Detailed Project Report
Finished Shoe-Upper Leather Tannery
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹47.65 L
- Term loan from bank
- ₹42.88 L
- Promoter’s contribution
- ₹4.76 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-12.53 L
- Average DSCR
- -0.48
- 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
Tan, shave, dye and finish raw hides into leather for shoe makers, with an effluent treatment plant.
| Main product or service | Finished Shoe-Upper Leather Tannery |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Shoe manufacturers (profile)
- Leather goods makers
- Leather exporters
- Direct supply to footwear factories
- Leather traders in clusters such as Kanpur, Agra, Chennai and Kolkata
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wooden paddle with motor, tanning drum, fleshing machine, experimental drum, double-width shaving machine, dyeing and fat-liquoring drum, staking machine, measuring machine, tools and fixtures (× 1 set) | 1 | 40,84,000 | 40,84,000 |
| Effluent treatment plant | 1 | 4,54,000 | 4,54,000 |
| Total | 45,38,000 |
Pre-filled from: MSME-DI Hyderabad project profile — Din Leather from Buff Hides; World Customs Organization – HS Nomenclature 2022, Chapter 41. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw hides — 60,000 a year; with chemicals and packing ₹30.81 L a month
- Tanning, dyeing and fat-liquoring chemicals — part of the monthly raw-material bill
- Packing material — part of the monthly raw-material bill
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 45.38 |
| Contingency | 2.27 |
| Total fixed capital | 47.65 |
| Working capital margin | 0.00 |
| Total project cost | 47.65 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.76 | 10.0 |
| Term loan from bank | 42.88 | 90.0 |
| Total | 47.65 | 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 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 |
| Insurance | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 |
| Total cost of operations | 4.07 | 4.07 | 4.07 | 4.07 | 4.07 | 4.07 | 4.07 |
| Operating profit (EBITDA) | -4.07 | -4.07 | -4.07 | -4.07 | -4.07 | -4.07 | -4.07 |
| Depreciation | 7.15 | 6.08 | 5.16 | 4.39 | 3.73 | 3.17 | 2.70 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 4.64 | 4.02 | 3.30 | 2.57 | 1.84 | 1.12 | 0.39 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -15.86 | -14.17 | -12.53 | -11.03 | -9.65 | -8.36 | -7.16 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -15.86 | -14.17 | -12.53 | -11.03 | -9.65 | -8.36 | -7.16 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -15.86 | -14.17 | -12.53 | -11.03 | -9.65 | -8.36 | -7.16 |
| Depreciation | 7.15 | 6.08 | 5.16 | 4.39 | 3.73 | 3.17 | 2.70 |
| Cash accruals (PAT + depreciation) | -8.71 | -8.09 | -7.37 | -6.64 | -5.92 | -5.19 | -4.46 |
| Term loan repaid | 3.30 | 6.60 | 6.60 | 6.60 | 6.60 | 6.60 | 6.60 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -12.01 | -14.69 | -13.96 | -13.24 | -12.51 | -11.79 | -11.06 |
| Cash and bank | -12.01 | -26.70 | -40.67 | -53.91 | -66.42 | -78.21 | -89.27 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.76 | 4.76 | 4.76 | 4.76 | 4.76 | 4.76 | 4.76 |
| Reserves and surplus | -15.86 | -30.03 | -42.56 | -53.59 | -63.24 | -71.60 | -78.76 |
| Term loan outstanding | 39.59 | 32.99 | 26.39 | 19.79 | 13.20 | 6.60 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 28.49 | 7.72 | -11.40 | -29.03 | -45.28 | -60.24 | -73.99 |
| Net fixed assets | 40.50 | 34.43 | 29.26 | 24.87 | 21.14 | 17.97 | 15.28 |
| 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 | -12.01 | -26.70 | -40.67 | -53.91 | -66.42 | -78.21 | -89.27 |
| Total assets | 28.49 | 7.72 | -11.40 | -29.03 | -45.28 | -60.24 | -73.99 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.51 | -0.38 | -0.41 | -0.44 | -0.48 | -0.53 | -0.58 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.48 |
|---|---|
| Lowest DSCR | -0.58 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 7.15 | 6.08 | 5.16 | 4.39 | 3.73 | 3.17 | 2.70 |
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 | 42.88 | 4.64 | 3.30 | 39.59 |
| 2 | 39.59 | 4.02 | 6.60 | 32.99 |
| 3 | 32.99 | 3.30 | 6.60 | 26.39 |
| 4 | 26.39 | 2.57 | 6.60 | 19.79 |
| 5 | 19.79 | 1.84 | 6.60 | 13.20 |
| 6 | 13.20 | 1.12 | 6.60 | 6.60 |
| 7 | 6.60 | 0.39 | 6.60 | 0.00 |
17 Licences and registrations
- State Pollution Control Board consent (tanneries are red category) and link to a CETP where one exists
- Factory licence
- Udyam
- GST
- Trade licence
- Check your state's law on trade in cattle hides
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- MSME-DI Hyderabad project profile — Din Leather from Buff Hides — https://msmedihyderabad.gov.in/documents/report/03c29b6c2408aadaff46dcc65c3a6739.doc
- World Customs Organization – HS Nomenclature 2022, Chapter 41 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0841_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.