Detailed Project Report
Foam Mattress Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹6.09 L
- Term loan from bank
- ₹3.96 L
- Promoter’s contribution
- ₹0.61 L
- Subsidy
- ₹1.52 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.00 L
- Average DSCR
- -3.85
- 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 and layer relax and memory foam, cover it with quilted fabric and tape-edge it into mattresses.
| Main product or service | Foam Mattress Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Hotels, hostels and guest houses
- Furniture and mattress dealers
- Direct orders
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Automatic tape-edge machine with looper head (table 75 × 55) | 1 | 4,76,000 | 4,76,000 |
| Juki sewing machine | 1 | 22,000 | 22,000 |
| Hand foam cutter | 1 | 15,000 | 15,000 |
| Cloth cutter (× 2) | 1 | 7,000 | 7,000 |
| Compressor (optional) | 1 | 60,000 | 60,000 |
| Total | 5,80,000 |
Pre-filled from: PMEGP sample project report — Foam Mattress (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 94. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Relax foam and memory foam — raw material about ₹3,000 per 6 × 4 mattress in year 1
- Quilt fabric and cotton fabric roll — for the cover
- Thread — for stitching
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.80 |
| Contingency | 0.29 |
| Total fixed capital | 6.09 |
| Working capital margin | 0.00 |
| Total project cost | 6.09 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.61 | 10.0 |
| Subsidy | 1.52 | 25.0 |
| Term loan from bank | 3.96 | 65.0 |
| Total | 6.09 | 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 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 |
| Operating profit (EBITDA) | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 |
| Depreciation | 0.91 | 0.78 | 0.66 | 0.56 | 0.48 | 0.41 | 0.34 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.43 | 0.37 | 0.30 | 0.24 | 0.17 | 0.10 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.37 | -4.18 | -4.00 | -3.83 | -3.68 | -3.54 | -3.41 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.37 | -4.18 | -4.00 | -3.83 | -3.68 | -3.54 | -3.41 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.37 | -4.18 | -4.00 | -3.83 | -3.68 | -3.54 | -3.41 |
| Depreciation | 0.91 | 0.78 | 0.66 | 0.56 | 0.48 | 0.41 | 0.34 |
| Cash accruals (PAT + depreciation) | -3.46 | -3.40 | -3.34 | -3.27 | -3.20 | -3.14 | -3.07 |
| Term loan repaid | 0.30 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.77 | -4.01 | -3.95 | -3.88 | -3.81 | -3.74 | -3.68 |
| Cash and bank | -3.77 | -7.78 | -11.72 | -15.60 | -19.41 | -23.16 | -26.84 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.13 | 2.13 | 2.13 | 2.13 | 2.13 | 2.13 | 2.13 |
| Reserves and surplus | -4.37 | -8.55 | -12.55 | -16.38 | -20.06 | -23.60 | -27.01 |
| Term loan outstanding | 3.65 | 3.05 | 2.44 | 1.83 | 1.22 | 0.61 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.41 | -3.38 | -7.98 | -12.42 | -16.71 | -20.86 | -24.88 |
| Net fixed assets | 5.18 | 4.40 | 3.74 | 3.18 | 2.70 | 2.30 | 1.95 |
| 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 | -3.77 | -7.78 | -11.72 | -15.60 | -19.41 | -23.16 | -26.84 |
| Total assets | 1.41 | -3.38 | -7.98 | -12.42 | -16.71 | -20.86 | -24.88 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.14 | -3.09 | -3.32 | -3.58 | -3.89 | -4.26 | -4.70 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.85 |
|---|---|
| Lowest DSCR | -4.70 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.91 | 0.78 | 0.66 | 0.56 | 0.48 | 0.41 | 0.34 |
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 | 3.96 | 0.43 | 0.30 | 3.65 |
| 2 | 3.65 | 0.37 | 0.61 | 3.05 |
| 3 | 3.05 | 0.30 | 0.61 | 2.44 |
| 4 | 2.44 | 0.24 | 0.61 | 1.83 |
| 5 | 1.83 | 0.17 | 0.61 | 1.22 |
| 6 | 1.22 | 0.10 | 0.61 | 0.61 |
| 7 | 0.61 | 0.04 | 0.61 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Fire NOC
- Trademark for your brand (optional)
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 — Foam Mattress (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Foam_Mattress_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 94 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/2094_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.