Detailed Project Report
Agarbatti (Incense Stick) Rolling Unit
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.63 L
- Term loan from bank
- ₹0.41 L
- Promoter’s contribution
- ₹0.06 L
- Subsidy
- ₹0.16 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.00 L
- Average DSCR
- -35.58
- 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
Roll, scent and pack incense sticks with simple hand tools — a low-cost, labour-heavy village industry.
| Main product or service | Agarbatti (Incense Stick) Rolling Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Temples and religious functions
- Puja-material and kirana shops
- Kirana and puja shops
- Wholesalers and distributors
- Fairs and festival stalls
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wooden rolling desks, patla, kadai, spoons, measuring glass, tin trays, aluminium vessels, blow-lamp stove, weighing balance, jars (× 1 set) | 1 | 60,000 | 60,000 |
| Total | 60,000 |
Pre-filled from: KVIC Project Profile — Manufacturing of Agarbatti (PMEGP); DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Agarbatti raw materials (masala powder, bamboo sticks, perfume) — ₹6,37,500 a year in the profile
- Packaging material — ₹2,00,000 a year in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.60 |
| Contingency | 0.03 |
| Total fixed capital | 0.63 |
| Working capital margin | 0.00 |
| Total project cost | 0.63 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.06 | 10.0 |
| Subsidy | 0.16 | 25.0 |
| Term loan from bank | 0.41 | 65.0 |
| Total | 0.63 | 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 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 |
| Operating profit (EBITDA) | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 |
| Depreciation | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.04 | 0.04 | 0.03 | 0.02 | 0.02 | 0.01 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.03 | -3.01 | -3.00 | -2.98 | -2.96 | -2.95 | -2.94 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.03 | -3.01 | -3.00 | -2.98 | -2.96 | -2.95 | -2.94 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.03 | -3.01 | -3.00 | -2.98 | -2.96 | -2.95 | -2.94 |
| Depreciation | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 |
| Cash accruals (PAT + depreciation) | -2.94 | -2.93 | -2.93 | -2.92 | -2.91 | -2.91 | -2.90 |
| Term loan repaid | 0.03 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.97 | -3.00 | -2.99 | -2.98 | -2.98 | -2.97 | -2.96 |
| Cash and bank | -2.97 | -5.97 | -8.96 | -11.94 | -14.92 | -17.89 | -20.85 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Reserves and surplus | -3.03 | -6.05 | -9.04 | -12.02 | -14.99 | -17.93 | -20.87 |
| Term loan outstanding | 0.38 | 0.32 | 0.25 | 0.19 | 0.13 | 0.06 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.44 | -5.51 | -8.57 | -11.61 | -14.64 | -17.65 | -20.65 |
| Net fixed assets | 0.54 | 0.46 | 0.39 | 0.33 | 0.28 | 0.24 | 0.20 |
| 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 | -2.97 | -5.97 | -8.96 | -11.94 | -14.92 | -17.89 | -20.85 |
| Total assets | -2.44 | -5.51 | -8.57 | -11.61 | -14.64 | -17.65 | -20.65 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -38.19 | -28.56 | -30.65 | -33.08 | -35.92 | -39.30 | -43.38 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -35.58 |
|---|---|
| Lowest DSCR | -43.38 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 | 0.04 | 0.04 |
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 | 0.41 | 0.04 | 0.03 | 0.38 |
| 2 | 0.38 | 0.04 | 0.06 | 0.32 |
| 3 | 0.32 | 0.03 | 0.06 | 0.25 |
| 4 | 0.25 | 0.02 | 0.06 | 0.19 |
| 5 | 0.19 | 0.02 | 0.06 | 0.13 |
| 6 | 0.13 | 0.01 | 0.06 | 0.06 |
| 7 | 0.06 | 0.00 | 0.06 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trade licence from the local body
- Legal Metrology packaging registration for packed goods
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- KVIC Project Profile — Manufacturing of Agarbatti (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PROGRAMME_MANUFACTURING_OF_AGARBATTI_%28_POLYMER_AND_CHEMICAL_BASED_INDUSTRY_%29.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.