What is a iv cannula project report?
An IV cannula project report is a detailed project report (DPR) for a unit that makes sterile over-needle intravenous catheters from FEP tubing, stainless steel needles and moulded hubs. It sets out the process, clean room machinery, raw materials, licences, project cost, means of finance, five-year projections, DSCR and break-even a bank needs.
Entrepreneurs and existing disposables makers use it to plan the plant and apply for a term loan; lenders use it to judge whether the unit can repay.
Also known as: IV cannula business plan, intravenous cannula manufacturing project report, IV catheter plant DPR, project report on IV cannula.
What a bank checks in an IV cannula project report
A credit officer reads an IV cannula report for a few numbers that show whether thin per-piece margins can still repay the loan. These are the values in our sample report and why each one is tested.
FEP tubing and needle tubing come from a small number of suppliers. Banks compare this share with your quotations, because a low figure usually means the price of tubing was guessed.
Every cannula is sealed in its own medical paper blister, which is part of the sterile barrier. A report that treats packing as a small extra overstates profit.
Hospitals, distributors and tender buyers pay late. Receivables are the largest part of working capital in the sample, so they decide the cash credit limit.
The debt service coverage ratio (cash available divided by loan instalments) is weakest when full repayments start after the moratorium. Lenders look at this year, not only the 1.41 average.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, suppliers and buyers.
IV cannula manufacturing plant cost in India
Cost depends on how much of the cannula you make in house. An assembly unit buys moulded parts and finished needles; a full unit moulds its own hubs, tips its own catheters and grinds its own needles, as in our sample report.
Assembly unit
₹1.5–3 crore
About 10,000–20,000 pieces per day
- Assembly, tipping and packing machines₹50–90 lakh
- Clean room and ETO steriliser₹40–80 lakh
- Working capital margin₹15–30 lakh
MSME term loan; often in a rented shed
Integrated unit
₹511.53 lakh
44,000 pieces per day, 1,32,00,000 pieces per year
- Plant and machinery₹223.02 lakh
- Land and building₹184.71 lakh
- Working capital margin₹43.95 lakh
Term loan ₹383.65 lakh (75%), promoter ₹127.88 lakh
Automated plant
₹10–20 crore
About 1–2 lakh pieces per day
- Automatic assembly lines₹4–8 crore
- Tubing extrusion and moulding₹2–4 crore
- Land, building and clean room₹3–6 crore
Term loan with CGTMSE cover, subject to limits
Assembly unit and automated plant ranges are indicative. Machine origin (Indian, Chinese or European) moves the cost more than any other choice.
IV cannula project economics in our sample report
The sample unit runs 300 days a year at 44,000 pieces per day, starting at 60% of capacity and reaching 80% in Year 5. The selling price is taken at ₹9.34 per piece, ex-factory and excluding GST.
| Land and site development | 29.33 |
|---|---|
| Building and civil works | 155.38 |
| Plant and machinery | 223.02 |
| Other fixed assets | 29.53 |
| Contingencies | 18.92 |
| Preliminary and pre-operative | 11.40 |
| Working capital margin | 43.95 |
| Total | 511.53 |
| Promoter's contribution (25%) | 127.88 |
|---|---|
| Term loan from bank (75%) | 383.65 |
| Cash credit limit (separate) | 131.84 |
| Total project cost | 511.53 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
IV cannula manufacturing process
An IV cannula is a soft plastic catheter that rides over a sharp steel needle. The needle makes the puncture and is withdrawn, leaving the catheter in the vein. Making one well is a matter of tight fits and clean handling.
- Moulding
Injection moulding machines form the catheter hub, wings, port cap and flashback chamber from medical grade polypropylene and polycarbonate.
- Catheter tipping
FEP tubing is cut to length and the tip is heat formed into a thin taper, so the catheter follows the needle into the vein without folding back.
- Needle preparation
Stainless steel tubing is cut, ground to a sharp bevel, cleaned and coated with silicone so it slides through skin with low force.
- Clean room assembly
The catheter is bonded to its hub, and the needle is fitted with its hub, flashback chamber and hydrophobic filter plug, then inserted into the catheter.
- Inspection and testing
Samples from each batch are checked for tip finish, needle-to-catheter fit, leakage, flow rate and penetration force.
- Blister packing
Each cannula is sealed in a medical paper blister and labelled with its gauge, colour code, batch and expiry.
- ETO sterilisation
Packed cannulas are sterilised with ethylene oxide gas, aerated to remove residual gas and held until sterility results clear the batch.
Tip quality decides repeat orders: a rough or split catheter tip makes insertion painful and can peel back on the needle. Nurses notice it on the first box, so most process control effort goes into tipping and assembly.
Raw materials for IV cannula manufacturing
Most small units buy FEP tubing already extruded to size and make the rest in house. Tubing and needle tubing need certificates of biocompatibility from the supplier, and many plants keep about 45 days of stock because lead times are long.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| FEP catheter tubing | 30% | 113.14 |
| Stainless steel needle tubing | 28% | 105.59 |
| Medical grade polypropylene and polycarbonate | 20% | 75.42 |
| Silicone valves, filter plugs and port caps | 12% | 45.26 |
| Medical adhesive and silicone lubricant | 10% | 37.71 |
| Total | 100% | 377.12 |
Blister paper and film are counted as packing, at 9.1% of sales in the sample, not as raw material.
Machinery for an IV cannula plant
Injection moulding machines are the largest machinery cost in the sample, followed by the assembly machines. Moulds are a separate line because each gauge needs its own cavities.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Injection moulding machines | Mould hubs, wings, caps and chambers | 49.07 |
| Multi-cavity hub, wing and cap moulds | Set part shape for each gauge | 31.22 |
| Catheter cutting and tipping machine | Cuts tubing and forms the tip | 26.76 |
| Needle grinding and siliconising unit | Bevels and coats the needle | 22.30 |
| Cannula assembly machines | Bond hubs and fit needle into catheter | 35.69 |
| Blister packing machine | Seals each piece in a sterile pack | 17.84 |
| ETO sterilisation chamber with aeration | Sterilises packed batches | 22.30 |
| Clean room HVAC with HEPA filtration | Keeps the assembly area clean | 17.84 |
| Total plant and machinery | 223.02 | |
Costs are the sample report's estimates for a 44,000 pieces per day unit. Get current quotations before you finalise.
Who buys IV cannulas in India
Almost every admitted patient gets an intravenous line, and many need a second cannula when the first one blocks or is resited. Demand therefore follows hospital beds, day-care procedures and emergency cases rather than seasons.
Hospitals buy a spread of gauges, from wide bores for trauma and transfusion to fine sizes for children. A new unit sells mainly through distributors in its first years, then qualifies for larger tenders once it has a licence history and supply record.
- Private hospitals and nursing homes
- Medical distributors and stockists
- State and central government tenders, including GeM
- Diagnostic, dialysis and day-care centres
- Export buyers, where the plant holds the needed certification
Plan the product mix early: standard cannulas compete mostly on tender price. Safety cannulas and fine paediatric gauges are harder to make and usually sell higher, so they lift the average price per piece.
Licences and standards for IV cannula manufacturing
IV cannula is a regulated medical device, so the manufacturing licence, not the factory building, sets the date of first sale. These are the approvals as of October 2026.
| Device class | Class B (IV cannulae) in CDSCO's classification of 1 November 2017 under the Medical Devices Rules, 2017 |
|---|---|
| Manufacturing licence | Apply on Form MD-3 to the State Licensing Authority; the licence is granted on Form MD-5 |
| Site audit | A registered Notified Body audits the site before the licence is granted, within 90 days of the application |
| Test licence | Form MD-12 to the Central Licensing Authority to make small quantities for testing and evaluation before full licensing |
| Product standard | IS/ISO 10555-5:2013 for over-needle peripheral catheters; ISO is preparing a new edition |
| Quality system | ISO 13485 certification, commonly asked for in hospital tenders and by export buyers |
| GST | 5% under heading 9018 from 22 September 2025 (earlier 12%) |
| Business and site | Udyam and GST registration, State Pollution Control Board consent and factory licence where it applies |
Mistakes that weaken an IV cannula project report
- Taking MRP as the selling price
The price printed on a cannula pack is many times what a distributor or tender pays. Sales must use ex-factory rates; the sample uses ₹9.34 per piece.
- No time allowed for licensing
A Class B licence needs a Notified Body audit first, and nothing can be sold until Form MD-5 is issued. Interest and salaries in that gap belong in pre-operative cost.
- Forgetting the sterilisation hold
ETO aeration and sterility testing keep each batch in stock for days after packing. Finished goods stock and working capital must allow for it.
- Planning for one gauge only
Buyers order a range of colour-coded sizes. Each gauge needs its own moulds and setup time, which lowers real output against rated capacity.
- Assuming no rejections
Tips, bonds and needles fail inspection at some rate, mostly while a new line settles. Raw material use should cover rejected pieces.
How NPCS helps you set up an IV cannula unit
- Capacity and gauge mixSize daily output and the range of gauges to suit your buyers and budget.
- Machinery and clean roomCompare assembly, tipping and sterilisation options and collect quotations.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender expects.
- Licensing roadmapThe MD-3 application, Notified Body audit and other approvals, mapped to your project schedule.
NPCS's client list includes 5 assignments for IV cannula projects and 75 across medical devices, for entrepreneurs, banks and companies in India and abroad.
What's inside the iv cannula sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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IV Cannula project report: frequently asked questions
What is the IV cannula manufacturing plant cost in India?
An assembly unit making 10,000–20,000 pieces a day needs roughly ₹1.5–3 crore, and a highly automated plant with its own tubing extrusion can need ₹10–20 crore. Our sample report models a 44,000 pieces per day unit at ₹511.53 lakh. These ranges are indicative; your own report works out the cost for your capacity, automation level and location.
Which licence is needed to manufacture IV cannula in India?
IV cannula is a Class B medical device under the Medical Devices Rules, 2017. You apply on Form MD-3 to your State Licensing Authority and receive the manufacturing licence on Form MD-5. A registered Notified Body must audit the site before the licence is granted. Udyam, GST and pollution board consent are also needed.
What raw materials are used to make an IV cannula?
The catheter is made from FEP tubing (some makers use polyurethane) and the introducer needle from stainless steel tubing. The hub, wings, port cap and flashback chamber are moulded from medical grade polypropylene and polycarbonate. Silicone valves, filter plugs, adhesive and silicone lubricant complete it. In our sample report FEP tubing is the largest raw material cost at 30%.
Is IV cannula manufacturing profitable?
It can be, at volume. In our illustrative sample a 44,000 pieces per day unit earns ₹72 lakh net profit on ₹863 lakh sales in Year 3. That is a 14% return on investment, with break-even at 49% of capacity. Margins are thin per piece, so profit depends on rejection rates, tender prices and how quickly buyers pay.
Can I get a PMEGP or bank loan for an IV cannula unit?
Most IV cannula units take an MSME term loan from a bank. PMEGP covers manufacturing projects only up to ₹50 lakh, which is usually below the cost of a licensed unit with a clean room and sterilisation. CGTMSE can give collateral-free guarantee cover on eligible loans up to ₹10 crore. Lenders ask for a project report with projections and DSCR.
What GST rate applies to IV cannula?
IV cannulas fall under tariff heading 9018, medical and surgical instruments and appliances. The GST Council cut the rate on this heading from 12% to 5% with effect from 22 September 2025. Check the exact tariff item for your product with your tax adviser, because the rate decides the price you quote to hospitals and distributors.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It shows the format and depth of an NPCS report, but its figures are representative and not taken from a real project. Do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, location and lender.
Sources and references
- Classification of medical devices and in vitro diagnostic medical devices under the Medical Devices Rules, 2017 (notice of 1 November 2017)Central Drugs Standard Control Organisation, checked Oct 2026
- Medical Devices Rules, 2017Central Drugs Standard Control Organisation, checked Oct 2026
- IS/ISO 10555-5:2013 Intravascular catheters: over-needle peripheral cathetersBureau of Indian Standards, checked Oct 2026
- Recommendations of the 56th meeting of the GST Council (press release)GST Council, Government of India, checked Oct 2026
- PMEGP (Prime Minister Employment Generation Programme)MSME Department, Government of Uttar Pradesh, checked Oct 2026
- Credit Guarantee Fund Trust for Micro and Small EnterprisesCGTMSE, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.