Detailed Project Report
Forest Herb Collection and Trading Centre
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.87 L
- Term loan from bank
- ₹0.57 L
- Promoter’s contribution
- ₹0.09 L
- Subsidy
- ₹0.22 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.04 L
- Average DSCR
- -25.78
- 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
Buying raw forest herbs such as amla, harra and baheda from collectors, then sorting, drying, grinding, packing and selling them to medicine and cosmetic makers.
| Main product or service | Forest Herb Collection and Trading Centre |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Ayurvedic medicine makers
- Cosmetic makers
- Herb wholesalers
- Direct supply to factories
- Sale through herb mandis and traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pulveriser / grinder with accessories, diesel engine, utensils, weighing balance, packaging tools and furniture (× 1 set) | 1 | 75,000 | 75,000 |
| Sales tax, freight and insurance | 1 | 8,000 | 8,000 |
| Total | 83,000 |
Pre-filled from: NSTFDC model project profile — Herbal Collection Center. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw herbs — amla, harra, baheda, musli and others — 2,700 kg a month, ₹27,000; from local forest depots and traders
- Packaging material — ₹1,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.83 |
| Contingency | 0.04 |
| Total fixed capital | 0.87 |
| Working capital margin | 0.00 |
| Total project cost | 0.87 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.09 | 10.0 |
| Subsidy | 0.22 | 25.0 |
| Term loan from bank | 0.57 | 65.0 |
| Total | 0.87 | 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 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 |
| Operating profit (EBITDA) | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 |
| Depreciation | 0.13 | 0.11 | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.06 | 0.05 | 0.04 | 0.03 | 0.02 | 0.01 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.09 | -3.07 | -3.04 | -3.02 | -2.99 | -2.97 | -2.96 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.09 | -3.07 | -3.04 | -3.02 | -2.99 | -2.97 | -2.96 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.09 | -3.07 | -3.04 | -3.02 | -2.99 | -2.97 | -2.96 |
| Depreciation | 0.13 | 0.11 | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 |
| Cash accruals (PAT + depreciation) | -2.96 | -2.95 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
| Term loan repaid | 0.04 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.01 | -3.04 | -3.03 | -3.02 | -3.01 | -3.00 | -2.99 |
| Cash and bank | -3.01 | -6.05 | -9.08 | -12.10 | -15.12 | -18.12 | -21.12 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 |
| Reserves and surplus | -3.09 | -6.16 | -9.20 | -12.22 | -15.21 | -18.18 | -21.14 |
| Term loan outstanding | 0.52 | 0.44 | 0.35 | 0.26 | 0.17 | 0.09 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.27 | -5.42 | -8.55 | -11.65 | -14.73 | -17.79 | -20.84 |
| Net fixed assets | 0.74 | 0.63 | 0.54 | 0.45 | 0.39 | 0.33 | 0.28 |
| 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 | -3.01 | -6.05 | -9.08 | -12.10 | -15.12 | -18.12 | -21.12 |
| Total assets | -2.27 | -5.42 | -8.55 | -11.65 | -14.73 | -17.79 | -20.84 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -27.67 | -20.69 | -22.20 | -23.96 | -26.02 | -28.47 | -31.42 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -25.78 |
|---|---|
| Lowest DSCR | -31.42 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.13 | 0.11 | 0.09 | 0.08 | 0.07 | 0.06 | 0.05 |
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 | 0.57 | 0.06 | 0.04 | 0.52 |
| 2 | 0.52 | 0.05 | 0.09 | 0.44 |
| 3 | 0.44 | 0.04 | 0.09 | 0.35 |
| 4 | 0.35 | 0.03 | 0.09 | 0.26 |
| 5 | 0.26 | 0.02 | 0.09 | 0.17 |
| 6 | 0.17 | 0.01 | 0.09 | 0.09 |
| 7 | 0.09 | 0.01 | 0.09 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration once turnover crosses the limit
- Transit permit and registration with the State Forest Department for forest produce
- FSSAI registration if herbs are sold for food use
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- NSTFDC model project profile — Herbal Collection Center — https://nstfdc.tribal.gov.in/UploadData/pdf/herbal_collection.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.