Detailed Project Report
Denim Garments (Jeans, Jackets, Shorts)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.01 L
- Term loan from bank
- ₹10.41 L
- Promoter’s contribution
- ₹1.60 L
- Subsidy
- ₹4.00 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.82 L
- Average DSCR
- -1.59
- 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
Cut, stitch, wash and pack jeans, jackets and shorts from denim fabric on an assembly line of heavy-duty machines.
| Main product or service | Denim Garments (Jeans, Jackets, Shorts) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Men, women and children — students and office-goers keep 4–5 denim garments (report)
- Wholesale garment traders
- Retail shops and brands
- Garment wholesale markets
- Supply to retailers and brands
- Export buyers in Europe and America (report notes Asian makers are competitive)
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single-needle machines with accessories (heavy duty) (× 5) | 1 | 3,75,000 | 3,75,000 |
| Double-needle machines with accessories (heavy duty) (× 5) | 1 | 5,00,000 | 5,00,000 |
| Zig-zag stitching machine | 1 | 75,000 | 75,000 |
| Fabric cutting table and machine | 1 | 1,00,000 | 1,00,000 |
| Overlock machine | 1 | 75,000 | 75,000 |
| Button-hole and stitching machine | 1 | 2,50,000 | 2,50,000 |
| Commercial washing machine | 1 | 1,50,000 | 1,50,000 |
| Total | 15,25,000 |
Pre-filled from: PMEGP sample project report — Denim Garments (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Denim fabric (classic 14.5 oz; lighter 13.5, 12.5, 11, 9 and 6 oz) — ₹200–250 a metre assumed; bought from dealers and mill agents
- Accessories — coarse thread, labels, zippers, buttons — wholesalers in Delhi, Mumbai, Ludhiana, Coimbatore and other cities
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 15.25 |
| Contingency | 0.76 |
| Total fixed capital | 16.01 |
| Working capital margin | 0.00 |
| Total project cost | 16.01 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.60 | 10.0 |
| Subsidy | 4.00 | 25.0 |
| Term loan from bank | 10.41 | 65.0 |
| Total | 16.01 | 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 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.28 | 3.28 | 3.28 | 3.28 | 3.28 | 3.28 | 3.28 |
| Operating profit (EBITDA) | -3.28 | -3.28 | -3.28 | -3.28 | -3.28 | -3.28 | -3.28 |
| Depreciation | 2.40 | 2.04 | 1.74 | 1.48 | 1.25 | 1.07 | 0.91 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.13 | 0.98 | 0.80 | 0.62 | 0.45 | 0.27 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.81 | -6.30 | -5.82 | -5.38 | -4.98 | -4.62 | -4.28 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.81 | -6.30 | -5.82 | -5.38 | -4.98 | -4.62 | -4.28 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.81 | -6.30 | -5.82 | -5.38 | -4.98 | -4.62 | -4.28 |
| Depreciation | 2.40 | 2.04 | 1.74 | 1.48 | 1.25 | 1.07 | 0.91 |
| Cash accruals (PAT + depreciation) | -4.41 | -4.26 | -4.08 | -3.90 | -3.73 | -3.55 | -3.38 |
| Term loan repaid | 0.80 | 1.60 | 1.60 | 1.60 | 1.60 | 1.60 | 1.60 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.21 | -5.86 | -5.68 | -5.51 | -5.33 | -5.15 | -4.98 |
| Cash and bank | -5.21 | -11.07 | -16.75 | -22.25 | -27.58 | -32.73 | -37.71 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.60 | 5.60 | 5.60 | 5.60 | 5.60 | 5.60 | 5.60 |
| Reserves and surplus | -6.81 | -13.11 | -18.92 | -24.30 | -29.28 | -33.90 | -38.18 |
| Term loan outstanding | 9.61 | 8.01 | 6.41 | 4.80 | 3.20 | 1.60 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.40 | 0.50 | -6.91 | -13.89 | -20.48 | -26.70 | -32.58 |
| Net fixed assets | 13.61 | 11.57 | 9.83 | 8.36 | 7.10 | 6.04 | 5.13 |
| 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 | -5.21 | -11.07 | -16.75 | -22.25 | -27.58 | -32.73 | -37.71 |
| Total assets | 8.40 | 0.50 | -6.91 | -13.89 | -20.48 | -26.70 | -32.58 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.70 | -1.27 | -1.37 | -1.47 | -1.60 | -1.75 | -1.93 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.59 |
|---|---|
| Lowest DSCR | -1.93 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.40 | 2.04 | 1.74 | 1.48 | 1.25 | 1.07 | 0.91 |
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 | 10.41 | 1.13 | 0.80 | 9.61 |
| 2 | 9.61 | 0.98 | 1.60 | 8.01 |
| 3 | 8.01 | 0.80 | 1.60 | 6.41 |
| 4 | 6.41 | 0.62 | 1.60 | 4.80 |
| 5 | 4.80 | 0.45 | 1.60 | 3.20 |
| 6 | 3.20 | 0.27 | 1.60 | 1.60 |
| 7 | 1.60 | 0.10 | 1.60 | 0.00 |
17 Licences and registrations
- Udyam (the report calls it optional)
- GST
- Shops and Establishment registration and professional tax
- Factories Act, EPF and ESI registration depending on the number of workers
- State Pollution Control Board consent where applicable (washing)
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 — Denim Garments (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Denim_Garments_%28_Samadhan_Projects_%29.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.