Detailed Project Report
Denim Washing Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹22.73 L
- Term loan from bank
- ₹14.78 L
- Promoter’s contribution
- ₹2.27 L
- Subsidy
- ₹5.68 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.05 L
- Average DSCR
- -1.17
- 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
Wash stitched jeans with enzymes, stones and bleach to give them a soft feel and faded look.
| Main product or service | Denim Washing Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Jeans and denim garment manufacturers
- Garment exporters
- Fashion brands' contract units
- Job work orders from nearby garment units
- Contracts with exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Side loading washing machine (× 5) | 1 | 5,00,000 | 5,00,000 |
| Top loading washing machine (× 5) | 1 | 5,00,000 | 5,00,000 |
| Effluent treatment plant | 1 | 2,50,000 | 2,50,000 |
| Steam dryer (× 3) | 1 | 2,25,000 | 2,25,000 |
| Baby boiler | 1 | 2,00,000 | 2,00,000 |
| Trolleys (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Hydro extractor (× 2) | 1 | 1,50,000 | 1,50,000 |
| Sample washing machine (× 2) | 1 | 60,000 | 60,000 |
| Compressor | 1 | 50,000 | 50,000 |
| Submersible pumps (× 2) | 1 | 30,000 | 30,000 |
| Total | 21,65,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Denim Washing. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Caustic soda, hydrogen peroxide, enzymes, potassium permanganate, sodium and calcium hypochlorite — for different wash effects
- Pumice stones, pebbles and sand — for stone wash and sand-blast effects
- Boiler fuel — oil, gas or coal
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 21.65 |
| Contingency | 1.08 |
| Total fixed capital | 22.73 |
| Working capital margin | 0.00 |
| Total project cost | 22.73 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.27 | 10.0 |
| Subsidy | 5.68 | 25.0 |
| Term loan from bank | 14.78 | 65.0 |
| Total | 22.73 | 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 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 |
| Operating profit (EBITDA) | -3.45 | -3.45 | -3.45 | -3.45 | -3.45 | -3.45 | -3.45 |
| Depreciation | 3.41 | 2.90 | 2.46 | 2.09 | 1.78 | 1.51 | 1.29 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.60 | 1.39 | 1.14 | 0.89 | 0.64 | 0.39 | 0.14 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.46 | -7.73 | -7.05 | -6.43 | -5.86 | -5.35 | -4.87 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.46 | -7.73 | -7.05 | -6.43 | -5.86 | -5.35 | -4.87 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.46 | -7.73 | -7.05 | -6.43 | -5.86 | -5.35 | -4.87 |
| Depreciation | 3.41 | 2.90 | 2.46 | 2.09 | 1.78 | 1.51 | 1.29 |
| Cash accruals (PAT + depreciation) | -5.05 | -4.83 | -4.58 | -4.33 | -4.08 | -3.83 | -3.58 |
| Term loan repaid | 1.14 | 2.27 | 2.27 | 2.27 | 2.27 | 2.27 | 2.27 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.18 | -7.11 | -6.86 | -6.61 | -6.36 | -6.11 | -5.86 |
| Cash and bank | -6.18 | -13.29 | -20.15 | -26.76 | -33.11 | -39.22 | -45.08 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.96 | 7.96 | 7.96 | 7.96 | 7.96 | 7.96 | 7.96 |
| Reserves and surplus | -8.46 | -16.19 | -23.24 | -29.67 | -35.53 | -40.88 | -45.75 |
| Term loan outstanding | 13.64 | 11.37 | 9.09 | 6.82 | 4.55 | 2.27 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 13.14 | 3.13 | -6.19 | -14.89 | -23.03 | -30.65 | -37.79 |
| Net fixed assets | 19.32 | 16.42 | 13.96 | 11.87 | 10.09 | 8.57 | 7.29 |
| 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 | -6.18 | -13.29 | -20.15 | -26.76 | -33.11 | -39.22 | -45.08 |
| Total assets | 13.14 | 3.13 | -6.19 | -14.89 | -23.03 | -30.65 | -37.79 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.26 | -0.94 | -1.01 | -1.09 | -1.19 | -1.30 | -1.43 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.17 |
|---|---|
| Lowest DSCR | -1.43 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.41 | 2.90 | 2.46 | 2.09 | 1.78 | 1.51 | 1.29 |
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 | 14.78 | 1.60 | 1.14 | 13.64 |
| 2 | 13.64 | 1.39 | 2.27 | 11.37 |
| 3 | 11.37 | 1.14 | 2.27 | 9.09 |
| 4 | 9.09 | 0.89 | 2.27 | 6.82 |
| 5 | 6.82 | 0.64 | 2.27 | 4.55 |
| 6 | 4.55 | 0.39 | 2.27 | 2.27 |
| 7 | 2.27 | 0.14 | 2.27 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and to operate (with ETP)
- Boiler registration if the boiler falls under the Boilers Act
- Groundwater permission where required
- Factory licence
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
- SIDBI Stand-Up Mitra project profile — Denim Washing — https://www.standupmitra.in/Default/ViewFile/?id=1516112583857_Denim%20Washing.docx&path=ProjectProfile
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.