Detailed Project Report
PVC Packaging Bags
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹8.19 L
- Term loan from bank
- ₹5.32 L
- Promoter’s contribution
- ₹0.82 L
- Subsidy
- ₹2.05 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.38 L
- Average DSCR
- -2.92
- 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, print, stitch and heat-seal PVC sheet into zipper, hanger, shopping and blanket bags.
| Main product or service | PVC Packaging Bags |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Garment and saree makers
- Bedding and blanket sellers
- Gift and accessory makers
- Shops needing branded carry bags
- Direct orders from manufacturers
- Packaging material wholesalers
- Local market traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Cutting machine | 1 | 3,00,000 | 3,00,000 |
| Stitching machine (× 6) | 1 | 3,00,000 | 3,00,000 |
| Screen printer | 1 | 1,00,000 | 1,00,000 |
| Heat sealing machine | 1 | 50,000 | 50,000 |
| Other equipment and tools (× 1 lot) | 1 | 30,000 | 30,000 |
| Total | 7,80,000 |
Pre-filled from: PMEGP sample project report — PVC Bags (prepared by Udyami/Samadhan); DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- PVC rolls — main raw material; average raw-material cost ₹8 a bag in year 1
- Zips, wire, handles and tape — as per bag design and size
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.80 |
| Contingency | 0.39 |
| Total fixed capital | 8.19 |
| Working capital margin | 0.00 |
| Total project cost | 8.19 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.82 | 10.0 |
| Subsidy | 2.05 | 25.0 |
| Term loan from bank | 5.32 | 65.0 |
| Total | 8.19 | 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 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 |
| Operating profit (EBITDA) | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 |
| Depreciation | 1.23 | 1.04 | 0.89 | 0.75 | 0.64 | 0.55 | 0.46 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.58 | 0.50 | 0.41 | 0.32 | 0.23 | 0.14 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.89 | -4.63 | -4.38 | -4.16 | -3.96 | -3.77 | -3.60 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.89 | -4.63 | -4.38 | -4.16 | -3.96 | -3.77 | -3.60 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.89 | -4.63 | -4.38 | -4.16 | -3.96 | -3.77 | -3.60 |
| Depreciation | 1.23 | 1.04 | 0.89 | 0.75 | 0.64 | 0.55 | 0.46 |
| Cash accruals (PAT + depreciation) | -3.66 | -3.58 | -3.49 | -3.40 | -3.31 | -3.22 | -3.13 |
| Term loan repaid | 0.41 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.07 | -4.40 | -4.31 | -4.22 | -4.13 | -4.04 | -3.95 |
| Cash and bank | -4.07 | -8.47 | -12.79 | -17.01 | -21.14 | -25.18 | -29.14 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.87 | 2.87 | 2.87 | 2.87 | 2.87 | 2.87 | 2.87 |
| Reserves and surplus | -4.89 | -9.52 | -13.90 | -18.06 | -22.01 | -25.78 | -29.38 |
| Term loan outstanding | 4.91 | 4.10 | 3.28 | 2.46 | 1.64 | 0.82 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.89 | -2.56 | -7.76 | -12.73 | -17.51 | -22.10 | -26.51 |
| Net fixed assets | 6.96 | 5.92 | 5.03 | 4.28 | 3.63 | 3.09 | 2.63 |
| 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 | -4.07 | -8.47 | -12.79 | -17.01 | -21.14 | -25.18 | -29.14 |
| Total assets | 2.89 | -2.56 | -7.76 | -12.73 | -17.51 | -22.10 | -26.51 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.13 | -2.34 | -2.51 | -2.71 | -2.94 | -3.22 | -3.55 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.92 |
|---|---|
| Lowest DSCR | -3.55 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.23 | 1.04 | 0.89 | 0.75 | 0.64 | 0.55 | 0.46 |
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 | 5.32 | 0.58 | 0.41 | 4.91 |
| 2 | 4.91 | 0.50 | 0.82 | 4.10 |
| 3 | 4.10 | 0.41 | 0.82 | 3.28 |
| 4 | 3.28 | 0.32 | 0.82 | 2.46 |
| 5 | 2.46 | 0.23 | 0.82 | 1.64 |
| 6 | 1.64 | 0.14 | 0.82 | 0.82 |
| 7 | 0.82 | 0.05 | 0.82 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Pollution control board consent
- Registration as a plastic packaging producer under the Plastic Waste Management Rules where it applies
- Trademark for the brand name
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)
19 Sources
- PMEGP sample project report — PVC Bags (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PVC_Bags_%28_Samadhan_Projects_%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.