Detailed Project Report
Black Clay Pottery (Flower Pots)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹4.36 L
- Term loan from bank
- ₹2.83 L
- Promoter’s contribution
- ₹0.44 L
- Subsidy
- ₹1.09 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.68 L
- Average DSCR
- -5.31
- 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 shiny black clay pots and vases with silver patterns, the GI-tagged craft of Nizamabad, Azamgarh.
| Main product or service | Black Clay Pottery (Flower Pots) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Exporters and foreign buyers
- Home décor and gift shops in cities
- Tourists and visitors to the cluster
- Craft fairs and exhibitions
- Exporters and buying houses
- Online craft marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Potter's wheels (single wheel or double kick wheel) | 1 | 0 | 0 |
| Pug mill for mixing clay | 1 | 0 | 0 |
| Kiln | 1 | 0 | 0 |
| Hand, carving and decorating tools | 1 | 0 | 0 |
| Worktables and storage racks | 1 | 0 | 0 |
| All tools and machinery (excluding GST and installation) | 1 | 4,15,000 | 4,15,000 |
| Total | 4,15,000 |
Pre-filled from: PMEGP sample project report — Black Clay Flower Pot (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 69. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Fine-textured local clay — mixed with mustard oil seed cake for the deep black colour
- Silvery powder of zinc and mercury, lead and amalgam — rubbed into the etched grooves
- Mustard oil and rice husk — for rubbing and smoke firing
- Glaze and colourants — the report gives an average raw material cost of ₹95–105 (approx.; unit not stated)
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 4.15 |
| Contingency | 0.21 |
| Total fixed capital | 4.36 |
| Working capital margin | 0.00 |
| Total project cost | 4.36 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.44 | 10.0 |
| Subsidy | 1.09 | 25.0 |
| Term loan from bank | 2.83 | 65.0 |
| Total | 4.36 | 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 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.99 | 2.99 | 2.99 | 2.99 | 2.99 | 2.99 | 2.99 |
| Operating profit (EBITDA) | -2.99 | -2.99 | -2.99 | -2.99 | -2.99 | -2.99 | -2.99 |
| Depreciation | 0.65 | 0.56 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.31 | 0.27 | 0.22 | 0.17 | 0.12 | 0.07 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.95 | -3.81 | -3.68 | -3.56 | -3.45 | -3.35 | -3.26 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.95 | -3.81 | -3.68 | -3.56 | -3.45 | -3.35 | -3.26 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.95 | -3.81 | -3.68 | -3.56 | -3.45 | -3.35 | -3.26 |
| Depreciation | 0.65 | 0.56 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 |
| Cash accruals (PAT + depreciation) | -3.30 | -3.25 | -3.21 | -3.16 | -3.11 | -3.06 | -3.01 |
| Term loan repaid | 0.22 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.51 | -3.69 | -3.64 | -3.59 | -3.55 | -3.50 | -3.45 |
| Cash and bank | -3.51 | -7.20 | -10.85 | -14.44 | -17.99 | -21.49 | -24.94 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.53 | 1.53 | 1.53 | 1.53 | 1.53 | 1.53 | 1.53 |
| Reserves and surplus | -3.95 | -7.76 | -11.44 | -15.00 | -18.45 | -21.80 | -25.06 |
| Term loan outstanding | 2.61 | 2.18 | 1.74 | 1.31 | 0.87 | 0.44 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.19 | -4.06 | -8.17 | -12.17 | -16.05 | -19.84 | -23.54 |
| Net fixed assets | 3.70 | 3.15 | 2.68 | 2.27 | 1.93 | 1.64 | 1.40 |
| 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 | -3.51 | -7.20 | -10.85 | -14.44 | -17.99 | -21.49 | -24.94 |
| Total assets | 0.19 | -4.06 | -8.17 | -12.17 | -16.05 | -19.84 | -23.54 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -5.70 | -4.26 | -4.57 | -4.94 | -5.36 | -5.86 | -6.47 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.31 |
|---|---|
| Lowest DSCR | -6.47 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.65 | 0.56 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 |
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 | 2.83 | 0.31 | 0.22 | 2.61 |
| 2 | 2.61 | 0.27 | 0.44 | 2.18 |
| 3 | 2.18 | 0.22 | 0.44 | 1.74 |
| 4 | 1.74 | 0.17 | 0.44 | 1.31 |
| 5 | 1.31 | 0.12 | 0.44 | 0.87 |
| 6 | 0.87 | 0.07 | 0.44 | 0.44 |
| 7 | 0.44 | 0.03 | 0.44 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Artisan card (Development Commissioner Handicrafts), helpful for fairs and schemes
- GI authorised-user registration for Nizamabad black pottery (to use the GI name)
- IEC for exports
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)
19 Sources
- PMEGP sample project report — Black Clay Flower Pot (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Black_Clay_Flower_Pot_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 69 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1369_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.