Detailed Project Report
Instant Noodles Making
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹13.76 L
- Term loan from bank
- ₹8.94 L
- Promoter’s contribution
- ₹1.38 L
- Subsidy
- ₹3.44 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.40 L
- Average DSCR
- -1.81
- 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
Mix flour into dough, extrude, steam and dry it into noodles packed in 200 g pouches for small-town markets.
| Main product or service | Instant Noodles Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households in semi-urban and rural North India
- Fast-food stalls and eateries
- Hostels and canteens
- FMCG distributors to kirana shops
- Wholesale markets
- Local advertising in regional-language media
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Steam boiler | 1 | 1,50,000 | 1,50,000 |
| Vertical powder mixer | 1 | 75,000 | 75,000 |
| Dough maker | 1 | 50,000 | 50,000 |
| Noodle extrusion machine | 1 | 5,00,000 | 5,00,000 |
| Tray dryer | 1 | 1,75,000 | 1,75,000 |
| Wooden trays (× 1 lot) | 1 | 35,000 | 35,000 |
| Utensils (× 1 lot) | 1 | 15,000 | 15,000 |
| Water storage tank | 1 | 5,000 | 5,000 |
| Weighing machine and balances (× 1 lot) | 1 | 20,000 | 20,000 |
| Working tables (× 1 lot) | 1 | 10,000 | 10,000 |
| Pouch packaging machine | 1 | 1,25,000 | 1,25,000 |
| Lab and pollution-control equipment (× 1 lot) | 1 | 1,00,000 | 1,00,000 |
| Electrification and installation (× 1 lot) | 1 | 50,000 | 50,000 |
| Total | 13,10,000 |
Pre-filled from: PMEGP sample project report — Ready to Eat Noodles (prepared by Udyami/Samadhan); DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wheat flour / maida — main raw material
- Sugar and common salt — dough and tastemaker
- Spices, garlic, ginger — for the tastemaker
- Sodium bicarbonate and colour — additives
- Cartons, labels and pouches — 200 g pouches; all raw material ₹79.00 L in year 1
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 13.10 |
| Contingency | 0.66 |
| Total fixed capital | 13.76 |
| Working capital margin | 0.00 |
| Total project cost | 13.76 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.38 | 10.0 |
| Subsidy | 3.44 | 25.0 |
| Term loan from bank | 8.94 | 65.0 |
| Total | 13.76 | 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 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Insurance | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Total cost of operations | 3.22 | 3.22 | 3.22 | 3.22 | 3.22 | 3.22 | 3.22 |
| Operating profit (EBITDA) | -3.22 | -3.22 | -3.22 | -3.22 | -3.22 | -3.22 | -3.22 |
| Depreciation | 2.06 | 1.75 | 1.49 | 1.27 | 1.08 | 0.92 | 0.78 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.97 | 0.84 | 0.69 | 0.54 | 0.38 | 0.23 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.25 | -5.82 | -5.40 | -5.03 | -4.69 | -4.37 | -4.08 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.25 | -5.82 | -5.40 | -5.03 | -4.69 | -4.37 | -4.08 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.25 | -5.82 | -5.40 | -5.03 | -4.69 | -4.37 | -4.08 |
| Depreciation | 2.06 | 1.75 | 1.49 | 1.27 | 1.08 | 0.92 | 0.78 |
| Cash accruals (PAT + depreciation) | -4.19 | -4.06 | -3.91 | -3.76 | -3.61 | -3.46 | -3.31 |
| Term loan repaid | 0.69 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.88 | -5.44 | -5.29 | -5.14 | -4.98 | -4.83 | -4.68 |
| Cash and bank | -4.88 | -10.32 | -15.60 | -20.74 | -25.72 | -30.56 | -35.24 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.81 | 4.81 | 4.81 | 4.81 | 4.81 | 4.81 | 4.81 |
| Reserves and surplus | -6.25 | -12.07 | -17.47 | -22.50 | -27.19 | -31.56 | -35.64 |
| Term loan outstanding | 8.25 | 6.88 | 5.50 | 4.13 | 2.75 | 1.38 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 6.81 | -0.38 | -7.16 | -13.56 | -19.62 | -25.37 | -30.83 |
| Net fixed assets | 11.69 | 9.94 | 8.45 | 7.18 | 6.10 | 5.19 | 4.41 |
| 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 | -4.88 | -10.32 | -15.60 | -20.74 | -25.72 | -30.56 | -35.24 |
| Total assets | 6.81 | -0.38 | -7.16 | -13.56 | -19.62 | -25.37 | -30.83 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.95 | -1.46 | -1.56 | -1.69 | -1.83 | -2.00 | -2.21 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.81 |
|---|---|
| Lowest DSCR | -2.21 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.06 | 1.75 | 1.49 | 1.27 | 1.08 | 0.92 | 0.78 |
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 | 8.94 | 0.97 | 0.69 | 8.25 |
| 2 | 8.25 | 0.84 | 1.38 | 6.88 |
| 3 | 6.88 | 0.69 | 1.38 | 5.50 |
| 4 | 5.50 | 0.54 | 1.38 | 4.13 |
| 5 | 4.13 | 0.38 | 1.38 | 2.75 |
| 6 | 2.75 | 0.23 | 1.38 | 1.38 |
| 7 | 1.38 | 0.08 | 1.38 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam
- GST
- Legal Metrology registration for packed goods
- Pollution control board consent
- IS 1485 (BIS standard for macaroni, spaghetti, vermicelli and egg noodles) as a quality benchmark
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Ready to Eat Noodles (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Ready_to_eat_noodles_%28_Samadhan_Projects_%29.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.