PROJECT REPORT

Of

BEDSHEET MANUFACTURING UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Bedsheet Manufacturing 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
project report on any subject as per your requirement.]

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@udyami.org.in
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 : BEDSHEET

6 Name of the project / business activity proposed : BEDSHEET MANUFACTURING UNIT

7 Cost of Project : Rs.14.16 Lakhs

8 Means of Finance
Term Loan Rs.8.73 Lakhs
Own Capital Rs.1.42 Lakhs
Working Capital Rs.4.01 Lakhs

9 Debt Service Coverage Ratio : 2.93

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 35%

13 Employment : 13 Persons

14 Power Requirement : 16.00 HP

Cotton yarn spools, starches, chlorine

15 Major Raw materials
:

16 Estimated Annual Sales Turnover (Max Capacity) : 103.12 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 8.20
Furniture & Fixtures 1.50
Working Capital 4.46
Total 14.16

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.42
Working Capital(Finance) 4.01
Term Loan 8.73
Total 14.16
 BEDSHEET MANUFACTURING UNIT

Introduction:
Home decor is seen to reflect the status and taste of the owner who is ready to spend
money on it. As part of the interior bedroom, a good Bedsheets with an aesthetic
appearance is essential. A bed sheet is a flat-woven textile that is used on a bed.
Today, the Bedsheets is part of a set of bed linens that comprises the fitted sheet (to
cover the mattress), the flat sheet, and at least one pillowcase that matches in color
and fabric. The Bedsheets can be constructed of a number of textiles, including linen,
cotton, synthetics (which are frequently combined with natural fibers like cotton),
and silk. Fabrics used to make Bedsheets are diverse.

Uses & Market Potential:

Traditionally, fitted sheets cover the mattress the elastic band holds them firmly in right
place. Their purpose is to protect the mattress and provide you with a smooth, comfortable
surface to lie on. Premium bedding items, together with their functional benefits, are
assisting in industry improved performance, indicating an increase in demand for home
bedding products. The global home bedding market was worth USD 73.88 billion in
2020, and it is predicted to increase at a CAGR of 9.0 percent from 2021 to 2028. In the
worldwide scenario, the market is being driven by the increasing popularity of low-profile
beds and greyscale color palettes, suggesting the trend of minimalist bedrooms.
Furthermore, the increased popularity of adjustable beds, particularly among the baby
boomer age, is driving up demand for tailored mattresses and bed linens, boosting global
home bedding sales. The market's development prospects have been boosted by the
housing boom and rising consumer expenditure on home furnishings.
Product:
BEDSHEET

Raw Material:
1. Cotton Yarn Spool
2. Starches
3. Chlorine and/or hydrogen peroxide solutions

Manufacturing Process:

Cutting &
Warping Packaging
Sewing

Cleaning &
Slashing
Bleaching

Warping
Weaving
the beam

Fig. 1 – Process Flowchart

Area:
The industrial setup requires space for manufacturing 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 1500-
2000Sq. ft. approximately.

Cost of Machines:
S No. Machine Unit Price (INR)
1. Power Loom Machine 1 1,57,000/-
2. Length Cutting Machine 1 5,38,000/-
3. Stitching Machine 3 75,000/-
4. Other Tools & Equipment’s 50,000/-
Total 8,20,000/-

Power Requirement- - The estimated Power requirement is taken at 16

HP.

Manpower Requirement– Following manpower is required:

• Skilled/unskilled worker-3
• Helper- 5
• Machine Operator- 3
• Sales Personal and Accountant- 2

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.25 3.35 4.85 6.57
Add: Additions 1.42 - - - -
Add: Net Profit 2.84 3.89 5.00 6.22 7.75
Less: Drawings 2.00 2.80 3.50 4.50 5.50
Closing Balance 2.25 3.35 4.85 6.57 8.81
CC Limit 4.01 4.01 4.01 4.01 4.01
Term Loan 7.76 5.82 3.88 1.94 -
Sundry Creditors 1.62 1.86 2.12 2.38 2.65

TOTAL : 15.64 15.04 14.86 14.90 15.47

APPLICATION OF FUND

Fixed Assets ( Gross) 9.70 9.70 9.70 9.70 9.70

Gross Dep. 1.38 2.56 3.57 4.44 5.18
Net Fixed Assets 8.32 7.14 6.13 5.26 4.52

Current Assets
Sundry Debtors 2.96 3.53 4.05 4.59 5.16
Stock in Hand 3.12 3.60 4.12 4.65 5.21
Cash and Bank 1.25 0.77 0.56 0.39 0.58

TOTAL : 15.64 15.04 14.86 14.90 15.47

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 59.16 70.61 80.95 91.79 103.12

Total (A) 59.16 70.61 80.95 91.79 103.12

B) COST OF SALES

Raw Material Consumed 32.40 37.26 42.30 47.52 52.92

Elecricity Expenses 1.43 1.61 1.79 1.97 2.15
Repair & Maintenance 1.66 1.98 2.27 2.57 2.89
Labour & Wages 13.80 15.87 18.25 20.62 22.89
Depreciation 1.38 1.18 1.01 0.86 0.74

Cost of Production 50.67 57.90 65.61 73.54 81.58

Add: Opening Stock /WIP - 2.04 2.36 2.71 3.07

Less: Closing Stock /WIP 2.04 2.36 2.71 3.07 3.45

Cost of Sales (B) 48.63 57.57 65.27 73.18 81.21

C) GROSS PROFIT (A-B) 10.53 13.04 15.69 18.61 21.92

17.81% 18.47% 19.38% 20.27% 21.25%
D) Bank Interest i) (Term Loan ) 0.95 0.77 0.56 0.35 0.13
ii) Interest On Working Capital 0.44 0.44 0.44 0.44 0.44
E) Salary to Staff 4.54 5.67 7.09 8.36 9.62
F) Selling & Adm Expenses Exp. 1.77 2.26 2.43 2.75 3.09

G) TOTAL (D+E+F) 7.70 9.14 10.52 11.91 13.29

H) NET PROFIT 2.84 3.89 5.17 6.70 8.63

4.8% 5.5% 6.4% 7.3% 8.4%
I) Taxation - - 0.16 0.48 0.89

J) PROFIT (After Tax) 2.84 3.89 5.00 6.22 7.75

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.42 -

Reserve & Surplus 2.84 3.89 5.17 6.70 8.63
Depriciation & Exp. W/off 1.38 1.18 1.01 0.86 0.74
Increase In Cash Credit 4.01
Increase In Term Loan 8.73 - - - -
Increase in Creditors 1.62 0.24 0.25 0.26 0.27

TOTAL : 19.99 5.32 6.43 7.83 9.64

APPLICATION OF FUND

Increase in Fixed Assets 9.70 - - - -

Increase in Stock 3.12 0.48 0.51 0.54 0.56
Increase in Debtors 2.96 0.57 0.52 0.54 0.57
Repayment of Term Loan 0.97 1.94 1.94 1.94 1.94
Taxation - - 0.16 0.48 0.89
Drawings 2.00 2.80 3.50 4.50 5.50
TOTAL : 18.75 5.80 6.63 8.00 9.45

Opening Cash & Bank Balance - 1.25 0.77 0.56 0.39

Add : Surplus 1.25 - 0.48 - 0.21 - 0.17 0.19

Closing Cash & Bank Balance 1.25 0.77 0.56 0.39 0.58
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(10 Days requirement) 2.04 2.36 2.71 3.07 3.45
Raw Material
(10 Days requirement) 1.08 1.24 1.41 1.58 1.76

Closing Stock 3.12 3.60 4.12 4.65 5.21

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 3.12
Less:
Sundry Creditors 1.62
Paid Stock 1.50 0.15 1.35

Sundry Debtors 2.96 0.30 2.66

Working Capital Requirement 4.01

Margin 0.45

MPBF 4.01
Working Capital Demand 4.01
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 8.73 8.73 0.24 - 8.73
Iind Quarter 8.73 - 8.73 0.24 - 8.73
IIIrd Quarter 8.73 - 8.73 0.24 0.49 8.25
Ivth Quarter 8.25 - 8.25 0.23 0.49 7.76
0.95 0.97
II Opening Balance
Ist Quarter 7.76 - 7.76 0.21 0.49 7.28
Iind Quarter 7.28 - 7.28 0.20 0.49 6.79
IIIrd Quarter 6.79 - 6.79 0.19 0.49 6.31
Ivth Quarter 6.31 6.31 0.17 0.49 5.82
0.77 1.94
III Opening Balance
Ist Quarter 5.82 - 5.82 0.16 0.49 5.34

Iind Quarter 5.34 - 5.34 0.15 0.49 4.85

IIIrd Quarter 4.85 - 4.85 0.13 0.49 4.37
Ivth Quarter 4.37 4.37 0.12 0.49 3.88
0.56 1.94
IV Opening Balance
Ist Quarter 3.88 - 3.88 0.11 0.49 3.40
Iind Quarter 3.40 - 3.40 0.09 0.49 2.91
IIIrd Quarter 2.91 - 2.91 0.08 0.49 2.43
Ivth Quarter 2.43 2.43 0.07 0.49 1.94
0.35 1.94
V Opening Balance
Ist Quarter 1.94 - 1.94 0.05 0.49 1.46
Iind Quarter 1.46 - 1.46 0.04 0.49 0.97
IIIrd Quarter 0.97 - 0.97 0.03 0.49 0.48
Ivth Quarter 0.48 0.48 0.01 0.49 - 0.00
0.13 1.94

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 4.22 5.08 6.01 7.08 8.49

Interest on Term Loan 0.95 0.77 0.56 0.35 0.13

Total 5.16 5.85 6.57 7.43 8.62

REPAYMENT
Repayment of Term Loan 0.97 1.94 1.94 1.94 1.94
Interest on Term Loan 0.95 0.77 0.56 0.35 0.13

Total 1.92 2.71 2.50 2.29 2.07

DEBT SERVICE COVERAGE R 2.69 2.16 2.63 3.25 4.16

AVERAGE D.S.C.R. 2.93

Assumptions:

1. Production Capacity of Bedsheet is 150 pcs per day. First year, Capacity has been
taken @ 40%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock 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 16 HP.

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
directly or indirectly from any use of the Project Report Content, which is provided as is,
and without warranties.