Detailed Project Report
Dhoop Batti Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹4.62 L
- Term loan from bank
- ₹3.00 L
- Promoter’s contribution
- ₹0.46 L
- Subsidy
- ₹1.16 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.73 L
- Average DSCR
- -5.02
- 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
Grind leaves, dhoop wood, charcoal and guggal, blend with perfume oils into a paste and cut it into dhoop sticks and cones.
| Main product or service | Dhoop Batti Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households for puja and havan
- Temples and religious ceremonies
- Local vendors who buy in bulk and repack
- Puja-goods wholesalers
- Bulk sales to repackers
- Own brand in small packs (20 g, 50 g, 100 g)
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Roller mill machine | 1 | 40,000 | 40,000 |
| Leaf cutting machine | 1 | 25,000 | 25,000 |
| Water bath (mixing machine) | 1 | 10,000 | 10,000 |
| Powder mixing machine (ball mill) | 1 | 50,000 | 50,000 |
| Edge runner machine | 1 | 1,50,000 | 1,50,000 |
| Pulveriser | 1 | 1,00,000 | 1,00,000 |
| Oil storage tanks (× 10) | 1 | 10,000 | 10,000 |
| Laboratory equipment (× 1 lot) | 1 | 25,000 | 25,000 |
| Installation of plant and machinery (10%) (× 1 lot) | 1 | 30,000 | 30,000 |
| Total | 4,40,000 |
Pre-filled from: PMEGP sample project report — Dhoop Batti (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Compound of perfumes — 720 kg a year at ₹1,000 a kg (₹7.20 L) at full capacity
- Charcoal powder — 1,800 kg at ₹250 a kg
- DEP (diethyl phthalate) oil — 3,600 litres at ₹100 a litre
- Sandalwood powder, guggal, cascalia powder — 360 kg each at ₹600, ₹200 and ₹130 a kg
- Dhoop wood, jigat powder, groundnut shell, eucalyptus / tej patta leaves — 3,600 kg at ₹40; 1,080 kg at ₹25; 9,000 kg at ₹6; 18,000 kg at ₹3
- Packaging boxes and corrugated boxes — 9,00,000 boxes at ₹0.75 and 7,200 cartons at ₹25
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 4.40 |
| Contingency | 0.22 |
| Total fixed capital | 4.62 |
| Working capital margin | 0.00 |
| Total project cost | 4.62 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.46 | 10.0 |
| Subsidy | 1.16 | 25.0 |
| Term loan from bank | 3.00 | 65.0 |
| Total | 4.62 | 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 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 |
| Operating profit (EBITDA) | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 | -3.00 |
| Depreciation | 0.69 | 0.59 | 0.50 | 0.43 | 0.36 | 0.31 | 0.26 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.33 | 0.28 | 0.23 | 0.18 | 0.13 | 0.08 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.01 | -3.87 | -3.73 | -3.60 | -3.49 | -3.38 | -3.28 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.01 | -3.87 | -3.73 | -3.60 | -3.49 | -3.38 | -3.28 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.01 | -3.87 | -3.73 | -3.60 | -3.49 | -3.38 | -3.28 |
| Depreciation | 0.69 | 0.59 | 0.50 | 0.43 | 0.36 | 0.31 | 0.26 |
| Cash accruals (PAT + depreciation) | -3.32 | -3.28 | -3.23 | -3.18 | -3.12 | -3.07 | -3.02 |
| Term loan repaid | 0.23 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.55 | -3.74 | -3.69 | -3.64 | -3.59 | -3.54 | -3.49 |
| Cash and bank | -3.55 | -7.29 | -10.98 | -14.62 | -18.20 | -21.74 | -25.22 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 |
| Reserves and surplus | -4.01 | -7.88 | -11.61 | -15.21 | -18.69 | -22.08 | -25.36 |
| Term loan outstanding | 2.77 | 2.31 | 1.85 | 1.39 | 0.92 | 0.46 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.38 | -3.95 | -8.14 | -12.20 | -16.15 | -20.00 | -23.74 |
| Net fixed assets | 3.93 | 3.34 | 2.84 | 2.41 | 2.05 | 1.74 | 1.48 |
| 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 | -3.55 | -7.29 | -10.98 | -14.62 | -18.20 | -21.74 | -25.22 |
| Total assets | 0.38 | -3.95 | -8.14 | -12.20 | -16.15 | -20.00 | -23.74 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -5.39 | -4.03 | -4.32 | -4.67 | -5.07 | -5.54 | -6.12 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.02 |
|---|---|
| Lowest DSCR | -6.12 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.69 | 0.59 | 0.50 | 0.43 | 0.36 | 0.31 | 0.26 |
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 | 3.00 | 0.33 | 0.23 | 2.77 |
| 2 | 2.77 | 0.28 | 0.46 | 2.31 |
| 3 | 2.31 | 0.23 | 0.46 | 1.85 |
| 4 | 1.85 | 0.18 | 0.46 | 1.39 |
| 5 | 1.39 | 0.13 | 0.46 | 0.92 |
| 6 | 0.92 | 0.08 | 0.46 | 0.46 |
| 7 | 0.46 | 0.03 | 0.46 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- No-objection certificate from the State Pollution Control Board (report)
- Legal Metrology packaged commodity registration
- Fire safety NOC
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 sample project report — Dhoop Batti (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Dhoop_Batti_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.