Detailed Project Report
Ghee Making Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.26 L
- Term loan from bank
- ₹11.22 L
- Promoter’s contribution
- ₹1.73 L
- Subsidy
- ₹4.32 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.04 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
Separate cream from bought milk, churn it to butter, boil it into ghee and sell 500 g packs; toned milk is a by-product.
| Main product or service | Ghee Making Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Sweet shops and caterers
- Ice-cream and confectionery makers
- Kirana and grocery stores
- Distributors and kirana shops
- Direct sale to sweet makers and caterers
- Own outlet or milk route
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Milk storage tank (× 2) | 1 | 70,000 | 70,000 |
| Balance tank | 1 | 15,000 | 15,000 |
| Milk homogeniser | 1 | 1,95,000 | 1,95,000 |
| Milk pasteuriser | 1 | 2,75,000 | 2,75,000 |
| Cream separator | 1 | 31,000 | 31,000 |
| Boiler | 1 | 1,65,000 | 1,65,000 |
| Pump | 1 | 18,000 | 18,000 |
| Chiller | 1 | 2,75,000 | 2,75,000 |
| Butter churning machine | 1 | 1,35,000 | 1,35,000 |
| Ghee boiling kettle | 1 | 85,000 | 85,000 |
| IBT-type chilling machine | 1 | 1,45,000 | 1,45,000 |
| Pouch filling machine | 1 | 2,15,000 | 2,15,000 |
| Other machinery and equipment (× 1 lot) | 1 | 20,000 | 20,000 |
| Total | 16,44,000 |
Pre-filled from: PMEGP sample project report — Ghee (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
- Milk — 6,75,000 litres a year at ₹20 a litre at full capacity (report rate)
- Packing material — ₹3.50 L a year lump sum
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.44 |
| Contingency | 0.82 |
| Total fixed capital | 17.26 |
| Working capital margin | 0.00 |
| Total project cost | 17.26 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.73 | 10.0 |
| Subsidy | 4.32 | 25.0 |
| Term loan from bank | 11.22 | 65.0 |
| Total | 17.26 | 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 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
| 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 | 2.59 | 2.20 | 1.87 | 1.59 | 1.35 | 1.15 | 0.98 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.21 | 1.05 | 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 | -7.12 | -6.56 | -6.04 | -5.57 | -5.15 | -4.75 | -4.39 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.12 | -6.56 | -6.04 | -5.57 | -5.15 | -4.75 | -4.39 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.12 | -6.56 | -6.04 | -5.57 | -5.15 | -4.75 | -4.39 |
| Depreciation | 2.59 | 2.20 | 1.87 | 1.59 | 1.35 | 1.15 | 0.98 |
| Cash accruals (PAT + depreciation) | -4.53 | -4.36 | -4.17 | -3.98 | -3.79 | -3.60 | -3.41 |
| Term loan repaid | 0.86 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.39 | -6.09 | -5.90 | -5.71 | -5.52 | -5.33 | -5.14 |
| Cash and bank | -5.39 | -11.48 | -17.38 | -23.09 | -28.61 | -33.94 | -39.08 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.04 | 6.04 | 6.04 | 6.04 | 6.04 | 6.04 | 6.04 |
| Reserves and surplus | -7.12 | -13.68 | -19.72 | -25.30 | -30.44 | -35.20 | -39.59 |
| Term loan outstanding | 10.36 | 8.63 | 6.90 | 5.18 | 3.45 | 1.73 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.28 | 0.99 | -6.78 | -14.08 | -20.95 | -27.43 | -33.55 |
| Net fixed assets | 14.67 | 12.47 | 10.60 | 9.01 | 7.66 | 6.51 | 5.53 |
| 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 | -5.39 | -11.48 | -17.38 | -23.09 | -28.61 | -33.94 | -39.08 |
| Total assets | 9.28 | 0.99 | -6.78 | -14.08 | -20.95 | -27.43 | -33.55 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.59 | -1.19 | -1.28 | -1.38 | -1.50 | -1.64 | -1.81 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.49 |
|---|---|
| Lowest DSCR | -1.81 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.59 | 2.20 | 1.87 | 1.59 | 1.35 | 1.15 | 0.98 |
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 | 11.22 | 1.21 | 0.86 | 10.36 |
| 2 | 10.36 | 1.05 | 1.73 | 8.63 |
| 3 | 8.63 | 0.86 | 1.73 | 6.90 |
| 4 | 6.90 | 0.67 | 1.73 | 5.18 |
| 5 | 5.18 | 0.48 | 1.73 | 3.45 |
| 6 | 3.45 | 0.29 | 1.73 | 1.73 |
| 7 | 1.73 | 0.10 | 1.73 | 0.00 |
17 Licences and registrations
- FSSAI licence (named in the report)
- Udyam registration
- GST registration
- Trademark for the brand (optional, per report)
- Boiler registration
- State Pollution Control Board consent (dairy effluent)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Agriculture Infrastructure Fund (AIF)
- 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 — Ghee (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Ghee_%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.