Detailed Project Report
Wire Nail Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.65 L
- Term loan from bank
- ₹2.37 L
- Promoter’s contribution
- ₹0.36 L
- Subsidy
- ₹0.91 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.55 L
- Average DSCR
- -6.30
- 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 and head bright steel wire into nails for builders, carpenters and box makers.
| Main product or service | Wire Nail Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Builders and construction workers
- Carpenters and furniture makers
- Packing-box makers
- Hardware stores
- Building-material shops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wire nail making machine with 3 HP motor | 1 | 2,20,000 | 2,20,000 |
| Polishing barrel / drum | 1 | 60,000 | 60,000 |
| Wire stand / spool | 1 | 10,000 | 10,000 |
| Grinder and cutter | 1 | 22,500 | 22,500 |
| Other equipment and hand tools (× 1 lot) | 1 | 25,000 | 25,000 |
| Electrification and water installation (× 1 lot) | 1 | 10,000 | 10,000 |
| Total | 3,47,500 |
Pre-filled from: PMEGP sample project report — Wire Nails (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 cold-drawn bright wire, 20 to 9 gauge — ₹50 per kg; 3,45,000 kg a year at full capacity
- Jute bags for packing — ₹0.05 L a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.48 |
| Contingency | 0.17 |
| Total fixed capital | 3.65 |
| Working capital margin | 0.00 |
| Total project cost | 3.65 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.36 | 10.0 |
| Subsidy | 0.91 | 25.0 |
| Term loan from bank | 2.37 | 65.0 |
| Total | 3.65 | 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 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 |
| Operating profit (EBITDA) | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 |
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.26 | 0.22 | 0.18 | 0.14 | 0.10 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.78 | -3.66 | -3.55 | -3.45 | -3.36 | -3.28 | -3.20 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.78 | -3.66 | -3.55 | -3.45 | -3.36 | -3.28 | -3.20 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.78 | -3.66 | -3.55 | -3.45 | -3.36 | -3.28 | -3.20 |
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 |
| Cash accruals (PAT + depreciation) | -3.23 | -3.19 | -3.15 | -3.11 | -3.07 | -3.03 | -2.99 |
| Term loan repaid | 0.18 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.41 | -3.56 | -3.52 | -3.48 | -3.44 | -3.40 | -3.36 |
| Cash and bank | -3.41 | -6.97 | -10.49 | -13.97 | -17.40 | -20.80 | -24.16 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 |
| Reserves and surplus | -3.78 | -7.43 | -10.98 | -14.43 | -17.79 | -21.07 | -24.27 |
| Term loan outstanding | 2.19 | 1.82 | 1.46 | 1.09 | 0.73 | 0.36 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.31 | -4.33 | -8.25 | -12.06 | -15.78 | -19.43 | -22.99 |
| Net fixed assets | 3.10 | 2.64 | 2.24 | 1.90 | 1.62 | 1.38 | 1.17 |
| 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 | -3.41 | -6.97 | -10.49 | -13.97 | -17.40 | -20.80 | -24.16 |
| Total assets | -0.31 | -4.33 | -8.25 | -12.06 | -15.78 | -19.43 | -22.99 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.77 | -5.06 | -5.43 | -5.86 | -6.36 | -6.96 | -7.69 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.30 |
|---|---|
| Lowest DSCR | -7.69 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 |
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 | 2.37 | 0.26 | 0.18 | 2.19 |
| 2 | 2.19 | 0.22 | 0.36 | 1.82 |
| 3 | 1.82 | 0.18 | 0.36 | 1.46 |
| 4 | 1.46 | 0.14 | 0.36 | 1.09 |
| 5 | 1.09 | 0.10 | 0.36 | 0.73 |
| 6 | 0.73 | 0.06 | 0.36 | 0.36 |
| 7 | 0.36 | 0.02 | 0.36 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate, where the state requires it
- Trade licence from the local body
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)
- Stand-Up India
19 Sources
- PMEGP sample project report — Wire Nails (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wire_nail_%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.