Detailed Project Report
Shower-Proof Garment Leather (Cow Hide Tannery)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹26.78 L
- Term loan from bank
- ₹24.10 L
- Promoter’s contribution
- ₹2.68 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-8.30 L
- Average DSCR
- -0.74
- 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
Tan cow hides into soft, water-repellent leather for jackets, coats and trousers that resist rain and snow showers.
| Main product or service | Shower-Proof Garment Leather (Cow Hide Tannery) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Leather garment makers (jackets, coats, trousers)
- Garment exporters
- Buyers in cold northern and north-eastern regions
- Direct supply to garment units in Delhi, Chennai, Kolkata, Mumbai and Kanpur
- Leather traders
- Export houses
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Hydraulic press with 25 HP motor | 1 | 12,00,000 | 12,00,000 |
| Wooden drum 8' × 8' with 15 HP motor (× 2) | 1 | 4,00,000 | 4,00,000 |
| Reversible setting machine, 2400 mm, 25 HP | 1 | 2,50,000 | 2,50,000 |
| Fleshing machine, 2400 mm, 20 HP | 1 | 2,40,000 | 2,40,000 |
| Toggling machine with 20 boards | 1 | 2,00,000 | 2,00,000 |
| Wooden paddle with 10 HP motor (× 2) | 1 | 1,50,000 | 1,50,000 |
| Shaving machine, single width, 7.5 HP | 1 | 55,000 | 55,000 |
| Slocomb staking machine, 7.5 HP | 1 | 55,000 | 55,000 |
| Total | 25,50,000 |
Pre-filled from: DC-MSME project profile — Shower Proof Garment 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
- Raw cow hides (about 25 sq ft each) — 2,500 a month at ₹650 each
- Processing and finishing chemicals, including water-proofing agent and PU binder — ₹15 per sq ft
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 25.50 |
| Contingency | 1.28 |
| Total fixed capital | 26.78 |
| Working capital margin | 0.00 |
| Total project cost | 26.78 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.68 | 10.0 |
| Term loan from bank | 24.10 | 90.0 |
| Total | 26.78 | 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 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
| Insurance | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Total cost of operations | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 | 3.55 |
| Operating profit (EBITDA) | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 | -3.55 |
| Depreciation | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 | 1.51 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.61 | 2.26 | 1.85 | 1.44 | 1.04 | 0.63 | 0.22 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -10.17 | -9.22 | -8.30 | -7.46 | -6.68 | -5.96 | -5.28 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -10.17 | -9.22 | -8.30 | -7.46 | -6.68 | -5.96 | -5.28 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -10.17 | -9.22 | -8.30 | -7.46 | -6.68 | -5.96 | -5.28 |
| Depreciation | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 | 1.51 |
| Cash accruals (PAT + depreciation) | -6.16 | -5.81 | -5.40 | -4.99 | -4.59 | -4.18 | -3.77 |
| Term loan repaid | 1.85 | 3.71 | 3.71 | 3.71 | 3.71 | 3.71 | 3.71 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -8.01 | -9.52 | -9.11 | -8.70 | -8.29 | -7.89 | -7.48 |
| Cash and bank | -8.01 | -17.53 | -26.64 | -35.34 | -43.63 | -51.52 | -58.99 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 |
| Reserves and surplus | -10.17 | -19.40 | -27.70 | -35.16 | -41.84 | -47.80 | -53.09 |
| Term loan outstanding | 22.24 | 18.54 | 14.83 | 11.12 | 7.41 | 3.71 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 14.75 | 1.82 | -10.19 | -21.36 | -31.75 | -41.42 | -50.41 |
| Net fixed assets | 22.76 | 19.34 | 16.44 | 13.98 | 11.88 | 10.10 | 8.58 |
| 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 | -8.01 | -17.53 | -26.64 | -35.34 | -43.63 | -51.52 | -58.99 |
| Total assets | 14.75 | 1.82 | -10.19 | -21.36 | -31.75 | -41.42 | -50.41 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.80 | -0.59 | -0.64 | -0.69 | -0.75 | -0.82 | -0.90 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.74 |
|---|---|
| Lowest DSCR | -0.90 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 4.02 | 3.41 | 2.90 | 2.47 | 2.10 | 1.78 | 1.51 |
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 | 24.10 | 2.61 | 1.85 | 22.24 |
| 2 | 22.24 | 2.26 | 3.71 | 18.54 |
| 3 | 18.54 | 1.85 | 3.71 | 14.83 |
| 4 | 14.83 | 1.44 | 3.71 | 11.12 |
| 5 | 11.12 | 1.04 | 3.71 | 7.41 |
| 6 | 7.41 | 0.63 | 3.71 | 3.71 |
| 7 | 3.71 | 0.22 | 3.71 | 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 — Shower Proof Garment Leather — https://www.dcmsme.gov.in/publications/pmryprof/leather/ch20.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.