Detailed Project Report
Acid Slurry (LABSA) for Detergents
—
Prepared on: 30 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹6.83 L
- Term loan from bank
- ₹4.44 L
- Promoter’s contribution
- ₹0.68 L
- Subsidy
- ₹1.71 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.13 L
- Average DSCR
- -3.46
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Sulphonate linear alkyl benzene with oleum or sulphuric acid to make acid slurry, the main active ingredient of detergent powders and cakes.
| Main product or service | Acid Slurry (LABSA) for Detergents |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Detergent powder and cake makers
- Liquid detergent and cleaner makers
- Direct sale in drums to detergent units
- Chemical traders and distributors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Stainless-steel sulphonator, jacketed with agitator, 1 m³ | 1 | 2,00,000 | 2,00,000 |
| Chilling plant | 1 | 1,50,000 | 1,50,000 |
| Settling tank with agitator, 3.5 m³ | 1 | 1,00,000 | 1,00,000 |
| LAB feed tank, 1.0 m³ | 1 | 20,000 | 20,000 |
| Oleum / acid feed tank, 2.5 m³ | 1 | 20,000 | 20,000 |
| LAB main storage tank, 2.5 m³ | 1 | 50,000 | 50,000 |
| Oleum / acid storage tank, 5 m³ | 1 | 30,000 | 30,000 |
| Barrel pumps with motor (× set) | 1 | 30,000 | 30,000 |
| Valves, pipelines, exhaust, weighing machines and lab equipment (× lot) | 1 | 50,000 | 50,000 |
| Total | 6,50,000 |
Pre-filled from: DC-MSME project profile — Acid Slurry (Alkyl Benzene Sulphonate); World Customs Organization – HS Nomenclature 2022, Chapter 34. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Linear alkyl benzene (LAB) — 9 tonnes a month at ₹40,000 a tonne in the report
- 98% sulphuric acid and oleum — 14 tonnes a month at ₹6,000 a tonne
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 6.50 |
| Contingency | 0.33 |
| Total fixed capital | 6.83 |
| Working capital margin | 0.00 |
| Total project cost | 6.83 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.68 | 10.0 |
| Subsidy | 1.71 | 25.0 |
| Term loan from bank | 4.44 | 65.0 |
| Total | 6.83 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 |
| Operating profit (EBITDA) | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 |
| Depreciation | 1.02 | 0.87 | 0.74 | 0.63 | 0.53 | 0.45 | 0.39 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.48 | 0.42 | 0.34 | 0.27 | 0.19 | 0.12 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.55 | -4.34 | -4.13 | -3.95 | -3.78 | -3.62 | -3.48 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.55 | -4.34 | -4.13 | -3.95 | -3.78 | -3.62 | -3.48 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.55 | -4.34 | -4.13 | -3.95 | -3.78 | -3.62 | -3.48 |
| Depreciation | 1.02 | 0.87 | 0.74 | 0.63 | 0.53 | 0.45 | 0.39 |
| Cash accruals (PAT + depreciation) | -3.53 | -3.47 | -3.39 | -3.32 | -3.24 | -3.17 | -3.09 |
| Term loan repaid | 0.34 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.87 | -4.15 | -4.07 | -4.00 | -3.92 | -3.85 | -3.77 |
| Cash and bank | -3.87 | -8.02 | -12.10 | -16.09 | -20.02 | -23.87 | -27.64 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.39 | 2.39 | 2.39 | 2.39 | 2.39 | 2.39 | 2.39 |
| Reserves and surplus | -4.55 | -8.89 | -13.02 | -16.97 | -20.74 | -24.36 | -27.84 |
| Term loan outstanding | 4.10 | 3.41 | 2.73 | 2.05 | 1.37 | 0.68 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.93 | -3.09 | -7.90 | -12.53 | -16.99 | -21.29 | -25.45 |
| Net fixed assets | 5.80 | 4.93 | 4.19 | 3.56 | 3.03 | 2.57 | 2.19 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -3.87 | -8.02 | -12.10 | -16.09 | -20.02 | -23.87 | -27.64 |
| Total assets | 1.93 | -3.09 | -7.90 | -12.53 | -16.99 | -21.29 | -25.45 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.71 | -2.78 | -2.98 | -3.22 | -3.49 | -3.82 | -4.22 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.46 |
|---|---|
| Lowest DSCR | -4.22 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.02 | 0.87 | 0.74 | 0.63 | 0.53 | 0.45 | 0.39 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 4.44 | 0.48 | 0.34 | 4.10 |
| 2 | 4.10 | 0.42 | 0.68 | 3.41 |
| 3 | 3.41 | 0.34 | 0.68 | 2.73 |
| 4 | 2.73 | 0.27 | 0.68 | 2.05 |
| 5 | 2.05 | 0.19 | 0.68 | 1.37 |
| 6 | 1.37 | 0.12 | 0.68 | 0.68 |
| 7 | 0.68 | 0.04 | 0.68 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate (the report lists this clearance)
- Compliance with hazardous-chemical storage rules for oleum and acid
- Factory licence if your worker count crosses the Factories Act limit
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Acid Slurry (Alkyl Benzene Sulphonate) — https://www.dcmsme.gov.in/publications/pmryprof/chemical/ch1.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 34 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0634_2022e.pdf
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.