Detailed Project Report
Dairy Farm (Cows / Buffaloes)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.66 L
- Term loan from bank
- ₹2.39 L
- Promoter’s contribution
- ₹0.27 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.42 L
- Average DSCR
- -6.20
- 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
Start with 2 to 10 animals — milk every day, money every day.
| Main product or service | Dairy Farm (Cows / Buffaloes) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Dairy cooperatives
- Private dairies and milk plants
- Households
- Sweet shops and tea stalls
- Village milk collection centre
- Direct daily supply to homes and shops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Shed for 10 adult animals (40 sq ft each at ₹360 per sq ft) | 1 | 1,44,000 | 1,44,000 |
| Shed for 5 calves (30 sq ft each at ₹360 per sq ft) | 1 | 54,000 | 54,000 |
| Chaff cutter | 1 | 15,000 | 15,000 |
| Other dairy equipment | 1 | 10,000 | 10,000 |
| Straw-and-bamboo shed for 2 milch animals | 1 | 30,000 | 30,000 |
| Total | 2,53,000 |
Pre-filled from: NABARD Bihar RO – Unit Cost for Investment Activities in Agriculture & Allied Sectors 2025-26; NABARD Andhra Pradesh RO – Comprehensive Guide of Unit Costs 2025-26. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- High-yield crossbred cows — ₹85,000 per animal
- High-yield graded Murrah buffaloes — ₹1,00,000 per animal
- Concentrate feed for the first month (one batch of 5) — ₹25,627 for cows; ₹24,477 for buffaloes
- Green fodder grown on 1 acre — ₹36,000–37,000
- Veterinary care — ₹1,500 per animal
- Animal insurance — 4.5% of animal cost
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.53 |
| Contingency | 0.13 |
| Total fixed capital | 2.66 |
| Working capital margin | 0.00 |
| Total project cost | 2.66 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.27 | 10.0 |
| Term loan from bank | 2.39 | 90.0 |
| Total | 2.66 | 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 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Operating profit (EBITDA) | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 |
| Depreciation | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 | 0.18 | 0.15 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.26 | 0.22 | 0.18 | 0.14 | 0.10 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.60 | -3.51 | -3.42 | -3.33 | -3.26 | -3.19 | -3.12 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.60 | -3.51 | -3.42 | -3.33 | -3.26 | -3.19 | -3.12 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.60 | -3.51 | -3.42 | -3.33 | -3.26 | -3.19 | -3.12 |
| Depreciation | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 | 0.18 | 0.15 |
| Cash accruals (PAT + depreciation) | -3.21 | -3.17 | -3.13 | -3.09 | -3.05 | -3.01 | -2.97 |
| Term loan repaid | 0.18 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.39 | -3.54 | -3.50 | -3.46 | -3.42 | -3.38 | -3.34 |
| Cash and bank | -3.39 | -6.93 | -10.43 | -13.88 | -17.30 | -20.68 | -24.01 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Reserves and surplus | -3.60 | -7.11 | -10.53 | -13.87 | -17.12 | -20.31 | -23.43 |
| Term loan outstanding | 2.21 | 1.84 | 1.47 | 1.10 | 0.74 | 0.37 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.13 | -5.01 | -8.79 | -12.50 | -16.12 | -19.67 | -23.16 |
| Net fixed assets | 2.26 | 1.92 | 1.63 | 1.39 | 1.18 | 1.00 | 0.85 |
| 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 | -3.39 | -6.93 | -10.43 | -13.88 | -17.30 | -20.68 | -24.01 |
| Total assets | -1.13 | -5.01 | -8.79 | -12.50 | -16.12 | -19.67 | -23.16 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.66 | -4.98 | -5.34 | -5.76 | -6.26 | -6.85 | -7.56 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.20 |
|---|---|
| Lowest DSCR | -7.56 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 | 0.18 | 0.15 |
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 | 2.39 | 0.26 | 0.18 | 2.21 |
| 2 | 2.21 | 0.22 | 0.37 | 1.84 |
| 3 | 1.84 | 0.18 | 0.37 | 1.47 |
| 4 | 1.47 | 0.14 | 0.37 | 1.10 |
| 5 | 1.10 | 0.10 | 0.37 | 0.74 |
| 6 | 0.74 | 0.06 | 0.37 | 0.37 |
| 7 | 0.37 | 0.02 | 0.37 | 0.00 |
17 Licences and registrations
- Animal insurance
- Udyam (optional)
- FSSAI registration if you sell milk or products directly
- UPPCB/municipal norms for a large farm near a town
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Stand-Up India
19 Sources
- NABARD Bihar RO – Unit Cost for Investment Activities in Agriculture & Allied Sectors 2025-26 — https://www.nabard.org/auth/writereaddata/tender/pub_0810250453461849.pdf
- NABARD Andhra Pradesh RO – Comprehensive Guide of Unit Costs 2025-26 — https://www.nabard.org/auth/writereaddata/tender/pub_2409250327511846.pdf
- FSSAI – Public Notice: List of mapped ITC HS codes with FSS Regulations — https://fssai.gov.in/upload/advisories/2020/03/5e6b37c994302Public_Notice_HS_Code_13_02_2020.pdf
- APEDA – Product groups (Cereals, Processed Foods, Animal Products, Fruits & Vegetables, Floriculture) — https://apeda.gov.in/
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.