Project report for Tyre retreading

Introduction

Project report for Tyre sales & service shop is as follows:

India tire market to grow at a CAGR of over 9% by 2023. Expanding vehicle fleet, surging new vehicle sales and booming construction industry are the major factors expected to boost demand for tires across India in the coming years. Moreover, growing urbanization and rising disposable income are likely to further steer growth in the country’s tire market until 2023.With an expanding volume share of over 50% in India tire market, the two-wheeler tire segment dominated the overall tire industry in India, followed by the market of passenger car Light Commercial Vehicles, Medium & Heavy Commercial vehicles, three-wheelers and OTR vehicles. On account of various features such as higher convenience, designing, comfort, affordability, fuel efficiency, mechanisms (automatic transmission), etc. demand for two-wheelers in the country is increasing, especially among the youth. On the other hand, factors such as availability of raw materials, wide consumer base and various untapped opportunities are attracting several M&HCV players to set up their manufacturing units in the country...

Market potential & Strategy

India tire market to grow at a CAGR of over 9% by 2023. Expanding vehicle fleet, surging new vehicle sales and booming construction industry are the major factors expected to boost demand for tires across India in the coming years. Moreover, growing urbanization and rising disposable income are likely to further steer growth in the country’s tire market until 2023.With an expanding volume share of over 50% in India tire market, the two-wheeler tire segment dominated the overall tire industry in India, followed by the market of passenger car Light Commercial Vehicles, Medium & Heavy Commercial vehicles, three-wheelers and OTR vehicles. On account of various features such as higher convenience, designing, comfort, affordability, fuel efficiency, mechanisms (automatic transmission), etc. demand for two-wheelers in the country is increasing, especially among the youth. On the other hand, factors such as availability of raw materials, wide consumer base and various untapped opportunities are attracting several M&HCV players to set up their manufacturing units in the country...

PROJECT REPORT

Tyre retreading

Address

Introduction

Project report for Tyre sales & service shop is as follows:

India tire market to grow at a CAGR of over 9% by 2023. Expanding vehicle fleet, surging new vehicle sales and booming construction industry are the major factors expected to boost demand for tires across India in the coming years. Moreover, growing urbanization and rising disposable income are likely to further steer growth in the country’s tire market until 2023.With an expanding volume share of over 50% in India tire market, the two-wheeler tire segment dominated the overall tire industry in India, followed by the market of passenger car Light Commercial Vehicles, Medium & Heavy Commercial vehicles, three-wheelers and OTR vehicles. On account of various features such as higher convenience, designing, comfort, affordability, fuel efficiency, mechanisms (automatic transmission), etc. demand for two-wheelers in the country is increasing, especially among the youth. On the other hand, factors such as availability of raw materials, wide consumer base and various untapped opportunities are attracting several M&HCV players to set up their manufacturing units in the country. Moreover, India also exports commercial vehicles across South East Asia, African and other neighbouring countries.With a volume share of more than 30% during 2016, in overall market of India, the demand for tires in the industry was widely generated from the West region of the India. The dominating presence of various Indian brands and multinational companies like MRF, JK Tyre, Apollo, TVS, Bridgestone, Michelin, Goodyear,etc. intensified the tire market of the country during 2016. Moreover, the widespread presence of well-established network of dealers and distributors, is enhancing the market share of the above mentioned renowned tire companies in India.

Market potential & Strategy

India tire market to grow at a CAGR of over 9% by 2023. Expanding vehicle fleet, surging new vehicle sales and booming construction industry are the major factors expected to boost demand for tires across India in the coming years. Moreover, growing urbanization and rising disposable income are likely to further steer growth in the country’s tire market until 2023.With an expanding volume share of over 50% in India tire market, the two-wheeler tire segment dominated the overall tire industry in India, followed by the market of passenger car Light Commercial Vehicles, Medium & Heavy Commercial vehicles, three-wheelers and OTR vehicles. On account of various features such as higher convenience, designing, comfort, affordability, fuel efficiency, mechanisms (automatic transmission), etc. demand for two-wheelers in the country is increasing, especially among the youth. On the other hand, factors such as availability of raw materials, wide consumer base and various untapped opportunities are attracting several M&HCV players to set up their manufacturing units in the country. Moreover, India also exports commercial vehicles across South East Asia, African and other neighbouring countries.With a volume share of more than 30% during 2016, in overall market of India, the demand for tires in the industry was widely generated from the West region of the India. The dominating presence of various Indian brands and multinational companies like MRF, JK Tyre, Apollo, TVS, Bridgestone, Michelin, Goodyear,etc. intensified the tire market of the country during 2016. Moreover, the widespread presence of well-established network of dealers and distributors, is enhancing the market share of the above mentioned renowned tire companies in India.

Project at a glance

Name & Address of Unit

Tyre sales & service

Address

Details of unit
Email : youremail@gmailcom
Phone : 000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : put your name
Address : your address
Phone : 99099
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Building Advance *******
2 Raks and storage *******
3 CCTV, office furnitures *******
4 Computer & printer *******
5 Electrification and cabling *******
6 Preliminary expenses *******
7 Interior work *******
8 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from Sales ******* X 12 Month *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Skilled staff *******
3 Accounts and admin *******
4 Electricity *******
5 Office expense & utilities *******
6 Gold purchase *******
7 Wages *******
8 Marketing/Advertisement *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building Advance ******* 1 ******* *******
2 Raks and storage ******* 1 ******* *******
3 CCTV, office furnitures ******* 1 ******* *******
4 Computer & printer ******* 1 ******* *******
5 Electrification and cabling ******* 1 ******* *******
6 Preliminary expenses ******* 1 ******* *******
7 Interior work ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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