Detailed Project Report
Drip Irrigation Pipe (LLDPE Laterals)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹56.81 L
- Term loan from bank
- ₹51.12 L
- Promoter’s contribution
- ₹5.68 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-14.39 L
- Average DSCR
- -0.42
- 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
Extrude LLDPE lateral pipe and mould drippers for farm drip-irrigation systems.
| Main product or service | Drip Irrigation Pipe (LLDPE Laterals) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Farmers through irrigation dealers
- Drip-system installers
- Greenhouse and polyhouse builders
- State horticulture and agriculture programmes
- Dealers in farming districts
- Registration under state micro-irrigation subsidy lists
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| High-speed mixer | 1 | 1,50,000 | 1,50,000 |
| LLDPE pipe extrusion plant | 1 | 25,00,000 | 25,00,000 |
| Automatic injection-moulding machine (drippers and fittings) | 1 | 20,00,000 | 20,00,000 |
| Scrap grinder | 1 | 1,50,000 | 1,50,000 |
| Overhead water tank and recycling pumps | 1 | 90,000 | 90,000 |
| Water cooling unit | 1 | 2,00,000 | 2,00,000 |
| Testing equipment and accessories (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Pipe racks, small tools, lighting (× 1 lot) | 1 | 1,20,000 | 1,20,000 |
| Total | 54,10,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Drip Irrigation Pipes. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- LLDPE granules — taken at ₹88 a kg; ₹491.96 L in year 1
- Other chemicals and additives — as per the pipe grade
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 54.10 |
| Contingency | 2.71 |
| Total fixed capital | 56.81 |
| Working capital margin | 0.00 |
| Total project cost | 56.81 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 5.68 | 10.0 |
| Term loan from bank | 51.12 | 90.0 |
| Total | 56.81 | 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 | 1.14 | 1.14 | 1.14 | 1.14 | 1.14 | 1.14 | 1.14 |
| Insurance | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Total cost of operations | 4.30 | 4.30 | 4.30 | 4.30 | 4.30 | 4.30 | 4.30 |
| Operating profit (EBITDA) | -4.30 | -4.30 | -4.30 | -4.30 | -4.30 | -4.30 | -4.30 |
| Depreciation | 8.52 | 7.24 | 6.16 | 5.23 | 4.45 | 3.78 | 3.21 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 5.53 | 4.79 | 3.93 | 3.06 | 2.20 | 1.33 | 0.47 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -18.35 | -16.34 | -14.39 | -12.60 | -10.95 | -9.41 | -7.98 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -18.35 | -16.34 | -14.39 | -12.60 | -10.95 | -9.41 | -7.98 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -18.35 | -16.34 | -14.39 | -12.60 | -10.95 | -9.41 | -7.98 |
| Depreciation | 8.52 | 7.24 | 6.16 | 5.23 | 4.45 | 3.78 | 3.21 |
| Cash accruals (PAT + depreciation) | -9.83 | -9.09 | -8.23 | -7.36 | -6.50 | -5.63 | -4.77 |
| Term loan repaid | 3.93 | 7.87 | 7.87 | 7.87 | 7.87 | 7.87 | 7.87 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -13.77 | -16.96 | -16.09 | -15.23 | -14.36 | -13.50 | -12.63 |
| Cash and bank | -13.77 | -30.73 | -46.82 | -62.05 | -76.42 | -89.91 | -102.55 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.68 | 5.68 | 5.68 | 5.68 | 5.68 | 5.68 | 5.68 |
| Reserves and surplus | -18.35 | -34.69 | -49.08 | -61.67 | -72.62 | -82.04 | -90.02 |
| Term loan outstanding | 47.19 | 39.33 | 31.46 | 23.60 | 15.73 | 7.87 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 34.52 | 10.32 | -11.94 | -32.40 | -51.21 | -68.49 | -84.34 |
| Net fixed assets | 48.28 | 41.04 | 34.89 | 29.65 | 25.20 | 21.42 | 18.21 |
| 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 | -13.77 | -30.73 | -46.82 | -62.05 | -76.42 | -89.91 | -102.55 |
| Total assets | 34.52 | 10.32 | -11.94 | -32.40 | -51.21 | -68.49 | -84.34 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.45 | -0.34 | -0.36 | -0.39 | -0.43 | -0.47 | -0.52 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.42 |
|---|---|
| Lowest DSCR | -0.52 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 8.52 | 7.24 | 6.16 | 5.23 | 4.45 | 3.78 | 3.21 |
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 | 51.12 | 5.53 | 3.93 | 47.19 |
| 2 | 47.19 | 4.79 | 7.87 | 39.33 |
| 3 | 39.33 | 3.93 | 7.87 | 31.46 |
| 4 | 31.46 | 3.06 | 7.87 | 23.60 |
| 5 | 23.60 | 2.20 | 7.87 | 15.73 |
| 6 | 15.73 | 1.33 | 7.87 | 7.87 |
| 7 | 7.87 | 0.47 | 7.87 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- BIS ISI mark — state micro-irrigation subsidy programmes usually buy only certified, registered products
- State Pollution Control Board consent where applicable
- IEC code for export
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- SIDBI Stand-Up Mitra project profile — Drip Irrigation Pipes — https://www.standupmitra.in/Default/ViewFile/?id=1516711384772_Drip%20Irrigation%20Pipes.docx&path=ProjectProfile
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.