Bamboo Crafts Business Financial Scheme Proposal
Bamboo Crafts Business Financial Scheme Proposal
1. Business Overview
The bamboo crafts business unit aims to produce eco-friendly and sustainable products, such as furniture, home décor, and utility items. Bamboo is an abundant resource, and bamboo crafts have a strong domestic and international market potential. The proposed unit will be set up in Jorhat, Assam, which is well-known for its bamboo resources.
2. Space and Equipment Requirements
Space Required
Area Required: 600 sq. ft. workspace (rent or own land)
Furniture and Fixtures
| Item |
Cost (₹) |
| Workbenches and Tables |
30,000 |
| Shelves and Storage |
10,000 |
| Office Furniture |
15,000 |
Machinery and Equipment
| Item |
Cost (₹) |
| Bamboo Cutting Machine |
50,000 |
| Sanding Machine |
40,000 |
| Polishing Machine |
25,000 |
| Hand Tools |
15,000 |
Electrical Expenses
Electrical Installation: ₹20,000
3. Total Fixed Cost
| Particulars |
Cost (₹) |
| Space (Rent/Lease) |
60,000 (annual rent) |
| Furniture & Fixtures |
55,000 |
| Machinery & Equipment |
1,30,000 |
| Electrical Installation |
20,000 |
| Total Fixed Cost |
₹2,65,000 |
4. Working Capital & Recurring Costs
Monthly Operating Expenses
| Particulars |
Cost (₹) |
| Salary (2 employees) |
40,000 |
| Raw Materials (Bamboo, Adhesives, etc.) |
60,000 |
| Telephone & Internet |
2,000 |
| Transportation Costs |
5,000 |
| Depreciation on Machinery |
5,000 |
| Interest on Capital |
5,000 |
| Total Monthly Operating Cost |
₹1,17,000 |
5. Profit Calculation
Cost of Production
The monthly cost of production for bamboo crafts, including raw materials, labor, and overhead expenses, is ₹1,17,000.
Gross Profit
Estimated monthly sales from bamboo crafts: ₹1,80,000
Gross Profit: ₹1,80,000 - ₹1,17,000 = ₹63,000
Net Profit
Net Profit: ₹63,000 (before taxes)
6. Break-Even Point & DSCR
Break-Even Point: The business will break even at a monthly sales level of ₹1,17,000.
DSCR (Debt Service Coverage Ratio): Based on monthly profits, the business will be able to cover its loan repayments with a comfortable DSCR of 1.5, ensuring financial viability.
7. Loan Repayment Schedule
| Year |
EMI (₹) |
Total Payment (₹) |
Outstanding Loan (₹) |
| Year 1 |
8,000 |
96,000 |
4,04,000 |
| Year 2 |
8,000 |
96,000 |
3,08,000 |
| Year 3 |
8,000 |
96,000 |
2,12,000 |
| Year 4 |
8,000 |
96,000 |
1,16,000 |
| Year 5 |
8,000 |
96,000 |
20,000 |
8. Financial Institutions Offering Assistance in Jorhat
- State Bank of India (SBI) – Offers Mudra Loans and MSME loans for small businesses.
- Assam Gramin Vikash Bank (AGVB) – Provides assistance to rural entrepreneurs through microfinance loans.
- North Eastern Development Finance Corporation Ltd. (NEDFi) – Specializes in promoting MSMEs in the North East region, including bamboo-based industries.
- Canara Bank – Offers various loans for small-scale industries.
- Punjab National Bank (PNB) – Provides MSME and Mudra loans to small business entrepreneurs.
9. Eligibility Criteria for Loan Approval
- Applicant must be aged between 18 to 50 years.
- Should be an unemployed youth or a budding entrepreneur with a valid business plan.
- Basic education requirement: Minimum 10th standard pass.
- Should have a viable business model or project report for bamboo craft manufacturing.
- Proper proof of space (rented/owned) for setting up the business unit.
- No prior default on any bank loans, and CIBIL score of 650+ preferred.
10. Conclusion
The Bamboo Crafts business unit is a viable, eco-friendly venture with significant growth potential in Assam, particularly in Jorhat. With an initial investment of ₹2 to ₹5 lakhs, the business can generate substantial revenue, with low operational costs and strong market demand for handcrafted bamboo products. The business plan offers a good return on investment (ROI) and ensures financial sustainability. The loan, if approved, will provide the necessary financial assistance to set up the unit and sustain operations until the business becomes profitable.
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