Detailed Project Report
Coir Yarn Spinning (Automatic Machines)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.56 L
- Term loan from bank
- ₹11.41 L
- Promoter’s contribution
- ₹1.76 L
- Subsidy
- ₹4.39 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.10 L
- Average DSCR
- -1.46
- 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
Spin coir fibre into 2-ply yarn on four automatic double-head spinning machines.
| Main product or service | Coir Yarn Spinning (Automatic Machines) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Coir mat and matting makers
- Coir rope makers
- Coir geotextile weavers
- Yarn traders and exporters
- Direct sale to weaving units
- Yarn traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Willowing machine, 1.5 HP | 1 | 90,000 | 90,000 |
| Double-head double-combing 2-ply coir yarn spinning machine, 1.5 HP (× 4) | 1 | 7,90,000 | 7,90,000 |
| Auto-feed for double-head spinning machine with 0.5 HP motor, gear box and panel board (× 4) | 1 | 5,40,000 | 5,40,000 |
| Auto rewinding machine (× 2) | 1 | 90,000 | 90,000 |
| Electrical fittings and other equipment (× 1 lot) | 1 | 1,62,000 | 1,62,000 |
| Total | 16,72,000 |
Pre-filled from: Coir Board Project Profile — Automatic Coir Spinning Unit (PMEGP); World Customs Organization – HS Nomenclature 2022, Chapter 53. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Coir fibre bales — 211 tonnes a year at full capacity, ₹25,000 a tonne
- Core thread (nylon, cotton, HDPE or LDPE) — carrier for the fibre during spinning
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.72 |
| Contingency | 0.84 |
| Total fixed capital | 17.56 |
| Working capital margin | 0.00 |
| Total project cost | 17.56 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.76 | 10.0 |
| Subsidy | 4.39 | 25.0 |
| Term loan from bank | 11.41 | 65.0 |
| Total | 17.56 | 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 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 |
| Operating profit (EBITDA) | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 |
| Depreciation | 2.63 | 2.24 | 1.90 | 1.62 | 1.37 | 1.17 | 0.99 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.24 | 1.07 | 0.88 | 0.68 | 0.49 | 0.30 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.19 | -6.63 | -6.10 | -5.62 | -5.18 | -4.79 | -4.42 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.19 | -6.63 | -6.10 | -5.62 | -5.18 | -4.79 | -4.42 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.19 | -6.63 | -6.10 | -5.62 | -5.18 | -4.79 | -4.42 |
| Depreciation | 2.63 | 2.24 | 1.90 | 1.62 | 1.37 | 1.17 | 0.99 |
| Cash accruals (PAT + depreciation) | -4.55 | -4.39 | -4.20 | -4.00 | -3.81 | -3.62 | -3.42 |
| Term loan repaid | 0.88 | 1.76 | 1.76 | 1.76 | 1.76 | 1.76 | 1.76 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.43 | -6.14 | -5.95 | -5.76 | -5.57 | -5.37 | -5.18 |
| Cash and bank | -5.43 | -11.58 | -17.53 | -23.29 | -28.85 | -34.22 | -39.40 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.14 | 6.14 | 6.14 | 6.14 | 6.14 | 6.14 | 6.14 |
| Reserves and surplus | -7.19 | -13.81 | -19.91 | -25.53 | -30.72 | -35.50 | -39.92 |
| Term loan outstanding | 10.53 | 8.78 | 7.02 | 5.27 | 3.51 | 1.76 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.49 | 1.11 | -6.75 | -14.12 | -21.06 | -27.60 | -33.78 |
| Net fixed assets | 14.92 | 12.68 | 10.78 | 9.16 | 7.79 | 6.62 | 5.63 |
| 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 | -5.43 | -11.58 | -17.53 | -23.29 | -28.85 | -34.22 | -39.40 |
| Total assets | 9.49 | 1.11 | -6.75 | -14.12 | -21.06 | -27.60 | -33.78 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.57 | -1.17 | -1.26 | -1.36 | -1.48 | -1.62 | -1.78 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.46 |
|---|---|
| Lowest DSCR | -1.78 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.63 | 2.24 | 1.90 | 1.62 | 1.37 | 1.17 | 0.99 |
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 | 11.41 | 1.24 | 0.88 | 10.53 |
| 2 | 10.53 | 1.07 | 1.76 | 8.78 |
| 3 | 8.78 | 0.88 | 1.76 | 7.02 |
| 4 | 7.02 | 0.68 | 1.76 | 5.27 |
| 5 | 5.27 | 0.49 | 1.76 | 3.51 |
| 6 | 3.51 | 0.30 | 1.76 | 1.76 |
| 7 | 1.76 | 0.10 | 1.76 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Coir Board registration
- Labour registrations for a 20+ worker unit (EPF, and ESI where applicable)
- Fire NOC (fibre stock)
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
- Stand-Up India
19 Sources
- Coir Board Project Profile — Automatic Coir Spinning Unit (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PROJECT_PROFILE_FOR_AUTOMATIC_COIR_SPINNING_UNIT_%28_COIR_BOARD_BASED_INDUSTRY_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 53 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1153_2022e.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.