Detailed Project Report
Textile (Fabric Waste) Recycling
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹21.40 L
- Term loan from bank
- ₹13.91 L
- Promoter’s contribution
- ₹2.14 L
- Subsidy
- ₹5.35 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.80 L
- Average DSCR
- -1.24
- 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, open and clean fabric waste back into cotton fibre, then bale it for spinning mills and other users.
| Main product or service | Textile (Fabric Waste) Recycling |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Spinning mills making recycled yarn
- Makers of quilts, mattresses and fillings
- Non-woven and felt makers
- Direct sale to mills
- Fibre brokers and traders
- Contract recycling for garment exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Cotton carding machine — opener (650 mm) and cleaner (250 mm) | 1 | 10,80,000 | 10,80,000 |
| Motors (30 HP x2, 7.5 HP x5, 5 HP x2, 3 HP x2) with control panel and remote box | 1 | 4,23,400 | 4,23,400 |
| Carding machine spare — cyclone | 1 | 75,000 | 75,000 |
| Hydraulic bale press, 50-tonne pressure | 1 | 2,15,000 | 2,15,000 |
| Fabric waste cutting machine (6 moving and 2 fixed blades) | 1 | 2,45,000 | 2,45,000 |
| Total | 20,38,400 |
Pre-filled from: PMEGP sample project report — Textile Recycling (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 waste — pre-consumer cuttings from yarn, fabric and garment making, and post-consumer garments; ₹20 a kg in year 1 of the report
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 20.38 |
| Contingency | 1.02 |
| Total fixed capital | 21.40 |
| Working capital margin | 0.00 |
| Total project cost | 21.40 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.14 | 10.0 |
| Subsidy | 5.35 | 25.0 |
| Term loan from bank | 13.91 | 65.0 |
| Total | 21.40 | 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 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.42 | 3.42 | 3.42 | 3.42 | 3.42 | 3.42 | 3.42 |
| Operating profit (EBITDA) | -3.42 | -3.42 | -3.42 | -3.42 | -3.42 | -3.42 | -3.42 |
| Depreciation | 3.21 | 2.73 | 2.32 | 1.97 | 1.68 | 1.42 | 1.21 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.51 | 1.30 | 1.07 | 0.83 | 0.60 | 0.36 | 0.13 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.13 | -7.45 | -6.80 | -6.22 | -5.69 | -5.20 | -4.75 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.13 | -7.45 | -6.80 | -6.22 | -5.69 | -5.20 | -4.75 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.13 | -7.45 | -6.80 | -6.22 | -5.69 | -5.20 | -4.75 |
| Depreciation | 3.21 | 2.73 | 2.32 | 1.97 | 1.68 | 1.42 | 1.21 |
| Cash accruals (PAT + depreciation) | -4.92 | -4.72 | -4.48 | -4.25 | -4.01 | -3.78 | -3.54 |
| Term loan repaid | 1.07 | 2.14 | 2.14 | 2.14 | 2.14 | 2.14 | 2.14 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.99 | -6.86 | -6.62 | -6.39 | -6.15 | -5.92 | -5.68 |
| Cash and bank | -5.99 | -12.85 | -19.48 | -25.87 | -32.02 | -37.94 | -43.62 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.49 | 7.49 | 7.49 | 7.49 | 7.49 | 7.49 | 7.49 |
| Reserves and surplus | -8.13 | -15.58 | -22.38 | -28.60 | -34.29 | -39.50 | -44.25 |
| Term loan outstanding | 12.84 | 10.70 | 8.56 | 6.42 | 4.28 | 2.14 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 12.20 | 2.61 | -6.33 | -14.69 | -22.52 | -29.87 | -36.76 |
| Net fixed assets | 18.19 | 15.46 | 13.14 | 11.17 | 9.50 | 8.07 | 6.86 |
| 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 | -5.99 | -12.85 | -19.48 | -25.87 | -32.02 | -37.94 | -43.62 |
| Total assets | 12.20 | 2.61 | -6.33 | -14.69 | -22.52 | -29.87 | -36.76 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.33 | -0.99 | -1.06 | -1.15 | -1.25 | -1.36 | -1.51 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.24 |
|---|---|
| Lowest DSCR | -1.51 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.21 | 2.73 | 2.32 | 1.97 | 1.68 | 1.42 | 1.21 |
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 | 13.91 | 1.51 | 1.07 | 12.84 |
| 2 | 12.84 | 1.30 | 2.14 | 10.70 |
| 3 | 10.70 | 1.07 | 2.14 | 8.56 |
| 4 | 8.56 | 0.83 | 2.14 | 6.42 |
| 5 | 6.42 | 0.60 | 2.14 | 4.28 |
| 6 | 4.28 | 0.36 | 2.14 | 2.14 |
| 7 | 2.14 | 0.13 | 2.14 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board NOC
- Fire NOC
- Trademark (optional) for the brand
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Textile Recycling (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Textile_Recycling_%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.