Detailed Project Report
Vulcanised Rubber Cord
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹51.81 L
- Term loan from bank
- ₹46.63 L
- Promoter’s contribution
- ₹5.18 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-13.37 L
- Average DSCR
- -0.45
- 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 rubber with fillers and chemicals, extrude it through a die and vulcanise it into solid rubber cord used for seals, gaskets and O-rings.
| Main product or service | Vulcanised Rubber Cord |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Automobile and auto-component makers
- Hydraulic and pneumatic equipment makers
- Electrical, oil and gas, and chemical plants
- Gasket and seal fabricators and industrial hardware dealers
- Direct supply to OEMs against drawings
- Industrial rubber goods dealers
- Maintenance contracts with factories
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Automatic extruder 2½ inch, 10 HP motor, with vulcaniser and accessories | 1 | 17,24,000 | 17,24,000 |
| Mixing mill 12 x 30 inch, cast iron rolls, 30 HP motor and reduction gear | 1 | 8,50,000 | 8,50,000 |
| Platform weighing machine | 1 | 1,10,000 | 1,10,000 |
| Tools and fixtures | 1 | 2,50,000 | 2,50,000 |
| Electrification | 1 | 3,50,000 | 3,50,000 |
| Diesel genset 35 KVA | 1 | 4,00,000 | 4,00,000 |
| Testing laboratory and pollution control equipment | 1 | 9,00,000 | 9,00,000 |
| Fire-fighting equipment | 1 | 3,50,000 | 3,50,000 |
| Total | 49,34,000 |
Pre-filled from: DC-MSME import-substitution DPR — Rubber Cord. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Rubber (natural or synthetic) — 13,125 kg a month at ₹170 a kg
- Fillers (china clay, carbon black, whiting, process oil) — 5,250 kg a month at ₹65 a kg
- Chemicals (stearic acid, zinc oxide, paraffin wax, pine resin, sulphur) — 7,875 kg a month at ₹55 a kg
- Packaging and consumables — ₹2.50 L a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 49.34 |
| Contingency | 2.47 |
| Total fixed capital | 51.81 |
| Working capital margin | 0.00 |
| Total project cost | 51.81 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 5.18 | 10.0 |
| Term loan from bank | 46.63 | 90.0 |
| Total | 51.81 | 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 | 1.04 | 1.04 | 1.04 | 1.04 | 1.04 | 1.04 | 1.04 |
| Insurance | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 |
| Total cost of operations | 4.18 | 4.18 | 4.18 | 4.18 | 4.18 | 4.18 | 4.18 |
| Operating profit (EBITDA) | -4.18 | -4.18 | -4.18 | -4.18 | -4.18 | -4.18 | -4.18 |
| Depreciation | 7.77 | 6.61 | 5.61 | 4.77 | 4.06 | 3.45 | 2.93 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 5.05 | 4.37 | 3.58 | 2.79 | 2.01 | 1.22 | 0.43 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -16.99 | -15.15 | -13.37 | -11.74 | -10.24 | -8.84 | -7.53 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -16.99 | -15.15 | -13.37 | -11.74 | -10.24 | -8.84 | -7.53 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -16.99 | -15.15 | -13.37 | -11.74 | -10.24 | -8.84 | -7.53 |
| Depreciation | 7.77 | 6.61 | 5.61 | 4.77 | 4.06 | 3.45 | 2.93 |
| Cash accruals (PAT + depreciation) | -9.22 | -8.55 | -7.76 | -6.97 | -6.18 | -5.39 | -4.60 |
| Term loan repaid | 3.59 | 7.17 | 7.17 | 7.17 | 7.17 | 7.17 | 7.17 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -12.81 | -15.72 | -14.93 | -14.14 | -13.35 | -12.56 | -11.78 |
| Cash and bank | -12.81 | -28.53 | -43.46 | -57.60 | -70.96 | -83.52 | -95.30 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.18 | 5.18 | 5.18 | 5.18 | 5.18 | 5.18 | 5.18 |
| Reserves and surplus | -16.99 | -32.15 | -45.52 | -57.26 | -67.50 | -76.34 | -83.87 |
| Term loan outstanding | 43.04 | 35.87 | 28.69 | 21.52 | 14.35 | 7.17 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 31.23 | 8.90 | -11.65 | -30.56 | -47.97 | -63.98 | -78.69 |
| Net fixed assets | 44.04 | 37.43 | 31.82 | 27.04 | 22.99 | 19.54 | 16.61 |
| 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 | -12.81 | -28.53 | -43.46 | -57.60 | -70.96 | -83.52 | -95.30 |
| Total assets | 31.23 | 8.90 | -11.65 | -30.56 | -47.97 | -63.98 | -78.69 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.48 | -0.36 | -0.39 | -0.42 | -0.45 | -0.50 | -0.55 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.45 |
|---|---|
| Lowest DSCR | -0.55 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 7.77 | 6.61 | 5.61 | 4.77 | 4.06 | 3.45 | 2.93 |
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 | 46.63 | 5.05 | 3.59 | 43.04 |
| 2 | 43.04 | 4.37 | 7.17 | 35.87 |
| 3 | 35.87 | 3.58 | 7.17 | 28.69 |
| 4 | 28.69 | 2.79 | 7.17 | 21.52 |
| 5 | 21.52 | 2.01 | 7.17 | 14.35 |
| 6 | 14.35 | 1.22 | 7.17 | 7.17 |
| 7 | 7.17 | 0.43 | 7.17 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent
- Rubber Board registration as a rubber goods manufacturer
- Fire safety clearance; BIS certification where a buyer asks for it
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Rubber Cord — https://dcmsme.gov.in/14_RUBBER%20CORD%20by%20Nikhil%20Sutradhar.pdf
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.