Detailed Project Report
PP Woven Bag Making (Printing, Cutting, Stitching)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹44.00 L
- Term loan from bank
- ₹28.60 L
- Promoter’s contribution
- ₹4.40 L
- Subsidy
- ₹11.00 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-10.95 L
- Average DSCR
- -0.70
- 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, cut and stitch bought PP woven fabric rolls into sacks for grain, sugar, cement and fertiliser.
| Main product or service | PP Woven Bag Making (Printing, Cutting, Stitching) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Flour, rice and sugar mills
- Cement and fertiliser companies and dealers
- Chemical and plastic-granule makers
- Direct supply to mills and factories
- Sack traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| 3-colour woven bag flexo printer | 1 | 11,00,000 | 11,00,000 |
| PP woven bag cutting machine | 1 | 10,50,000 | 10,50,000 |
| Sewing machine (× 5) | 1 | 90,000 | 90,000 |
| 6-colour flexo printer (option for larger scale) | 1 | 19,50,000 | 19,50,000 |
| Total | 41,90,000 |
Pre-filled from: PMEGP sample project report — PP Woven Bag (Plastic) (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 63. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- PP woven roll — ₹85–110 per kg; the projections use ₹100 per kg in year 1
- Printing ink — ₹185 per kg
- Yarn (stitching thread) — ₹110 per kg
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 41.90 |
| Contingency | 2.10 |
| Total fixed capital | 44.00 |
| Working capital margin | 0.00 |
| Total project cost | 44.00 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.40 | 10.0 |
| Subsidy | 11.00 | 25.0 |
| Term loan from bank | 28.60 | 65.0 |
| Total | 44.00 | 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 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 |
| Insurance | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Total cost of operations | 3.98 | 3.98 | 3.98 | 3.98 | 3.98 | 3.98 | 3.98 |
| Operating profit (EBITDA) | -3.98 | -3.98 | -3.98 | -3.98 | -3.98 | -3.98 | -3.98 |
| Depreciation | 6.60 | 5.61 | 4.77 | 4.05 | 3.44 | 2.93 | 2.49 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 3.10 | 2.68 | 2.20 | 1.71 | 1.23 | 0.75 | 0.26 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -13.67 | -12.27 | -10.95 | -9.75 | -8.65 | -7.65 | -6.73 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -13.67 | -12.27 | -10.95 | -9.75 | -8.65 | -7.65 | -6.73 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -13.67 | -12.27 | -10.95 | -9.75 | -8.65 | -7.65 | -6.73 |
| Depreciation | 6.60 | 5.61 | 4.77 | 4.05 | 3.44 | 2.93 | 2.49 |
| Cash accruals (PAT + depreciation) | -7.08 | -6.66 | -6.18 | -5.69 | -5.21 | -4.73 | -4.24 |
| Term loan repaid | 2.20 | 4.40 | 4.40 | 4.40 | 4.40 | 4.40 | 4.40 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -9.27 | -11.06 | -10.58 | -10.09 | -9.61 | -9.13 | -8.64 |
| Cash and bank | -9.27 | -20.34 | -30.91 | -41.01 | -50.62 | -59.74 | -68.38 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 15.40 | 15.40 | 15.40 | 15.40 | 15.40 | 15.40 | 15.40 |
| Reserves and surplus | -13.67 | -25.95 | -36.89 | -46.64 | -55.29 | -62.95 | -69.68 |
| Term loan outstanding | 26.40 | 22.00 | 17.60 | 13.20 | 8.80 | 4.40 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 28.12 | 11.45 | -3.89 | -18.04 | -31.10 | -43.15 | -54.28 |
| Net fixed assets | 37.40 | 31.79 | 27.02 | 22.97 | 19.52 | 16.59 | 14.10 |
| 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 | -9.27 | -20.34 | -30.91 | -41.01 | -50.62 | -59.74 | -68.38 |
| Total assets | 28.12 | 11.45 | -3.89 | -18.04 | -31.10 | -43.15 | -54.28 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.75 | -0.56 | -0.60 | -0.65 | -0.71 | -0.77 | -0.85 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.70 |
|---|---|
| Lowest DSCR | -0.85 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 6.60 | 5.61 | 4.77 | 4.05 | 3.44 | 2.93 | 2.49 |
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 | 28.60 | 3.10 | 2.20 | 26.40 |
| 2 | 26.40 | 2.68 | 4.40 | 22.00 |
| 3 | 22.00 | 2.20 | 4.40 | 17.60 |
| 4 | 17.60 | 1.71 | 4.40 | 13.20 |
| 5 | 13.20 | 1.23 | 4.40 | 8.80 |
| 6 | 8.80 | 0.75 | 4.40 | 4.40 |
| 7 | 4.40 | 0.26 | 4.40 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Fire and pollution NOC as required
- Check whether a BIS Quality Control Order applies to the type of sack you supply (for example cement or fertiliser sacks)
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
- PMEGP sample project report — PP Woven Bag (Plastic) (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PP_woven_Bag_Plastic_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 63 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1163_2022e.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.