Detailed Project Report
Nubuck Leather (Cow Hide Tannery)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹26.83 L
- Term loan from bank
- ₹24.14 L
- Promoter’s contribution
- ₹2.68 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-8.31 L
- Average DSCR
- -0.74
- 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
Chrome-tan cow hides and buff the grain to make soft, velvety nubuck leather for shoes, garments and leather goods.
| Main product or service | Nubuck Leather (Cow Hide Tannery) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Shoe manufacturers
- Leather garment makers
- Leather goods makers
- Exporters of shoes, garments and goods
- Direct supply to factories
- Leather traders in clusters
- Export houses
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wooden paddle 8' × 7' with motor (× 2) | 1 | 1,00,000 | 1,00,000 |
| Tanning drum 8' × 6', 10 HP (× 4) | 1 | 4,00,000 | 4,00,000 |
| Fleshing machine, 1800 mm | 1 | 2,50,000 | 2,50,000 |
| Double-width shaving machine, 1800 mm | 1 | 4,50,000 | 4,50,000 |
| Double-width splitting machine, 1800 mm | 1 | 5,50,000 | 5,50,000 |
| Dyeing and fat-liquoring drum 8' × 6' (× 2) | 1 | 2,00,000 | 2,00,000 |
| Measuring machine, 1800 mm | 1 | 2,00,000 | 2,00,000 |
| Effluent treatment plant (solar evaporation, settling, aeration) | 1 | 4,05,000 | 4,05,000 |
| Total | 25,55,000 |
Pre-filled from: DC-MSME project profile — Nubuck Leather; DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wet-salted hair-slip cow hides, 11–15 kg each — 5,000 a month at ₹450 each
- Tanning, retanning, dyeing and finishing chemicals — ₹138 per hide
- Packing: polythene, paper, gunny bags — ₹5,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 25.55 |
| Contingency | 1.28 |
| Total fixed capital | 26.83 |
| Working capital margin | 0.00 |
| Total project cost | 26.83 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.68 | 10.0 |
| Term loan from bank | 24.14 | 90.0 |
| Total | 26.83 | 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 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
| Insurance | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Total cost of operations | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 |
| Operating profit (EBITDA) | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 |
| Depreciation | 4.02 | 3.42 | 2.91 | 2.47 | 2.10 | 1.79 | 1.52 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.61 | 2.26 | 1.86 | 1.45 | 1.04 | 0.63 | 0.22 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -10.19 | -9.24 | -8.31 | -7.47 | -6.69 | -5.97 | -5.29 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -10.19 | -9.24 | -8.31 | -7.47 | -6.69 | -5.97 | -5.29 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -10.19 | -9.24 | -8.31 | -7.47 | -6.69 | -5.97 | -5.29 |
| Depreciation | 4.02 | 3.42 | 2.91 | 2.47 | 2.10 | 1.79 | 1.52 |
| Cash accruals (PAT + depreciation) | -6.16 | -5.82 | -5.41 | -5.00 | -4.59 | -4.18 | -3.77 |
| Term loan repaid | 1.86 | 3.71 | 3.71 | 3.71 | 3.71 | 3.71 | 3.71 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -8.02 | -9.53 | -9.12 | -8.71 | -8.30 | -7.90 | -7.49 |
| Cash and bank | -8.02 | -17.55 | -26.67 | -35.38 | -43.69 | -51.58 | -59.07 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 |
| Reserves and surplus | -10.19 | -19.42 | -27.74 | -35.21 | -41.90 | -47.86 | -53.15 |
| Term loan outstanding | 22.29 | 18.57 | 14.86 | 11.14 | 7.43 | 3.71 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 14.78 | 1.83 | -10.20 | -21.38 | -31.78 | -41.47 | -50.47 |
| Net fixed assets | 22.80 | 19.38 | 16.48 | 14.00 | 11.90 | 10.12 | 8.60 |
| 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 | -8.02 | -17.55 | -26.67 | -35.38 | -43.69 | -51.58 | -59.07 |
| Total assets | 14.78 | 1.83 | -10.20 | -21.38 | -31.78 | -41.47 | -50.47 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.79 | -0.59 | -0.64 | -0.69 | -0.75 | -0.82 | -0.90 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.74 |
|---|---|
| Lowest DSCR | -0.90 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 4.02 | 3.42 | 2.91 | 2.47 | 2.10 | 1.79 | 1.52 |
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 | 24.14 | 2.61 | 1.86 | 22.29 |
| 2 | 22.29 | 2.26 | 3.71 | 18.57 |
| 3 | 18.57 | 1.86 | 3.71 | 14.86 |
| 4 | 14.86 | 1.45 | 3.71 | 11.14 |
| 5 | 11.14 | 1.04 | 3.71 | 7.43 |
| 6 | 7.43 | 0.63 | 3.71 | 3.71 |
| 7 | 3.71 | 0.22 | 3.71 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- State Pollution Control Board consent (tanneries are in the Red category)
- Membership of a common effluent treatment plant or your own ETP
- Factory licence
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Nubuck Leather — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch16.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.