Detailed Project Report
Gunny (Jute) Bag Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹15.49 L
- Term loan from bank
- ₹10.07 L
- Promoter’s contribution
- ₹1.55 L
- Subsidy
- ₹3.87 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.72 L
- Average DSCR
- -1.63
- 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
Make jute sacks for grain, sugar, cement and fertiliser on a gunny-bag machine, then stitch and print them.
| Main product or service | Gunny (Jute) Bag Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Grain, rice and flour mills
- Sugar mills
- Cement and fertiliser companies
- Potato and onion traders
- Direct bulk supply to mills and companies
- Agri-trade wholesalers
- Export (mainly Europe, per report B)
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Gunny bag making machine (carding, spinning, weaving, cutting) | 1 | 4,30,000 | 4,30,000 |
| Printing machine (single or multi-colour) | 1 | 10,00,000 | 10,00,000 |
| Heavy-duty sewing machine | 1 | 45,000 | 45,000 |
| Total | 14,75,000 |
Pre-filled from: PMEGP sample project report — gunny bags (prepared by Udyami/Samadhan); PMEGP sample project report — Gunny Bag (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw jute or ready jute twine (sutli) — Report A raw material ₹135.00 L in year 1
- Stitching thread
- Printing ink — for logos
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 14.75 |
| Contingency | 0.74 |
| Total fixed capital | 15.49 |
| Working capital margin | 0.00 |
| Total project cost | 15.49 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.55 | 10.0 |
| Subsidy | 3.87 | 25.0 |
| Term loan from bank | 10.07 | 65.0 |
| Total | 15.49 | 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 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.27 | 3.27 | 3.27 | 3.27 | 3.27 | 3.27 | 3.27 |
| Operating profit (EBITDA) | -3.27 | -3.27 | -3.27 | -3.27 | -3.27 | -3.27 | -3.27 |
| Depreciation | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.09 | 0.94 | 0.77 | 0.60 | 0.43 | 0.26 | 0.09 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.68 | -6.19 | -5.72 | -5.30 | -4.91 | -4.56 | -4.24 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.68 | -6.19 | -5.72 | -5.30 | -4.91 | -4.56 | -4.24 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.68 | -6.19 | -5.72 | -5.30 | -4.91 | -4.56 | -4.24 |
| Depreciation | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
| Cash accruals (PAT + depreciation) | -4.36 | -4.21 | -4.04 | -3.87 | -3.70 | -3.53 | -3.36 |
| Term loan repaid | 0.77 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 | 1.55 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.13 | -5.76 | -5.59 | -5.42 | -5.25 | -5.08 | -4.91 |
| Cash and bank | -5.13 | -10.89 | -16.48 | -21.90 | -27.15 | -32.23 | -37.14 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.42 | 5.42 | 5.42 | 5.42 | 5.42 | 5.42 | 5.42 |
| Reserves and surplus | -6.68 | -12.87 | -18.59 | -23.88 | -28.80 | -33.36 | -37.59 |
| Term loan outstanding | 9.29 | 7.74 | 6.20 | 4.65 | 3.10 | 1.55 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.03 | 0.30 | -6.97 | -13.82 | -20.28 | -26.39 | -32.17 |
| Net fixed assets | 13.16 | 11.19 | 9.51 | 8.08 | 6.87 | 5.84 | 4.96 |
| 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 | -5.13 | -10.89 | -16.48 | -21.90 | -27.15 | -32.23 | -37.14 |
| Total assets | 8.03 | 0.30 | -6.97 | -13.82 | -20.28 | -26.39 | -32.17 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.75 | -1.31 | -1.41 | -1.52 | -1.65 | -1.80 | -1.99 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.63 |
|---|---|
| Lowest DSCR | -1.99 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.32 | 1.97 | 1.68 | 1.43 | 1.21 | 1.03 | 0.88 |
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 | 10.07 | 1.09 | 0.77 | 9.29 |
| 2 | 9.29 | 0.94 | 1.55 | 7.74 |
| 3 | 7.74 | 0.77 | 1.55 | 6.20 |
| 4 | 6.20 | 0.60 | 1.55 | 4.65 |
| 5 | 4.65 | 0.43 | 1.55 | 3.10 |
| 6 | 3.10 | 0.26 | 1.55 | 1.55 |
| 7 | 1.55 | 0.09 | 1.55 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- NOC from fire safety and the Pollution Control Board (named in report A)
- Trade licence
- Factory licence (optional, per report)
- BIS where buyers or government orders require IS-marked jute sacks
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)
19 Sources
- PMEGP sample project report — gunny bags (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/gunny_bags_%28_Samadhan_Projects_%29.pdf
- PMEGP sample project report — Gunny Bag (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Gunny_Bag_%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.