Detailed Project Report
Brown Sugar Manufacturing (Small Cane Unit)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹19.43 L
- Term loan from bank
- ₹12.63 L
- Promoter’s contribution
- ₹1.94 L
- Subsidy
- ₹4.86 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.44 L
- Average DSCR
- -1.34
- 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
Crush sugarcane, boil and crystallise the juice, and pack brown sugar for bakeries and kitchens.
| Main product or service | Brown Sugar Manufacturing (Small Cane Unit) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Bakeries and confectioners
- Households and home bakers
- Organic and health-food stores
- Direct supply to bakeries
- Organic stores and supermarkets
- Online grocery sellers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Sugarcane crusher (shredder and grooved rollers) | 1 | 0 | 0 |
| Juice boiling house (clarification and evaporation) | 1 | 0 | 0 |
| Crystalliser (vacuum pan) | 1 | 0 | 0 |
| Centrifugal machine | 1 | 0 | 0 |
| Granulator with dryer and vibrating screens | 1 | 0 | 0 |
| Packing machine with automatic weighing | 1 | 0 | 0 |
| All plant and machinery together | 1 | 18,50,000 | 18,50,000 |
| Total | 18,50,000 |
Pre-filled from: PMEGP sample project report — Brown Sugar (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 17. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Sugarcane — main raw material; raw material ₹38.16 lakh in year 1 of the report
- Limestone (milk of lime) and baking soda — for clarifying the juice
- Castor oil — listed among other inputs
- Packing material — packaging ₹0.94 lakh in year 1
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 18.50 |
| Contingency | 0.93 |
| Total fixed capital | 19.43 |
| Working capital margin | 0.00 |
| Total project cost | 19.43 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.94 | 10.0 |
| Subsidy | 4.86 | 25.0 |
| Term loan from bank | 12.63 | 65.0 |
| Total | 19.43 | 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 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 |
| Insurance | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Total cost of operations | 3.37 | 3.37 | 3.37 | 3.37 | 3.37 | 3.37 | 3.37 |
| Operating profit (EBITDA) | -3.37 | -3.37 | -3.37 | -3.37 | -3.37 | -3.37 | -3.37 |
| Depreciation | 2.91 | 2.48 | 2.11 | 1.79 | 1.52 | 1.29 | 1.10 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.37 | 1.18 | 0.97 | 0.76 | 0.54 | 0.33 | 0.12 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.65 | -7.03 | -6.44 | -5.91 | -5.43 | -4.99 | -4.58 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.65 | -7.03 | -6.44 | -5.91 | -5.43 | -4.99 | -4.58 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.65 | -7.03 | -6.44 | -5.91 | -5.43 | -4.99 | -4.58 |
| Depreciation | 2.91 | 2.48 | 2.11 | 1.79 | 1.52 | 1.29 | 1.10 |
| Cash accruals (PAT + depreciation) | -4.73 | -4.55 | -4.34 | -4.12 | -3.91 | -3.70 | -3.48 |
| Term loan repaid | 0.97 | 1.94 | 1.94 | 1.94 | 1.94 | 1.94 | 1.94 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.70 | -6.49 | -6.28 | -6.06 | -5.85 | -5.64 | -5.42 |
| Cash and bank | -5.70 | -12.20 | -18.47 | -24.54 | -30.39 | -36.03 | -41.45 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.80 | 6.80 | 6.80 | 6.80 | 6.80 | 6.80 | 6.80 |
| Reserves and surplus | -7.65 | -14.67 | -21.11 | -27.03 | -32.46 | -37.44 | -42.02 |
| Term loan outstanding | 11.66 | 9.71 | 7.77 | 5.83 | 3.89 | 1.94 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 10.81 | 1.84 | -6.54 | -14.40 | -21.77 | -28.70 | -35.22 |
| Net fixed assets | 16.51 | 14.03 | 11.93 | 10.14 | 8.62 | 7.33 | 6.23 |
| 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 | -5.70 | -12.20 | -18.47 | -24.54 | -30.39 | -36.03 | -41.45 |
| Total assets | 10.81 | 1.84 | -6.54 | -14.40 | -21.77 | -28.70 | -35.22 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.44 | -1.08 | -1.16 | -1.25 | -1.35 | -1.48 | -1.64 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.34 |
|---|---|
| Lowest DSCR | -1.64 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.91 | 2.48 | 2.11 | 1.79 | 1.52 | 1.29 | 1.10 |
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 | 12.63 | 1.37 | 0.97 | 11.66 |
| 2 | 11.66 | 1.18 | 1.94 | 9.71 |
| 3 | 9.71 | 0.97 | 1.94 | 7.77 |
| 4 | 7.77 | 0.76 | 1.94 | 5.83 |
| 5 | 5.83 | 0.54 | 1.94 | 3.89 |
| 6 | 3.89 | 0.33 | 1.94 | 1.94 |
| 7 | 1.94 | 0.12 | 1.94 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST
- Fire safety NOC and State Pollution Control Board consent
- Trade licence
- Factory licence (optional, as per the report)
- BIS certification (as listed in the report)
- Legal Metrology registration for packed goods
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- 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 — Brown Sugar (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Brown_Sugar_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 17 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0417_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.