PROJECT REPORT
Of
SAREE DYEING AND PRINTING UNIT
PURPOSE OF THE DOCUMENT
This particular pre-feasibility is regarding Saree Dyeing and Printing unit.
The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.
[We can modify the project capacity and project cost as per your requirement. We can also prepare
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Lucknow Office: Sidhivinayak Building ,
27/1/B, Gokhlley Marg, Lucknow-226001
Delhi Office : Multi Disciplinary Training
Centre, Gandhi Darshan Rajghat,
New Delhi 110002
Email : info@[Link]
Contact : +91 7526000333, 444, 555
PROJECT AT A GLANCE
1 Name of the Entreprenuer xxxxxxxxxx
2 Constitution (legal Status) : xxxxxxxxxx
3 Father / Spouse Name xxxxxxxxxxxx
4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx
District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx
5 Product and By Product : SAREE DYEING AND PRINTING
6 Name of the project / business activity proposed : DYEING AND PRINTING UNIT (SAREE)
7 Cost of Project : Rs.15.32 Lakhs
8 Means of Finance
Term Loan Rs.10.76 Lakhs
Own Capital Rs.1.53 Lakhs
Working Capital Rs.3.03 Lakhs
9 Debt Service Coverage Ratio : 2.36
10 Pay Back Period : 5 Years
11 Project Implementation Period : 5-6 Months
12 Break Even Point : 40%
13 Employment : 9 Persons
14 Power Requirement : 10.00 KW
Reactive, Direct, Sulfur, Vat,
15 Major Raw materials
: Pigment, Acid, and Disperse
16 Estimated Annual Sales Turnover (Max Capacity) : 65.99 Lakhs
17 Detailed Cost of Project & Means of Finance
COST OF PROJECT (Rs. In Lakhs)
Particulars Amount
Land Own/Rented
Plant & Machinery 10.75
Furniture & Fixtures 1.20
Working Capital 3.37
Total 15.32
MEANS OF FINANCE
Particulars Amount
Own Contribution 1.53
Working Capital(Finance) 3.03
Term Loan 10.76
Total 15.32
SAREE DYEING AND PRINTING UNIT
Introduction:
Dyeing, printing, and coating are the coloration processes to produce beautiful motif and
color effect on textile. Printing and coating are limited to surface coloration and may be
applied to most of the fiber types, natural fabrics, and synthetics. Approximately 10,000
different dyes and pigments are used industrially around the world. Dyeing
and printing are processes employed in the conversion of raw textile fibers into finished
goods that add much to the appearance of textile fabrics. Most forms of textile materials
can be dyed at almost any stage. The dye used depends on the type of material and the
specific requirements to be met. For some purposes, high light fastness is essential; but
for others it may be inconsequential. Factors considered in dye selection include fastness
to light, reaction to washing and rubbing (crocking), and the cost of the dyeing process.
Effective preparation of the material for dyeing is essential.
Uses & Market Potential:
Method used to make a fabric colorful with different attractive prints. Dyeing will occur
in the most efficient stage which will meet the requirements of the intended end uses
Dyeing can be done during any stage in the manufacture of textile product. Textiles may
be dyed as fiber, as yarn, as fabric or as garments, depending on the type of fabric or
garment produced. Dyeing will occur in the most efficient stage which will meet the
requirements of the intended end [Link] textile chemicals market stood at $ 1.5 billion
in 2017 and is projected to grow at a CAGR of around 10% to reach $ 2.6 billion by 2023,
on the back of growing demand for high-quality finished textile products.
Product:
SAREE DYEING AND PRINTING
Raw Material:
Reactive, Direct, Sulfur, Vat, Pigment, Acid, and Disperse
Printing Process:
Receiving and Relaxing Fabrics
Preparation of Dyeing
Fixation
Washing & Drying
Finishing
Fig. 1 – Process Flowchart
Area:
The industrial setup requires space for dyeing unit. Also some of the area of building is
required for office staff facilities, documentation, office furniture, etc. Thus, the
approximate total area required for complete small scale factory setup is 1200-1500Sq.
ft. approximately.
Cost of Machines:
S No. Machines Price (INR)
1. Horizontal Paddle Machines 1,00,000/-
2. Drum Machines 2,70,000/-
3. Washing-centrifugal machines 2,55,000/-
4. Jet dyeing centrifugal machines 4,50,000/-
Total 10,75,000/-
Power Requirement- - The estimated Power requirement is taken at 10
KWH
Manpower Requirement– Following manpower is required:
• Skilled/unskilled worker-4
• Helper - 3
• Sales Personal and Accountant- 2
FINANCIALS
PROJECTED BALANCE SHEET
PARTICULARS I II III IV V
SOURCES OF FUND
Capital Account
Opening Balance - 1.85 2.93 4.52 6.28
Add: Additions 1.53 - - - -
Add: Net Profit 2.52 3.58 4.69 6.06 6.66
Less: Drawings 2.20 2.50 3.10 4.30 4.70
Closing Balance 1.85 2.93 4.52 6.28 8.24
CC Limit 3.03 3.03 3.03 3.03 3.03
Term Loan 9.56 7.17 4.78 2.39 -
Sundry Creditors 0.94 1.07 1.22 1.37 1.52
TOTAL : 15.38 14.20 13.55 13.07 12.80
APPLICATION OF FUND
Fixed Assets ( Gross) 11.95 11.95 11.95 11.95 11.95
Gross Dep. 1.73 3.21 4.47 5.55 6.47
Net Fixed Assets 10.22 8.74 7.48 6.40 5.48
Current Assets
Sundry Debtors 1.99 2.34 2.65 2.97 3.30
Stock in Hand 2.31 2.64 2.99 3.35 3.73
Cash and Bank 0.85 0.48 0.44 0.36 0.29
TOTAL : 15.38 14.20 13.55 13.07 12.80
- - - - -
PROJECTED PROFITABILITY STATEMENT
PARTICULARS I II III IV V
A) SALES
Gross Sale 39.88 46.88 52.95 59.32 65.99
Total (A) 39.88 46.88 52.95 59.32 65.99
B) COST OF SALES
Raw Material Consumed 18.75 21.45 24.30 27.30 30.45
Elecricity Expenses 1.12 1.23 1.34 1.45 1.57
Repair & Maintenance 1.40 1.64 1.85 2.08 2.31
Labour & Wages 10.02 11.22 12.90 14.32 15.90
Depreciation 1.73 1.48 1.26 1.08 0.92
Cost of Production 33.01 37.02 41.66 46.23 51.14
Add: Opening Stock /WIP - 1.38 1.57 1.77 1.98
Less: Closing Stock /WIP 1.38 1.57 1.77 1.98 2.21
Cost of Sales (B) 31.64 36.83 41.46 46.02 50.92
C) GROSS PROFIT (A-B) 8.24 10.06 11.49 13.31 15.07
20.65% 21.45% 21.71% 22.43% 22.84%
D) Bank Interest i) (Term Loan ) 1.17 0.95 0.69 0.43 0.16
ii) Interest On Working Capital 0.33 0.33 0.33 0.33 0.33
E) Salary to Staff 3.02 3.78 4.08 4.41 5.07
F) Selling & Adm Expenses Exp. 1.20 1.41 1.69 2.08 2.24
TOTAL (D+E+F) 5.72 6.47 6.80 7.25 7.81
H) NET PROFIT 2.52 3.58 4.69 6.06 7.26
6.3% 7.6% 8.9% 10.2% 11.0%
I) Taxation - - - - 0.60
J) PROFIT (After Tax) 2.52 3.58 4.69 6.06 6.66
PROJECTED CASH FLOW STATEMENT
PARTICULARS I II III IV V
SOURCES OF FUND
Own Contribution 1.53 -
Reserve & Surplus 2.52 3.58 4.69 6.06 7.26
Depriciation & Exp. W/off 1.73 1.48 1.26 1.08 0.92
Increase In Cash Credit 3.03
Increase In Term Loan 10.76 - - - -
Increase in Creditors 0.94 0.14 0.14 0.15 0.16
TOTAL : 20.50 5.20 6.10 7.29 8.34
APPLICATION OF FUND
Increase in Fixed Assets 11.95 - - - -
Increase in Stock 2.31 0.33 0.35 0.36 0.38
Increase in Debtors 1.99 0.35 0.30 0.32 0.33
Repayment of Term Loan 1.20 2.39 2.39 2.39 2.39
Taxation - - - - 0.60
Drawings 2.20 2.50 3.10 4.30 4.70
TOTAL : 19.65 5.57 6.14 7.37 8.40
Opening Cash & Bank Balance - 0.85 0.48 0.44 0.36
Add : Surplus 0.85 - 0.37 - 0.04 - 0.08 - 0.07
Closing Cash & Bank Balance 0.85 0.48 0.44 0.36 0.29
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS I II III IV V
Finished Goods
(10 Days requirement) 1.38 1.57 1.77 1.98 2.21
Raw Material
(15 Days requirement) 0.94 1.07 1.22 1.37 1.52
Closing Stock 2.31 2.64 2.99 3.35 3.73
COMPUTATION OF WORKING CAPITAL REQUIREMENT
Particulars Amount Margin(10%) Net
Amount
Stock in Hand 2.31
Less:
Sundry Creditors 0.94
Paid Stock 1.38 0.14 1.24
Sundry Debtors 1.99 0.20 1.79
Working Capital Requirement 3.03
Margin 0.34
MPBF 3.03
Working Capital Demand 3.03
REPAYMENT SCHEDULE OF TERM LOAN 11.0%
Year Particulars Amount Addition Total Interest Repayment Cl Balance
I Opening Balance
Ist Quarter - 10.76 10.76 0.30 - 10.76
Iind Quarter 10.76 - 10.76 0.30 - 10.76
IIIrd Quarter 10.76 - 10.76 0.30 0.60 10.16
Ivth Quarter 10.16 - 10.16 0.28 0.60 9.56
1.17 1.20
II Opening Balance
Ist Quarter 9.56 - 9.56 0.26 0.60 8.96
Iind Quarter 8.96 - 8.96 0.25 0.60 8.37
IIIrd Quarter 8.37 - 8.37 0.23 0.60 7.77
Ivth Quarter 7.77 7.77 0.21 0.60 7.17
0.95 2.39
III Opening Balance
Ist Quarter 7.17 - 7.17 0.20 0.60 6.57
Iind Quarter 6.57 - 6.57 0.18 0.60 5.98
IIIrd Quarter 5.98 - 5.98 0.16 0.60 5.38
Ivth Quarter 5.38 5.38 0.15 0.60 4.78
0.69 2.39
IV Opening Balance
Ist Quarter 4.78 - 4.78 0.13 0.60 4.18
Iind Quarter 4.18 - 4.18 0.12 0.60 3.59
IIIrd Quarter 3.59 - 3.59 0.10 0.60 2.99
Ivth Quarter 2.99 2.99 0.08 0.60 2.39
0.43 2.39
V Opening Balance
Ist Quarter 2.39 - 2.39 0.07 0.60 1.79
Iind Quarter 1.79 - 1.79 0.05 0.60 1.20
IIIrd Quarter 1.20 - 1.20 0.03 0.60 0.60
Ivth Quarter 0.60 0.60 0.02 0.60 - 0.00
0.16 2.39
Door to Door Period 60 Months
Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V
CASH ACCRUALS 4.25 5.06 5.96 7.14 7.58
Interest on Term Loan 1.17 0.95 0.69 0.43 0.16
Total 5.41 6.01 6.65 7.56 7.74
REPAYMENT
Repayment of Term Loan 1.20 2.39 2.39 2.39 2.39
Interest on Term Loan 1.17 0.95 0.69 0.43 0.16
Total 2.36 3.34 3.08 2.82 2.55
DEBT SERVICE COVERAGE RATIO 2.29 1.80 2.16 2.68 3.03
AVERAGE D.S.C.R. 2.36
Assumptions:
1. Capacity of Saree Dyeing and Printing is 500 Pieces per day. First year, Capacity
has been taken @ 50%.
2. Working shift of 10 hours per day has been considered.
3. Raw Material stock has been taken for 15 days and Finished goods closing stock
has been taken for 10 days.
4. Credit period to Sundry Debtors has been given for 15 days.
5. Credit period by the Sundry Creditors has been provided for 15 days.
6. Depreciation and Income tax has been taken as per the Income tax Act,
1961.
7. Interest on working Capital Loan and Term loan has been taken at 11%.
8. Salary and wages rates are taken as per the Current Market Scenario.
9. Power Consumption has been taken at 10 KW.
10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
DISCLAIMER
The views expressed in this Project Report are advisory in nature. SAMADHAN assume
no financial liability to anyone using the content for any purpose. All the materials and
content contained in Project report is for educational purpose and reflect the views of the
industry which are drawn from various research material sources from internet, experts,
suppliers and various other sources. The actual cost of the project or industry will
have to be taken on case to case basis considering specific requirement of the project,
capacity and type of plant and other specific factors/cost directly related to the
implementation of project. It is intended for general guidance only and must not be
considered a substitute for a competent legal advice provided by a licensed industry
professional. SAMADHAN hereby disclaims any and all liability to any party for any direct,
indirect, implied, punitive, special, incidental or other consequential damages arising
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and without warranties.
