Detailed Project Report
Wrought Iron Furniture
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹12.93 L
- Term loan from bank
- ₹8.40 L
- Promoter’s contribution
- ₹1.29 L
- Subsidy
- ₹3.23 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.25 L
- Average DSCR
- -1.92
- 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, bend, forge and weld steel into ornate chairs, tables, beds, gates and railings.
| Main product or service | Wrought Iron Furniture |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Higher-income homes and offices
- Hotels, restaurants and gardens
- Builders needing gates, railings and fences
- Own showroom and site orders
- Furniture and decor retailers
- Architects and interior designers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Rod twisting machine | 1 | 1,60,000 | 1,60,000 |
| Hand shear machines (× 3) | 1 | 36,000 | 36,000 |
| Fly press | 1 | 20,000 | 20,000 |
| Manual press brake | 1 | 50,000 | 50,000 |
| Forging furnace | 1 | 1,00,000 | 1,00,000 |
| Open-die forging hammer | 1 | 2,30,000 | 2,30,000 |
| Hot forging tools (× 1 lot) | 1 | 25,000 | 25,000 |
| Sand blasting facility | 1 | 80,000 | 80,000 |
| Pickling and surface treatment | 1 | 60,000 | 60,000 |
| Spray painting facility | 1 | 30,000 | 30,000 |
| Rod / flat / pipe bending bench (× 2) | 1 | 40,000 | 40,000 |
| Pillar drill | 1 | 30,000 | 30,000 |
| Lathe | 1 | 45,000 | 45,000 |
| Welding machine (× 2) | 1 | 50,000 | 50,000 |
| Dies, tools and other equipment (× 1 lot) | 1 | 15,000 | 15,000 |
| Hand tools and gauges (× 1 lot) | 1 | 10,000 | 10,000 |
| KVIC set: treadle guillotine, 25-tonne power press, hand brake press, spot welder, hydraulic pipe bender, drill, compressor with spray gun, gas welding set, 7 pickling tanks, power hacksaw, stoving chamber (× 1 lot) | 1 | 2,50,000 | 2,50,000 |
| Total | 12,31,000 |
Pre-filled from: KVIC Project Profile — Wrought Iron Furniture (PMEGP); PMEGP sample project report — Wrought Iron Furniture (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Hot-rolled forging-grade steel sections — main raw material in the Samadhan report
- Rounds, squares, rods, square pipes, sheets, strips and tubes — KVIC puts raw material at ₹1,94,400 a year
- Welding rods, heat and surface treatment chemicals — consumables
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 12.31 |
| Contingency | 0.62 |
| Total fixed capital | 12.93 |
| Working capital margin | 0.00 |
| Total project cost | 12.93 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.29 | 10.0 |
| Subsidy | 3.23 | 25.0 |
| Term loan from bank | 8.40 | 65.0 |
| Total | 12.93 | 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 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 |
| Operating profit (EBITDA) | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 |
| Depreciation | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.91 | 0.79 | 0.65 | 0.50 | 0.36 | 0.22 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.05 | -5.64 | -5.25 | -4.90 | -4.58 | -4.28 | -4.01 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.05 | -5.64 | -5.25 | -4.90 | -4.58 | -4.28 | -4.01 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.05 | -5.64 | -5.25 | -4.90 | -4.58 | -4.28 | -4.01 |
| Depreciation | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| Cash accruals (PAT + depreciation) | -4.11 | -3.99 | -3.85 | -3.71 | -3.56 | -3.42 | -3.28 |
| Term loan repaid | 0.65 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.76 | -5.28 | -5.14 | -5.00 | -4.86 | -4.71 | -4.57 |
| Cash and bank | -4.76 | -10.04 | -15.18 | -20.18 | -25.04 | -29.75 | -34.33 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.52 | 4.52 | 4.52 | 4.52 | 4.52 | 4.52 | 4.52 |
| Reserves and surplus | -6.05 | -11.69 | -16.94 | -21.84 | -26.41 | -30.70 | -34.71 |
| Term loan outstanding | 7.76 | 6.46 | 5.17 | 3.88 | 2.59 | 1.29 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 6.23 | -0.70 | -7.25 | -13.44 | -19.30 | -24.88 | -30.18 |
| Net fixed assets | 10.99 | 9.34 | 7.94 | 6.75 | 5.74 | 4.87 | 4.14 |
| 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 | -4.76 | -10.04 | -15.18 | -20.18 | -25.04 | -29.75 | -34.33 |
| Total assets | 6.23 | -0.70 | -7.25 | -13.44 | -19.30 | -24.88 | -30.18 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.06 | -1.54 | -1.65 | -1.78 | -1.94 | -2.12 | -2.34 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.92 |
|---|---|
| Lowest DSCR | -2.34 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
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 | 8.40 | 0.91 | 0.65 | 7.76 |
| 2 | 7.76 | 0.79 | 1.29 | 6.46 |
| 3 | 6.46 | 0.65 | 1.29 | 5.17 |
| 4 | 5.17 | 0.50 | 1.29 | 3.88 |
| 5 | 3.88 | 0.36 | 1.29 | 2.59 |
| 6 | 2.59 | 0.22 | 1.29 | 1.29 |
| 7 | 1.29 | 0.08 | 1.29 | 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
- Trademark for your brand name (optional)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- 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
- KVIC Project Profile — Wrought Iron Furniture (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/WROUGHT_IRON_FURNITURE_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.pdf
- PMEGP sample project report — Wrought Iron Furniture (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wrought_Iron_Furniture_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 94 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/2094_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.