Detailed Project Report
Confectionery (Toffee and Hard Candy)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹8.60 L
- Term loan from bank
- ₹5.59 L
- Promoter’s contribution
- ₹0.86 L
- Subsidy
- ₹2.15 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.46 L
- Average DSCR
- -2.79
- 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
Cook sugar syrup into toffees, hard candies and lozenges for town and village shops.
| Main product or service | Confectionery (Toffee and Hard Candy) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Children and families
- Shops in semi-urban and rural areas
- Buyers for festivals, birthdays and weddings
- Distributors and wholesalers
- Kirana and general stores
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Vacuum cooker (× 2) | 1 | 5,50,000 | 5,50,000 |
| Toffee sizing machine | 1 | 7,000 | 7,000 |
| Pedal press with one set of dies | 1 | 12,500 | 12,500 |
| Plasto-plast rotary machine with motor, cutter and drying unit | 1 | 1,00,000 | 1,00,000 |
| Hand-driven lozenge machine | 1 | 5,000 | 5,000 |
| Extra rollers for lozenge machine (× 5) | 1 | 4,000 | 4,000 |
| Toffee cutter (high-speed steel blade) | 1 | 2,500 | 2,500 |
| Boiling pan | 1 | 8,000 | 8,000 |
| Wooden work table with aluminium top | 1 | 3,500 | 3,500 |
| Sugar grinder | 1 | 8,000 | 8,000 |
| Small mixer machine | 1 | 8,000 | 8,000 |
| Cooling table | 1 | 5,000 | 5,000 |
| Polythene bag sealing machine | 1 | 2,000 | 2,000 |
| Packing machine | 1 | 85,000 | 85,000 |
| Platform weighing scale | 1 | 3,500 | 3,500 |
| Sieves, ladles, spatulas, thermometer, jugs, buckets, drums | 1 | 15,000 | 15,000 |
| Total | 8,19,000 |
Pre-filled from: PMEGP sample project report — Confectionery (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
- Sugar — ₹19.80 L a year at full capacity
- Commercial glucose syrup — ₹1.25 L a year
- Condensed milk, cocoa powder, butter — ₹1.50 L a year
- Flavours and colours — ₹0.70 L a year
- Packing material — ₹1.75 L a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 8.19 |
| Contingency | 0.41 |
| Total fixed capital | 8.60 |
| Working capital margin | 0.00 |
| Total project cost | 8.60 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.86 | 10.0 |
| Subsidy | 2.15 | 25.0 |
| Term loan from bank | 5.59 | 65.0 |
| Total | 8.60 | 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 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 |
| Operating profit (EBITDA) | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 |
| Depreciation | 1.29 | 1.10 | 0.93 | 0.79 | 0.67 | 0.57 | 0.49 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.61 | 0.52 | 0.43 | 0.34 | 0.24 | 0.15 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.99 | -4.72 | -4.46 | -4.22 | -4.01 | -3.81 | -3.63 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.99 | -4.72 | -4.46 | -4.22 | -4.01 | -3.81 | -3.63 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.99 | -4.72 | -4.46 | -4.22 | -4.01 | -3.81 | -3.63 |
| Depreciation | 1.29 | 1.10 | 0.93 | 0.79 | 0.67 | 0.57 | 0.49 |
| Cash accruals (PAT + depreciation) | -3.70 | -3.62 | -3.52 | -3.43 | -3.34 | -3.24 | -3.15 |
| Term loan repaid | 0.43 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.13 | -4.48 | -4.38 | -4.29 | -4.20 | -4.10 | -4.01 |
| Cash and bank | -4.13 | -8.61 | -12.99 | -17.28 | -21.48 | -25.58 | -29.59 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 |
| Reserves and surplus | -4.99 | -9.71 | -14.16 | -18.38 | -22.39 | -26.21 | -29.84 |
| Term loan outstanding | 5.16 | 4.30 | 3.44 | 2.58 | 1.72 | 0.86 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.18 | -2.40 | -7.71 | -12.79 | -17.66 | -22.34 | -26.83 |
| Net fixed assets | 7.31 | 6.21 | 5.28 | 4.49 | 3.82 | 3.24 | 2.76 |
| 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 | -4.13 | -8.61 | -12.99 | -17.28 | -21.48 | -25.58 | -29.59 |
| Total assets | 3.18 | -2.40 | -7.71 | -12.79 | -17.66 | -22.34 | -26.83 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.99 | -2.24 | -2.40 | -2.59 | -2.81 | -3.08 | -3.40 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.79 |
|---|---|
| Lowest DSCR | -3.40 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.29 | 1.10 | 0.93 | 0.79 | 0.67 | 0.57 | 0.49 |
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 | 5.59 | 0.61 | 0.43 | 5.16 |
| 2 | 5.16 | 0.52 | 0.86 | 4.30 |
| 3 | 4.30 | 0.43 | 0.86 | 3.44 |
| 4 | 3.44 | 0.34 | 0.86 | 2.58 |
| 5 | 2.58 | 0.24 | 0.86 | 1.72 |
| 6 | 1.72 | 0.15 | 0.86 | 0.86 |
| 7 | 0.86 | 0.05 | 0.86 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST
- Legal Metrology registration for packaged goods
- State Pollution Control Board consent
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 — Confectionery (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Confectionery_agro_%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.