Detailed Project Report
Ice Cream Making Unit
—
Prepared on: 26 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.54 L
- Term loan from bank
- ₹11.40 L
- Promoter’s contribution
- ₹1.75 L
- Subsidy
- ₹4.38 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.09 L
- Average DSCR
- -1.46
- 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 ice cream cups and cones from milk, cream and sugar and sell through vendors and shops.
| Main product or service | Ice Cream Making Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Railways (named as the biggest bulk buyer)
- Hotels, restaurants, resorts and flight kitchens
- School children and families through street vendors
- Cart vendors on 35% commission
- Shops with freezers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| SS milk storage tank, 300 L (× 2) | 1 | 0 | 0 |
| SS steam-jacketed pan, 400 L | 1 | 0 | 0 |
| SS steam-jacketed pasteuriser, 320 L, with 6 HP agitator motor | 1 | 0 | 0 |
| SS two-stage homogeniser, 350 L, 4.5 HP | 1 | 0 | 0 |
| SS surface cooler (4.4 °C to 0 °C) | 1 | 0 | 0 |
| SS ageing vat, 300 L, with condensing unit | 1 | 0 | 0 |
| Batch freezer, 35 L, 9 TR with 6 HP compressor | 1 | 0 | 0 |
| Deep freezer, volumetric filling machine and baby boiler (non-IBR) (× 1 each) | 1 | 16,70,000 | 16,70,000 |
| Total | 16,70,000 |
Pre-filled from: PMEGP sample project report — Ice Cream (prepared by Udyami/Samadhan); DGFT – ITC(HS) 2022 Schedule (Notification 54 dated 9 Feb 2022). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Milk — 54,000 L a year at ₹30 a litre
- Cream and butter — 6,300 kg cream at ₹70 and 2,200 kg butter at ₹400 a kg
- Sugar and corn syrup — 10,900 kg sugar at ₹35 and 4,200 kg corn syrup at ₹30 a kg
- Stabilisers, emulsifiers and flavours — 3,225 kg at ₹200 a kg
- Printed cups, sticks and paper covers — 7,50,000 each at ₹1, ₹0.25 and ₹0.50; full-year raw material ₹54.06 L at 100%
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.70 |
| Contingency | 0.84 |
| Total fixed capital | 17.54 |
| Working capital margin | 0.00 |
| Total project cost | 17.54 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.75 | 10.0 |
| Subsidy | 4.38 | 25.0 |
| Term loan from bank | 11.40 | 65.0 |
| Total | 17.54 | 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 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 |
| Operating profit (EBITDA) | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 |
| Depreciation | 2.63 | 2.24 | 1.90 | 1.62 | 1.37 | 1.17 | 0.99 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.23 | 1.07 | 0.88 | 0.68 | 0.49 | 0.30 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.18 | -6.62 | -6.09 | -5.62 | -5.18 | -4.78 | -4.41 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.18 | -6.62 | -6.09 | -5.62 | -5.18 | -4.78 | -4.41 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.18 | -6.62 | -6.09 | -5.62 | -5.18 | -4.78 | -4.41 |
| Depreciation | 2.63 | 2.24 | 1.90 | 1.62 | 1.37 | 1.17 | 0.99 |
| Cash accruals (PAT + depreciation) | -4.55 | -4.39 | -4.19 | -4.00 | -3.81 | -3.62 | -3.42 |
| Term loan repaid | 0.88 | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.43 | -6.14 | -5.95 | -5.76 | -5.56 | -5.37 | -5.18 |
| Cash and bank | -5.43 | -11.57 | -17.52 | -23.27 | -28.83 | -34.20 | -39.38 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.14 | 6.14 | 6.14 | 6.14 | 6.14 | 6.14 | 6.14 |
| Reserves and surplus | -7.18 | -13.81 | -19.90 | -25.52 | -30.70 | -35.48 | -39.90 |
| Term loan outstanding | 10.52 | 8.77 | 7.01 | 5.26 | 3.51 | 1.75 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.48 | 1.10 | -6.75 | -14.12 | -21.05 | -27.59 | -33.76 |
| Net fixed assets | 14.90 | 12.67 | 10.77 | 9.15 | 7.78 | 6.61 | 5.62 |
| 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 | -5.43 | -11.57 | -17.52 | -23.27 | -28.83 | -34.20 | -39.38 |
| Total assets | 9.48 | 1.10 | -6.75 | -14.12 | -21.05 | -27.59 | -33.76 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.57 | -1.18 | -1.26 | -1.36 | -1.48 | -1.62 | -1.79 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.46 |
|---|---|
| Lowest DSCR | -1.79 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.63 | 2.24 | 1.90 | 1.62 | 1.37 | 1.17 | 0.99 |
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 | 11.40 | 1.23 | 0.88 | 10.52 |
| 2 | 10.52 | 1.07 | 1.75 | 8.77 |
| 3 | 8.77 | 0.88 | 1.75 | 7.01 |
| 4 | 7.01 | 0.68 | 1.75 | 5.26 |
| 5 | 5.26 | 0.49 | 1.75 | 3.51 |
| 6 | 3.51 | 0.30 | 1.75 | 1.75 |
| 7 | 1.75 | 0.10 | 1.75 | 0.00 |
17 Licences and registrations
- FSSAI licence or registration
- Udyam registration
- GST registration
- Consent from the State Pollution Control Board
- BIS standard IS 2802 is cited in the report (voluntary)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Ice Cream (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Ice_Cream_%28_Samadhan_Projects_%29.pdf
- DGFT – ITC(HS) 2022 Schedule (Notification 54 dated 9 Feb 2022) — https://content.dgft.gov.in/Website/dgftprod/7d5fd1eb-ad39-4c99-b760-014223657469/Eng-Notification%2054%20dated%209%20Feb%202022%20ITC(HS)%202022%20_with%20Annexures.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.