Detailed Project Report
Baby Garments Manufacturing
—
Prepared on: 29 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹12.23 L
- Term loan from bank
- ₹7.95 L
- Promoter’s contribution
- ₹1.22 L
- Subsidy
- ₹3.06 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.12 L
- Average DSCR
- -2.02
- 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
Stitch cotton frocks, vests, T-shirts, towels and blankets for babies in an assembly-line tailoring unit.
| Main product or service | Baby Garments Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Parents, grandparents and relatives buying for newborns
- Gift buyers for baby showers and first birthdays
- Children's wear shops
- Wholesalers and retailers
- Direct supply to stores
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single needle machine (× 6) | 1 | 3,60,000 | 3,60,000 |
| Double needle machine (× 3) | 1 | 2,25,000 | 2,25,000 |
| Border / piping machine (× 3) | 1 | 1,50,000 | 1,50,000 |
| Overlock machine (× 4) | 1 | 1,60,000 | 1,60,000 |
| Cutting table and cutting machine (× 2) | 1 | 2,00,000 | 2,00,000 |
| Button hole machine | 1 | 40,000 | 40,000 |
| Button stitching machine | 1 | 30,000 | 30,000 |
| Total | 11,65,000 |
Pre-filled from: PMEGP sample project report — Baby Garments (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Cotton knit and woven fabric — 90,000 running metres a year at full capacity, ₹90 a metre; available from fabric dealers and mills in every major city
- Fancy buttons, thread and needles — trims and consumables
- Plastic bags — packing as per customer needs
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 11.65 |
| Contingency | 0.58 |
| Total fixed capital | 12.23 |
| Working capital margin | 0.00 |
| Total project cost | 12.23 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.22 | 10.0 |
| Subsidy | 3.06 | 25.0 |
| Term loan from bank | 7.95 | 65.0 |
| Total | 12.23 | 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 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 | 3.19 |
| Operating profit (EBITDA) | -3.19 | -3.19 | -3.19 | -3.19 | -3.19 | -3.19 | -3.19 |
| Depreciation | 1.83 | 1.56 | 1.33 | 1.13 | 0.96 | 0.81 | 0.69 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.86 | 0.75 | 0.61 | 0.48 | 0.34 | 0.21 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.88 | -5.49 | -5.12 | -4.79 | -4.49 | -4.21 | -3.95 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.88 | -5.49 | -5.12 | -4.79 | -4.49 | -4.21 | -3.95 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.88 | -5.49 | -5.12 | -4.79 | -4.49 | -4.21 | -3.95 |
| Depreciation | 1.83 | 1.56 | 1.33 | 1.13 | 0.96 | 0.81 | 0.69 |
| Cash accruals (PAT + depreciation) | -4.05 | -3.93 | -3.80 | -3.66 | -3.53 | -3.39 | -3.26 |
| Term loan repaid | 0.61 | 1.22 | 1.22 | 1.22 | 1.22 | 1.22 | 1.22 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.66 | -5.15 | -5.02 | -4.89 | -4.75 | -4.62 | -4.48 |
| Cash and bank | -4.66 | -9.81 | -14.83 | -19.72 | -24.47 | -29.09 | -33.57 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.28 | 4.28 | 4.28 | 4.28 | 4.28 | 4.28 | 4.28 |
| Reserves and surplus | -5.88 | -11.37 | -16.50 | -21.28 | -25.77 | -29.98 | -33.93 |
| Term loan outstanding | 7.34 | 6.12 | 4.89 | 3.67 | 2.45 | 1.22 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 5.74 | -0.97 | -7.32 | -13.33 | -19.04 | -24.47 | -29.65 |
| Net fixed assets | 10.40 | 8.84 | 7.51 | 6.39 | 5.43 | 4.61 | 3.92 |
| 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 | -4.66 | -9.81 | -14.83 | -19.72 | -24.47 | -29.09 | -33.57 |
| Total assets | 5.74 | -0.97 | -7.32 | -13.33 | -19.04 | -24.47 | -29.65 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.16 | -1.62 | -1.74 | -1.87 | -2.04 | -2.23 | -2.46 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.02 |
|---|---|
| Lowest DSCR | -2.46 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.83 | 1.56 | 1.33 | 1.13 | 0.96 | 0.81 | 0.69 |
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 | 7.95 | 0.86 | 0.61 | 7.34 |
| 2 | 7.34 | 0.75 | 1.22 | 6.12 |
| 3 | 6.12 | 0.61 | 1.22 | 4.89 |
| 4 | 4.89 | 0.48 | 1.22 | 3.67 |
| 5 | 3.67 | 0.34 | 1.22 | 2.45 |
| 6 | 2.45 | 0.21 | 1.22 | 1.22 |
| 7 | 1.22 | 0.07 | 1.22 | 0.00 |
17 Licences and registrations
- The report says no specific government approval is needed; MSME (Udyam) registration is optional
- Shops & Establishment registration and professional tax with the local body
- Factories Act, PF and ESI registration depending on the number of workers
- GST registration
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 — Baby Garments (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Baby_Garments_%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.