Detailed Project Report
Leather Jacket Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹4.73 L
- Term loan from bank
- ₹3.07 L
- Promoter’s contribution
- ₹0.47 L
- Subsidy
- ₹1.18 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.75 L
- Average DSCR
- -4.91
- 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
Design, cut, stitch and line leather jackets — a product made mostly for export.
| Main product or service | Leather Jacket Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Importers and buying houses abroad
- Exporters giving job work
- Buyers in cold north Indian towns
- Export orders
- Job work for large exporters
- Winter-wear shops in the north
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Flat-bed single-needle industrial sewing machine (× 2) | 1 | 1,10,000 | 1,10,000 |
| Cylinder-bed single-needle industrial sewing machine | 1 | 96,000 | 96,000 |
| Fabric cutter for leather (× 2) | 1 | 27,000 | 27,000 |
| End / roller cutter (× 2) | 1 | 37,000 | 37,000 |
| Button-hole making machine (× 2) | 1 | 1,80,000 | 1,80,000 |
| Total | 4,50,000 |
Pre-filled from: PMEGP sample project report — Leather Jackets (prepared by Udyami/Samadhan); DGFT – ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Tanned leather — hides and skins differ in texture and colour
- Zips, buckle belts, buttons and threads — trims
- Treating chemicals, wax, adhesive, brushes and tool kit (scissors, holders, hammers) — consumables
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 4.50 |
| Contingency | 0.23 |
| Total fixed capital | 4.73 |
| Working capital margin | 0.00 |
| Total project cost | 4.73 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.47 | 10.0 |
| Subsidy | 1.18 | 25.0 |
| Term loan from bank | 3.07 | 65.0 |
| Total | 4.73 | 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 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 |
| Operating profit (EBITDA) | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 |
| Depreciation | 0.71 | 0.60 | 0.51 | 0.44 | 0.37 | 0.31 | 0.27 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.33 | 0.29 | 0.24 | 0.18 | 0.13 | 0.08 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.04 | -3.89 | -3.75 | -3.62 | -3.50 | -3.39 | -3.29 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.04 | -3.89 | -3.75 | -3.62 | -3.50 | -3.39 | -3.29 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.04 | -3.89 | -3.75 | -3.62 | -3.50 | -3.39 | -3.29 |
| Depreciation | 0.71 | 0.60 | 0.51 | 0.44 | 0.37 | 0.31 | 0.27 |
| Cash accruals (PAT + depreciation) | -3.33 | -3.29 | -3.23 | -3.18 | -3.13 | -3.08 | -3.03 |
| Term loan repaid | 0.24 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.57 | -3.76 | -3.71 | -3.65 | -3.60 | -3.55 | -3.50 |
| Cash and bank | -3.57 | -7.33 | -11.03 | -14.69 | -18.29 | -21.84 | -25.34 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.65 | 1.65 | 1.65 | 1.65 | 1.65 | 1.65 | 1.65 |
| Reserves and surplus | -4.04 | -7.93 | -11.67 | -15.29 | -18.79 | -22.18 | -25.48 |
| Term loan outstanding | 2.84 | 2.36 | 1.89 | 1.42 | 0.95 | 0.47 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.45 | -3.91 | -8.13 | -12.22 | -16.19 | -20.06 | -23.82 |
| Net fixed assets | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 | 1.51 |
| 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 | -3.57 | -7.33 | -11.03 | -14.69 | -18.29 | -21.84 | -25.34 |
| Total assets | 0.45 | -3.91 | -8.13 | -12.22 | -16.19 | -20.06 | -23.82 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -5.27 | -3.94 | -4.23 | -4.57 | -4.96 | -5.43 | -5.99 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.91 |
|---|---|
| Lowest DSCR | -5.99 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.71 | 0.60 | 0.51 | 0.44 | 0.37 | 0.31 | 0.27 |
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 | 3.07 | 0.33 | 0.24 | 2.84 |
| 2 | 2.84 | 0.29 | 0.47 | 2.36 |
| 3 | 2.36 | 0.24 | 0.47 | 1.89 |
| 4 | 1.89 | 0.18 | 0.47 | 1.42 |
| 5 | 1.42 | 0.13 | 0.47 | 0.95 |
| 6 | 0.95 | 0.08 | 0.47 | 0.47 |
| 7 | 0.47 | 0.03 | 0.47 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- IEC for export
- Registration with CLE for export benefits
- Trade licence
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)
- Stand-Up India
19 Sources
- PMEGP sample project report — Leather Jackets (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Leather_Jackets_DPR_%28_Samadhan_Projects_%29.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.