Detailed Project Report
PU-Laminated Split Leather
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹23.42 L
- Term loan from bank
- ₹21.07 L
- Promoter’s contribution
- ₹2.34 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.62 L
- Average DSCR
- -0.83
- 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
Process cheap wet-blue splits and laminate them with polyurethane foil to make fashion leather for bags, shoes and accessories.
| Main product or service | PU-Laminated Split Leather |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Fancy leather goods makers (bags, wallets, belts)
- Footwear makers
- Leather traders
- Overseas buyers
- Direct supply to manufacturers
- Leather markets in clusters
- Export orders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Hydraulic press for printing and laminating | 1 | 10,00,000 | 10,00,000 |
| Tanning drums 8' × 6' with 15 HP motor (× 2) | 1 | 3,60,000 | 3,60,000 |
| Single-width shaving machine, 5 HP (× 2) | 1 | 1,20,000 | 1,20,000 |
| Reversible setting-out machine, 1500 mm | 1 | 1,65,000 | 1,65,000 |
| Single-width buffing machine, 5 HP (× 2) | 1 | 1,10,000 | 1,10,000 |
| Toggle chamber with 10 plates | 1 | 1,25,000 | 1,25,000 |
| Measuring machine | 1 | 2,00,000 | 2,00,000 |
| Generator set | 1 | 1,50,000 | 1,50,000 |
| Total | 22,30,000 |
Pre-filled from: DC-MSME project profile — PU Laminated Split 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-blue splits (cow or buffalo) — 7,500 sides (about 1,12,500 sq ft) a month at ₹12 per sq ft
- Processing chemicals and PU foil — ₹6 per sq ft
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 22.30 |
| Contingency | 1.12 |
| Total fixed capital | 23.42 |
| Working capital margin | 0.00 |
| Total project cost | 23.42 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.34 | 10.0 |
| Term loan from bank | 21.07 | 90.0 |
| Total | 23.42 | 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 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 | 0.47 |
| Insurance | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Total cost of operations | 3.47 | 3.47 | 3.47 | 3.47 | 3.47 | 3.47 | 3.47 |
| Operating profit (EBITDA) | -3.47 | -3.47 | -3.47 | -3.47 | -3.47 | -3.47 | -3.47 |
| Depreciation | 3.51 | 2.99 | 2.54 | 2.16 | 1.83 | 1.56 | 1.32 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.28 | 1.98 | 1.62 | 1.26 | 0.91 | 0.55 | 0.19 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -9.26 | -8.43 | -7.62 | -6.89 | -6.21 | -5.57 | -4.98 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -9.26 | -8.43 | -7.62 | -6.89 | -6.21 | -5.57 | -4.98 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -9.26 | -8.43 | -7.62 | -6.89 | -6.21 | -5.57 | -4.98 |
| Depreciation | 3.51 | 2.99 | 2.54 | 2.16 | 1.83 | 1.56 | 1.32 |
| Cash accruals (PAT + depreciation) | -5.75 | -5.44 | -5.09 | -4.73 | -4.37 | -4.02 | -3.66 |
| Term loan repaid | 1.62 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -7.37 | -8.68 | -8.33 | -7.97 | -7.61 | -7.26 | -6.90 |
| Cash and bank | -7.37 | -16.05 | -24.38 | -32.35 | -39.96 | -47.22 | -54.12 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.34 | 2.34 | 2.34 | 2.34 | 2.34 | 2.34 | 2.34 |
| Reserves and surplus | -9.26 | -17.69 | -25.31 | -32.19 | -38.40 | -43.97 | -48.96 |
| Term loan outstanding | 19.45 | 16.21 | 12.97 | 9.73 | 6.48 | 3.24 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 12.54 | 0.87 | -10.00 | -20.13 | -29.57 | -38.39 | -46.61 |
| Net fixed assets | 19.90 | 16.92 | 14.38 | 12.22 | 10.39 | 8.83 | 7.51 |
| 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 | -7.37 | -16.05 | -24.38 | -32.35 | -39.96 | -47.22 | -54.12 |
| Total assets | 12.54 | 0.87 | -10.00 | -20.13 | -29.57 | -38.39 | -46.61 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.89 | -0.66 | -0.71 | -0.77 | -0.84 | -0.91 | -1.01 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.83 |
|---|---|
| Lowest DSCR | -1.01 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.51 | 2.99 | 2.54 | 2.16 | 1.83 | 1.56 | 1.32 |
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 | 21.07 | 2.28 | 1.62 | 19.45 |
| 2 | 19.45 | 1.98 | 3.24 | 16.21 |
| 3 | 16.21 | 1.62 | 3.24 | 12.97 |
| 4 | 12.97 | 1.26 | 3.24 | 9.73 |
| 5 | 9.73 | 0.91 | 3.24 | 6.48 |
| 6 | 6.48 | 0.55 | 3.24 | 3.24 |
| 7 | 3.24 | 0.19 | 3.24 | 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 — PU Laminated Split Leather — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch18.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.