Detailed Project Report
Coir Pith Block Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.87 L
- Term loan from bank
- ₹10.97 L
- Promoter’s contribution
- ₹1.69 L
- Subsidy
- ₹4.22 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.97 L
- Average DSCR
- -1.51
- 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
Compress coir pith (cocopeat) into 5 kg and 650 g blocks for nurseries, greenhouses and home gardens.
| Main product or service | Coir Pith Block Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Commercial nurseries and greenhouses
- Home and hobby gardeners
- Exporters and overseas growers
- Garden centres and online stores
- Bulk supply to exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Coir pith compacting machine with electricals (5 kg block), 20 HP | 1 | 13,20,000 | 13,20,000 |
| Screener, 2 HP (8 ft long) | 1 | 1,20,000 | 1,20,000 |
| Other accessories | 1 | 1,67,000 | 1,67,000 |
| Total | 16,07,000 |
Pre-filled from: PMEGP project profile — Coir Pith Block Making Unit (prepared by Coir Board, Ministry of MSME); DGFT — ITC (HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw coir pith — ₹5,000 a ton; by-product of fibre extraction
- Shrink-wrap film and labels — 650 g blocks are shrink-wrapped for the hobby market
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.07 |
| Contingency | 0.80 |
| Total fixed capital | 16.87 |
| Working capital margin | 0.00 |
| Total project cost | 16.87 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.69 | 10.0 |
| Subsidy | 4.22 | 25.0 |
| Term loan from bank | 10.97 | 65.0 |
| Total | 16.87 | 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 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 |
| Operating profit (EBITDA) | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 |
| Depreciation | 2.53 | 2.15 | 1.83 | 1.55 | 1.32 | 1.12 | 0.95 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.19 | 1.03 | 0.84 | 0.66 | 0.47 | 0.29 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.02 | -6.48 | -5.97 | -5.51 | -5.09 | -4.71 | -4.36 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.02 | -6.48 | -5.97 | -5.51 | -5.09 | -4.71 | -4.36 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.02 | -6.48 | -5.97 | -5.51 | -5.09 | -4.71 | -4.36 |
| Depreciation | 2.53 | 2.15 | 1.83 | 1.55 | 1.32 | 1.12 | 0.95 |
| Cash accruals (PAT + depreciation) | -4.49 | -4.33 | -4.14 | -3.96 | -3.77 | -3.59 | -3.40 |
| Term loan repaid | 0.84 | 1.69 | 1.69 | 1.69 | 1.69 | 1.69 | 1.69 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.33 | -6.02 | -5.83 | -5.65 | -5.46 | -5.28 | -5.09 |
| Cash and bank | -5.33 | -11.35 | -17.18 | -22.83 | -28.29 | -33.57 | -38.66 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.91 | 5.91 | 5.91 | 5.91 | 5.91 | 5.91 | 5.91 |
| Reserves and surplus | -7.02 | -13.50 | -19.48 | -24.99 | -30.08 | -34.79 | -39.15 |
| Term loan outstanding | 10.12 | 8.44 | 6.75 | 5.06 | 3.37 | 1.69 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.01 | 0.84 | -6.82 | -14.02 | -20.80 | -27.20 | -33.25 |
| Net fixed assets | 14.34 | 12.19 | 10.36 | 8.81 | 7.49 | 6.36 | 5.41 |
| 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 | -5.33 | -11.35 | -17.18 | -22.83 | -28.29 | -33.57 | -38.66 |
| Total assets | 9.01 | 0.84 | -6.82 | -14.02 | -20.80 | -27.20 | -33.25 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.63 | -1.22 | -1.30 | -1.41 | -1.53 | -1.67 | -1.85 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.51 |
|---|---|
| Lowest DSCR | -1.85 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.53 | 2.15 | 1.83 | 1.55 | 1.32 | 1.12 | 0.95 |
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 | 10.97 | 1.19 | 0.84 | 10.12 |
| 2 | 10.12 | 1.03 | 1.69 | 8.44 |
| 3 | 8.44 | 0.84 | 1.69 | 6.75 |
| 4 | 6.75 | 0.66 | 1.69 | 5.06 |
| 5 | 5.06 | 0.47 | 1.69 | 3.37 |
| 6 | 3.37 | 0.29 | 1.69 | 1.69 |
| 7 | 1.69 | 0.10 | 1.69 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Registration with the Coir Board (needed to export; also opens Coir Board schemes)
- State Pollution Control Board consent (check the category for your process)
- IEC code if you export
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 project profile — Coir Pith Block Making Unit (prepared by Coir Board, Ministry of MSME) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PROJECT_PROFILE_FOR_COIR_PITH_BLOCK_MAKING_UNIT_%28_COIR_BOARD_BASED_INDUSTRY_%29.pdf
- DGFT — ITC (HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.