -4.36 | -4.14 | -3.94 | -3.75 | -3.58 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.86 | -4.60 | -4.36 | -4.14 | -3.94 | -3.75 | -3.58 |
| Depreciation | 1.21 | 1.03 | 0.87 | 0.74 | 0.63 | 0.54 | 0.46 |
| Cash accruals (PAT + depreciation) | -3.65 | -3.57 | -3.48 | -3.40 | -3.31 | -3.22 | -3.13 |
| Term loan repaid | 0.40 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.05 | -4.38 | -4.29 | -4.20 | -4.11 | -4.02 | -3.93 |
| Cash and bank | -4.05 | -8.43 | -12.72 | -16.92 | -21.03 | -25.05 | -28.99 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.82 | 2.82 | 2.82 | 2.82 | 2.82 | 2.82 | 2.82 |
| Reserves and surplus | -4.86 | -9.46 | -13.81 | -17.95 | -21.89 | -25.64 | -29.22 |
| Term loan outstanding | 4.83 | 4.03 | 3.22 | 2.42 | 1.61 | 0.81 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.79 | -2.61 | -7.77 | -12.71 | -17.46 | -22.02 | -26.41 |
| Net fixed assets | 6.85 | 5.82 | 4.95 | 4.20 | 3.57 | 3.04 | 2.58 |
| 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 | -4.05 | -8.43 | -12.72 | -16.92 | -21.03 | -25.05 | -28.99 |
| Total assets | 2.79 | -2.61 | -7.77 | -12.71 | -17.46 | -22.02 | -26.41 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.18 | -2.38 | -2.55 | -2.75 | -2.99 | -3.27 | -3.61 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.96 |
|---|---|
| Lowest DSCR | -3.61 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.21 | 1.03 | 0.87 | 0.74 | 0.63 | 0.54 | 0.46 |
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 | 5.23 | 0.57 | 0.40 | 4.83 |
| 2 | 4.83 | 0.49 | 0.81 | 4.03 |
| 3 | 4.03 | 0.40 | 0.81 | 3.22 |
| 4 | 3.22 | 0.31 | 0.81 | 2.42 |
| 5 | 2.42 | 0.23 | 0.81 | 1.61 |
| 6 | 1.61 | 0.14 | 0.81 | 0.81 |
| 7 | 0.81 | 0.05 | 0.81 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence if your worker count and power use cross the Factories Act limits
- Vendor registration with the vehicle maker or its tier-1 supplier
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)
19 Sources
- DC-MSME project profile — Control Pipes for Two Wheelers — https://www.dcmsme.gov.in/old/reports/mechanical/ControlPipesforTwoWheelers.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.