Bank-ready face mask unit project report — project cost ₹3–25 Lakh, CMA data, DSCR ≥ 1.50 and 5-year projections for PMEGP, MUDRA Kishor, CGTMSE.
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Starting a face mask manufacturing unit in India in 2025 is a promising venture, especially with sustained demand from healthcare, industrial, and retail sectors. This page provides a comprehensive guide for entrepreneurs and Chartered Accountants preparing a bank-ready project report for a Face Mask Unit (NIC 17095). Whether you are applying under PMEGP (subsidy up to 35%), MUDRA Kishor (loan up to ₹5 lakh), or CGTMSE (collateral-free loan up to ₹2 crore), a well-structured project report is essential. The report must include CMA data, DSCR calculations, and 5-year financial projections covering production capacity, raw material costs (meltblown fabric, ear loops, nose wires), machinery (mask-making machine, ultrasonic welder), and working capital. Typical project costs range from ₹3 lakh for a semi-automatic unit to ₹25 lakh for an automatic line. This guide covers eligibility, costs, machinery, documentation, and step-by-step process to secure a bank loan.
Face mask manufacturing falls under NIC code 17095 (manufacture of made-up textile articles). Eligibility for government schemes: PMEGP requires the entrepreneur to be above 18 years, with at least 8th standard education for projects above ₹10 lakh. MUDRA Kishor is for micro units with loan up to ₹5 lakh, no collateral required. CGTMSE covers collateral-free loans up to ₹2 crore for MSEs. Stand-Up India is for SC/ST and women entrepreneurs (minimum 51% ownership) with loan between ₹10 lakh and ₹1 crore. For PM Vishwakarma (launched 2023), artisans involved in textile work can avail up to ₹3 lakh loan with 5% interest subvention. Ensure your project report clearly mentions the scheme applied for and eligibility criteria.
A typical face mask unit project cost breaks down as: Machinery (mask-making machine ₹1.5-8 lakh, ultrasonic welder ₹0.5-2 lakh, cutting machine ₹0.3-1 lakh) – 40-50%; Raw materials (meltblown fabric, non-woven, ear loops, nose wire) – 20-25%; Working capital (3 months) – 20-25%; Other costs (licenses, electricity deposit, furniture) – 5-10%. For a ₹10 lakh project under PMEGP, margin money is 5-10% (entrepreneur contribution), subsidy 15-35% (max ₹35 lakh for general, ₹50 lakh for special categories), and bank loan 55-80%. MUDRA Kishor loan up to ₹5 lakh covers 100% of project cost. CGTMSE covers collateral-free loan up to ₹2 crore with 1.5-2% guarantee fee. Include a detailed cost sheet in your project report.
Key machinery for a face mask unit: Automatic mask-making machine (produces 80-120 masks per minute) costs ₹6-15 lakh; semi-automatic (40-60 masks/min) ₹2-5 lakh; manual (10-20 masks/min) ₹1-2 lakh. Essential ancillary: ultrasonic welding machine for ear loops (₹0.5-2 lakh), nose wire insertion machine (₹0.3-1 lakh), and packing machine (₹0.5-1 lakh). Production process: Raw material feeding (3-ply non-woven fabric, meltblown layer) → folding → nose wire insertion → ear loop welding → cutting → packaging. Quality testing (bacterial filtration efficiency, pressure differential) may require investment of ₹1-2 lakh. Mention technical specifications and supplier references in the project report to enhance credibility.
Essential documents for face mask unit loan application: 1) KYC of applicant (Aadhaar, PAN, Voter ID). 2) Business plan/project report with CMA data, DSCR, and 5-year projections. 3) Land documents (lease/ownership) or rent agreement. 4) Machinery quotations from suppliers. 5) Licenses: GST registration, Udyam registration, Trade license from local municipality, BIS certification (optional but recommended for quality assurance), and Fire department NOC. 6) For PMEGP: Educational certificates, caste certificate (if applicable), and project cost affidavit. 7) For CGTMSE: No collateral required but submit guarantee fee payment proof. Keep all documents scanned and organized for quick submission.
Step 1: Conduct market research – identify target customers (hospitals, pharmacies, corporate offices). Step 2: Prepare detailed project report (use this guide). Step 3: Register business – obtain Udyam registration, GST, and trade license. Step 4: Apply for loan under suitable scheme (PMEGP via local DIC, MUDRA via bank, CGTMSE via bank). Step 5: Once loan approved, procure machinery and raw materials. Step 6: Set up unit – ensure proper ventilation, electricity (3-phase), and space (minimum 300 sq ft for semi-auto unit). Step 7: Start production and obtain necessary quality certifications. Step 8: Market your product – register on GeM portal for government supply, approach local distributors. Maintain proper accounting for loan repayment.
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Accurate face mask unit economics: NIC 17095, ₹3–25 Lakh project cost, machinery & raw material.
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Bankable financials (CMA, DSCR ≥ 1.50, P&L, Balance Sheet, Cash Flow).
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A typical face mask unit project costs ₹3–25 Lakh depending on scale, location and machinery. The report breaks down land/building, machinery, working capital and pre-operative costs.
PMEGP, MUDRA Kishor, CGTMSE are commonly used. Banks fund ~75–90% of project cost as term loan + working capital.
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Under PMEGP, the minimum project cost for a face mask unit is typically ₹3 lakh for a manual/semi-automatic setup. However, the scheme allows projects up to ₹50 lakh (manufacturing). For a viable unit, a project cost of ₹5-10 lakh is recommended to ensure quality production and working capital.
Yes, under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), you can get a collateral-free loan up to ₹2 crore for your face mask unit. Additionally, MUDRA Kishor provides collateral-free loans up to ₹5 lakh. PMEGP also does not require collateral for loans up to ₹10 lakh.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25 for manufacturing projects. For face mask units, given the high demand, a DSCR of 1.5-2 is achievable. Your project report should show projected net profit and cash flows to meet this requirement.
The PMEGP loan process takes 2-4 months from application to disbursement. Steps: Apply online via PMEGP e-portal → District Task Force Committee (DTFC) meeting (1 month) → Bank loan sanction (2-4 weeks) → Disbursement after margin money deposit. Ensure your project report is complete to avoid delays.