Detailed Project Report
Leather Sandals with PU Sole
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.94 L
- Term loan from bank
- ₹3.86 L
- Promoter’s contribution
- ₹0.59 L
- Subsidy
- ₹1.48 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.97 L
- Average DSCR
- -3.95
- 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 leather straps into uppers and cement them onto ready-made PU soles to make gents' sandals.
| Main product or service | Leather Sandals with PU Sole |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Men in cities and towns
- Footwear retailers
- Importers in hot-climate countries
- Footwear dealers and shops
- Wholesale footwear markets
- Export orders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Flat-bed single-needle stitching machine with 0.33 HP motor (× 3) | 1 | 0 | 0 |
| Strap cutting machine, 0.5 HP motor | 1 | 0 | 0 |
| Upper leather skiving machine with table and stand | 1 | 0 | 0 |
| Hand-operated strap folding machine | 1 | 0 | 0 |
| Buffing and roughening machine | 1 | 0 | 0 |
| Polishing machine | 1 | 0 | 0 |
| Sole cementing press, 4-bed, with air compressor | 1 | 0 | 0 |
| Trademark embossing | 1 | 0 | 0 |
| Total equipment (× 1 lot) | 1 | 5,65,400 | 5,65,400 |
| Total | 5,65,400 |
Pre-filled from: KVIC Project Profile — Leather Sandal with P.U. Sole (PMEGP); 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 and split lining leather — for straps and linings
- Ready-made PU soles and synthetic (PVC) insoles — PU is more durable and saves operations
- Latex or rubber solution and adhesive — for pasting and sole cementing
- Buckles, rivets and mock welts — fittings
- All raw material — ₹16.56 lakh a year in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.65 |
| Contingency | 0.28 |
| Total fixed capital | 5.94 |
| Working capital margin | 0.00 |
| Total project cost | 5.94 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.59 | 10.0 |
| Subsidy | 1.48 | 25.0 |
| Term loan from bank | 3.86 | 65.0 |
| Total | 5.94 | 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 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 |
| Operating profit (EBITDA) | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 |
| Depreciation | 0.89 | 0.76 | 0.64 | 0.55 | 0.46 | 0.40 | 0.34 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.42 | 0.36 | 0.30 | 0.23 | 0.17 | 0.10 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.34 | -4.15 | -3.97 | -3.81 | -3.66 | -3.52 | -3.40 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.34 | -4.15 | -3.97 | -3.81 | -3.66 | -3.52 | -3.40 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.34 | -4.15 | -3.97 | -3.81 | -3.66 | -3.52 | -3.40 |
| Depreciation | 0.89 | 0.76 | 0.64 | 0.55 | 0.46 | 0.40 | 0.34 |
| Cash accruals (PAT + depreciation) | -3.45 | -3.39 | -3.33 | -3.26 | -3.19 | -3.13 | -3.06 |
| Term loan repaid | 0.30 | 0.59 | 0.59 | 0.59 | 0.59 | 0.59 | 0.59 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.74 | -3.98 | -3.92 | -3.85 | -3.79 | -3.72 | -3.66 |
| Cash and bank | -3.74 | -7.73 | -11.65 | -15.50 | -19.29 | -23.01 | -26.67 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.08 | 2.08 | 2.08 | 2.08 | 2.08 | 2.08 | 2.08 |
| Reserves and surplus | -4.34 | -8.48 | -12.45 | -16.26 | -19.92 | -23.44 | -26.84 |
| Term loan outstanding | 3.56 | 2.97 | 2.37 | 1.78 | 1.19 | 0.59 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.30 | -3.44 | -8.00 | -12.40 | -16.65 | -20.77 | -24.76 |
| Net fixed assets | 5.05 | 4.29 | 3.65 | 3.10 | 2.63 | 2.24 | 1.90 |
| 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 | -3.74 | -7.73 | -11.65 | -15.50 | -19.29 | -23.01 | -26.67 |
| Total assets | 1.30 | -3.44 | -8.00 | -12.40 | -16.65 | -20.77 | -24.76 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.24 | -3.17 | -3.40 | -3.67 | -3.99 | -4.36 | -4.81 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.95 |
|---|---|
| Lowest DSCR | -4.81 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.89 | 0.76 | 0.64 | 0.55 | 0.46 | 0.40 | 0.34 |
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 | 3.86 | 0.42 | 0.30 | 3.56 |
| 2 | 3.56 | 0.36 | 0.59 | 2.97 |
| 3 | 2.97 | 0.30 | 0.59 | 2.37 |
| 4 | 2.37 | 0.23 | 0.59 | 1.78 |
| 5 | 1.78 | 0.17 | 0.59 | 1.19 |
| 6 | 1.19 | 0.10 | 0.59 | 0.59 |
| 7 | 0.59 | 0.04 | 0.59 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- BIS certification under the footwear Quality Control Orders — check the current dates and any relief for micro units
- Trade licence
- IEC for export
- Trademark for your brand (optional)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- KVIC Project Profile — Leather Sandal with P.U. Sole (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/LEATHER_SANDAL_WITH_P.U._SOLE_%28_POLYMER_AND_CHEMICAL_BASED_INDUSTRY_%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.