Detailed Project Report
Banana Fibre (Banana Silk) Fabric Unit
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.15 L
- Term loan from bank
- ₹2.05 L
- Promoter’s contribution
- ₹0.32 L
- Subsidy
- ₹0.79 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.46 L
- Average DSCR
- -7.27
- 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
Extract fibre from banana stems, spin it and weave 'banana silk' cloth on a handloom.
| Main product or service | Banana Fibre (Banana Silk) Fabric Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Fashion and textile designers
- Home-furnishing makers
- Craft and gift shops
- Craft fairs and exhibitions
- Direct sale to designers
- Online craft stores
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Banana fibre extraction machine | 1 | 80,000 | 80,000 |
| Yarn spinning machine | 1 | 1,20,000 | 1,20,000 |
| Handloom | 1 | 30,000 | 30,000 |
| Soaking tank, weighing machine, pump, bins, trolleys (× —) | 1 | 70,000 | 70,000 |
| Total | 3,00,000 |
Pre-filled from: PMEGP sample project report — Banana Silk Fabric (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Banana pseudo-stem — farm waste after harvest
- Alkaline solution — for treating the fibre
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.00 |
| Contingency | 0.15 |
| Total fixed capital | 3.15 |
| Working capital margin | 0.00 |
| Total project cost | 3.15 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.32 | 10.0 |
| Subsidy | 0.79 | 25.0 |
| Term loan from bank | 2.05 | 65.0 |
| Total | 3.15 | 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 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 | 2.96 |
| Operating profit (EBITDA) | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 | -2.96 |
| Depreciation | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.22 | 0.19 | 0.16 | 0.12 | 0.09 | 0.05 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.65 | -3.55 | -3.46 | -3.37 | -3.29 | -3.22 | -3.16 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.65 | -3.55 | -3.46 | -3.37 | -3.29 | -3.22 | -3.16 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.65 | -3.55 | -3.46 | -3.37 | -3.29 | -3.22 | -3.16 |
| Depreciation | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 |
| Cash accruals (PAT + depreciation) | -3.18 | -3.15 | -3.12 | -3.08 | -3.05 | -3.01 | -2.98 |
| Term loan repaid | 0.16 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.34 | -3.47 | -3.43 | -3.40 | -3.36 | -3.33 | -3.29 |
| Cash and bank | -3.34 | -6.80 | -10.23 | -13.63 | -16.99 | -20.32 | -23.61 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 |
| Reserves and surplus | -3.65 | -7.21 | -10.66 | -14.03 | -17.33 | -20.55 | -23.71 |
| Term loan outstanding | 1.89 | 1.58 | 1.26 | 0.95 | 0.63 | 0.32 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.66 | -4.53 | -8.30 | -11.99 | -15.60 | -19.13 | -22.60 |
| Net fixed assets | 2.68 | 2.28 | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 |
| 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 | -3.34 | -6.80 | -10.23 | -13.63 | -16.99 | -20.32 | -23.61 |
| Total assets | -0.66 | -4.53 | -8.30 | -11.99 | -15.60 | -19.13 | -22.60 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -7.80 | -5.84 | -6.26 | -6.76 | -7.34 | -8.03 | -8.86 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -7.27 |
|---|---|
| Lowest DSCR | -8.86 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 |
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 | 2.05 | 0.22 | 0.16 | 1.89 |
| 2 | 1.89 | 0.19 | 0.32 | 1.58 |
| 3 | 1.58 | 0.16 | 0.32 | 1.26 |
| 4 | 1.26 | 0.12 | 0.32 | 0.95 |
| 5 | 0.95 | 0.09 | 0.32 | 0.63 |
| 6 | 0.63 | 0.05 | 0.32 | 0.32 |
| 7 | 0.32 | 0.02 | 0.32 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Handloom Mark (optional, for handloom cloth)
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)
19 Sources
- PMEGP sample project report — Banana Silk Fabric (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Banana_Silk_Fabric_%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.