Detailed Project Report
Tissue-Culture Banana Farming
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.96 L
- Term loan from bank
- ₹7.16 L
- Promoter’s contribution
- ₹0.80 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.49 L
- Average DSCR
- -2.16
- 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
Grow tissue-culture bananas such as Grand Naine on drip irrigation and mulch for higher, uniform yields.
| Main product or service | Tissue-Culture Banana Farming |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Fruit traders and commission agents
- Ripening centres
- Chips and food processors
- Exporters (hands of 4–16 fingers in poly-lined boxes)
- Local mandis — bunches by lorry
- Direct sale to traders at the farm
- Cool-chain supply at 13°C for export and modern retail
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Drip irrigation system (7.50 acres, ₹25,000 an acre) (× 7.50 acres) | 1 | 1,88,000 | 1,88,000 |
| Plastic mulching (₹12,800 an acre) (× 7.50 acres) | 1 | 96,000 | 96,000 |
| Tube well and pump set | 1 | 2,30,000 | 2,30,000 |
| Farm equipment (₹5,000 an acre) (× 7.50 acres) | 1 | 38,000 | 38,000 |
| Land development, fencing and levelling (₹27,500 an acre) (× 7.50 acres) | 1 | 2,06,000 | 2,06,000 |
| Total | 7,58,000 |
Pre-filled from: PMEGP sample project report — Banana Cultivation (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Tissue-culture banana plants (e.g. Grand Naine) — 9,259 plants at ₹17.50 each = ₹1,62,029
- Fertiliser and manure — ₹10,000 an acre at planting (₹74,970); all-India norm 20 kg FYM, 200 g N, 60–70 g P and 300 g K per plant
- Pit mix — 10 kg FYM, 250 g neem cake and 20 g carbofuran per pit
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.58 |
| Contingency | 0.38 |
| Total fixed capital | 7.96 |
| Working capital margin | 0.00 |
| Total project cost | 7.96 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.80 | 10.0 |
| Term loan from bank | 7.16 | 90.0 |
| Total | 7.96 | 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 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 | 3.08 |
| Operating profit (EBITDA) | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 | -3.08 |
| Depreciation | 1.19 | 1.01 | 0.86 | 0.73 | 0.62 | 0.53 | 0.45 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.78 | 0.67 | 0.55 | 0.43 | 0.31 | 0.19 | 0.07 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.05 | -4.77 | -4.49 | -4.24 | -4.01 | -3.80 | -3.59 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.05 | -4.77 | -4.49 | -4.24 | -4.01 | -3.80 | -3.59 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.05 | -4.77 | -4.49 | -4.24 | -4.01 | -3.80 | -3.59 |
| Depreciation | 1.19 | 1.01 | 0.86 | 0.73 | 0.62 | 0.53 | 0.45 |
| Cash accruals (PAT + depreciation) | -3.85 | -3.75 | -3.63 | -3.51 | -3.39 | -3.27 | -3.14 |
| Term loan repaid | 0.55 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.41 | -4.85 | -4.73 | -4.61 | -4.49 | -4.37 | -4.25 |
| Cash and bank | -4.41 | -9.26 | -13.99 | -18.60 | -23.09 | -27.46 | -31.70 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 |
| Reserves and surplus | -5.05 | -9.81 | -14.31 | -18.55 | -22.56 | -26.35 | -29.95 |
| Term loan outstanding | 6.61 | 5.51 | 4.41 | 3.31 | 2.20 | 1.10 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.36 | -3.51 | -9.10 | -14.45 | -19.56 | -24.46 | -29.15 |
| Net fixed assets | 6.77 | 5.75 | 4.89 | 4.15 | 3.53 | 3.00 | 2.55 |
| 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 | -4.41 | -9.26 | -13.99 | -18.60 | -23.09 | -27.46 | -31.70 |
| Total assets | 2.36 | -3.51 | -9.10 | -14.45 | -19.56 | -24.46 | -29.15 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.32 | -1.74 | -1.86 | -2.01 | -2.18 | -2.39 | -2.64 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.16 |
|---|---|
| Lowest DSCR | -2.64 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.19 | 1.01 | 0.86 | 0.73 | 0.62 | 0.53 | 0.45 |
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 | 7.16 | 0.78 | 0.55 | 6.61 |
| 2 | 6.61 | 0.67 | 1.10 | 5.51 |
| 3 | 5.51 | 0.55 | 1.10 | 4.41 |
| 4 | 4.41 | 0.43 | 1.10 | 3.31 |
| 5 | 3.31 | 0.31 | 1.10 | 2.20 |
| 6 | 2.20 | 0.19 | 1.10 | 1.10 |
| 7 | 1.10 | 0.07 | 1.10 | 0.00 |
17 Licences and registrations
- No factory licences are needed for cultivation
- Register on your state's horticulture department portal to claim subsidy
- FSSAI registration only if you pack or process fruit for sale
- APEDA registration if you export
18 Sources
- PMEGP sample project report — Banana Cultivation (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Banana_Cultivation_%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.