Detailed Project Report
Sheep Wool Blankets
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹26.25 L
- Term loan from bank
- ₹23.63 L
- Promoter’s contribution
- ₹2.63 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-8.20 L
- Average DSCR
- -0.75
- 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
Wash, card, spin and weave local sheep wool into single, double-layer and embroidered blankets for homes, hotels and institutions.
| Main product or service | Sheep Wool Blankets |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households in hill and cold regions of north India
- Hotels and resorts
- Army camps, hospitals and hostels
- Government relief agencies
- Tourists and urban home-furnishing buyers
- Institutional supply and tenders
- Retail and handloom outlets
- Tourist and souvenir shops
- Export buyers for heritage designs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wool washing and scouring unit | 1 | 0 | 0 |
| Wool carding machine | 1 | 0 | 0 |
| Wool spinning machines (× 3) | 1 | 0 | 0 |
| Handlooms / powerlooms (× 10) | 1 | 0 | 0 |
| Dyeing and finishing setup | 1 | 0 | 0 |
| Cutting and packing equipment | 1 | 0 | 0 |
| Machinery & equipment in total | 1 | 25,00,000 | 25,00,000 |
| Total | 25,00,000 |
Pre-filled from: Uttarakhand DUY project profile — Blanket Manufacturing Unit from Sheep Wool in Uttarakhand; World Customs Organization – HS Nomenclature 2022, Chapter 63. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw sheep wool — from sheep rearers and cooperatives in Uttarkashi, Chamoli, Pithoragarh and Bageshwar
- Cotton lining fabric
- Natural dyes and embroidery threads
- Labels and packaging material
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 25.00 |
| Contingency | 1.25 |
| Total fixed capital | 26.25 |
| Working capital margin | 0.00 |
| Total project cost | 26.25 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.63 | 10.0 |
| Term loan from bank | 23.63 | 90.0 |
| Total | 26.25 | 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 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 |
| Insurance | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Total cost of operations | 3.54 | 3.54 | 3.54 | 3.54 | 3.54 | 3.54 | 3.54 |
| Operating profit (EBITDA) | -3.54 | -3.54 | -3.54 | -3.54 | -3.54 | -3.54 | -3.54 |
| Depreciation | 3.94 | 3.35 | 2.84 | 2.42 | 2.06 | 1.75 | 1.49 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.56 | 2.22 | 1.82 | 1.42 | 1.02 | 0.62 | 0.22 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -10.03 | -9.10 | -8.20 | -7.37 | -6.61 | -5.90 | -5.24 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -10.03 | -9.10 | -8.20 | -7.37 | -6.61 | -5.90 | -5.24 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -10.03 | -9.10 | -8.20 | -7.37 | -6.61 | -5.90 | -5.24 |
| Depreciation | 3.94 | 3.35 | 2.84 | 2.42 | 2.06 | 1.75 | 1.49 |
| Cash accruals (PAT + depreciation) | -6.09 | -5.75 | -5.35 | -4.95 | -4.55 | -4.15 | -3.75 |
| Term loan repaid | 1.82 | 3.63 | 3.63 | 3.63 | 3.63 | 3.63 | 3.63 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -7.91 | -9.39 | -8.99 | -8.59 | -8.19 | -7.79 | -7.39 |
| Cash and bank | -7.91 | -17.30 | -26.28 | -34.87 | -43.06 | -50.84 | -58.23 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.63 | 2.63 | 2.63 | 2.63 | 2.63 | 2.63 | 2.63 |
| Reserves and surplus | -10.03 | -19.13 | -27.33 | -34.70 | -41.30 | -47.20 | -52.44 |
| Term loan outstanding | 21.81 | 18.17 | 14.54 | 10.90 | 7.27 | 3.63 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 14.40 | 1.67 | -10.16 | -21.17 | -31.41 | -40.94 | -49.82 |
| Net fixed assets | 22.31 | 18.97 | 16.12 | 13.70 | 11.65 | 9.90 | 8.42 |
| 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 | -7.91 | -17.30 | -26.28 | -34.87 | -43.06 | -50.84 | -58.23 |
| Total assets | 14.40 | 1.67 | -10.16 | -21.17 | -31.41 | -40.94 | -49.82 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.81 | -0.60 | -0.65 | -0.70 | -0.76 | -0.83 | -0.92 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.75 |
|---|---|
| Lowest DSCR | -0.92 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.94 | 3.35 | 2.84 | 2.42 | 2.06 | 1.75 | 1.49 |
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 | 23.63 | 2.56 | 1.82 | 21.81 |
| 2 | 21.81 | 2.22 | 3.63 | 18.17 |
| 3 | 18.17 | 1.82 | 3.63 | 14.54 |
| 4 | 14.54 | 1.42 | 3.63 | 10.90 |
| 5 | 10.90 | 1.02 | 3.63 | 7.27 |
| 6 | 7.27 | 0.62 | 3.63 | 3.63 |
| 7 | 3.63 | 0.22 | 3.63 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (wool scouring and dyeing)
- Factory licence if worker numbers cross the Factories Act limit
- Handloom Mark for handwoven blankets (optional)
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- Uttarakhand DUY project profile — Blanket Manufacturing Unit from Sheep Wool in Uttarakhand — https://duy-heduk.org/downloads/project-profiles/1.%20Blanket%20Manufacturing%20Unit%20from%20Sheep%20Wool%20in%20Uttarakhand.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.