Detailed Project Report
Bamboo Sticks for Agarbatti
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹11.59 L
- Term loan from bank
- ₹7.53 L
- Promoter’s contribution
- ₹1.16 L
- Subsidy
- ₹2.90 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.01 L
- Average DSCR
- -2.12
- 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
Make round 8–9 inch bamboo sticks by machine for incense-stick (agarbatti) makers, replacing imports.
| Main product or service | Bamboo Sticks for Agarbatti |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Agarbatti (incense stick) makers, from cottage units to FMCG companies
- Direct supply in 1 kg bundles
- E-commerce and logistics tie-ups, trade fairs (report strategy)
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Bamboo cross-cutting machine (× —) | 1 | 0 | 0 |
| Bamboo manual splitter machine (× —) | 1 | 0 | 0 |
| Heavy-duty sliver making machine (× —) | 1 | 0 | 0 |
| Round stick machine (× —) | 1 | 0 | 0 |
| Stick polishing machine (× —) | 1 | 0 | 0 |
| Stick sizing machine (× —) | 1 | 0 | 0 |
| Dryer (or open-air drying) (× —) | 1 | 0 | 0 |
| Total plant and machinery (the report says machines are imported from China or Vietnam; item prices not printed) (× —) | 1 | 11,04,000 | 11,04,000 |
| Total | 11,04,000 |
Pre-filled from: PMEGP sample project report — Bamboo Sticks Production Unit (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Bamboo poles (about 6 kg each) — 30,000 poles a year (2,500 a month), ₹100 a pole — ₹30.00 lakh a year at full capacity
- Common species — Muli (Melocanna baccifera), Bari, Mritinga, Barak and Rupai bamboo
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 11.04 |
| Contingency | 0.55 |
| Total fixed capital | 11.59 |
| Working capital margin | 0.00 |
| Total project cost | 11.59 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.16 | 10.0 |
| Subsidy | 2.90 | 25.0 |
| Term loan from bank | 7.53 | 65.0 |
| Total | 11.59 | 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 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.17 | 3.17 | 3.17 | 3.17 | 3.17 | 3.17 | 3.17 |
| Operating profit (EBITDA) | -3.17 | -3.17 | -3.17 | -3.17 | -3.17 | -3.17 | -3.17 |
| Depreciation | 1.74 | 1.48 | 1.26 | 1.07 | 0.91 | 0.77 | 0.66 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.82 | 0.71 | 0.58 | 0.45 | 0.32 | 0.20 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.72 | -5.35 | -5.01 | -4.69 | -4.40 | -4.14 | -3.89 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.72 | -5.35 | -5.01 | -4.69 | -4.40 | -4.14 | -3.89 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.72 | -5.35 | -5.01 | -4.69 | -4.40 | -4.14 | -3.89 |
| Depreciation | 1.74 | 1.48 | 1.26 | 1.07 | 0.91 | 0.77 | 0.66 |
| Cash accruals (PAT + depreciation) | -3.99 | -3.88 | -3.75 | -3.62 | -3.49 | -3.37 | -3.24 |
| Term loan repaid | 0.58 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.56 | -5.04 | -4.91 | -4.78 | -4.65 | -4.53 | -4.40 |
| Cash and bank | -4.56 | -9.60 | -14.51 | -19.29 | -23.94 | -28.47 | -32.87 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.06 | 4.06 | 4.06 | 4.06 | 4.06 | 4.06 | 4.06 |
| Reserves and surplus | -5.72 | -11.08 | -16.08 | -20.77 | -25.17 | -29.31 | -33.21 |
| Term loan outstanding | 6.96 | 5.80 | 4.64 | 3.48 | 2.32 | 1.16 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 5.29 | -1.23 | -7.39 | -13.24 | -18.80 | -24.10 | -29.15 |
| Net fixed assets | 9.85 | 8.38 | 7.12 | 6.05 | 5.14 | 4.37 | 3.72 |
| 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 | -4.56 | -9.60 | -14.51 | -19.29 | -23.94 | -28.47 | -32.87 |
| Total assets | 5.29 | -1.23 | -7.39 | -13.24 | -18.80 | -24.10 | -29.15 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.27 | -1.70 | -1.82 | -1.97 | -2.14 | -2.34 | -2.58 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.12 |
|---|---|
| Lowest DSCR | -2.58 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.74 | 1.48 | 1.26 | 1.07 | 0.91 | 0.77 | 0.66 |
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 | 7.53 | 0.82 | 0.58 | 6.96 |
| 2 | 6.96 | 0.71 | 1.16 | 5.80 |
| 3 | 5.80 | 0.58 | 1.16 | 4.64 |
| 4 | 4.64 | 0.45 | 1.16 | 3.48 |
| 5 | 3.48 | 0.32 | 1.16 | 2.32 |
| 6 | 2.32 | 0.20 | 1.16 | 1.16 |
| 7 | 1.16 | 0.07 | 1.16 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Forest transit permit for bamboo where the state requires it
- Trade licence from the local body
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)
19 Sources
- PMEGP sample project report — Bamboo Sticks Production Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Bamboo_Sticks_production_Unit_%28_Samadhan_Projects_%29.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.