Detailed Project Report
Wooden Furniture Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹11.16 L
- Term loan from bank
- ₹7.25 L
- Promoter’s contribution
- ₹1.12 L
- Subsidy
- ₹2.79 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.93 L
- Average DSCR
- -2.19
- 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
Make almirahs, tables, chairs, beds and cots from wood for homes and offices.
| Main product or service | Wooden Furniture Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Offices, shops and commercial buildings
- Hotels, schools and hospitals
- Own showroom or workshop orders
- Furniture retailers
- Builders and interior contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Band saw | 1 | 2,85,500 | 2,85,500 |
| Drill machine | 1 | 44,000 | 44,000 |
| Planing tools | 1 | 29,500 | 29,500 |
| Wood seasoning plant | 1 | 1,00,000 | 1,00,000 |
| Planer machine | 1 | 80,000 | 80,000 |
| Belt sander | 1 | 9,500 | 9,500 |
| Buffer machine | 1 | 20,000 | 20,000 |
| Round cutter | 1 | 5,500 | 5,500 |
| Wood lathe machine | 1 | 45,000 | 45,000 |
| Chip carving knives (× 10) | 1 | 1,000 | 1,000 |
| Carpenter chisels (× 10) | 1 | 2,000 | 2,000 |
| U-gouges (× 10) | 1 | 1,500 | 1,500 |
| V-gouges (× 10) | 1 | 1,500 | 1,500 |
| Spoon gouges (× 10) | 1 | 2,500 | 2,500 |
| Palm tools (× 10) | 1 | 1,000 | 1,000 |
| Carpentry saw | 1 | 9,500 | 9,500 |
| KVIC set: vertical saw, thickness planer, planer, circular saw, disc sander, bench drill, blade grinder, wood lathe, bench grinder, vices, jigs and electrification (× 1 lot) | 1 | 4,25,000 | 4,25,000 |
| Total | 10,63,000 |
Pre-filled from: KVIC Project Profile — Wooden Furniture (PMEGP); PMEGP sample project report — Wooden Furniture (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wood — KVIC puts raw material at ₹60,00,000 a year at full capacity
- Adhesives and nails — for joints
- Finishing material: stains, basecoat, glazes and enamels — for the final finish
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 10.63 |
| Contingency | 0.53 |
| Total fixed capital | 11.16 |
| Working capital margin | 0.00 |
| Total project cost | 11.16 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.12 | 10.0 |
| Subsidy | 2.79 | 25.0 |
| Term loan from bank | 7.25 | 65.0 |
| Total | 11.16 | 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 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 | 3.16 |
| Operating profit (EBITDA) | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 | -3.16 |
| Depreciation | 1.67 | 1.42 | 1.21 | 1.03 | 0.87 | 0.74 | 0.63 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.79 | 0.68 | 0.56 | 0.43 | 0.31 | 0.19 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.62 | -5.26 | -4.93 | -4.62 | -4.35 | -4.09 | -3.86 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.62 | -5.26 | -4.93 | -4.62 | -4.35 | -4.09 | -3.86 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.62 | -5.26 | -4.93 | -4.62 | -4.35 | -4.09 | -3.86 |
| Depreciation | 1.67 | 1.42 | 1.21 | 1.03 | 0.87 | 0.74 | 0.63 |
| Cash accruals (PAT + depreciation) | -3.94 | -3.84 | -3.72 | -3.59 | -3.47 | -3.35 | -3.23 |
| Term loan repaid | 0.56 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.50 | -4.96 | -4.83 | -4.71 | -4.59 | -4.46 | -4.34 |
| Cash and bank | -4.50 | -9.46 | -14.29 | -19.00 | -23.59 | -28.05 | -32.39 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.91 | 3.91 | 3.91 | 3.91 | 3.91 | 3.91 | 3.91 |
| Reserves and surplus | -5.62 | -10.88 | -15.81 | -20.43 | -24.77 | -28.87 | -32.72 |
| Term loan outstanding | 6.70 | 5.58 | 4.46 | 3.35 | 2.23 | 1.12 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.98 | -1.39 | -7.44 | -13.17 | -18.64 | -23.84 | -28.82 |
| Net fixed assets | 9.49 | 8.06 | 6.85 | 5.83 | 4.95 | 4.21 | 3.58 |
| 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 | -4.50 | -9.46 | -14.29 | -19.00 | -23.59 | -28.05 | -32.39 |
| Total assets | 4.98 | -1.39 | -7.44 | -13.17 | -18.64 | -23.84 | -28.82 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.35 | -1.76 | -1.89 | -2.04 | -2.21 | -2.42 | -2.67 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.19 |
|---|---|
| Lowest DSCR | -2.67 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.67 | 1.42 | 1.21 | 1.03 | 0.87 | 0.74 | 0.63 |
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 | 7.25 | 0.79 | 0.56 | 6.70 |
| 2 | 6.70 | 0.68 | 1.12 | 5.58 |
| 3 | 5.58 | 0.56 | 1.12 | 4.46 |
| 4 | 4.46 | 0.43 | 1.12 | 3.35 |
| 5 | 3.35 | 0.31 | 1.12 | 2.23 |
| 6 | 2.23 | 0.19 | 1.12 | 1.12 |
| 7 | 1.12 | 0.07 | 1.12 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Buy timber only from licensed depots with a transit pass where state forest rules require it
- Factory licence if your worker count crosses the Factories Act limit
- BIS: the Furniture Quality Control Order covers some items such as beds, tables, chairs and storage units — check if it applies and its relaxations for micro units
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)
- Stand-Up India
19 Sources
- KVIC Project Profile — Wooden Furniture (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/WOODEN_FURNITURE_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.pdf
- PMEGP sample project report — Wooden Furniture (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wooden_Furniture_DPR_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 94 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/2094_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.