Detailed Project Report
Ayurvedic Classical Formulations Unit (Arishta, Churna, Avaleha)
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.94 L
- Term loan from bank
- ₹1.91 L
- Promoter’s contribution
- ₹0.29 L
- Subsidy
- ₹0.74 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.42 L
- Average DSCR
- -7.78
- 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 several classical Ayurvedic medicines in one licensed unit — arishta, churna, chyawanprash, lavan, ras and malham.
| Main product or service | Ayurvedic Classical Formulations Unit (Arishta, Churna, Avaleha) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Ayurvedic doctors (vaidyas) and clinics
- Chemists and Ayurvedic stores
- Dealers and distributors
- Sales representative visiting doctors (budgeted in the report)
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| MS vat, 1,500 kg | 1 | 15,000 | 15,000 |
| MS vat, 750 kg | 1 | 10,000 | 10,000 |
| Fermenter, 500 litres | 1 | 40,000 | 40,000 |
| Disintegrator, 7.5 HP, with sieves | 1 | 30,000 | 30,000 |
| Micro pulveriser | 1 | 10,000 | 10,000 |
| Tablet making machine | 1 | 15,000 | 15,000 |
| Bottle filling machine | 1 | 5,000 | 5,000 |
| Stainless-steel mixing vessel with motor, 200 litres | 1 | 20,000 | 20,000 |
| Distillation unit, 500 litres, electrically heated | 1 | 25,000 | 25,000 |
| Water treatment plant, 100 litres | 1 | 40,000 | 40,000 |
| Air oven with 12 trays | 1 | 25,000 | 25,000 |
| Bottle washing machine | 1 | 15,000 | 15,000 |
| Bottle dryer | 1 | 10,000 | 10,000 |
| Testing equipment and miscellaneous items (× lot) | 1 | 20,000 | 20,000 |
| Total | 2,80,000 |
Pre-filled from: DC-MSME project profile — Ayurvedic Medicine Formulations; World Customs Organization – HS Nomenclature 2022, Chapter 30. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Herbs and plant parts, animal-origin drugs, minerals — available in India; with sugar, honey and glass bottles about ₹1,75,000 a month in the report
- Sugar, jaggery and honey — for arishta, avaleha and chyawanprash
- Glass bottles and packing — part of the monthly material budget
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.80 |
| Contingency | 0.14 |
| Total fixed capital | 2.94 |
| Working capital margin | 0.00 |
| Total project cost | 2.94 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.29 | 10.0 |
| Subsidy | 0.74 | 25.0 |
| Term loan from bank | 1.91 | 65.0 |
| Total | 2.94 | 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 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Operating profit (EBITDA) | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 |
| Depreciation | 0.44 | 0.37 | 0.32 | 0.27 | 0.23 | 0.20 | 0.17 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.21 | 0.18 | 0.15 | 0.11 | 0.08 | 0.05 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.60 | -3.51 | -3.42 | -3.34 | -3.27 | -3.20 | -3.14 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.60 | -3.51 | -3.42 | -3.34 | -3.27 | -3.20 | -3.14 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.60 | -3.51 | -3.42 | -3.34 | -3.27 | -3.20 | -3.14 |
| Depreciation | 0.44 | 0.37 | 0.32 | 0.27 | 0.23 | 0.20 | 0.17 |
| Cash accruals (PAT + depreciation) | -3.16 | -3.13 | -3.10 | -3.07 | -3.04 | -3.00 | -2.97 |
| Term loan repaid | 0.15 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.31 | -3.43 | -3.39 | -3.36 | -3.33 | -3.30 | -3.27 |
| Cash and bank | -3.31 | -6.73 | -10.13 | -13.49 | -16.82 | -20.12 | -23.38 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 |
| Reserves and surplus | -3.60 | -7.11 | -10.53 | -13.87 | -17.13 | -20.33 | -23.47 |
| Term loan outstanding | 1.76 | 1.47 | 1.18 | 0.88 | 0.59 | 0.29 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.81 | -4.61 | -8.32 | -11.96 | -15.52 | -19.01 | -22.44 |
| Net fixed assets | 2.50 | 2.12 | 1.81 | 1.53 | 1.30 | 1.11 | 0.94 |
| 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 | -3.31 | -6.73 | -10.13 | -13.49 | -16.82 | -20.12 | -23.38 |
| Total assets | -0.81 | -4.61 | -8.32 | -11.96 | -15.52 | -19.01 | -22.44 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -8.35 | -6.24 | -6.70 | -7.23 | -7.85 | -8.59 | -9.48 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -7.78 |
|---|---|
| Lowest DSCR | -9.48 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.44 | 0.37 | 0.32 | 0.27 | 0.23 | 0.20 | 0.17 |
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 | 1.91 | 0.21 | 0.15 | 1.76 |
| 2 | 1.76 | 0.18 | 0.29 | 1.47 |
| 3 | 1.47 | 0.15 | 0.29 | 1.18 |
| 4 | 1.18 | 0.11 | 0.29 | 0.88 |
| 5 | 0.88 | 0.08 | 0.29 | 0.59 |
| 6 | 0.59 | 0.05 | 0.29 | 0.29 |
| 7 | 0.29 | 0.02 | 0.29 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- AYUSH manufacturing licence from the State Licensing Authority under the Drugs and Cosmetics Act
- GMP for Ayurvedic medicines (Schedule T)
- State Pollution Control Board no-objection certificate (listed in the report's schedule)
- Excise permission if arishta and asava are made with self-generated alcohol, where the state requires it
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 — Ayurvedic Medicine Formulations — https://www.dcmsme.gov.in/publications/pmryprof/chemical/ch4.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 30 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0630_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.