Detailed Project Report
Baby Diaper Manufacturing
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹15.23 L
- Term loan from bank
- ₹9.90 L
- Promoter’s contribution
- ₹1.52 L
- Subsidy
- ₹3.81 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.67 L
- Average DSCR
- -1.66
- 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
Make disposable baby diapers from fluff pulp, absorbent polymer, non-woven fabric and PE film on a line machine.
| Main product or service | Baby Diaper Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Parents of babies
- Chemists and baby-care stores
- Supermarkets and kirana shops
- Hospitals and maternity homes
- Distributors and wholesalers
- Retail packs in plastic or paper bags
- Private-label supply
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Diaper line: pulp feeding frame, pulp grinder (fluff mill) with reject-fibre collector, pad forming and wrapping system, hot-melt adhesive system, pad conveyor, drive system, counter-stacker (× 1 line) | 1 | 0 | 0 |
| Packing machine (pedal-operated or continuous heat sealer; carton packing optional) (× —) | 1 | 0 | 0 |
| Other assets: testing devices, spares, generator, safety equipment, computer and printer (× —) | 1 | 1,00,000 | 1,00,000 |
| Total plant and machinery (no item-wise prices printed) (× —) | 1 | 13,50,000 | 13,50,000 |
| Total | 14,50,000 |
Pre-filled from: PMEGP sample project report — Baby Diaper (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wood pulp (cellulose) sheets — crushed into fluff for the absorbent pad
- Sodium polyacrylate (super-absorbent polymer, SAP) — improves retention and allows a thinner diaper
- Hydrophilic and hydrophobic non-woven fabric — top sheet and leg cuffs
- Polyethylene or cloth-like back-sheet film — stops leaks
- Tissue, hot-melt adhesive, elastics, side and frontal tapes — assembly materials
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 14.50 |
| Contingency | 0.73 |
| Total fixed capital | 15.23 |
| Working capital margin | 0.00 |
| Total project cost | 15.23 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.52 | 10.0 |
| Subsidy | 3.81 | 25.0 |
| Term loan from bank | 9.90 | 65.0 |
| Total | 15.23 | 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 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.26 | 3.26 | 3.26 | 3.26 | 3.26 | 3.26 | 3.26 |
| Operating profit (EBITDA) | -3.26 | -3.26 | -3.26 | -3.26 | -3.26 | -3.26 | -3.26 |
| Depreciation | 2.28 | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.07 | 0.93 | 0.76 | 0.59 | 0.43 | 0.26 | 0.09 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.62 | -6.13 | -5.67 | -5.26 | -4.88 | -4.53 | -4.21 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.62 | -6.13 | -5.67 | -5.26 | -4.88 | -4.53 | -4.21 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.62 | -6.13 | -5.67 | -5.26 | -4.88 | -4.53 | -4.21 |
| Depreciation | 2.28 | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 |
| Cash accruals (PAT + depreciation) | -4.33 | -4.19 | -4.02 | -3.85 | -3.69 | -3.52 | -3.35 |
| Term loan repaid | 0.76 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 | 1.52 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.09 | -5.71 | -5.54 | -5.38 | -5.21 | -5.04 | -4.87 |
| Cash and bank | -5.09 | -10.80 | -16.35 | -21.72 | -26.93 | -31.97 | -36.85 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.33 | 5.33 | 5.33 | 5.33 | 5.33 | 5.33 | 5.33 |
| Reserves and surplus | -6.62 | -12.75 | -18.42 | -23.67 | -28.55 | -33.08 | -37.30 |
| Term loan outstanding | 9.14 | 7.61 | 6.09 | 4.57 | 3.05 | 1.52 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 7.85 | 0.20 | -7.00 | -13.78 | -20.18 | -26.23 | -31.97 |
| Net fixed assets | 12.94 | 11.00 | 9.35 | 7.95 | 6.76 | 5.74 | 4.88 |
| 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 | -5.09 | -10.80 | -16.35 | -21.72 | -26.93 | -31.97 | -36.85 |
| Total assets | 7.85 | 0.20 | -7.00 | -13.78 | -20.18 | -26.23 | -31.97 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.78 | -1.33 | -1.43 | -1.54 | -1.67 | -1.83 | -2.02 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.66 |
|---|---|
| Lowest DSCR | -2.02 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.28 | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 |
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 | 9.90 | 1.07 | 0.76 | 9.14 |
| 2 | 9.14 | 0.93 | 1.52 | 7.61 |
| 3 | 7.61 | 0.76 | 1.52 | 6.09 |
| 4 | 6.09 | 0.59 | 1.52 | 4.57 |
| 5 | 4.57 | 0.43 | 1.52 | 3.05 |
| 6 | 3.05 | 0.26 | 1.52 | 1.52 |
| 7 | 1.52 | 0.09 | 1.52 | 0.00 |
17 Licences and registrations
- MSME Udyam registration (named in the report)
- GST registration (named in the report)
- Other state licences depend on area and machinery, says the report — check with your district industries centre
- BIS standard for baby diapers (confirm with BIS)
- Trademark for your brand
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- PMEGP sample project report — Baby Diaper (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Baby_Diaper_%28_Samadhan_Projects_%29.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.