Detailed Project Report
Leather Wallets and Purses
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.88 L
- Term loan from bank
- ₹3.82 L
- Promoter’s contribution
- ₹0.59 L
- Subsidy
- ₹1.47 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.96 L
- Average DSCR
- -3.99
- 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, stitch and emboss leather into wallets and purses — a fashion item with steady demand.
| Main product or service | Leather Wallets and Purses |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Leather-goods and gift shops
- Wholesalers in leather markets
- Corporate gift buyers
- Wholesale supply to shops
- Online marketplaces under your own brand
- Fairs and exhibitions
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Flat-bed single-needle industrial stitching machine with motor (× as per profile) | 1 | 0 | 0 |
| Cylinder-bed industrial stitching machine with motor (× as per profile) | 1 | 0 | 0 |
| Embossing machine (× as per profile) | 1 | 0 | 0 |
| Skiving machine (× as per profile) | 1 | 0 | 0 |
| Grinding tools, hand tools, workshop and office furniture, electrification (× 1 lot) | 1 | 0 | 0 |
| Total equipment (all items above) (× 1 lot) | 1 | 5,60,000 | 5,60,000 |
| Total | 5,60,000 |
Pre-filled from: KVIC Project Profile — Leather Wallets and Purses (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
- Finished leather — main input; raw material ₹60.00 lakh a year at full capacity in the profile
- Labels and packing material — ₹75,000 a year in the profile
- Thread, lining, zips, buttons and adhesive — bought from the leather-goods market
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.60 |
| Contingency | 0.28 |
| Total fixed capital | 5.88 |
| Working capital margin | 0.00 |
| Total project cost | 5.88 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.59 | 10.0 |
| Subsidy | 1.47 | 25.0 |
| Term loan from bank | 3.82 | 65.0 |
| Total | 5.88 | 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 | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 | 0.33 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.41 | 0.36 | 0.29 | 0.23 | 0.16 | 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 | -4.32 | -4.14 | -3.96 | -3.80 | -3.65 | -3.52 | -3.39 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.32 | -4.14 | -3.96 | -3.80 | -3.65 | -3.52 | -3.39 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.32 | -4.14 | -3.96 | -3.80 | -3.65 | -3.52 | -3.39 |
| Depreciation | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 | 0.33 |
| Cash accruals (PAT + depreciation) | -3.44 | -3.39 | -3.32 | -3.26 | -3.19 | -3.13 | -3.06 |
| Term loan repaid | 0.29 | 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 | -3.73 | -3.97 | -3.91 | -3.84 | -3.78 | -3.71 | -3.65 |
| Cash and bank | -3.73 | -7.71 | -11.62 | -15.46 | -19.24 | -22.96 | -26.61 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.06 | 2.06 | 2.06 | 2.06 | 2.06 | 2.06 | 2.06 |
| Reserves and surplus | -4.32 | -8.46 | -12.42 | -16.21 | -19.87 | -23.38 | -26.78 |
| Term loan outstanding | 3.53 | 2.94 | 2.35 | 1.76 | 1.18 | 0.59 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.26 | -3.46 | -8.01 | -12.39 | -16.63 | -20.74 | -24.72 |
| Net fixed assets | 5.00 | 4.25 | 3.61 | 3.07 | 2.61 | 2.22 | 1.88 |
| 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 | -3.73 | -7.71 | -11.62 | -15.46 | -19.24 | -22.96 | -26.61 |
| Total assets | 1.26 | -3.46 | -8.01 | -12.39 | -16.63 | -20.74 | -24.72 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.28 | -3.20 | -3.43 | -3.70 | -4.02 | -4.40 | -4.86 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.99 |
|---|---|
| Lowest DSCR | -4.86 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 | 0.33 |
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 | 3.82 | 0.41 | 0.29 | 3.53 |
| 2 | 3.53 | 0.36 | 0.59 | 2.94 |
| 3 | 2.94 | 0.29 | 0.59 | 2.35 |
| 4 | 2.35 | 0.23 | 0.59 | 1.76 |
| 5 | 1.76 | 0.16 | 0.59 | 1.18 |
| 6 | 1.18 | 0.10 | 0.59 | 0.59 |
| 7 | 0.59 | 0.04 | 0.59 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Trade licence from the local body
- Trademark for your brand (optional)
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
- KVIC Project Profile — Leather Wallets and Purses (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/LEATHER_WALLETS_AND_PURSES_%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.