Detailed Project Report
Evaporated Milk (Canned) Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.14 L
- Term loan from bank
- ₹11.14 L
- Promoter’s contribution
- ₹1.71 L
- Subsidy
- ₹4.28 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.02 L
- Average DSCR
- -1.49
- 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
Concentrate fresh milk, can it and sterilise it into shelf-stable evaporated milk.
| Main product or service | Evaporated Milk (Canned) Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Bakeries and sweet makers
- Hotels, restaurants and cafés
- Households
- Food distributors and wholesalers
- Grocery and modern retail stores
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Milk weighing machine (200 kg) | 1 | 9,000 | 9,000 |
| Milk storage tank (500 litres) | 1 | 1,65,000 | 1,65,000 |
| Evaporation tank (100 litres an hour) | 1 | 2,80,000 | 2,80,000 |
| Milk homogeniser (300 litres an hour) | 1 | 1,95,000 | 1,95,000 |
| Baby boiler (0–500 kg an hour) | 1 | 1,00,000 | 1,00,000 |
| Refrigerator (500–1,000 litres) | 1 | 1,20,000 | 1,20,000 |
| Can filling machine | 1 | 4,00,000 | 4,00,000 |
| Can seamer (25 a minute) | 1 | 50,000 | 50,000 |
| Water pump | 1 | 8,000 | 8,000 |
| Condenser | 1 | 25,000 | 25,000 |
| Packaging and other equipment (incl. cooling tower, sterilisation retort) (× 1 lot) | 1 | 2,80,000 | 2,80,000 |
| Total | 16,32,000 |
Pre-filled from: PMEGP sample project report — Evaporated Milk (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Milk — 50,000 litres a year at ₹30 a litre (full capacity)
- Empty cans — 75,000 a year at ₹10 each
- Stabilisers (sodium bicarbonate, sodium citrate or phosphate) — about 0.25%
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.32 |
| Contingency | 0.82 |
| Total fixed capital | 17.14 |
| Working capital margin | 0.00 |
| Total project cost | 17.14 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.71 | 10.0 |
| Subsidy | 4.28 | 25.0 |
| Term loan from bank | 11.14 | 65.0 |
| Total | 17.14 | 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 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 |
| Operating profit (EBITDA) | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 |
| Depreciation | 2.57 | 2.18 | 1.86 | 1.58 | 1.34 | 1.14 | 0.97 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.21 | 1.04 | 0.86 | 0.67 | 0.48 | 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 | -7.08 | -6.54 | -6.02 | -5.55 | -5.13 | -4.74 | -4.38 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.08 | -6.54 | -6.02 | -5.55 | -5.13 | -4.74 | -4.38 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.08 | -6.54 | -6.02 | -5.55 | -5.13 | -4.74 | -4.38 |
| Depreciation | 2.57 | 2.18 | 1.86 | 1.58 | 1.34 | 1.14 | 0.97 |
| Cash accruals (PAT + depreciation) | -4.51 | -4.35 | -4.16 | -3.98 | -3.79 | -3.60 | -3.41 |
| Term loan repaid | 0.86 | 1.71 | 1.71 | 1.71 | 1.71 | 1.71 | 1.71 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.37 | -6.07 | -5.88 | -5.69 | -5.50 | -5.31 | -5.12 |
| Cash and bank | -5.37 | -11.44 | -17.32 | -23.01 | -28.51 | -33.82 | -38.94 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 |
| Reserves and surplus | -7.08 | -13.62 | -19.64 | -25.20 | -30.33 | -35.07 | -39.45 |
| Term loan outstanding | 10.28 | 8.57 | 6.85 | 5.14 | 3.43 | 1.71 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.19 | 0.94 | -6.79 | -14.06 | -20.90 | -27.36 | -33.45 |
| Net fixed assets | 14.57 | 12.38 | 10.52 | 8.95 | 7.60 | 6.46 | 5.49 |
| 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 | -5.37 | -11.44 | -17.32 | -23.01 | -28.51 | -33.82 | -38.94 |
| Total assets | 9.19 | 0.94 | -6.79 | -14.06 | -20.90 | -27.36 | -33.45 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.60 | -1.20 | -1.29 | -1.39 | -1.51 | -1.65 | -1.82 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.49 |
|---|---|
| Lowest DSCR | -1.82 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.57 | 2.18 | 1.86 | 1.58 | 1.34 | 1.14 | 0.97 |
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 | 11.14 | 1.21 | 0.86 | 10.28 |
| 2 | 10.28 | 1.04 | 1.71 | 8.57 |
| 3 | 8.57 | 0.86 | 1.71 | 6.85 |
| 4 | 6.85 | 0.67 | 1.71 | 5.14 |
| 5 | 5.14 | 0.48 | 1.71 | 3.43 |
| 6 | 3.43 | 0.29 | 1.71 | 1.71 |
| 7 | 1.71 | 0.10 | 1.71 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST registration
- Legal Metrology registration for pre-packed goods
- Boiler registration with the state boiler inspectorate
- Trademark for your brand name (optional)
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 — Evaporated Milk (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Evaporated_Milk_%28_Samadhan_Projects_%29.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.