Detailed Project Report
Home Furnishing Stitching Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.33 L
- Term loan from bank
- ₹10.61 L
- Promoter’s contribution
- ₹1.63 L
- Subsidy
- ₹4.08 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.87 L
- Average DSCR
- -1.56
- 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 stitch curtains, bed covers, quilts, duvet covers and cushions on an assembly line of 24 machines.
| Main product or service | Home Furnishing Stitching Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Home furnishing shops
- Departmental stores
- Wholesalers
- Direct supply to stores
- Wholesale markets
- Orders from retail chains
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Single-needle sewing machine (× 10) | 1 | 6,00,000 | 6,00,000 |
| Double-needle sewing machine (× 5) | 1 | 3,75,000 | 3,75,000 |
| Eyelet machine | 1 | 50,000 | 50,000 |
| Overlock machine (× 2) | 1 | 80,000 | 80,000 |
| Cutting table and cutting machine (× 2) | 1 | 2,00,000 | 2,00,000 |
| Embroidery machine (× 2) | 1 | 1,00,000 | 1,00,000 |
| Quilting machine (× 2) | 1 | 1,50,000 | 1,50,000 |
| Total | 15,55,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Home Furnishing; World Customs Organization – HS Nomenclature 2022, Chapter 63. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Furnishing fabric — cotton, polyester, acrylic, viscose, jute, silk and blends — assumed at ₹70–100 a metre; easily available in wholesale markets
- Trims — embroidery thread, mirror glass, beads, piping, danglers — added for design value
- Packing bags — as per customer requirement
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 15.55 |
| Contingency | 0.78 |
| Total fixed capital | 16.33 |
| Working capital margin | 0.00 |
| Total project cost | 16.33 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.63 | 10.0 |
| Subsidy | 4.08 | 25.0 |
| Term loan from bank | 10.61 | 65.0 |
| Total | 16.33 | 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 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 |
| Operating profit (EBITDA) | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 |
| Depreciation | 2.45 | 2.08 | 1.77 | 1.50 | 1.28 | 1.09 | 0.92 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.15 | 1.00 | 0.82 | 0.64 | 0.46 | 0.28 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.89 | -6.37 | -5.87 | -5.43 | -5.02 | -4.65 | -4.31 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.89 | -6.37 | -5.87 | -5.43 | -5.02 | -4.65 | -4.31 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.89 | -6.37 | -5.87 | -5.43 | -5.02 | -4.65 | -4.31 |
| Depreciation | 2.45 | 2.08 | 1.77 | 1.50 | 1.28 | 1.09 | 0.92 |
| Cash accruals (PAT + depreciation) | -4.44 | -4.28 | -4.10 | -3.92 | -3.74 | -3.57 | -3.39 |
| Term loan repaid | 0.82 | 1.63 | 1.63 | 1.63 | 1.63 | 1.63 | 1.63 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.25 | -5.92 | -5.74 | -5.56 | -5.38 | -5.20 | -5.02 |
| Cash and bank | -5.25 | -11.17 | -16.91 | -22.46 | -27.84 | -33.04 | -38.06 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.71 | 5.71 | 5.71 | 5.71 | 5.71 | 5.71 | 5.71 |
| Reserves and surplus | -6.89 | -13.25 | -19.12 | -24.55 | -29.58 | -34.23 | -38.54 |
| Term loan outstanding | 9.80 | 8.16 | 6.53 | 4.90 | 3.27 | 1.63 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.63 | 0.63 | -6.88 | -13.94 | -20.60 | -26.88 | -32.82 |
| Net fixed assets | 13.88 | 11.80 | 10.03 | 8.52 | 7.24 | 6.16 | 5.23 |
| 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 | -5.25 | -11.17 | -16.91 | -22.46 | -27.84 | -33.04 | -38.06 |
| Total assets | 8.63 | 0.63 | -6.88 | -13.94 | -20.60 | -26.88 | -32.82 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.67 | -1.25 | -1.34 | -1.45 | -1.57 | -1.72 | -1.90 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.56 |
|---|---|
| Lowest DSCR | -1.90 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.45 | 2.08 | 1.77 | 1.50 | 1.28 | 1.09 | 0.92 |
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 | 10.61 | 1.15 | 0.82 | 9.80 |
| 2 | 9.80 | 1.00 | 1.63 | 8.16 |
| 3 | 8.16 | 0.82 | 1.63 | 6.53 |
| 4 | 6.53 | 0.64 | 1.63 | 4.90 |
| 5 | 4.90 | 0.46 | 1.63 | 3.27 |
| 6 | 3.27 | 0.28 | 1.63 | 1.63 |
| 7 | 1.63 | 0.10 | 1.63 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Shops & Establishment registration
- Professional tax registration
- Factory licence, PF and ESI depending on the number of workers
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Stand-Up India
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- SIDBI Stand-Up Mitra project profile — Home Furnishing — https://www.standupmitra.in/Default/ViewFile/?id=1516113726205_Home%20Furnishing.docx&path=ProjectProfile
- World Customs Organization – HS Nomenclature 2022, Chapter 63 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1163_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.