Detailed Project Report
Alum (Phitkari) Manufacturing
—
Prepared on: 30 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹34.55 L
- Term loan from bank
- ₹22.45 L
- Promoter’s contribution
- ₹3.45 L
- Subsidy
- ₹8.64 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-9.21 L
- Average DSCR
- -0.84
- 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 potash alum from bauxite, sulphuric acid and potassium sulphate for water treatment, dyeing and paper.
| Main product or service | Alum (Phitkari) Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Water treatment plants and municipal bodies
- Textile dyers
- Paper mills
- Soap, pharma and cosmetic makers
- Tenders and direct supply
- Chemical traders and wholesalers
- Retail packs for household use
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Jaw crusher | 1 | 3,00,000 | 3,00,000 |
| Micro-pulveriser | 1 | 2,00,000 | 2,00,000 |
| Reaction digester (lead-lined MS, with stirrer) | 1 | 4,00,000 | 4,00,000 |
| Crystallisation tank | 1 | 80,000 | 80,000 |
| Boiler | 1 | 1,20,000 | 1,20,000 |
| Water softening plant | 1 | 1,00,000 | 1,00,000 |
| Acid pump | 1 | 25,000 | 25,000 |
| Jacketed and non-jacketed mixing vessels | 1 | 1,45,000 | 1,45,000 |
| Bag filling machine | 1 | 1,20,000 | 1,20,000 |
| Other equipment | 1 | 50,000 | 50,000 |
| Report 2 also lists evaporation tanks, filter press and fluidised-bed dryer; all plant total ₹17.50 lakh | 1 | 17,50,000 | 17,50,000 |
| Total | 32,90,000 |
Pre-filled from: PMEGP sample project report — Alum Manufacturing Unit (prepared by Udyami/Samadhan); PMEGP sample project report — Alum (Phitkari) Manufacturing Unit (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Bauxite — about 60% alumina, under 3% ferric oxide (report 2)
- Concentrated sulphuric acid (60%) — reacts with bauxite to form aluminium sulphate
- Potassium sulphate (99% pure) — added for crystallisation
- Flaked glue and black ash (barium sulphide) — for settling and removing iron
- Distilled water — process water
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 32.90 |
| Contingency | 1.65 |
| Total fixed capital | 34.55 |
| Working capital margin | 0.00 |
| Total project cost | 34.55 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.45 | 10.0 |
| Subsidy | 8.64 | 25.0 |
| Term loan from bank | 22.45 | 65.0 |
| Total | 34.55 | 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 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 |
| Insurance | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Total cost of operations | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 |
| Operating profit (EBITDA) | -3.74 | -3.74 | -3.74 | -3.74 | -3.74 | -3.74 | -3.74 |
| Depreciation | 5.18 | 4.40 | 3.74 | 3.18 | 2.70 | 2.30 | 1.95 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.43 | 2.11 | 1.73 | 1.35 | 0.97 | 0.59 | 0.21 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -11.36 | -10.25 | -9.21 | -8.27 | -7.41 | -6.63 | -5.90 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -11.36 | -10.25 | -9.21 | -8.27 | -7.41 | -6.63 | -5.90 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -11.36 | -10.25 | -9.21 | -8.27 | -7.41 | -6.63 | -5.90 |
| Depreciation | 5.18 | 4.40 | 3.74 | 3.18 | 2.70 | 2.30 | 1.95 |
| Cash accruals (PAT + depreciation) | -6.17 | -5.85 | -5.47 | -5.09 | -4.71 | -4.33 | -3.95 |
| Term loan repaid | 1.73 | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -7.90 | -9.30 | -8.92 | -8.54 | -8.16 | -7.78 | -7.40 |
| Cash and bank | -7.90 | -17.21 | -26.13 | -34.67 | -42.84 | -50.62 | -58.02 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 12.09 | 12.09 | 12.09 | 12.09 | 12.09 | 12.09 | 12.09 |
| Reserves and surplus | -11.36 | -21.61 | -30.82 | -39.09 | -46.51 | -53.14 | -59.04 |
| Term loan outstanding | 20.73 | 17.27 | 13.82 | 10.36 | 6.91 | 3.45 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 21.46 | 7.75 | -4.91 | -16.64 | -27.51 | -37.59 | -46.95 |
| Net fixed assets | 29.36 | 24.96 | 21.21 | 18.03 | 15.33 | 13.03 | 11.07 |
| 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 | -7.90 | -17.21 | -26.13 | -34.67 | -42.84 | -50.62 | -58.02 |
| Total assets | 21.46 | 7.75 | -4.91 | -16.64 | -27.51 | -37.59 | -46.95 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.90 | -0.67 | -0.72 | -0.78 | -0.85 | -0.93 | -1.02 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.84 |
|---|---|
| Lowest DSCR | -1.02 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.18 | 4.40 | 3.74 | 3.18 | 2.70 | 2.30 | 1.95 |
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 | 22.45 | 2.43 | 1.73 | 20.73 |
| 2 | 20.73 | 2.11 | 3.45 | 17.27 |
| 3 | 17.27 | 1.73 | 3.45 | 13.82 |
| 4 | 13.82 | 1.35 | 3.45 | 10.36 |
| 5 | 10.36 | 0.97 | 3.45 | 6.91 |
| 6 | 6.91 | 0.59 | 3.45 | 3.45 |
| 7 | 3.45 | 0.21 | 3.45 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Fire NOC
- Pollution Control Board NOC
- Trade licence
- Factory licence
- Boiler registration under the Boilers Act
- Import Export Code (if exporting)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Alum Manufacturing Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Alum_%28_Samadhan_Projects_%29.pdf
- PMEGP sample project report — Alum (Phitkari) Manufacturing Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Alum_%28Phitkari%29_Manufacturing_%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.