Detailed Project Report
Rubber Latex Foam
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹24.15 L
- Term loan from bank
- ₹15.70 L
- Promoter’s contribution
- ₹2.42 L
- Subsidy
- ₹6.04 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.31 L
- Average DSCR
- -1.12
- 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
Foam natural latex, mould and steam-cure it into mattresses, pillows and cushions.
| Main product or service | Rubber Latex Foam |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Mattress and pillow brands
- Furniture makers
- Auto-seat makers (named in the report)
- Direct B2B supply
- Furniture and mattress dealers
- Exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| De-ammoniation tank, 400 litre (× 2) | 1 | 1,40,000 | 1,40,000 |
| Planetary mixer (× 2) | 1 | 8,40,000 | 8,40,000 |
| 12-jar pot mill with 3 HP motor | 1 | 2,50,000 | 2,50,000 |
| High-speed mixer, 1 HP | 1 | 1,00,000 | 1,00,000 |
| Boiler with 3 HP motor | 1 | 5,50,000 | 5,50,000 |
| Steam vulcaniser and foam squeezing unit | 1 | 4,20,000 | 4,20,000 |
| Total | 23,00,000 |
Pre-filled from: PMEGP sample project report — Rubber Latex Foam (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- 60% natural rubber latex — about 75% of all raw material; available from the Rubber Board
- Stabiliser, foaming agent, sensitiser and other chemicals — average raw-material cost ₹100–120 a kg
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 23.00 |
| Contingency | 1.15 |
| Total fixed capital | 24.15 |
| Working capital margin | 0.00 |
| Total project cost | 24.15 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.42 | 10.0 |
| Subsidy | 6.04 | 25.0 |
| Term loan from bank | 15.70 | 65.0 |
| Total | 24.15 | 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 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 |
| Insurance | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Total cost of operations | 3.48 | 3.48 | 3.48 | 3.48 | 3.48 | 3.48 | 3.48 |
| Operating profit (EBITDA) | -3.48 | -3.48 | -3.48 | -3.48 | -3.48 | -3.48 | -3.48 |
| Depreciation | 3.62 | 3.08 | 2.62 | 2.22 | 1.89 | 1.61 | 1.37 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.70 | 1.47 | 1.21 | 0.94 | 0.68 | 0.41 | 0.14 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.81 | -8.04 | -7.31 | -6.65 | -6.05 | -5.50 | -4.99 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.81 | -8.04 | -7.31 | -6.65 | -6.05 | -5.50 | -4.99 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.81 | -8.04 | -7.31 | -6.65 | -6.05 | -5.50 | -4.99 |
| Depreciation | 3.62 | 3.08 | 2.62 | 2.22 | 1.89 | 1.61 | 1.37 |
| Cash accruals (PAT + depreciation) | -5.18 | -4.96 | -4.69 | -4.42 | -4.16 | -3.89 | -3.63 |
| Term loan repaid | 1.21 | 2.42 | 2.42 | 2.42 | 2.42 | 2.42 | 2.42 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.39 | -7.37 | -7.11 | -6.84 | -6.57 | -6.31 | -6.04 |
| Cash and bank | -6.39 | -13.76 | -20.87 | -27.71 | -34.28 | -40.59 | -46.63 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 8.45 | 8.45 | 8.45 | 8.45 | 8.45 | 8.45 | 8.45 |
| Reserves and surplus | -8.81 | -16.84 | -24.15 | -30.80 | -36.85 | -42.35 | -47.34 |
| Term loan outstanding | 14.49 | 12.08 | 9.66 | 7.25 | 4.83 | 2.42 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 14.14 | 3.69 | -6.04 | -15.10 | -23.56 | -31.48 | -38.89 |
| Net fixed assets | 20.53 | 17.45 | 14.83 | 12.61 | 10.72 | 9.11 | 7.74 |
| 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 | -6.39 | -13.76 | -20.87 | -27.71 | -34.28 | -40.59 | -46.63 |
| Total assets | 14.14 | 3.69 | -6.04 | -15.10 | -23.56 | -31.48 | -38.89 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.20 | -0.90 | -0.96 | -1.04 | -1.13 | -1.23 | -1.36 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.12 |
|---|---|
| Lowest DSCR | -1.36 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.62 | 3.08 | 2.62 | 2.22 | 1.89 | 1.61 | 1.37 |
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 | 15.70 | 1.70 | 1.21 | 14.49 |
| 2 | 14.49 | 1.47 | 2.42 | 12.08 |
| 3 | 12.08 | 1.21 | 2.42 | 9.66 |
| 4 | 9.66 | 0.94 | 2.42 | 7.25 |
| 5 | 7.25 | 0.68 | 2.42 | 4.83 |
| 6 | 4.83 | 0.41 | 2.42 | 2.42 |
| 7 | 2.42 | 0.14 | 2.42 | 0.00 |
17 Licences and registrations
- GST
- Udyam registration (optional in the report)
- NOC from the State Pollution Control Board (listed in the report)
- Boiler registration if the boiler falls under the Boilers Act
- Trademark for the brand if needed
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 — Rubber Latex Foam (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Rubber_Latex_Foam_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.