Detailed Project Report
Natural Hair Brush Making (Shoe, Cloth, Carpet and Ladies' Hair Brushes)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.56 L
- Term loan from bank
- ₹0.36 L
- Promoter’s contribution
- ₹0.06 L
- Subsidy
- ₹0.14 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-2.98 L
- Average DSCR
- -40.14
- 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
A small workshop that fixes bunches of natural hair into painted wooden frames to make shoe, cloth, carpet and ladies' hair brushes.
| Main product or service | Natural Hair Brush Making (Shoe, Cloth, Carpet and Ladies' Hair Brushes) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Wholesalers of household and general goods
- General stores and shoe shops
- Cosmetic and ladies' goods shops
- Dry cleaners, tailors and carpet sellers
- Wholesale markets in the nearest city
- Direct supply to retail shops
- Weekly markets and fairs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wood working circular saw, 8 inch, with 1 HP motor | 1 | 5,250 | 5,250 |
| Wood working jig saw machine with 1 HP motor | 1 | 10,750 | 10,750 |
| Wood trimming lathe, 4 ft, with ½ HP motor | 1 | 9,450 | 9,450 |
| Belt and disc sander with ½ HP motor | 1 | 5,350 | 5,350 |
| Motorised bench drilling machine, 13 mm, ½ HP | 1 | 3,650 | 3,650 |
| Buffing and polishing machine with ½ HP motor and stand | 1 | 5,700 | 5,700 |
| Dies, tools, fixtures and measuring equipment | 1 | 3,000 | 3,000 |
| Office equipment and working tables | 1 | 10,000 | 10,000 |
| Total | 53,150 |
Pre-filled from: DC-MSME project profile — Hair Brushes. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Natural hair, assorted types — 120 kg a month at ₹250 per kg (2003)
- Sawn soft-grain wood — 50 cubic feet a month at ₹200 per cubic foot
- Resin or glue — 100 kg a month at ₹80 per kg
- Paint, varnish and nylon thread — ₹2,000 a month
- Packing material — ₹5,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.53 |
| Contingency | 0.03 |
| Total fixed capital | 0.56 |
| Working capital margin | 0.00 |
| Total project cost | 0.56 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.06 | 10.0 |
| Subsidy | 0.14 | 25.0 |
| Term loan from bank | 0.36 | 65.0 |
| Total | 0.56 | 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 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 |
| Operating profit (EBITDA) | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 |
| Depreciation | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 | 0.03 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.01 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.02 | -3.00 | -2.98 | -2.97 | -2.95 | -2.94 | -2.93 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.02 | -3.00 | -2.98 | -2.97 | -2.95 | -2.94 | -2.93 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.02 | -3.00 | -2.98 | -2.97 | -2.95 | -2.94 | -2.93 |
| Depreciation | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 | 0.03 |
| Cash accruals (PAT + depreciation) | -2.93 | -2.93 | -2.92 | -2.92 | -2.91 | -2.90 | -2.90 |
| Term loan repaid | 0.03 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.96 | -2.98 | -2.98 | -2.97 | -2.97 | -2.96 | -2.95 |
| Cash and bank | -2.96 | -5.94 | -8.92 | -11.89 | -14.86 | -17.82 | -20.77 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Reserves and surplus | -3.02 | -6.02 | -9.00 | -11.97 | -14.92 | -17.86 | -20.79 |
| Term loan outstanding | 0.33 | 0.28 | 0.22 | 0.17 | 0.11 | 0.06 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.49 | -5.54 | -8.58 | -11.60 | -14.61 | -17.61 | -20.59 |
| Net fixed assets | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 |
| 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 | -2.96 | -5.94 | -8.92 | -11.89 | -14.86 | -17.82 | -20.77 |
| Total assets | -2.49 | -5.54 | -8.58 | -11.60 | -14.61 | -17.61 | -20.59 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -43.09 | -32.22 | -34.58 | -37.32 | -40.53 | -44.34 | -48.94 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -40.14 |
|---|---|
| Lowest DSCR | -48.94 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 | 0.03 |
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 | 0.36 | 0.04 | 0.03 | 0.33 |
| 2 | 0.33 | 0.03 | 0.06 | 0.28 |
| 3 | 0.28 | 0.03 | 0.06 | 0.22 |
| 4 | 0.22 | 0.02 | 0.06 | 0.17 |
| 5 | 0.17 | 0.02 | 0.06 | 0.11 |
| 6 | 0.11 | 0.01 | 0.06 | 0.06 |
| 7 | 0.06 | 0.00 | 0.06 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Factory licence if you employ 10 or more workers
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
- DC-MSME project profile — Hair Brushes — https://www.dcmsme.gov.in/publications/pmryprof/mechanical/ch15.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.