Detailed Project Report
Commercial Hotel Laundry and Linen Management
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹565.95 L
- Term loan from bank
- ₹509.36 L
- Promoter’s contribution
- ₹56.60 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-117.51 L
- Average DSCR
- -0.17
- 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
Wash, dry, iron and deliver bed sheets, towels and uniforms for hotels, resorts and hospitals on contract.
| Main product or service | Commercial Hotel Laundry and Linen Management |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Hotels, resorts and boutique hotels
- Homestays, camps and guest houses
- Hospitals, wellness centres and hostels
- Restaurants and institutions
- Annual service contracts
- Direct B2B sales to hotels
- Booking app for pick-ups
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Industrial washer extractor (50 kg) (× 2) | 1 | 40,00,000 | 40,00,000 |
| Flatwork ironer | 1 | 35,00,000 | 35,00,000 |
| Industrial washer extractor (100 kg) | 1 | 30,00,000 | 30,00,000 |
| Tumble dryer (50 kg) (× 2) | 1 | 24,00,000 | 24,00,000 |
| Pickup vehicles (× 2) | 1 | 22,00,000 | 22,00,000 |
| Steam boiler | 1 | 20,00,000 | 20,00,000 |
| Automatic folding machine | 1 | 18,00,000 | 18,00,000 |
| Effluent treatment plant | 1 | 18,00,000 | 18,00,000 |
| Hydro extractor | 1 | 12,00,000 | 12,00,000 |
| Generator set | 1 | 12,00,000 | 12,00,000 |
| Water softening plant | 1 | 10,00,000 | 10,00,000 |
| Barcode / RFID tracking system | 1 | 10,00,000 | 10,00,000 |
| Steam press stations (× 4) | 1 | 8,00,000 | 8,00,000 |
| All laundry machinery (× total) | 1 | 2,80,00,000 | 2,80,00,000 |
| Total | 5,39,00,000 |
Pre-filled from: Uttarakhand DUY project profile — Commercial Hospitality Laundry & Linen Management Unit. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Laundry chemicals — detergents, softeners, stain removers — ₹15 L for 3 months
- Boiler fuel and electricity — ₹30 L for 3 months with power
- Water — ₹6 L for 3 months
- Packaging materials — ₹8 L for 3 months
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 539.00 |
| Contingency | 26.95 |
| Total fixed capital | 565.95 |
| Working capital margin | 0.00 |
| Total project cost | 565.95 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 56.60 | 10.0 |
| Term loan from bank | 509.36 | 90.0 |
| Total | 565.95 | 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 | 11.32 | 11.32 | 11.32 | 11.32 | 11.32 | 11.32 | 11.32 |
| Insurance | 2.83 | 2.83 | 2.83 | 2.83 | 2.83 | 2.83 | 2.83 |
| Total cost of operations | 17.03 | 17.03 | 17.03 | 17.03 | 17.03 | 17.03 | 17.03 |
| Operating profit (EBITDA) | -17.03 | -17.03 | -17.03 | -17.03 | -17.03 | -17.03 | -17.03 |
| Depreciation | 84.89 | 72.16 | 61.33 | 52.13 | 44.31 | 37.67 | 32.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 55.13 | 47.77 | 39.15 | 30.53 | 21.91 | 13.29 | 4.67 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -157.05 | -136.96 | -117.51 | -99.69 | -83.25 | -67.98 | -53.72 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -157.05 | -136.96 | -117.51 | -99.69 | -83.25 | -67.98 | -53.72 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -157.05 | -136.96 | -117.51 | -99.69 | -83.25 | -67.98 | -53.72 |
| Depreciation | 84.89 | 72.16 | 61.33 | 52.13 | 44.31 | 37.67 | 32.02 |
| Cash accruals (PAT + depreciation) | -72.16 | -64.80 | -56.18 | -47.56 | -38.94 | -30.32 | -21.70 |
| Term loan repaid | 39.18 | 78.36 | 78.36 | 78.36 | 78.36 | 78.36 | 78.36 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -111.34 | -143.16 | -134.54 | -125.92 | -117.30 | -108.68 | -100.06 |
| Cash and bank | -111.34 | -254.50 | -389.04 | -514.96 | -632.26 | -740.94 | -841.00 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 56.60 | 56.60 | 56.60 | 56.60 | 56.60 | 56.60 | 56.60 |
| Reserves and surplus | -157.05 | -294.01 | -411.52 | -511.21 | -594.46 | -662.45 | -716.16 |
| Term loan outstanding | 470.17 | 391.81 | 313.45 | 235.09 | 156.72 | 78.36 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 369.72 | 154.40 | -41.48 | -219.53 | -381.14 | -527.49 | -659.57 |
| Net fixed assets | 481.06 | 408.90 | 347.56 | 295.43 | 251.12 | 213.45 | 181.43 |
| 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 | -111.34 | -254.50 | -389.04 | -514.96 | -632.26 | -740.94 | -841.00 |
| Total assets | 369.72 | 154.40 | -41.48 | -219.53 | -381.14 | -527.49 | -659.57 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.18 | -0.14 | -0.14 | -0.16 | -0.17 | -0.19 | -0.21 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.17 |
|---|---|
| Lowest DSCR | -0.21 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 84.89 | 72.16 | 61.33 | 52.13 | 44.31 | 37.67 | 32.02 |
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 | 509.36 | 55.13 | 39.18 | 470.17 |
| 2 | 470.17 | 47.77 | 78.36 | 391.81 |
| 3 | 391.81 | 39.15 | 78.36 | 313.45 |
| 4 | 313.45 | 30.53 | 78.36 | 235.09 |
| 5 | 235.09 | 21.91 | 78.36 | 156.72 |
| 6 | 156.72 | 13.29 | 78.36 | 78.36 |
| 7 | 78.36 | 4.67 | 78.36 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Pollution control board consent to establish and to operate
- Water discharge permission and ETP
- Factory licence
- Fire NOC
- Boiler inspection certificate
- ESIC and EPFO registration
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- Uttarakhand DUY project profile — Commercial Hospitality Laundry & Linen Management Unit — https://duy-heduk.org/downloads/project-profiles/Project%20Profile%20325.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.