Detailed Project Report
Herbal Toothpaste Manufacturing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹8.31 L
- Term loan from bank
- ₹5.40 L
- Promoter’s contribution
- ₹0.83 L
- Subsidy
- ₹2.08 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.40 L
- Average DSCR
- -2.88
- 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 toothpaste with neem, babool and spices and fill it into 200 g tubes.
| Main product or service | Herbal Toothpaste Manufacturing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Kirana and medical stores
- Ayurvedic and herbal brands (contract manufacturing)
- Hotels and institutions
- FMCG distributors
- Ayurvedic stockists
- Private label
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pulveriser, 16 inch | 1 | 1,20,000 | 1,20,000 |
| RO water plant, 500 LPH | 1 | 1,10,000 | 1,10,000 |
| SS liquid mixing tank | 1 | 41,000 | 41,000 |
| Vacuum mixing machine | 1 | 2,40,000 | 2,40,000 |
| Paste filling and sealing machine | 1 | 1,30,000 | 1,30,000 |
| Storage tank | 1 | 1,00,000 | 1,00,000 |
| Other equipment and hand tools (× lot) | 1 | 50,000 | 50,000 |
| Total | 7,91,000 |
Pre-filled from: PMEGP sample project report — Herbal Toothpaste (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Calcium carbonate — 15,000 kg a year at ₹15/kg (full capacity)
- Gairic powder (red ochre) — 350 kg at ₹100/kg
- Sodium lauryl sulphate — 650 kg at ₹150/kg
- Sorbitol — 8,200 kg at ₹130/kg
- Sodium fluoride — 650 kg at ₹60/kg
- Tubes and packing material — 1,60,000 pcs at ₹8 each
- Flavour and herbs (black pepper, tomar seeds, long pepper, babool, neem) — ₹5.00 L a year lump sum
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.91 |
| Contingency | 0.40 |
| Total fixed capital | 8.31 |
| Working capital margin | 0.00 |
| Total project cost | 8.31 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.83 | 10.0 |
| Subsidy | 2.08 | 25.0 |
| Term loan from bank | 5.40 | 65.0 |
| Total | 8.31 | 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 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 |
| Operating profit (EBITDA) | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 |
| Depreciation | 1.25 | 1.06 | 0.90 | 0.77 | 0.65 | 0.55 | 0.47 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.58 | 0.51 | 0.41 | 0.32 | 0.23 | 0.14 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.92 | -4.65 | -4.40 | -4.18 | -3.97 | -3.78 | -3.61 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.92 | -4.65 | -4.40 | -4.18 | -3.97 | -3.78 | -3.61 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.92 | -4.65 | -4.40 | -4.18 | -3.97 | -3.78 | -3.61 |
| Depreciation | 1.25 | 1.06 | 0.90 | 0.77 | 0.65 | 0.55 | 0.47 |
| Cash accruals (PAT + depreciation) | -3.67 | -3.59 | -3.50 | -3.41 | -3.32 | -3.23 | -3.14 |
| Term loan repaid | 0.42 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.09 | -4.42 | -4.33 | -4.24 | -4.15 | -4.06 | -3.97 |
| Cash and bank | -4.09 | -8.51 | -12.84 | -17.09 | -21.24 | -25.30 | -29.26 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 |
| Reserves and surplus | -4.92 | -9.57 | -13.97 | -18.15 | -22.12 | -25.90 | -29.51 |
| Term loan outstanding | 4.98 | 4.15 | 3.32 | 2.49 | 1.66 | 0.83 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.97 | -2.51 | -7.74 | -12.75 | -17.55 | -22.16 | -26.60 |
| Net fixed assets | 7.06 | 6.00 | 5.10 | 4.34 | 3.69 | 3.13 | 2.66 |
| 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 | -4.09 | -8.51 | -12.84 | -17.09 | -21.24 | -25.30 | -29.26 |
| Total assets | 2.97 | -2.51 | -7.74 | -12.75 | -17.55 | -22.16 | -26.60 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.09 | -2.31 | -2.48 | -2.68 | -2.91 | -3.18 | -3.51 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.88 |
|---|---|
| Lowest DSCR | -3.51 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.25 | 1.06 | 0.90 | 0.77 | 0.65 | 0.55 | 0.47 |
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 | 5.40 | 0.58 | 0.42 | 4.98 |
| 2 | 4.98 | 0.51 | 0.83 | 4.15 |
| 3 | 4.15 | 0.41 | 0.83 | 3.32 |
| 4 | 3.32 | 0.32 | 0.83 | 2.49 |
| 5 | 2.49 | 0.23 | 0.83 | 1.66 |
| 6 | 1.66 | 0.14 | 0.83 | 0.83 |
| 7 | 0.83 | 0.05 | 0.83 | 0.00 |
17 Licences and registrations
- Cosmetics manufacturing licence from the State Drugs Controller (toothpaste is a cosmetic), or an Ayurvedic drug licence from the State AYUSH authority if sold as Ayurvedic medicine
- Udyam
- GST
- State pollution board consent (the report lists the NOC)
- Legal Metrology packaged commodity registration
- Trademark
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)
- Stand-Up India
19 Sources
- PMEGP sample project report — Herbal Toothpaste (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Herbal_Toothpaste_%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.