Detailed Project Report
Chocolate Milk (Bottled)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹19.11 L
- Term loan from bank
- ₹12.42 L
- Promoter’s contribution
- ₹1.91 L
- Subsidy
- ₹4.78 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.38 L
- Average DSCR
- -1.36
- 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 bottled chocolate milk in 500 ml bottles for shops, gyms and canteens.
| Main product or service | Chocolate Milk (Bottled) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Children and young people
- Gym-goers and sportspeople
- School and office canteens
- Dairy booths and grocery shops
- Supermarkets with chillers
- Direct supply to canteens and gyms
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Water treatment unit | 1 | 80,000 | 80,000 |
| Boiler | 1 | 1,25,000 | 1,25,000 |
| SS tank | 1 | 80,000 | 80,000 |
| Plate heat exchanger | 1 | 95,000 | 95,000 |
| Homogeniser | 1 | 1,95,000 | 1,95,000 |
| Bottling plant with bottle washer, filter and steriliser | 1 | 11,95,000 | 11,95,000 |
| Other equipment | 1 | 50,000 | 50,000 |
| Total | 18,20,000 |
Pre-filled from: PMEGP sample project report — Chocolate Milk (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 22. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Milk — main raw material; raw material ₹45.00 lakh in year 1
- Liquid chocolate and sugar — flavour and sweetness
- Stabilisers and other additives — texture and shelf life
- 500 ml bottles, caps and labels — packing
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 18.20 |
| Contingency | 0.91 |
| Total fixed capital | 19.11 |
| Working capital margin | 0.00 |
| Total project cost | 19.11 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.91 | 10.0 |
| Subsidy | 4.78 | 25.0 |
| Term loan from bank | 12.42 | 65.0 |
| Total | 19.11 | 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 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Insurance | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Total cost of operations | 3.36 | 3.36 | 3.36 | 3.36 | 3.36 | 3.36 | 3.36 |
| Operating profit (EBITDA) | -3.36 | -3.36 | -3.36 | -3.36 | -3.36 | -3.36 | -3.36 |
| Depreciation | 2.87 | 2.44 | 2.07 | 1.76 | 1.50 | 1.27 | 1.08 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.34 | 1.16 | 0.95 | 0.74 | 0.53 | 0.32 | 0.11 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.57 | -6.96 | -6.38 | -5.86 | -5.39 | -4.95 | -4.55 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.57 | -6.96 | -6.38 | -5.86 | -5.39 | -4.95 | -4.55 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.57 | -6.96 | -6.38 | -5.86 | -5.39 | -4.95 | -4.55 |
| Depreciation | 2.87 | 2.44 | 2.07 | 1.76 | 1.50 | 1.27 | 1.08 |
| Cash accruals (PAT + depreciation) | -4.70 | -4.52 | -4.31 | -4.10 | -3.89 | -3.68 | -3.47 |
| Term loan repaid | 0.96 | 1.91 | 1.91 | 1.91 | 1.91 | 1.91 | 1.91 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.66 | -6.43 | -6.22 | -6.01 | -5.80 | -5.59 | -5.38 |
| Cash and bank | -5.66 | -12.09 | -18.31 | -24.33 | -30.13 | -35.72 | -41.11 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 | 6.69 |
| Reserves and surplus | -7.57 | -14.53 | -20.91 | -26.77 | -32.16 | -37.12 | -41.67 |
| Term loan outstanding | 11.47 | 9.56 | 7.64 | 5.73 | 3.82 | 1.91 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 10.59 | 1.72 | -6.58 | -14.35 | -21.65 | -28.52 | -34.98 |
| Net fixed assets | 16.24 | 13.81 | 11.74 | 9.98 | 8.48 | 7.21 | 6.13 |
| 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 | -5.66 | -12.09 | -18.31 | -24.33 | -30.13 | -35.72 | -41.11 |
| Total assets | 10.59 | 1.72 | -6.58 | -14.35 | -21.65 | -28.52 | -34.98 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.46 | -1.09 | -1.17 | -1.26 | -1.37 | -1.50 | -1.66 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.36 |
|---|---|
| Lowest DSCR | -1.66 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.87 | 2.44 | 2.07 | 1.76 | 1.50 | 1.27 | 1.08 |
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 | 12.42 | 1.34 | 0.96 | 11.47 |
| 2 | 11.47 | 1.16 | 1.91 | 9.56 |
| 3 | 9.56 | 0.95 | 1.91 | 7.64 |
| 4 | 7.64 | 0.74 | 1.91 | 5.73 |
| 5 | 5.73 | 0.53 | 1.91 | 3.82 |
| 6 | 3.82 | 0.32 | 1.91 | 1.91 |
| 7 | 1.91 | 0.11 | 1.91 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam
- GST
- Pollution control board consent (dairy effluent)
- Boiler registration if required
- Trade licence
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Chocolate Milk (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Chocolate_Milk_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 22 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0422_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.