Detailed Project Report
Herbal Cosmetics Manufacturing (Creams and Lotions)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹14.81 L
- Term loan from bank
- ₹9.62 L
- Promoter’s contribution
- ₹1.48 L
- Subsidy
- ₹3.70 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.59 L
- Average DSCR
- -1.70
- 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
Make herbal creams, lotions and other beauty products from plant oils and herb extracts, and sell them under your own or another brand.
| Main product or service | Herbal Cosmetics Manufacturing (Creams and Lotions) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households buying skin and hair care
- Beauty parlours and salons
- Brands that buy contract-made products
- Distributors to chemists, general stores and cosmetic shops
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pulveriser with 7.5 HP and 2.5 HP motors (× 4) | 1 | 2,40,000 | 2,40,000 |
| Disintegrator, 7.5 HP, with sieves (× 4) | 1 | 1,20,000 | 1,20,000 |
| Tray drier | 1 | 1,00,000 | 1,00,000 |
| SS mixing vessels with stirrer (× 5) | 1 | 1,50,000 | 1,50,000 |
| Bottle filling machines (× 2) | 1 | 60,000 | 60,000 |
| Bottle sealing machines (× 2) | 1 | 40,000 | 40,000 |
| Bottle washing and drying machines (× 2) | 1 | 1,00,000 | 1,00,000 |
| Water treatment plant, 100 litres | 1 | 3,00,000 | 3,00,000 |
| Quality control and testing equipment | 1 | 3,00,000 | 3,00,000 |
| Total | 14,10,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — Herbal Cosmetics. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Herbs and plant extracts (aloe vera, neem, amla, henna and others) — one formulation may use 8 to 10 active ingredients
- Oils and waxes (coconut, sunflower and olive oil, beeswax, paraffin) — form the cream or lotion base
- Bottles, caps, labels and cartons — raw and packing material for a month is ₹2.00 lakh
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 14.10 |
| Contingency | 0.71 |
| Total fixed capital | 14.81 |
| Working capital margin | 0.00 |
| Total project cost | 14.81 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.48 | 10.0 |
| Subsidy | 3.70 | 25.0 |
| Term loan from bank | 9.62 | 65.0 |
| Total | 14.81 | 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 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 | 0.30 |
| Insurance | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Total cost of operations | 3.25 | 3.25 | 3.25 | 3.25 | 3.25 | 3.25 | 3.25 |
| Operating profit (EBITDA) | -3.25 | -3.25 | -3.25 | -3.25 | -3.25 | -3.25 | -3.25 |
| Depreciation | 2.22 | 1.89 | 1.60 | 1.36 | 1.16 | 0.99 | 0.84 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.04 | 0.90 | 0.74 | 0.58 | 0.41 | 0.25 | 0.09 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.51 | -6.04 | -5.59 | -5.19 | -4.82 | -4.49 | -4.18 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.51 | -6.04 | -5.59 | -5.19 | -4.82 | -4.49 | -4.18 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.51 | -6.04 | -5.59 | -5.19 | -4.82 | -4.49 | -4.18 |
| Depreciation | 2.22 | 1.89 | 1.60 | 1.36 | 1.16 | 0.99 | 0.84 |
| Cash accruals (PAT + depreciation) | -4.29 | -4.15 | -3.99 | -3.83 | -3.66 | -3.50 | -3.34 |
| Term loan repaid | 0.74 | 1.48 | 1.48 | 1.48 | 1.48 | 1.48 | 1.48 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.03 | -5.63 | -5.47 | -5.31 | -5.14 | -4.98 | -4.82 |
| Cash and bank | -5.03 | -10.67 | -16.14 | -21.44 | -26.59 | -31.57 | -36.39 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.18 | 5.18 | 5.18 | 5.18 | 5.18 | 5.18 | 5.18 |
| Reserves and surplus | -6.51 | -12.55 | -18.15 | -23.34 | -28.16 | -32.65 | -36.82 |
| Term loan outstanding | 8.88 | 7.40 | 5.92 | 4.44 | 2.96 | 1.48 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 7.55 | 0.03 | -7.04 | -13.71 | -20.02 | -25.99 | -31.64 |
| Net fixed assets | 12.58 | 10.70 | 9.09 | 7.73 | 6.57 | 5.58 | 4.75 |
| 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 | -5.03 | -10.67 | -16.14 | -21.44 | -26.59 | -31.57 | -36.39 |
| Total assets | 7.55 | 0.03 | -7.04 | -13.71 | -20.02 | -25.99 | -31.64 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.82 | -1.36 | -1.46 | -1.58 | -1.72 | -1.88 | -2.07 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.70 |
|---|---|
| Lowest DSCR | -2.07 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.22 | 1.89 | 1.60 | 1.36 | 1.16 | 0.99 | 0.84 |
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 | 9.62 | 1.04 | 0.74 | 8.88 |
| 2 | 8.88 | 0.90 | 1.48 | 7.40 |
| 3 | 7.40 | 0.74 | 1.48 | 5.92 |
| 4 | 5.92 | 0.58 | 1.48 | 4.44 |
| 5 | 4.44 | 0.41 | 1.48 | 2.96 |
| 6 | 2.96 | 0.25 | 1.48 | 1.48 |
| 7 | 1.48 | 0.09 | 1.48 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Cosmetic manufacturing licence under the Drugs and Cosmetics Act from the State Licensing Authority
- AYUSH (Ayurvedic) manufacturing licence if products are sold as Ayurvedic medicines
- Pollution control consent
- Legal Metrology registration for packaged goods
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)
19 Sources
- SIDBI Stand-Up Mitra project profile — Herbal Cosmetics — https://www.standupmitra.in/Default/ViewFile/?id=1516103042645_Herbal%20Cosmetics.doc&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.