Detailed Project Report
Injection-Moulded Leather Shoes (PVC Sole)
—
Prepared on: 26 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹57.75 L
- Term loan from bank
- ₹51.98 L
- Promoter’s contribution
- ₹5.78 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-14.58 L
- Average DSCR
- -0.42
- 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 leather-upper shoes whose PVC sole is injected straight onto the lasted upper — a factory of 3 lakh pairs a year.
| Main product or service | Injection-Moulded Leather Shoes (PVC Sole) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Footwear retailers and wholesalers
- Overseas importers and brands
- Institutional buyers of work and uniform shoes
- Domestic distributors and retail chains
- Export orders
- Contract manufacturing for brands
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| 4-station injection moulding machine (imported) | 1 | 14,00,000 | 14,00,000 |
| Computer with design and grading software and cutter (imported) | 1 | 10,00,000 | 10,00,000 |
| Forepart lasting machine (imported) | 1 | 7,00,000 | 7,00,000 |
| Seat and side lasting machine (imported) | 1 | 8,00,000 | 8,00,000 |
| Swing-beam hydraulic press, 20 tonnes (× 4) | 1 | 6,00,000 | 6,00,000 |
| Band-knife upper splitting machine (imported) | 1 | 4,00,000 | 4,00,000 |
| Humid heat-setting machine (imported) | 1 | 3,00,000 | 3,00,000 |
| Generator set | 1 | 3,00,000 | 3,00,000 |
| Total | 55,00,000 |
Pre-filled from: DC-MSME project profile — Injection Moulded Shoes; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Upper leather (2.5 sq ft a pair) — 62,500 sq ft a month at ₹40 per sq ft
- Lining leather (1.25 sq ft a pair) — 31,250 sq ft a month at ₹20 per sq ft
- PVC for soles — 5,000 kg a month at ₹40 a kg
- Toe puffs, stiffeners, insoles, shanks, laces, finishing chemicals, packing — costed per pair in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 55.00 |
| Contingency | 2.75 |
| Total fixed capital | 57.75 |
| Working capital margin | 0.00 |
| Total project cost | 57.75 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 5.78 | 10.0 |
| Term loan from bank | 51.98 | 90.0 |
| Total | 57.75 | 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 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 |
| Insurance | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Total cost of operations | 4.32 | 4.32 | 4.32 | 4.32 | 4.32 | 4.32 | 4.32 |
| Operating profit (EBITDA) | -4.32 | -4.32 | -4.32 | -4.32 | -4.32 | -4.32 | -4.32 |
| Depreciation | 8.66 | 7.36 | 6.26 | 5.32 | 4.52 | 3.84 | 3.27 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 5.63 | 4.87 | 3.99 | 3.12 | 2.24 | 1.36 | 0.48 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -18.61 | -16.56 | -14.58 | -12.76 | -11.08 | -9.52 | -8.07 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -18.61 | -16.56 | -14.58 | -12.76 | -11.08 | -9.52 | -8.07 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -18.61 | -16.56 | -14.58 | -12.76 | -11.08 | -9.52 | -8.07 |
| Depreciation | 8.66 | 7.36 | 6.26 | 5.32 | 4.52 | 3.84 | 3.27 |
| Cash accruals (PAT + depreciation) | -9.95 | -9.20 | -8.32 | -7.44 | -6.56 | -5.68 | -4.80 |
| Term loan repaid | 4.00 | 8.00 | 8.00 | 8.00 | 8.00 | 8.00 | 8.00 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -13.95 | -17.19 | -16.31 | -15.44 | -14.56 | -13.68 | -12.80 |
| Cash and bank | -13.95 | -31.14 | -47.46 | -62.89 | -77.45 | -91.12 | -103.92 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.78 | 5.78 | 5.78 | 5.78 | 5.78 | 5.78 | 5.78 |
| Reserves and surplus | -18.61 | -35.17 | -49.75 | -62.51 | -73.59 | -83.11 | -91.18 |
| Term loan outstanding | 47.98 | 39.98 | 31.98 | 23.99 | 15.99 | 8.00 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 35.14 | 10.58 | -11.99 | -32.75 | -51.82 | -69.34 | -85.41 |
| Net fixed assets | 49.09 | 41.72 | 35.47 | 30.15 | 25.62 | 21.78 | 18.51 |
| 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 | -13.95 | -31.14 | -47.46 | -62.89 | -77.45 | -91.12 | -103.92 |
| Total assets | 35.14 | 10.58 | -11.99 | -32.75 | -51.82 | -69.34 | -85.41 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.45 | -0.34 | -0.36 | -0.39 | -0.42 | -0.46 | -0.51 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.42 |
|---|---|
| Lowest DSCR | -0.51 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 8.66 | 7.36 | 6.26 | 5.32 | 4.52 | 3.84 | 3.27 |
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 | 51.98 | 5.63 | 4.00 | 47.98 |
| 2 | 47.98 | 4.87 | 8.00 | 39.98 |
| 3 | 39.98 | 3.99 | 8.00 | 31.98 |
| 4 | 31.98 | 3.12 | 8.00 | 23.99 |
| 5 | 23.99 | 2.24 | 8.00 | 15.99 |
| 6 | 15.99 | 1.36 | 8.00 | 8.00 |
| 7 | 8.00 | 0.48 | 8.00 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Factory licence
- State Pollution Control Board consent
- BIS certification where the footwear Quality Control Order covers your product
- Importer-Exporter Code
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Injection Moulded Shoes — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch9.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.