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1. 1
ITT PROJECT REPORT
Submitted To:
Submitted By:
Registration Number:
Guided By:
M/s ____

2. 1 | P a g e
INDEX
 ACKNOWLEDGEMENT .................................................................................................................3
 Executive Summary.....................................................................................................................4
o An Overview...................................................................................................................4
o Management..................................................................................................................4
 The Project..................................................................................................................................5
o Project Rationale ............................................................................................................6
o Location Analysis ............................................................................................................6
 Décor Paper ................................................................................................................................7
o Products & Applications..................................................................................................8
o Capacity:.........................................................................................................................8
o Manufacturing Process ...................................................................................................8
o Plant and Machinery.......................................................................................................9
o Raw Materials.................................................................................................................9
o Utilities...........................................................................................................................9
o Marketing & Distribution..............................................................................................10
o Project Cost and Means of Finance ...............................................................................11
o Details of Plant & Machinery ........................................................................................11
o Details of Provision for Contingencies...........................................................................12
 Project Financials ......................................................................................................................13
o Income Statement........................................................................................................13
o Balance Sheet...............................................................................................................14
o Cash Flow Statement....................................................................................................16
o Key Ratios.....................................................................................................................17
o Industry Scenario..........................................................................................................18
 Risk & Scot Analysis...................................................................................................................18
o SCOT Analysis ...............................................................................................................18
o Risk Analysis & Mitigation Strategies ............................................................................20
 Conclusion & Recommendation ................................................................................................21

3. 2 | P a g e
Declaration
India (ICAI), here by declares that this Project work is done by my own and it has been carried out
other University or institution for any examination.
(Signature)
I, undersigned, , the student of Institute of Chartered Accountants of
under the guidance of . This work has not been previously submitted to any
Place =
Date =
)

4. 3 | P a g e
ACKNOWLEDGEMENT
It is really the matter of great pleasure for me to undertake and present this creative and practical
work, the product project report on Jute bags. This report has been prepared by keeping in mind
various aspects relating to financial capacity of the plant, its development.
project work. Finally, yet importantly, the help & support of my companions and our mam have
made this project successful.
Therefore, I would like to thank them all from the core of my heart.
-
I sincerely thank for their guidance and encouragement in carrying out this

5. 4 | P a g e
Executive Summary
An Overview
Name
Constitution Proprietor
Registered Office
Corporate Office
Factory (proposed)
Year of Incorporation 2021
PAN
Business Activity Manufacturing of Decorative Papers
Industry Sector
Proprietor
capacity of 30 lakhs kgs/annum at an estimated cost of Rs. 1450 lakhs. It is proposed to be funded by the proprietor’s
contribution in form of capital of Rs. 450 lakhs and bank loan of Rs. 1000 lakhs. The project will have a debt to equity
ratio of 2.2:1.
Management
Name Residential
Address
Designation PAN
Proprietor
M/S Co is a proprietorship firm. It was incorporated in the year 2021, having registered office at
. The entity is engaged in the manufacturing of Décor Papers in .
M/S & Co proposed to establish world class manufacturing facility of décor papers with the installed

6. 5 | P a g e
The Project
will have installed capacity of 30 lakhs Kgs/annum. It is being established at an estimated cost Rs. 1450 lakhs. The Project
is to be funded by the promoters’ contribution of Rs. 450 lakhs and a term loan of Rs. 1000 lakhs, giving it a comfortable
debt to equity ratio of 2.2:1 and average DSCR of 1.89x.
Plant Location
Products manufactured Décor Print Paper
Installed Capacity of the Plant 30 lakhs Kgs/annum
Project Cost Rs. 1450 lac
Means of Finance
Sl. No. Means of Finance Amount (Rs. In Lakhs)
1. Proprietor’s Contribution (Capital) 450
2. Term Loan 1000
Total 1450
Key Viability Indicators DSCR: 1.89x
COD 2021
Key Raw Material Used Paper, Ink, Pigments & Additives etc.
Cost of The Project and Means of Finance (In Lacs)
I. Cost of The Project Amount
1 Plant & Machinery 991.14
2 Misc. Fixed Assets 94.59
4 Preliminary Expenses 3.00
5 Preoperative Expenses 87.67
6 Margin Money for Working Capital 250.00
7 Provision for Contingencies 24.00
Total 1450.41
II. Means of Finance Amount
1 Promotors' Contribution
- Capital 450.41
-Unsecured Loans - 450.41
2 Term Loan 1000.00
Total 1450.41
The proposed manufacturing unit will not just cater to the demand gap which exists pan India which have vast untapped
potential for growth. M/S Mrinal & Co will continue to strongly compete with the décor paper of other players in
organized and unorganized sector.
A M/S Co is planning to establish a Décor Paper manufacturing plant at Panipat, Haryana. The proposed plant

7. 6 | P a g e
Project Rationale
a) Leveraging on experience in the trade & existing customer base
The entity has experienced leadership team with over 20 years of industry experience. The experience of promoters
to successfully setting up the manufacturing business and establishing its marketing & branding capabilities to
penetrate its various product target markets will help the company to leverage its market position and relationships
across the value chain for its proposed project. The Company shall continue to leverage the high brand value and
product optimization of the promoters’ other business through their international supplier network besides
improving profitability of operations with manufacturing capabilities.
b) Favourable Industry Structure and regulatory developments
The entity growth will be leveraged by virtue of its promoters’ more than two decades experience in strengthening
brand positioning and product quality. There is strong support of the government to manufacturing establishments
from Haryana government and other fiscal incentives which will help in accelerating industry growth at a macro level
and improve payback period and return on capital employed for standalone units.
The Company has significant operating environment experience and reasonable government support to enable a
pro-business environment in order to scale up its business operations through its upcoming plant.
c) Need for Future Growth and Scale of Economies
The Company needs to continuously innovate and strengthen its business model to have sustainable growth given
competition from both international and domestic brands. The broader product range, design capabilities and
variants will help in penetrating the mid-segment residential, commercial and construction industry overall which
will drive the growth and help achieve economies of scale going forward.
d) Strong and wide distribution Network support from the promoter’s other business
The M/S Mrinal & Co will be benefited by the director’s experience and well-established name in the industry
through their other business.
e) Comfortable debt matrix
Under the project, the entity has envisaged a capital layout of Rs. 450 lakhs proposed to be financed in the debt
equity ratio of 2.22:1 i.e. Rs. 1000 lakhs term loan from banks/FI’s and balance through loan from promoters. The
promoters have adequate resources to infuse necessary funds thus reducing the dependency on external funding
for project implementation and shall improve overall project profitability.
Location Analysis
- The location of the project site is at Panipat, Haryana. A land parcel measuring 500 sq. meters. The site promises
to be an ideal location for units manufacturing Decorative papers. The location is well connected with Road and
Rail.
.
- The Industrial Policy of Punjab envisages a focused approach on the Make in India program as the state's
strategy for achieving growth.

8. 7 | P a g e
Décor Paper
There are various types of Décor Papers. These are:
Types of
Décor Paper
Absorbent
Kraft Paper
Barrier Paper Overlay Paper Print Base Paper Shuttering Base
Paper
Introduction Absorbent
kraft paper has
high degree of
porosity with
good
absorbency for
resin
impregnation.
Used as a
bottom layer in
decorative
laminates
Barrier paper is
specialized paper
with high opacity
used for making
decorative
laminates. This
paper is loaded
with TiO2
pigment which
imparts the
opacity against
the resin
saturated
absorbent kraft
bottom layers
Overlay paper is
manufactured
with clean pulp.
It has high wet
strength,
controlled
porosity and
absorption
characteristics
used for décor
lamination. The
process of
impregnation
imparts
transparent
properties to this
paper.
Print base paper
is a topmost layer
of decorative
laminates, which
is printed in
different designs.
Paper has very
smooth surface,
highly loaded
with white and
colour pigments
to provide high
opacity to
prevent show
through of
bottom layer of
decorative
laminates. The
smooth surface
gives good
printing results.
The paper has
good absorbency
and high wet
strength
This paper has
properties like high
wet tensile
strength, high
Gurley porosity &
high tensile
strength which
make it suitable for
manufacturing of
laminates which is
mainly used for
shuttering
application in
construction
industries
Variants 100-180 GSM.
Available in
white and
brown colour
50-80 GSM 18-22 GMS 50 – 90 GSM 40-45 GMS
Features 1. Uniform
thickness
and high wet
strength.
2. Good
absorption
properties.
1. High opacity
2. Smooth
surface
properties
3. High
absorbency &
high Porosity
High wet
strength and
absorbency for
uniform resin
impregnation
1. High degree of
smoothness
2. Uniform
substance
3. High wet
strength and
absorbency
1.High wet tensile
strength
2.Good tensile
strength
End Use Bottom layer
of decorative
laminates
Decorative
laminate base
1. Wall
coverings &
décor panels
2. Decorative
laminates
For decorative
laminates
1. Shuttering base
paper used for
shuttering
application in
construction
industries
2. Wooden Panels
for truck, buses
bodies etc.

9. 8 | P a g e
Products & Applications:
The proposed unit for manufacturing Décor Papers to consist of world-class machinery and equipment appropriate for
producing high quality papers. The décor papers produced at the plant will find applications in the following areas:
 Doors, Partitions, Walls, Various self-supporting components, Construction and Transportation
 Countertops, Flooring on Special Substrates
 Kitchen working surfaces, Restaurant & Hotel Tables, Heavy duty doors and Wall coverings, Interior walls of public
transport vehicles
 Front Panels for Kitchen, Office and Bathroom Furniture, Wall Coverings, Shelves
 Exposed side components of cupboards
Capacity:
The production capacity of the proposed unit shall be 3000 Tons p.a., assuming 300 working days in a year and shift of
12 hours each per day.
Year I II III IV V
Financial year 2021--22 2022-23 2023-24 2024-25 2025-26
Capacity utilization 60% 70% 75% 80% 80%
The company will utilize60%, 70% & 75% of the installed capacity in the first three years of commercial production.
Manufacturing Process
The production process in the proposed unit will be for manufacture of decorative papers of different types, colours
and sizes as per customer requirements.
- The main steps carried out in making decorative papers includes
- Soaking papers in resins: The manufacturing process starts by soaking the paper in resins. The brown paper
that is going to form the bottom side or base is soaked in a bathtub that is filled with phenolic resin. On soaking,
the brown paper does not just get wet but rather absorbs the resin and is saturated with it. This soaking process
is also known as impregnation, and the machinery which moves the rolled-up paper from its spools through
the resins is called a PIL (Paper Impregnation Line). The resin helps to make these surfaces harder, stiffer and
better at resisting scratches and wear and tear.
- Drying the papers: This is followed by a drying process in which the soaked papers can dry. After the drying is
complete, the paper which earlier was easy to tear acquires new physical properties. It becomes stiff and
brittle.
- Cutting: The hardened rolls of paper are then cut to the desired sizes by the cutting machines (called cutters).
In India, the standard or most common size for laminate sheets is 8'x4' (8 feet by 4 feet). So, the machines
accordingly cut the papers to this size.
- Testing, Packing, Shipping: Samples of the finished products may be subjected to standard quality tests for
décor papers as per norms, and these sheets are then packaged and shipped to the regular distribution
channels of the laminate companies.

10. 9 | P a g e
Plant and Machinery
Major plant and machinery required for manufacture of ACP are as given below:
Sl. No. Description Source
1 4 Colour Printing Machine Imported
2 4 Colour Semi-Automatic Printing Machine Imported
3 3 Colour Semi-Automatic Printing Machine Imported
4 3 Colour Manual Printing Machine, Domestic Imported
5 Roto Grave Print Cylinders Indigenous
6 Ink Mixer Imported
7 Lab Press Indigenous
8 Rewinder Imported
9 Colour Storage Tanks Imported
10 Firefighting system and equipment Indigenous
A standby diesel generator-set of capacity 500 KVA is included in the list of machinery & equipment.
While the main production line is to be procured from reputed overseas suppliers, other machinery &balancing
equipment can be easily procured indigenously as there are many well established suppliers in the country. The cost of
machinery items has been estimated on a reasonable basis and fresh quotations are to be obtained by promoters after
negotiation for price and payment terms.
Raw Materials
Major Raw materials are Paper, Ink, Pigments & Additives:
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
Paper 97% 97% 97% 97% 97% 97%
Ink 1% 1% 1% 1% 1% 1%
Pigments & Additives 2% 2% 2% 2% 2% 2%
The key raw material will be absorbent paper which will be imported from China and part of the sourcing will be done
domestically. Ink and pigments & Additives will be sourced locally from manufacturers. The major raw material supplier
are:
Sl. No. Name of Supplier Location Name of raw Material
1 Haryana Paper Mill Karnal Paper Strips
2 Punjab Paper Mill Ludhiana Paper Strips
Utilities
Power - The machinery to be installed in the proposed unit will require only moderate electrical power and the total
rated power of all machines is expected to be at around500 KVA. Some of the machines are operated intermittently.
Water - Total water requirement for operating the plant is expected to be at about 20000 KL per day. In addition, 2000
KL per day water is required for washing, cleaning and drinking purposes.

11. 10 | P a g e
Marketing & Distribution
A M/S Mrinal & Co will be highly benefited from its promoter’s experience in the similar industry. Mr. Praveen Kumar
Arora has more than two decades experience in the décor Paper and laminates industry. He is well known and veteran
in the industry. The other companies of Mr. Praveen Kumar Arora i.e. M/s. Virgo Laminates Private Limited has a
leadership position in its segment of business. His reputation and existing relations will help M/S Mrinal & Co to source
customers and penetrate the market for business expansion and overall growth.
Mr. Mrinal brings vast trading & distribution experience in the laminates and décor paper space. His understanding of
the distribution network and identifying the untapped market in the western region covering Maharashtra, Gujrat,
Madhya Pradesh and Rajasthan will ensure that the offtake from the plant and adequate capacity utilization for viable
business operations. Both the promoters of the Company will be supported by a team of marketing and sales
professionals who will push the product through the distribution network and help in making direct sales to the industrial
and commercial clients.
The initial identified list of customers that M/S Mrinal & Co would be approaching are below.
Sl. No. Name of Company Location
1. Virgo Décor Private Limited Bhiwandi, Rajasthan
2. Virgo Industries Kala Amb (Himachal Pradesh)
3. Greenlam India Ltd. Behror, Rajasthan
4. Merino Panels Ltd. Hapur, Uttar Pradesh
5. Cedar Decors Private Limited Ahmedabad, Gujrat
6. Sundek International Limited Ahmedabad, Gujrat
7. Stylam Industries Limited Chandigarh
8. Décor Mica India Limited Ahmedabad, Gujrat
9. Rangoli Industries Private Limited Morbi, Gujrat
10. Suntouch Laminates Limited Morbi, Gujrat
11. Super Mica Laminates Private Limited Bhiwadi, Rajasthan
12. India Woodline Limited Ghaziabad, Uttar Pradesh
13. Safe Décor Private Limited Bhiwadi, Rajasthan
14. Globe Panels Private Limited Yamuna Nagar, Haryana
15. Lahari Laminates Private Limited Raipur, Chhattisgarh
16. Leo Laminates Private Limited Hyderabad, Telangana
17. Century Plyboard Limited Kolkata
Given the size of the above customers, the Company will not face any difficulty in meeting its projected sale targets.

12. 11 | P a g e
Project Cost and Means of Finance
The total cost of the project is Rs. 1450.41 lakhs. The broad break-up of the above cost under various heads is
given below.
S. No. Particulars (Rs. In Lacs)
I. Cost of The Project Amount
1 Plant & Machinery 991.14
3 Misc. Fixed Assets 94.59
4 Preliminary Expenses 3.00
5 Preoperative Expenses 87.67
6 Margin Money for Working Capital 250.00
7 Provision for Contingencies 24.00
Total 1450.41
II. Means of Finance Amount
1 Promotors' Contribution 450.41
2 Term Loan 1000.00
Total 1450.41
Details of Plant & Machinery
The estimated cost of Plant and Machinery is Rs. 991.14 lakh. The proposed core machinery will be imported
from identified suppliers from China. The detail break-up is given below.
S. No. Particulars Qty Amount
(Rs. In Lacs)
1 Roto Graver Printing Machines - (Imported from China)
1.1 4 Colour Printing Machine @Used 210000 1 172.40
1.2 4 Colour Semi-Automatic Printing Machine @Usd 137000 1 87.68
1.3 3 Colour Semi-Automatic Printing Machine @Usd 118000 1 75.52
1.4 3 Colour Manual Printing Machine, Domestic 1 32.00
2 Roto Grave Print Cylinders 200 400.00
3 Ancillaries to Core Machinery
3.1 Ink Mixer (Imported) 2 3.20
3.2 Lab Press (Domestic) 1 2.90
3.3 Rewinder (Imported) 1 11.52
3.4 Colour Storage Tanks (Imported) 1 10.00
4 Thermic Fluid Heater
4.1 10 Lacs Kcal 1 13.50
4.2 Thermic Fluid Fitting Valves, Oil and Pipeline 1 18.00
5 Main Electrical Board, Automation, Supervision Using Plc
And Pc,

13. 12 | P a g e
5.1 Power and Control Electrical Board 1 3.00
5.2 Local Control Panels 1 6.50
6 R&D Section
Epson Make Sure Colour Machine - F7280 1.00 45.00
8 Air Compressor
Screw Type Air Compressor - 40 Keva 1.00 8.50
Sub Total 894.72
Add. Import Duty (10.0%) + Freight Packing Etc. (1.5%) 72.23
Add. Gist Tax (18%) On Installation 24.19
Total 991.14
Details of Provision for Contingencies
The contingencies have been estimated @ 5% on the estimated cost of plant & machinery to be purchased
which is most of the capex planned under the scheme of the project.

14. 13 | P a g e
Project Financials
Income Statement
(Rs. In Lakhs)
Projected
Particulars/Year Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
Income
Domestic Sales 3,157 3,852 4,235 4,529 4,557
Export Sales
Sales 3,157 3,852 4,235 4,529 4,557
Other Operating Income
Net Income 3,157 3,852 4,235 4,529 4,557
Expenditure
Raw Material Consumed 2,382 2,690 2,838 3,028 3,028
(Inc)/Dec In Finished Goods -277 -61 -23 -23 -2
Power & Fuel 86 98 106 113 115
Packing Material Consumed 22 25 27 29 29
Other Mfg. Exp. 108 132 142 151 151
Total Personnel Expenses 240 252 265 278 278
Total Administrative Exp 99 104 109 111 111
Total Selling Exp 95 77 85 113 114
Total Exp. 2,754 3,318 3,548 3,800 3,824
OPBIDT 403 534 687 730 734
Depreciation 39 74 68 63 60
OPBIT 364 460 619 666 674
Interest and Financial Charges 108 208 200 181 160
Operating Profit 255 252 420 485 513
Other Income - - - - -
PBT 255 252 420 485 513
Wealth Tax - - - - -
Income Tax 77 76 126 146 154
Fringe Benefit Tax
PAT 179 177 294 340 359
Deferred Tax Liability 55 24 19 14 10
Balance Transferred to Balance Sheet 124 153 275 326 350

15. 14 | P a g e
Balance Sheet
(In Rs. Lakhs)
Projected
Particulars/Year Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
Sources of Funds
Shareholders Fund
Capital 292 450 450 450 450
Profit and Loss Account - 124 276 552 877
Total Share Holders Fund 292 574 727 1,002 1,328
Loan Funds
Term Loan 649 900 750 550 350
Working Capital Loan - 1,000 1,150 1,200 1,200
Unsecured loans - 100 100 100 100
Total Loan Funds 649 2,000 2,000 1,850 1,650
Deferred tax liability - 55 79 98 112
Total 941 2,629 2,806 2,950 3,089
Application of Funds
Fixed Assets
-5000
0
5000
10000
15000
20000
25000
Mar-21
Mar-22
Mar-23
Mar-24
Mar-25
Projected
Income Statement Analysis
Balance Transferred to Balance Sheet
Deferred Tax Liability
PAT
Fringe Benefit Tax
Income Tax
Wealth Tax
PBT
Other Income
Operating Profit
Interest and Financial Charges
OPBIT
Depreciation
OPBIDT
Total Exp.
Total Selling Exp
Total Administrative Exp
Total Personnel Expenses

16. 15 | P a g e
Gross block - - 1,177 1,177 1,177
Additions - 1,177 - - -
less: Depreciation - 39 113 180 244
Net block - 1,139 1,065 997 934
Add: Capital Work in progress 941 - - - -
Net Fixed Assets 941 1,139 1,065 997 934
Investments - - - - 100
Current Assets, Loans and Advance
Inventories - 1,071 1,235 1,307 1,394
Sundry Debtors - 526 642 706 755
Cash and Bank Balances - (41) (19) (40) (64)
Loans and Advances - 150 200 350 350
Sub total - 1,707 2,057 2,323 2,434
Less: Current liabilities and provisions
Current Liabilities - 66 116 120 129
Other Liabilities - 150 200 250 250
Provisions -
Total Current liabilities - 216 316 370 379
Net current Assets - 1,491 1,741 1,953 2,055
Total 941 2,629 2,806 2,950 3,089
450124574
900
1,000
100
2,000
55
2629
0
1,177
391,13901,139
0
1,071
526
-41150
1,707
66150216
1,491
2,629
Estimated Balance Sheet
Capital
Profit and Loss Account
Total Share Holders Fund
Loan Funds
Term Loan
Working Capital Loan
Unsecured loans
Total Loan Funds
Deferred tax liability
Total
Application of Funds
Fixed Assets
Gross block
Additions

17. 16 | P a g e
Cash Flow Statement
(In Rs. Lakhs)
Projected
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
SOURCES OF FUNDS
Profit before tax 255 252 420 485 485
Depreciation/Amortisation 39 74 68 63 63
Capital (Introduction) 158 - - - -
Long Term loan 351 - - - -
Unsecured Loan 200 - - - -
Working Capital Finance 1,000 150 50 - -
Increase in Current Liability 216 100 54 8 8
(Dec)/Inc in Deferred payments - - - - -
Others -
Sale of Assets / Investment
TOTAL 2220 576 591 557 557
APPLICATION OF FUNDS
Capex - normal / Project 236 - - - -
Increase current assets 1,748 329 287 135 135
Increase / Decrease in NON-Current Assets
Repayment - Long Term loan 10 150 200 200 200
Repayment of working Capital Term Loan
Repayment Unsecured Loan - - - - -
Purchase of Investments - - - 50 50
Misc. Expenditures - - - - -
Tax payments 77 76 126 146 146
Dividend on equity shares
TOTAL 2,160 555 612 531 531
Opening Balance - 59 81 60 60
Surplus 59 22 -21 26 26
TOTAL 59 81 60 86 86

18. 17 | P a g e
Key Ratios
Key Ratios Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26
OPBDIT (% of Sales) 12.75% 13.85% 16.22% 16.11% 16.10%
OPBIT (% of Sales) 11.52% 11.94% 14.62% 14.71% 14.78%
PBT (% of Sales) 8.09% 6.55% 9.91% 10.71% 11.27%
PAT (% of Sales) 3.92% 3.96% 6.50% 7.19% 7.67%
TOL/TNW 2.22 3.86 3.19 2.22 1.53 1.09
Interest Coverage Ratio 3.36 2.22 3.10 3.68 4.20
Debt-Equity Ratio 2.22 3.48 2.75 1.85 1.24 0.86
FACR 1.45 1.14 1.25 1.53 2.08 3.50
Current Ratio 1.30 1.27 1.31 1.37 1.38
-2000 0 2000 4000 6000 8000 10000
Mar-21
Mar-22
Mar-23
Mar-24
Mar-25
Chart Title
SOURCES OF FUNDS
Profit before tax
Depreciation/Amortisation
Capital (Introduction)
Long Term loan
Unsecured Loan
Working Capital Finance
Increase in Current Liability
(Dec)/Inc in Deferred payments
Others
Sale of Assets / Investment
TOTAL
APPLICATION OF FUNDS
Capex - normal / Project
Increase current assets
Increase / Decrease in NON-Current Assets
Repayment - Long Term loan
Repayment of working Capital Term Loan
Repayment Unsecured Loan
Purchase of Investments

19. 18 | P a g e
Industry Scenario
Décor Paper, one of the sought after in Paper Industry. Due to steady increase in the income level of middle class the
focus on decoration of home and offices space has increased. It is expected to further increase in coming years. The
Décor Paper industry, a subgroup in the paper Industry as a whole, currently is in the nascent stage. The Décor paper
is not only going to expand in tier I cities, it is also expected to get boost in tier II cities, as well. As per the latest report
on the décor paper, it is expected that décor paper not only will get consumed domestically, but also export to south
Asian and east Asian countries. Government focus in export promotion will be helpful for the industry.
The Industry is dominated by a few big plyers. It is expected that other players will also be increasing in the industry,
going forward. The major factors limiting the growth of the industry will be the supply side. As the prices of raw material
including paper, ink and pigments are expected to increase. Due, competition in the industry the prices on the demand
size of the final product may also not expected to increase much.
The Indian paper industry with approximately 13 MN tonnes of capacity accounts for about 3% of global paper
production. According to Indian Paper Mills Association, the domestic consumption of paper in India during 2014-15
was 13.9 Mn tones, yoy growth of 6%. The per capita consumption of paper in India stands at ~11 kg, which is relatively
lower compared to other developed and developing countries. With increasing focus by government on education and
general uptick in macro economy, Indian paper industry to witness a CAGR of 7% over the next five years to about 20
Mn tones. The growth will be largely driven by printing & writing and packaging & paper board segment.
Risk & Scot Analysis
SCOT Analysis
STRENGTHS
1. Promoters’ vast experience in the décor paper and related businesses
The unit is being set up by Mr. Mrinal Kumar. the promoter of Virgo Group of Companies and have experience
in setting up and running of various manufacturing units. He has two decades of experience in running
manufacturing units successfully in the plywood, boards and laminates industries.
2. Dynamic leadership supported by able professional team
The promoters have more than two decades of experience in setting up and managing industrial units
successfully. The management has been instrumental in opening new growth avenues for the group across
various businesses. The promoters will be hiring professional team from leading companies such as Green ply
Industries, Royal Touché, Merino and others.
3. Technological leadership
State of the art technology & machinery sourced from reputed suppliers is to be deployed for the project.
4. Excellent relationships with existing suppliers and buyers
Owing to their vast experience of two decades of running the laminates and related businesses, the promoters
have excellent long-lasting relationships with its buyers and suppliers, which are likely to benefit the proposed
project as well.

20. 19 | P a g e
CONCERNS
1. Prices of Key Raw Material
The project feasibility and profitability are highly dependent on prices of key raw material such as paper, ink
and pigments & additives which are imported from both domestic and overseas. However, the Company follows
the practice of matching its purchase price at the time of finalization of orders of customers to mitigate the
effect of any adverse movement in the prices of raw materials.
2. Fluctuation in Foreign Currency Rates
Since the company’s key raw material is being imported, movements in the foreign exchange rates of USD and
EURO would play an important role in the project profitability. The Company will be entering into forward
contracts for mitigating the risk of any adverse movement in exchange rates.
OPPORTUNITIES
1. India’s demographics providing impetus
India’s per capita income increasing at a rapid pace from INR 46,492 in 2009-10 to INR 54,527 in 2010-11 and to
INR 60,972 in 2011-12. The Indian middle-class is projected to grow from 83 Mn in 2010 to 114 Mn by 2025,
making it the largest middle-class population pool globally. Moreover, India’s young population (63% people
below 59 years; average age 24 years) is leading to higher disposable incomes in the hands of those with
aspirations for a better lifestyle and stylish interiors. Finally, India is the world’s fastest urbanising country with
the UN estimating 40% of India’s population to live in urban areas by 2030, primarily owing to improved
employment prospects, rising income levels and growing nuclear families. These trends indicate that there will
be higher consumption of products such as décor papers in the future.
2. Organized players in Indian Décor Paper market growing at rapid pace
In the 13.9 Mn tones Décor Paper market in India, the organized players control ~40% with the rest controlled
by unorganized players. In the period between FY 2008 and FY 2012, the organized players have grown at 7-8%
which is higher than industry growth rate. The organized players have increased their presence on account of
rising aspirations and brand consciousness, and industry expects this gradual shift from unorganized to
organised Décor Paper players to continue going forward. With the market dynamics and trends in their favour,
the organized sector is estimated to grow at 10-12% in the next few years, as compared with the overall market
growth of 7-8%.
3. Huge demand from the domestic market and export market for décor paper – esp. Singapore &South East
Asia

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There is tremendous growth potential in the export market for Décor Papers, and the Indian players are yet to
penetrate majorly in the international market. Further, markets such as Singapore and other South East Asian
countries are potential growing markets which can be catered from India.
THREATS
1. Dumping or Cheap imports from China
The invasion of the Indian market by Chinese laminate products is a matter of serious concern, especially for
the small and unorganised players.
2. Competition from both organized and unorganized players
While there is immense competition and an ongoing ‘visibility war’ in the organized décor paper market in India,
the unorganized units in the industry have advantages in terms of excise waivers and other benefits due to their
SSI status.
3. Threat of substitute products
Technology upgradations and developments could lead to imposition of substitute products in the marketplace
which would render the existing products at a disadvantage. The M/S Mrinal & Co is well equipped to take
advantage of whatever opportunities are on hand and to contest the threats.
Risk Analysis & Mitigation Strategies
The risk associated with the project and it mitigates are discussed below:
Type of Risk Risk Category Allocated to Mitigation Measures
Completion Risk:
Project Cost & Time
Overrun
Low M/S Mrinal & Co The project cost has been estimated based on the
budgetary quotations received from vendors and the
estimates made by the Entity.
Implementation Risk Low M/S Mrinal & Co The promotors Mr. Mrinal Kumar has relatively two
decades of experience in industry.
Operating Risk:
Technology Risk Low M/S Mrinal & Co The technology required for the project is standard and
indigenized. The Company is using proven technology
and the equipment is being procured from established
and reputed manufacturers to minimize the
performance risk. Further, it has also appointed
technically qualified personnel for the commissioning
of the proposed project.
Cost Risk Low M/S Mrinal & Co For the purpose of financial analysis, the raw material
and other costs have been assumed based on the latest
prices prevailing in the market.
Market Risk:
Off Take Risk Low M/S Mrinal & Co Mr. Mrinal Kumar is also the promoter of Virgo Group
which is among the leading players in the Indian
laminates market having been in the business for 20
years. It has pan-India sales presence and is market
leader in North India. Even the South India market

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contributes majorly to the group sales. The Firm is
currently finding it a challenge to keep pace with the
demand generated from the Indian market alone.
Price Risk Medium M/S Mrinal & Co For the purpose of financial analysis, the selling price
has been assumed based on the current market prices
which depict a realistic picture.
Infrastructure Risk:
Site Location Low M/S Mrinal & Co Panipat, Haryana is suitable for the proposed project
because of well-developed infrastructure & supportive
business climate, accessibility on the national highway,
low transportation costs, and availability of
skilled/trained manpower.
Environment Risk Medium M/S Mrinal & Co The company proposes to procure equipment’s fitted
with appropriate pollution control devices and propose
to purchase suitable equipment to minimize the
pollution. The company shall also apply for
environment clearance in due course.
Force Majeure Risk Low M/S Mrinal & Co A M/S Mrinal & Co proposes to take adequate
insurance cover in line with industry practice for
insurable Force Majeure risks.
Financial Risk:
Funding Risk Low M/S Mrinal & Co The promoters propose to bring in their contribution
(equity) simultaneously along with the lenders for the
debt drawl. The project is financially viable with a
comfortable Avg. DSCR of 1.89.
Conclusion & Recommendation
Papers, Laminates and related areas. Their strong leadership and entrepreneurs having vast knowledge and experience
in manufacturing, marketing and distribution of home décor papers, plywood, boards and laminates.
Panipat, Haryana, at an estimated project cost of Rs. 1450 lakhs to be funded by debt of Rs. 1000lakhs and promoter’s
contribution of Rs. 450 lakhs. This planned expansion would enable the company to leverage its brand strength of the
promoter’s other companies and cater to the growing domestic market demand. Extensive demand for décor paper also
exists both from domestic and foreign market from Singapore and other South Asian markets. The DSCR &viability of the
project is 1.89.
Thus, based on the foregoing analysis and suitable mitigation of risks enumerated in the risk analysis, the proposed
A M is promoted by highly reputed promoters’ having more than wo decades experience in in Décor
is currently planning to set up 3 000tons/annum quantity of Décor Paper manufacturing unit near
project expansion of Rs. 1450 lakhs by the l & Co is viewed as financially viable and bankable.