Detailed Project Report
Herbal Tea Bag Unit (Tulsi, Mint, Lemongrass)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.65 L
- Term loan from bank
- ₹2.38 L
- Promoter’s contribution
- ₹0.37 L
- Subsidy
- ₹0.91 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.55 L
- Average DSCR
- -6.30
- 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
Blend dried organic herbs and pack them into tagged tea bags on a semi-automatic machine for shops, hotels and yoga centres.
| Main product or service | Herbal Tea Bag Unit (Tulsi, Mint, Lemongrass) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Health-conscious households
- Yoga centres, hotels and Ayurveda retreats
- Gift buyers at festivals and wellness expos
- Stores, fairs and cafés
- Online marketplaces
- Bulk institutional orders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Tea bag making machine, semi-automatic, 1,000–2,000 bags an hour | 1 | 2,50,000 | 2,50,000 |
| Herb blender or mixer, stainless steel, 5–10 kg batch | 1 | 40,000 | 40,000 |
| Digital weighing scale | 1 | 5,000 | 5,000 |
| Heat sealer or band sealer | 1 | 8,000 | 8,000 |
| Label applicator or printer | 1 | 10,000 | 10,000 |
| Storage bins and racks | 1 | 25,000 | 25,000 |
| Quality control tools (moisture meter and others) | 1 | 10,000 | 10,000 |
| Total | 3,48,000 |
Pre-filled from: Uttarakhand DUY project profile — Organic Herbal Tea Bag Unit in Uttarakhand. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Dried herbs: tulsi, mint, lemongrass and others — 200–400 kg a month from organic growers
- Heat-sealable food-grade filter paper — biodegradable preferred
- Cotton or paper thread, tags, boxes and labels — with customisable labels
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.48 |
| Contingency | 0.17 |
| Total fixed capital | 3.65 |
| Working capital margin | 0.00 |
| Total project cost | 3.65 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.37 | 10.0 |
| Subsidy | 0.91 | 25.0 |
| Term loan from bank | 2.38 | 65.0 |
| Total | 3.65 | 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 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 |
| Operating profit (EBITDA) | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 |
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.26 | 0.22 | 0.18 | 0.14 | 0.10 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.78 | -3.66 | -3.55 | -3.45 | -3.36 | -3.28 | -3.20 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.78 | -3.66 | -3.55 | -3.45 | -3.36 | -3.28 | -3.20 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.78 | -3.66 | -3.55 | -3.45 | -3.36 | -3.28 | -3.20 |
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 |
| Cash accruals (PAT + depreciation) | -3.23 | -3.19 | -3.15 | -3.11 | -3.07 | -3.03 | -2.99 |
| Term loan repaid | 0.18 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.41 | -3.56 | -3.52 | -3.48 | -3.44 | -3.40 | -3.36 |
| Cash and bank | -3.41 | -6.97 | -10.49 | -13.97 | -17.41 | -20.81 | -24.17 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 |
| Reserves and surplus | -3.78 | -7.44 | -10.99 | -14.44 | -17.80 | -21.07 | -24.27 |
| Term loan outstanding | 2.19 | 1.83 | 1.46 | 1.10 | 0.73 | 0.37 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.31 | -4.33 | -8.25 | -12.06 | -15.79 | -19.43 | -22.99 |
| Net fixed assets | 3.11 | 2.64 | 2.24 | 1.91 | 1.62 | 1.38 | 1.17 |
| 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 | -3.41 | -6.97 | -10.49 | -13.97 | -17.41 | -20.81 | -24.17 |
| Total assets | -0.31 | -4.33 | -8.25 | -12.06 | -15.79 | -19.43 | -22.99 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.76 | -5.05 | -5.42 | -5.85 | -6.36 | -6.95 | -7.67 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.30 |
|---|---|
| Lowest DSCR | -7.67 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 |
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 | 2.38 | 0.26 | 0.18 | 2.19 |
| 2 | 2.19 | 0.22 | 0.37 | 1.83 |
| 3 | 1.83 | 0.18 | 0.37 | 1.46 |
| 4 | 1.46 | 0.14 | 0.37 | 1.10 |
| 5 | 1.10 | 0.10 | 0.37 | 0.73 |
| 6 | 0.73 | 0.06 | 0.37 | 0.37 |
| 7 | 0.37 | 0.02 | 0.37 | 0.00 |
17 Licences and registrations
- FSSAI registration or licence
- Udyam registration
- GST registration once turnover crosses the limit
- Organic certification (NPOP or PGS-India) if you label the tea organic
- Legal Metrology declarations on packs
18 Government schemes that may apply
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- Uttarakhand DUY project profile — Organic Herbal Tea Bag Unit in Uttarakhand — https://duy-heduk.org/downloads/project-profiles/Organic_Herbal_Tea_Bag_Unit_in_Uttarakhand.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.