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.
Every report is formatted to the exact standards required by Indian banks and government departments.
A complete 14-section project report — the same document your bank officer will read. Every table below is real: the repayment schedule, the DSCR, the CMA workings, the balance sheet. Generate yours free, then pay ₹499 for the clean copy.
Project Report
Consumer electronics repair, servicing & spare-parts retail
Vaishali Nagar, Jaipur, Rajasthan
Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur
The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.
The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.
Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.
| Particulars | Basis | Amount (₹) |
|---|---|---|
| Renovation & civil work | 200 sq.ft. additional area, electrical, ESD flooring | 1,20,000 |
| Diagnostic & repair equipment | As per quotations — Annexure IX | 2,40,000 |
| Computers, software & service tools | 2 systems, billing software, tool kits | 80,000 |
| Furniture, air-conditioning & display fixtures | Counter, racks, 1.5 T AC | 60,000 |
| Margin money for working capital | Stock, receivables & operating cash | 5,00,000 |
| Total project cost | 10,00,000 |
A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.
| Source | Amount (₹) | % of project cost |
|---|---|---|
| Promoter's own contribution | 2,00,000 | 20.00% |
| Term loan under MUDRA Tarun | 8,00,000 | 80.00% |
| Subsidy / margin money grant | Nil | — |
| Total | 10,00,000 | 100.00% |
Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.
For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.
| Equipment | Qty | Rate (₹) | Amount (₹) |
|---|---|---|---|
| BGA rework station with preheater | 1 | 95,000 | 95,000 |
| Digital storage oscilloscope with probes | 1 | 45,000 | 45,000 |
| Universal IC programmer | 1 | 35,000 | 35,000 |
| Ultrasonic PCB cleaning unit | 1 | 22,000 | 22,000 |
| Soldering / desoldering stations | 3 | 8,000 | 24,000 |
| Precision tool kits & ESD workbench | 2 | 9,500 | 19,000 |
| Total | 2,40,000 |
Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Service & repair income | 24.00 | 28.32 | 32.57 | 36.80 | 41.22 |
| Sale of spares & accessories | 9.60 | 11.33 | 13.03 | 14.73 | 16.49 |
| Total revenue | 33.60 | 39.65 | 45.60 | 51.53 | 57.71 |
| Cost of spares & materials (45%) | 15.12 | 17.84 | 20.52 | 23.19 | 25.97 |
| Gross profit | 18.48 | 21.81 | 25.08 | 28.34 | 31.74 |
| Salaries & wages | 6.72 | 7.26 | 7.84 | 8.47 | 9.14 |
| Rent | 1.44 | 1.51 | 1.59 | 1.67 | 1.75 |
| Power & fuel | 0.72 | 0.78 | 0.83 | 0.89 | 0.95 |
| Repairs & maintenance | 0.30 | 0.33 | 0.36 | 0.39 | 0.42 |
| Marketing & business promotion | 0.36 | 0.40 | 0.44 | 0.48 | 0.52 |
| Administrative & miscellaneous | 0.60 | 0.66 | 0.72 | 0.78 | 0.84 |
| Insurance | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 |
| Total operating expenses | 10.26 | 11.07 | 11.92 | 12.83 | 13.78 |
| EBITDA | 8.22 | 10.74 | 13.16 | 15.51 | 17.96 |
| Depreciation (WDV, as per IT Act) | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| EBIT | 7.36 | 10.08 | 12.64 | 15.09 | 17.61 |
| Interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Profit before tax | 6.58 | 9.44 | 12.16 | 14.78 | 17.50 |
| Income tax (as applicable) | 0.30 | 0.62 | 0.95 | 1.35 | 1.80 |
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.
| Year | Opening balance | Principal repaid | Interest | Total outgo | Closing balance |
|---|---|---|---|---|---|
| 1 | 8,00,000 | 1,28,404 | 77,937 | 2,06,341 | 6,71,596 |
| 2 | 6,71,596 | 1,42,555 | 63,787 | 2,06,341 | 5,29,041 |
| 3 | 5,29,041 | 1,58,265 | 48,077 | 2,06,341 | 3,70,776 |
| 4 | 3,70,776 | 1,75,706 | 30,635 | 2,06,341 | 1,95,070 |
| 5 | 1,95,070 | 1,95,070 | 11,272 | 2,06,341 | Nil |
| Total | 8,00,000 | 2,31,707 | 10,31,705 |
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
| Add: depreciation | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| Add: interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Cash available for debt service (A) | 7.92 | 10.12 | 12.21 | 14.16 | 16.16 |
| Principal repayment | 1.28 | 1.43 | 1.58 | 1.76 | 1.95 |
| Interest | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Total debt service (B) | 2.06 | 2.07 | 2.06 | 2.07 | 2.06 |
| DSCR (A ÷ B) | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 |
Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| LIABILITIES | |||||
| Capital account (net of drawings) | 4.08 | 7.50 | 12.11 | 17.74 | 24.44 |
| Term loan — long-term portion | 5.29 | 3.71 | 1.95 | — | — |
| Term loan — current maturity | 1.43 | 1.58 | 1.76 | 1.95 | — |
| Sundry creditors (30 days) | 1.26 | 1.49 | 1.71 | 1.93 | 2.16 |
| Other current liabilities & provisions | 0.30 | 0.35 | 0.40 | 0.45 | 0.50 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| ASSETS | |||||
| Net fixed assets | 4.14 | 3.48 | 2.96 | 2.54 | 2.19 |
| Stock of spares (45 days) | 1.86 | 2.20 | 2.53 | 2.86 | 3.20 |
| Sundry debtors (10 days) | 0.92 | 1.09 | 1.25 | 1.41 | 1.58 |
| Cash & bank balance | 5.44 | 7.86 | 11.19 | 15.26 | 20.13 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| Sources | Amount | Applications | Amount |
|---|---|---|---|
| Profit after tax | 6.28 | Capital expenditure | 5.00 |
| Depreciation | 0.86 | Increase in stock | 1.86 |
| Increase in creditors & provisions | 1.56 | Increase in debtors | 0.92 |
| Term loan drawn | 8.00 | Repayment of term loan | 1.28 |
| Promoter's capital introduced | 2.00 | Drawings | 4.20 |
| Closing cash & bank | 5.44 | ||
| Total | 18.70 | Total | 18.70 |
Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.
| Particulars | Amount |
|---|---|
| Stock of spares | 1.86 |
| Sundry debtors | 0.92 |
| Cash & bank balance | 5.44 |
| Total current assets (TCA) | 8.22 |
| Sundry creditors | 1.26 |
| Other current liabilities & provisions | 0.30 |
| Current maturity of term loan | 1.43 |
| Other current liabilities (OCL) | 2.99 |
| Working capital gap (TCA − OCL) | 5.23 |
| 25% of TCA — stipulated margin | 2.06 |
| Maximum permissible bank finance (Method II) | 3.18 |
No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.
CMA statements included in the full report
| Ratio | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Bank norm |
|---|---|---|---|---|---|---|
| Current ratio | 2.75 | 3.26 | 3.87 | 4.51 | 9.36 | ≥ 1.25 |
| Debt–equity ratio | 1.65 | 0.71 | 0.31 | 0.11 | Nil | ≤ 3.00 |
| DSCR | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 | ≥ 1.25 |
| Net profit margin | 18.7% | 22.2% | 24.6% | 26.1% | 27.2% | — |
| Interest coverage | 9.4 | 15.8 | 26.3 | 48.7 | 160.1 | ≥ 2.00 |
| Particulars | Amount |
|---|---|
| Fixed costs (salaries, rent, admin, depreciation, interest) | 10.88 |
| Variable costs (materials, power, maintenance) | 16.14 |
| Contribution (revenue − variable costs) | 17.46 |
| P/V ratio | 51.96% |
| Break-even sales | 20.94 |
| Break-even as % of Year-1 revenue | 62.3% |
| Cash break-even as % of Year-1 revenue | 57.4% |
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Accurate face mask unit economics: NIC 17095, ₹3–25 Lakh project cost, machinery & raw material.
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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.