Detailed Project Report
Banana Fibre Extraction Unit
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.58 L
- Term loan from bank
- ₹1.02 L
- Promoter’s contribution
- ₹0.16 L
- Subsidy
- ₹0.39 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.17 L
- Average DSCR
- -14.35
- 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
Turn dried banana stem sheaths into fibre and yarn for ropes, bags, sarees and handmade paper.
| Main product or service | Banana Fibre Extraction Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Artisans making ropes, handbags and handicrafts
- Weavers of sarees and garments
- Handmade paper makers
- Textile units that blend natural fibres
- Craft clusters and self-help groups
- Textile traders
- Exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Banana fibre separator machine | 1 | 1,40,000 | 1,40,000 |
| Clippers | 1 | 8,000 | 8,000 |
| Scissors (× 3) | 1 | 2,000 | 2,000 |
| Total | 1,50,000 |
Pre-filled from: PMEGP sample project report — Banana Fibre Extraction Plant (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 53. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Dried banana sheath — from plantations after harvest
- Rubber mat — listed in the report
- Thread — listed in the report
- Colours for dyeing and salt — for dyed yarn
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.50 |
| Contingency | 0.08 |
| Total fixed capital | 1.58 |
| Working capital margin | 0.00 |
| Total project cost | 1.58 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.16 | 10.0 |
| Subsidy | 0.39 | 25.0 |
| Term loan from bank | 1.02 | 65.0 |
| Total | 1.58 | 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 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 |
| Operating profit (EBITDA) | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 |
| Depreciation | 0.24 | 0.20 | 0.17 | 0.15 | 0.12 | 0.10 | 0.09 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.11 | 0.10 | 0.08 | 0.06 | 0.04 | 0.03 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.27 | -3.22 | -3.17 | -3.13 | -3.09 | -3.05 | -3.02 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.27 | -3.22 | -3.17 | -3.13 | -3.09 | -3.05 | -3.02 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.27 | -3.22 | -3.17 | -3.13 | -3.09 | -3.05 | -3.02 |
| Depreciation | 0.24 | 0.20 | 0.17 | 0.15 | 0.12 | 0.10 | 0.09 |
| Cash accruals (PAT + depreciation) | -3.03 | -3.02 | -3.00 | -2.98 | -2.96 | -2.95 | -2.93 |
| Term loan repaid | 0.08 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.11 | -3.17 | -3.16 | -3.14 | -3.12 | -3.10 | -3.09 |
| Cash and bank | -3.11 | -6.28 | -9.44 | -12.58 | -15.70 | -18.80 | -21.89 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 |
| Reserves and surplus | -3.27 | -6.48 | -9.65 | -12.78 | -15.86 | -18.91 | -21.93 |
| Term loan outstanding | 0.95 | 0.79 | 0.63 | 0.47 | 0.32 | 0.16 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.77 | -5.14 | -8.47 | -11.75 | -15.00 | -18.21 | -21.38 |
| Net fixed assets | 1.34 | 1.14 | 0.97 | 0.82 | 0.70 | 0.59 | 0.50 |
| 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 | -3.11 | -6.28 | -9.44 | -12.58 | -15.70 | -18.80 | -21.89 |
| Total assets | -1.77 | -5.14 | -8.47 | -11.75 | -15.00 | -18.21 | -21.38 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -15.40 | -11.52 | -12.36 | -13.34 | -14.49 | -15.85 | -17.49 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -14.35 |
|---|---|
| Lowest DSCR | -17.49 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.24 | 0.20 | 0.17 | 0.15 | 0.12 | 0.10 | 0.09 |
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 | 1.02 | 0.11 | 0.08 | 0.95 |
| 2 | 0.95 | 0.10 | 0.16 | 0.79 |
| 3 | 0.79 | 0.08 | 0.16 | 0.63 |
| 4 | 0.63 | 0.06 | 0.16 | 0.47 |
| 5 | 0.47 | 0.04 | 0.16 | 0.32 |
| 6 | 0.32 | 0.03 | 0.16 | 0.16 |
| 7 | 0.16 | 0.01 | 0.16 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- State Pollution Control Board consent (CTE/CTO)
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
- PMEGP sample project report — Banana Fibre Extraction Plant (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Fibre_Extraction_DPR_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 53 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1153_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.