Detailed Project Report
Khadi Kurti Stitching
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹11.93 L
- Term loan from bank
- ₹7.75 L
- Promoter’s contribution
- ₹1.19 L
- Subsidy
- ₹2.98 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.07 L
- Average DSCR
- -2.06
- 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
Stitch kurtis from hand-spun, hand-woven khadi cotton fabric for a growing natural-fabric market.
| Main product or service | Khadi Kurti Stitching |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Women who prefer natural fabrics
- Khadi Bhandars and boutiques
- Offices and institutions for uniforms
- Khadi outlets and exhibitions
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Stitching machine (× 10) | 1 | 7,00,000 | 7,00,000 |
| Cutting machine (× 4) | 1 | 60,000 | 60,000 |
| Steam pressing machine (× 4) | 1 | 3,20,000 | 3,20,000 |
| Needle lock stitch machine (× 4) | 1 | 36,000 | 36,000 |
| Overlock machine (× 2) | 1 | 20,000 | 20,000 |
| Total | 11,36,000 |
Pre-filled from: PMEGP sample project report — Khadi Kurti (prepared by Udyami/Samadhan); DGFT – ITC(HS) 2022 Schedule (Notification 54 dated 9 Feb 2022). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Khadi cotton fabric — ₹300 a running metre, one metre a kurti
- Buttons, threads and packaging — packaging ₹10 a piece; ₹310 a kurti in all
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 11.36 |
| Contingency | 0.57 |
| Total fixed capital | 11.93 |
| Working capital margin | 0.00 |
| Total project cost | 11.93 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.19 | 10.0 |
| Subsidy | 2.98 | 25.0 |
| Term loan from bank | 7.75 | 65.0 |
| Total | 11.93 | 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 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.18 | 3.18 | 3.18 | 3.18 | 3.18 | 3.18 | 3.18 |
| Operating profit (EBITDA) | -3.18 | -3.18 | -3.18 | -3.18 | -3.18 | -3.18 | -3.18 |
| Depreciation | 1.79 | 1.52 | 1.29 | 1.10 | 0.93 | 0.79 | 0.67 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.84 | 0.73 | 0.60 | 0.46 | 0.33 | 0.20 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.81 | -5.43 | -5.07 | -4.74 | -4.45 | -4.17 | -3.92 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.81 | -5.43 | -5.07 | -4.74 | -4.45 | -4.17 | -3.92 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.81 | -5.43 | -5.07 | -4.74 | -4.45 | -4.17 | -3.92 |
| Depreciation | 1.79 | 1.52 | 1.29 | 1.10 | 0.93 | 0.79 | 0.67 |
| Cash accruals (PAT + depreciation) | -4.02 | -3.91 | -3.77 | -3.64 | -3.51 | -3.38 | -3.25 |
| Term loan repaid | 0.60 | 1.19 | 1.19 | 1.19 | 1.19 | 1.19 | 1.19 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.61 | -5.10 | -4.97 | -4.84 | -4.70 | -4.57 | -4.44 |
| Cash and bank | -4.61 | -9.71 | -14.68 | -19.51 | -24.22 | -28.79 | -33.23 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.17 | 4.17 | 4.17 | 4.17 | 4.17 | 4.17 | 4.17 |
| Reserves and surplus | -5.81 | -11.23 | -16.30 | -21.04 | -25.49 | -29.66 | -33.59 |
| Term loan outstanding | 7.16 | 5.96 | 4.77 | 3.58 | 2.39 | 1.19 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 5.53 | -1.09 | -7.35 | -13.29 | -18.93 | -24.29 | -29.41 |
| Net fixed assets | 10.14 | 8.62 | 7.33 | 6.23 | 5.29 | 4.50 | 3.82 |
| 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 | -4.61 | -9.71 | -14.68 | -19.51 | -24.22 | -28.79 | -33.23 |
| Total assets | 5.53 | -1.09 | -7.35 | -13.29 | -18.93 | -24.29 | -29.41 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.21 | -1.66 | -1.78 | -1.92 | -2.08 | -2.28 | -2.51 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.06 |
|---|---|
| Lowest DSCR | -2.51 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.79 | 1.52 | 1.29 | 1.10 | 0.93 | 0.79 | 0.67 |
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 | 7.75 | 0.84 | 0.60 | 7.16 |
| 2 | 7.16 | 0.73 | 1.19 | 5.96 |
| 3 | 5.96 | 0.60 | 1.19 | 4.77 |
| 4 | 4.77 | 0.46 | 1.19 | 3.58 |
| 5 | 3.58 | 0.33 | 1.19 | 2.39 |
| 6 | 2.39 | 0.20 | 1.19 | 1.19 |
| 7 | 1.19 | 0.07 | 1.19 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Use the Khadi Mark only for khadi bought from KVIC-certified institutions
- Trademark for your brand name (optional)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Khadi Kurti (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Khadi_Kurti_%28_Samadhan_Projects_%29.pdf
- DGFT – ITC(HS) 2022 Schedule (Notification 54 dated 9 Feb 2022) — https://content.dgft.gov.in/Website/dgftprod/7d5fd1eb-ad39-4c99-b760-014223657469/Eng-Notification%2054%20dated%209%20Feb%202022%20ITC(HS)%202022%20_with%20Annexures.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.