Detailed Project Report
Welded Wire Mesh and Fencing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹36.54 L
- Term loan from bank
- ₹23.75 L
- Promoter’s contribution
- ₹3.65 L
- Subsidy
- ₹9.14 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-9.58 L
- Average DSCR
- -0.80
- 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
Weld mild-steel wire into mesh rolls and panels for fencing and concrete work.
| Main product or service | Welded Wire Mesh and Fencing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Builders and contractors (roads, buildings, airports, dams)
- Farm, plot and factory owners who need fencing
- Workshops needing machine guards and partitions
- Hardware and building-material dealers
- Direct supply to contractors and projects
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Semi-automatic wire mesh welder (WMW 1800), 6 ft width, 2–5.6 mm wire | 1 | 32,00,000 | 32,00,000 |
| Weld mesh cutting machine, 10 HP | 1 | 1,50,000 | 1,50,000 |
| Wire cutting and straightening machine, up to 8 mm, 7.5 HP | 1 | 50,000 | 50,000 |
| Air compressor, 3 HP, 200-litre tank | 1 | 22,000 | 22,000 |
| Portable 6-inch hand grinder | 1 | 5,000 | 5,000 |
| Wire butt welding machine, 6 KVA | 1 | 25,000 | 25,000 |
| Other equipment and hand tools (× 1 lot) | 1 | 28,000 | 28,000 |
| Total | 34,80,000 |
Pre-filled from: PMEGP sample project report — Wire Mesh Fencing (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 73. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- MS wire coil, 2 to 5.6 mm — ₹38,000 per MT; 1,200 MT a year at full capacity
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 34.80 |
| Contingency | 1.74 |
| Total fixed capital | 36.54 |
| Working capital margin | 0.00 |
| Total project cost | 36.54 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.65 | 10.0 |
| Subsidy | 9.14 | 25.0 |
| Term loan from bank | 23.75 | 65.0 |
| Total | 36.54 | 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 | 0.73 | 0.73 | 0.73 | 0.73 | 0.73 | 0.73 | 0.73 |
| Insurance | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 |
| Total cost of operations | 3.79 | 3.79 | 3.79 | 3.79 | 3.79 | 3.79 | 3.79 |
| Operating profit (EBITDA) | -3.79 | -3.79 | -3.79 | -3.79 | -3.79 | -3.79 | -3.79 |
| Depreciation | 5.48 | 4.66 | 3.96 | 3.37 | 2.86 | 2.43 | 2.07 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.57 | 2.23 | 1.83 | 1.42 | 1.02 | 0.62 | 0.22 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -11.85 | -10.68 | -9.58 | -8.58 | -7.68 | -6.85 | -6.08 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -11.85 | -10.68 | -9.58 | -8.58 | -7.68 | -6.85 | -6.08 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -11.85 | -10.68 | -9.58 | -8.58 | -7.68 | -6.85 | -6.08 |
| Depreciation | 5.48 | 4.66 | 3.96 | 3.37 | 2.86 | 2.43 | 2.07 |
| Cash accruals (PAT + depreciation) | -6.36 | -6.02 | -5.62 | -5.22 | -4.82 | -4.41 | -4.01 |
| Term loan repaid | 1.83 | 3.65 | 3.65 | 3.65 | 3.65 | 3.65 | 3.65 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -8.19 | -9.67 | -9.27 | -8.87 | -8.47 | -8.07 | -7.67 |
| Cash and bank | -8.19 | -17.87 | -27.14 | -36.01 | -44.48 | -52.55 | -60.21 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 12.79 | 12.79 | 12.79 | 12.79 | 12.79 | 12.79 | 12.79 |
| Reserves and surplus | -11.85 | -22.53 | -32.10 | -40.69 | -48.36 | -55.21 | -61.29 |
| Term loan outstanding | 21.92 | 18.27 | 14.62 | 10.96 | 7.31 | 3.65 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 22.87 | 8.53 | -4.70 | -16.94 | -28.27 | -38.77 | -48.50 |
| Net fixed assets | 31.06 | 26.40 | 22.44 | 19.07 | 16.21 | 13.78 | 11.71 |
| 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 | -8.19 | -17.87 | -27.14 | -36.01 | -44.48 | -52.55 | -60.21 |
| Total assets | 22.87 | 8.53 | -4.70 | -16.94 | -28.27 | -38.77 | -48.50 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.86 | -0.64 | -0.69 | -0.75 | -0.81 | -0.89 | -0.98 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.80 |
|---|---|
| Lowest DSCR | -0.98 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.48 | 4.66 | 3.96 | 3.37 | 2.86 | 2.43 | 2.07 |
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 | 23.75 | 2.57 | 1.83 | 21.92 |
| 2 | 21.92 | 2.23 | 3.65 | 18.27 |
| 3 | 18.27 | 1.83 | 3.65 | 14.62 |
| 4 | 14.62 | 1.42 | 3.65 | 10.96 |
| 5 | 10.96 | 1.02 | 3.65 | 7.31 |
| 6 | 7.31 | 0.62 | 3.65 | 3.65 |
| 7 | 3.65 | 0.22 | 3.65 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate, where the state requires it
- Factory licence if your worker count crosses the Factories Act limit
- Trademark for your brand name (optional)
- BIS licence if you sell welded mesh for concrete reinforcement under a steel Quality Control Order — check the current BIS list
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 — Wire Mesh Fencing (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wire_Mesh_Fencing_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 73 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1573_2022e.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.