Detailed Project Report
Cotton Yarn Dyeing (Hank and Package Dyeing)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹161.81 L
- Term loan from bank
- ₹145.62 L
- Promoter’s contribution
- ₹16.18 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-35.65 L
- Average DSCR
- -0.24
- 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
Dye grey cotton yarn in hanks or soft packages for weavers and knitters who make checks, stripes and patterns.
| Main product or service | Cotton Yarn Dyeing (Hank and Package Dyeing) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Knitting and weaving mills
- Shirting and dress-material makers
- Handloom weavers
- Sweater, furnishing and sports-goods makers
- Yarn traders and exporters
- Job work for mills
- Sale of dyed yarn through yarn traders
- Exports
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pressure dyeing machine for cones | 1 | 40,00,000 | 40,00,000 |
| Dye baths for hank yarn (× 2) | 1 | 10,00,000 | 10,00,000 |
| Boiler | 1 | 10,00,000 | 10,00,000 |
| Cheese winder, 30 spindles | 1 | 5,00,000 | 5,00,000 |
| Rewinder, 30 spindles | 1 | 20,00,000 | 20,00,000 |
| Water softening plant | 1 | 5,00,000 | 5,00,000 |
| Pollution control equipment (× 1 lot) | 1 | 7,50,000 | 7,50,000 |
| Laboratory equipment (× 1 lot) | 1 | 5,00,000 | 5,00,000 |
| HTHP yarn dyeing machine, 200 kg, with automation | 1 | 35,60,000 | 35,60,000 |
| Process water softening and effluent treatment plant | 1 | 11,00,000 | 11,00,000 |
| DG set, 200 kVA | 1 | 5,00,000 | 5,00,000 |
| Total | 1,54,10,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Cotton Yarn Dyeing; DC-MSME project profile — Cotton Yarn Dyeing. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Reactive, direct, vat, sulphur or azoic dyes and auxiliary chemicals — Stand-Up Mitra takes important dyes and chemicals at ₹2,500 a kg
- Water softening chemicals
- Grey cotton yarn (customer's yarn in job work, or bought from spinning mills)
- Packing material: polythene, wrapping and cartons — ₹50,000 a month in the DC-MSME profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 154.10 |
| Contingency | 7.71 |
| Total fixed capital | 161.81 |
| Working capital margin | 0.00 |
| Total project cost | 161.81 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 16.18 | 10.0 |
| Term loan from bank | 145.62 | 90.0 |
| Total | 161.81 | 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 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 |
| Insurance | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
| Total cost of operations | 6.93 | 6.93 | 6.93 | 6.93 | 6.93 | 6.93 | 6.93 |
| Operating profit (EBITDA) | -6.93 | -6.93 | -6.93 | -6.93 | -6.93 | -6.93 | -6.93 |
| Depreciation | 24.27 | 20.63 | 17.54 | 14.91 | 12.67 | 10.77 | 9.15 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 15.76 | 13.66 | 11.19 | 8.73 | 6.26 | 3.80 | 1.33 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -46.96 | -41.21 | -35.65 | -30.56 | -25.86 | -21.49 | -17.41 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -46.96 | -41.21 | -35.65 | -30.56 | -25.86 | -21.49 | -17.41 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -46.96 | -41.21 | -35.65 | -30.56 | -25.86 | -21.49 | -17.41 |
| Depreciation | 24.27 | 20.63 | 17.54 | 14.91 | 12.67 | 10.77 | 9.15 |
| Cash accruals (PAT + depreciation) | -22.69 | -20.58 | -18.12 | -15.65 | -13.19 | -10.72 | -8.26 |
| Term loan repaid | 11.20 | 22.40 | 22.40 | 22.40 | 22.40 | 22.40 | 22.40 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -33.89 | -42.99 | -40.52 | -38.06 | -35.59 | -33.13 | -30.66 |
| Cash and bank | -33.89 | -76.87 | -117.40 | -155.45 | -191.05 | -224.17 | -254.84 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 16.18 | 16.18 | 16.18 | 16.18 | 16.18 | 16.18 | 16.18 |
| Reserves and surplus | -46.96 | -88.17 | -123.82 | -154.38 | -180.24 | -201.73 | -219.15 |
| Term loan outstanding | 134.42 | 112.02 | 89.62 | 67.21 | 44.81 | 22.40 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 103.65 | 40.03 | -18.03 | -70.99 | -119.25 | -163.15 | -202.97 |
| Net fixed assets | 137.53 | 116.90 | 99.37 | 84.46 | 71.79 | 61.02 | 51.87 |
| 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 | -33.89 | -76.87 | -117.40 | -155.45 | -191.05 | -224.17 | -254.84 |
| Total assets | 103.65 | 40.03 | -18.03 | -70.99 | -119.25 | -163.15 | -202.97 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.26 | -0.19 | -0.21 | -0.22 | -0.24 | -0.26 | -0.29 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.24 |
|---|---|
| Lowest DSCR | -0.29 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 24.27 | 20.63 | 17.54 | 14.91 | 12.67 | 10.77 | 9.15 |
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 | 145.62 | 15.76 | 11.20 | 134.42 |
| 2 | 134.42 | 13.66 | 22.40 | 112.02 |
| 3 | 112.02 | 11.19 | 22.40 | 89.62 |
| 4 | 89.62 | 8.73 | 22.40 | 67.21 |
| 5 | 67.21 | 6.26 | 22.40 | 44.81 |
| 6 | 44.81 | 3.80 | 22.40 | 22.40 |
| 7 | 22.40 | 1.33 | 22.40 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- State Pollution Control Board consent to establish and operate (dyeing effluent)
- Boiler registration under the Boilers Act
- Factory licence, EPF and ESI registration
- Groundwater permission where the state requires it
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- SIDBI Stand-Up Mitra project profile — Cotton Yarn Dyeing — https://www.standupmitra.in/Default/ViewFile/?id=1516795885239_Cotton%20Yarn%20Dyeing.docx&path=ProjectProfile
- DC-MSME project profile — Cotton Yarn Dyeing — https://www.dcmsme.gov.in/publications/pmryprof/hosiery/ch7.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.