Detailed Project Report
Readymade Garments Unit (Baby Rompers)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.67 L
- Term loan from bank
- ₹3.69 L
- Promoter’s contribution
- ₹0.57 L
- Subsidy
- ₹1.42 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.92 L
- Average DSCR
- -4.13
- 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, embroider, stitch, wash and press fabric into children's rompers in a small factory.
| Main product or service | Readymade Garments Unit (Baby Rompers) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Parents buying for children aged 2–5
- Children's wear shops
- Garment wholesalers
- Wholesale garment markets
- Retail shops
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Cloth cutter | 1 | 18,900 | 18,900 |
| Stitching machines (× not printed) | 1 | 26,000 | 26,000 |
| Embroidery machine | 1 | 2,20,000 | 2,20,000 |
| Garment washing machine | 1 | 66,300 | 66,300 |
| Electric iron with table | 1 | 8,800 | 8,800 |
| Hand tools and equipment (× 1 lot) | 1 | 20,000 | 20,000 |
| Fabric printing machine | 1 | 1,80,000 | 1,80,000 |
| Total | 5,40,000 |
Pre-filled from: PMEGP sample project report — Readymade Garments (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
- Fabric (cotton, polyester) — main raw material
- Buttons, zips, stones, beads, interlining — accessories
- Threads — for stitching and embroidery
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.40 |
| Contingency | 0.27 |
| Total fixed capital | 5.67 |
| Working capital margin | 0.00 |
| Total project cost | 5.67 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.57 | 10.0 |
| Subsidy | 1.42 | 25.0 |
| Term loan from bank | 3.69 | 65.0 |
| Total | 5.67 | 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 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 |
| Operating profit (EBITDA) | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 |
| Depreciation | 0.85 | 0.72 | 0.61 | 0.52 | 0.44 | 0.38 | 0.32 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.40 | 0.35 | 0.28 | 0.22 | 0.16 | 0.10 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.27 | -4.09 | -3.92 | -3.76 | -3.62 | -3.50 | -3.38 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.27 | -4.09 | -3.92 | -3.76 | -3.62 | -3.50 | -3.38 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.27 | -4.09 | -3.92 | -3.76 | -3.62 | -3.50 | -3.38 |
| Depreciation | 0.85 | 0.72 | 0.61 | 0.52 | 0.44 | 0.38 | 0.32 |
| Cash accruals (PAT + depreciation) | -3.42 | -3.37 | -3.31 | -3.24 | -3.18 | -3.12 | -3.06 |
| Term loan repaid | 0.28 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.70 | -3.93 | -3.87 | -3.81 | -3.75 | -3.68 | -3.62 |
| Cash and bank | -3.70 | -7.64 | -11.51 | -15.32 | -19.07 | -22.75 | -26.37 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 |
| Reserves and surplus | -4.27 | -8.36 | -12.28 | -16.05 | -19.67 | -23.17 | -26.54 |
| Term loan outstanding | 3.40 | 2.84 | 2.27 | 1.70 | 1.13 | 0.57 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.12 | -3.54 | -8.03 | -12.36 | -16.55 | -20.61 | -24.56 |
| Net fixed assets | 4.82 | 4.10 | 3.48 | 2.96 | 2.52 | 2.14 | 1.82 |
| 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 | -3.70 | -7.64 | -11.51 | -15.32 | -19.07 | -22.75 | -26.37 |
| Total assets | 1.12 | -3.54 | -8.03 | -12.36 | -16.55 | -20.61 | -24.56 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.43 | -3.31 | -3.55 | -3.84 | -4.16 | -4.56 | -5.03 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.13 |
|---|---|
| Lowest DSCR | -5.03 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.85 | 0.72 | 0.61 | 0.52 | 0.44 | 0.38 | 0.32 |
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 | 3.69 | 0.40 | 0.28 | 3.40 |
| 2 | 3.40 | 0.35 | 0.57 | 2.84 |
| 3 | 2.84 | 0.28 | 0.57 | 2.27 |
| 4 | 2.27 | 0.22 | 0.57 | 1.70 |
| 5 | 1.70 | 0.16 | 0.57 | 1.13 |
| 6 | 1.13 | 0.10 | 0.57 | 0.57 |
| 7 | 0.57 | 0.03 | 0.57 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trade licence from the local body
- Factory licence if the worker count needs it
- 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 — Readymade Garments (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Readymade_Garments_DPR_%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.