Detailed Project Report
Paper Napkin Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.43 L
- Term loan from bank
- ₹4.83 L
- Promoter’s contribution
- ₹0.74 L
- Subsidy
- ₹1.86 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.24 L
- Average DSCR
- -3.19
- 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
Print, emboss, fold and cut tissue jumbo rolls into packs of paper napkins for restaurants and homes.
| Main product or service | Paper Napkin Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Restaurants, hotels and caterers
- Households
- Institutions, offices and vehicles
- Direct supply to HoReCa
- FMCG distributors and kirana
- Custom printed napkins for brands
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Paper napkin machine with flexo printing, embossing, folding, cutting and counting (widths 22, 27, 30, 33 or 40 cm) | 1 | 7,08,000 | 7,08,000 |
| Total | 7,08,000 |
Pre-filled from: PMEGP sample project report — Paper Napkin (prepared by Udyami/Samadhan); DGFT – ITC(HS) 2022 import-export schedule (Notification 54 dated 9 Feb 2022, with annexures). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Tissue paper jumbo rolls, 17 GSM, soft or hard, 1-ply or 2-ply — 80–90 kg rolls at ₹60 a kg; 6.5 packets per kg
- BOPP pouches and cartons — packs of 50 and 100 napkins
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.08 |
| Contingency | 0.35 |
| Total fixed capital | 7.43 |
| Working capital margin | 0.00 |
| Total project cost | 7.43 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.74 | 10.0 |
| Subsidy | 1.86 | 25.0 |
| Term loan from bank | 4.83 | 65.0 |
| Total | 7.43 | 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 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 |
| Operating profit (EBITDA) | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 |
| Depreciation | 1.12 | 0.95 | 0.81 | 0.68 | 0.58 | 0.49 | 0.42 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.52 | 0.45 | 0.37 | 0.29 | 0.21 | 0.13 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.70 | -4.47 | -4.24 | -4.04 | -3.86 | -3.69 | -3.53 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.70 | -4.47 | -4.24 | -4.04 | -3.86 | -3.69 | -3.53 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.70 | -4.47 | -4.24 | -4.04 | -3.86 | -3.69 | -3.53 |
| Depreciation | 1.12 | 0.95 | 0.81 | 0.68 | 0.58 | 0.49 | 0.42 |
| Cash accruals (PAT + depreciation) | -3.59 | -3.52 | -3.44 | -3.36 | -3.27 | -3.19 | -3.11 |
| Term loan repaid | 0.37 | 0.74 | 0.74 | 0.74 | 0.74 | 0.74 | 0.74 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.96 | -4.26 | -4.18 | -4.10 | -4.02 | -3.94 | -3.85 |
| Cash and bank | -3.96 | -8.22 | -12.40 | -16.50 | -20.52 | -24.45 | -28.31 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.60 | 2.60 | 2.60 | 2.60 | 2.60 | 2.60 | 2.60 |
| Reserves and surplus | -4.70 | -9.17 | -13.41 | -17.45 | -21.31 | -25.00 | -28.53 |
| Term loan outstanding | 4.46 | 3.72 | 2.97 | 2.23 | 1.49 | 0.74 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.36 | -2.85 | -7.84 | -12.62 | -17.22 | -21.65 | -25.93 |
| Net fixed assets | 6.32 | 5.37 | 4.57 | 3.88 | 3.30 | 2.80 | 2.38 |
| 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 | -3.96 | -8.22 | -12.40 | -16.50 | -20.52 | -24.45 | -28.31 |
| Total assets | 2.36 | -2.85 | -7.84 | -12.62 | -17.22 | -21.65 | -25.93 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.43 | -2.56 | -2.75 | -2.97 | -3.22 | -3.53 | -3.89 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.19 |
|---|---|
| Lowest DSCR | -3.89 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.12 | 0.95 | 0.81 | 0.68 | 0.58 | 0.49 | 0.42 |
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 | 4.83 | 0.52 | 0.37 | 4.46 |
| 2 | 4.46 | 0.45 | 0.74 | 3.72 |
| 3 | 3.72 | 0.37 | 0.74 | 2.97 |
| 4 | 2.97 | 0.29 | 0.74 | 2.23 |
| 5 | 2.23 | 0.21 | 0.74 | 1.49 |
| 6 | 1.49 | 0.13 | 0.74 | 0.74 |
| 7 | 0.74 | 0.04 | 0.74 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Legal Metrology packaged-commodity registration (for packed goods)
- Trademark for your brand name (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
- PMEGP sample project report — Paper Napkin (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Paper_Napkin_%28_Samadhan_Projects_%29.pdf
- DGFT – ITC(HS) 2022 import-export schedule (Notification 54 dated 9 Feb 2022, with annexures) — 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.