Detailed Project Report
Cashew Nut Processing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹25.64 L
- Term loan from bank
- ₹16.67 L
- Promoter’s contribution
- ₹2.56 L
- Subsidy
- ₹6.41 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.58 L
- Average DSCR
- -1.06
- 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
Steam-cook raw cashew nuts, cut the shells, dry, peel, grade and pack the kernels.
| Main product or service | Cashew Nut Processing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Dry-fruit wholesalers and retailers
- Sweet makers, bakeries and food processors
- Exporters and overseas importers
- Wholesale markets and traders
- Branded retail packs
- Export
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Steam cooker with steam generator | 1 | 0 | 0 |
| Shell cutting machine | 1 | 0 | 0 |
| Vibrator separator (kernel from husk) | 1 | 0 | 0 |
| Drying oven and humidity-controlled chamber | 1 | 0 | 0 |
| Peeling machine (compressed air) | 1 | 0 | 0 |
| Kernel separator and grader | 1 | 0 | 0 |
| Metal detector and packing | 1 | 0 | 0 |
| Plant & machinery total (sample report) | 1 | 20,42,000 | 20,42,000 |
| SS/aluminium-top working tables 3 × 2½ × 6 ft (× 2) | 1 | 0 | 0 |
| Cashew cooker with steam boiler | 1 | 0 | 0 |
| Cashew nut decorticators (× 25) | 1 | 0 | 0 |
| Electric dryer with trays (× 1 set) | 1 | 0 | 0 |
| Weighing balances (platform and table models) (× 1 each) | 1 | 0 | 0 |
| Equipment total (KVIC profile) | 1 | 4,00,000 | 4,00,000 |
| Total | 24,42,000 |
Pre-filled from: PMEGP sample project report — Cashew Processing Project (prepared by Udyami/Samadhan); KVIC Project Profile — Cashewnut Processing (PMEGP). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw cashew nuts — ₹100 per kg in the sample report; 1,35,000 kg raw nuts for 33,750 kg kernels in the first full year
- Packing material — ₹7.00 lakh a year in the KVIC profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 24.42 |
| Contingency | 1.22 |
| Total fixed capital | 25.64 |
| Working capital margin | 0.00 |
| Total project cost | 25.64 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.56 | 10.0 |
| Subsidy | 6.41 | 25.0 |
| Term loan from bank | 16.67 | 65.0 |
| Total | 25.64 | 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 | 0.51 | 0.51 | 0.51 | 0.51 | 0.51 | 0.51 | 0.51 |
| Insurance | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Total cost of operations | 3.52 | 3.52 | 3.52 | 3.52 | 3.52 | 3.52 | 3.52 |
| Operating profit (EBITDA) | -3.52 | -3.52 | -3.52 | -3.52 | -3.52 | -3.52 | -3.52 |
| Depreciation | 3.85 | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.80 | 1.56 | 1.28 | 1.00 | 0.72 | 0.43 | 0.15 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -9.17 | -8.35 | -7.58 | -6.88 | -6.25 | -5.66 | -5.12 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -9.17 | -8.35 | -7.58 | -6.88 | -6.25 | -5.66 | -5.12 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -9.17 | -8.35 | -7.58 | -6.88 | -6.25 | -5.66 | -5.12 |
| Depreciation | 3.85 | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 |
| Cash accruals (PAT + depreciation) | -5.32 | -5.08 | -4.80 | -4.52 | -4.24 | -3.96 | -3.67 |
| Term loan repaid | 1.28 | 2.56 | 2.56 | 2.56 | 2.56 | 2.56 | 2.56 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.61 | -7.65 | -7.37 | -7.08 | -6.80 | -6.52 | -6.24 |
| Cash and bank | -6.61 | -14.26 | -21.62 | -28.71 | -35.51 | -42.03 | -48.27 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 8.97 | 8.97 | 8.97 | 8.97 | 8.97 | 8.97 | 8.97 |
| Reserves and surplus | -9.17 | -17.52 | -25.11 | -31.99 | -38.23 | -43.90 | -49.02 |
| Term loan outstanding | 15.38 | 12.82 | 10.26 | 7.69 | 5.13 | 2.56 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 15.19 | 4.27 | -5.87 | -15.32 | -24.13 | -32.36 | -40.05 |
| Net fixed assets | 21.79 | 18.53 | 15.75 | 13.38 | 11.38 | 9.67 | 8.22 |
| 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 | -6.61 | -14.26 | -21.62 | -28.71 | -35.51 | -42.03 | -48.27 |
| Total assets | 15.19 | 4.27 | -5.87 | -15.32 | -24.13 | -32.36 | -40.05 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.14 | -0.85 | -0.92 | -0.99 | -1.07 | -1.17 | -1.30 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.06 |
|---|---|
| Lowest DSCR | -1.30 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.85 | 3.27 | 2.78 | 2.36 | 2.01 | 1.71 | 1.45 |
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 | 16.67 | 1.80 | 1.28 | 15.38 |
| 2 | 15.38 | 1.56 | 2.56 | 12.82 |
| 3 | 12.82 | 1.28 | 2.56 | 10.26 |
| 4 | 10.26 | 1.00 | 2.56 | 7.69 |
| 5 | 7.69 | 0.72 | 2.56 | 5.13 |
| 6 | 5.13 | 0.43 | 2.56 | 2.56 |
| 7 | 2.56 | 0.15 | 2.56 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam
- GST
- Pollution Control Board NOC
- IEC and CEPCI registration for export
- Trademark (optional)
18 Government schemes that may apply
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Prime Minister's Employment Generation Programme (PMEGP)
- Agriculture Infrastructure Fund (AIF)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Cashew Processing Project (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Cashew_Processing_Project_%28_Samadhan_Projects_%29.pdf
- KVIC Project Profile — Cashewnut Processing (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/CASHEWNUT_PROCESSING_%28_AGRO_BASED_FOOD_PROCESSING_INDUSTRY_%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.