Detailed Project Report
Layer Poultry Farm (Commercial Egg Farm, 20,000 Birds)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹69.34 L
- Term loan from bank
- ₹62.41 L
- Promoter’s contribution
- ₹6.93 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-16.93 L
- Average DSCR
- -0.37
- 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
A cage-system farm that raises day-old layer chicks to laying age and sells table eggs every day, with culled birds, manure and gunny bags as side income.
| Main product or service | Layer Poultry Farm (Commercial Egg Farm, 20,000 Birds) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Egg wholesalers and traders
- Retail shops, hotels, bakeries and institutions
- Poultry meat traders for culled birds
- Farmers who buy poultry manure
- Daily farm-gate sale of eggs to traders
- Direct supply to local shops and bulk users
- Sale of culled birds at the end of each batch
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Brooder-cum-grower house (deep litter, 1 sq ft per bird) | 1 | 20,00,000 | 20,00,000 |
| Layer house (cage system, 0.85 sq ft per bird) | 1 | 34,00,000 | 34,00,000 |
| Brooder-cum-grower equipment (feeders, waterers, brooders) at ₹20 per bird | 1 | 2,04,000 | 2,04,000 |
| Layer cages and equipment at ₹50 per bird | 1 | 10,00,000 | 10,00,000 |
| Total | 66,04,000 |
Pre-filled from: NABARD model bankable project — Poultry Layer Farming. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Day-old layer chicks — 10,500 per batch at ₹25 a chick
- Chick and grower mash — 8.5 kg per bird up to 20 weeks, at an average ₹18 per kg
- Layer mash — 40 kg per bird over 52 weeks of laying, at ₹16 per kg
- Medicines and vaccines — with labour and miscellaneous: ₹12 per bird up to laying and ₹20 per bird during laying
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 66.04 |
| Contingency | 3.30 |
| Total fixed capital | 69.34 |
| Working capital margin | 0.00 |
| Total project cost | 69.34 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 6.93 | 10.0 |
| Term loan from bank | 62.41 | 90.0 |
| Total | 69.34 | 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 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 | 1.39 |
| Insurance | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
| Total cost of operations | 4.61 | 4.61 | 4.61 | 4.61 | 4.61 | 4.61 | 4.61 |
| Operating profit (EBITDA) | -4.61 | -4.61 | -4.61 | -4.61 | -4.61 | -4.61 | -4.61 |
| Depreciation | 10.40 | 8.84 | 7.51 | 6.39 | 5.43 | 4.62 | 3.92 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 6.75 | 5.85 | 4.80 | 3.74 | 2.68 | 1.63 | 0.57 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -21.77 | -19.31 | -16.93 | -14.74 | -12.73 | -10.86 | -9.11 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -21.77 | -19.31 | -16.93 | -14.74 | -12.73 | -10.86 | -9.11 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -21.77 | -19.31 | -16.93 | -14.74 | -12.73 | -10.86 | -9.11 |
| Depreciation | 10.40 | 8.84 | 7.51 | 6.39 | 5.43 | 4.62 | 3.92 |
| Cash accruals (PAT + depreciation) | -11.37 | -10.47 | -9.41 | -8.35 | -7.30 | -6.24 | -5.19 |
| Term loan repaid | 4.80 | 9.60 | 9.60 | 9.60 | 9.60 | 9.60 | 9.60 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -16.17 | -20.07 | -19.01 | -17.96 | -16.90 | -15.84 | -14.79 |
| Cash and bank | -16.17 | -36.24 | -55.25 | -73.20 | -90.10 | -105.95 | -120.73 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.93 | 6.93 | 6.93 | 6.93 | 6.93 | 6.93 | 6.93 |
| Reserves and surplus | -21.77 | -41.08 | -58.00 | -72.74 | -85.47 | -96.33 | -105.44 |
| Term loan outstanding | 57.61 | 48.01 | 38.40 | 28.80 | 19.20 | 9.60 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 42.77 | 13.86 | -12.66 | -37.01 | -59.33 | -79.79 | -98.50 |
| Net fixed assets | 58.94 | 50.10 | 42.58 | 36.20 | 30.77 | 26.15 | 22.23 |
| 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 | -16.17 | -36.24 | -55.25 | -73.20 | -90.10 | -105.95 | -120.73 |
| Total assets | 42.77 | 13.86 | -12.66 | -37.01 | -59.33 | -79.79 | -98.50 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.40 | -0.30 | -0.32 | -0.35 | -0.38 | -0.41 | -0.45 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.37 |
|---|---|
| Lowest DSCR | -0.45 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 10.40 | 8.84 | 7.51 | 6.39 | 5.43 | 4.62 | 3.92 |
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 | 62.41 | 6.75 | 4.80 | 57.61 |
| 2 | 57.61 | 5.85 | 9.60 | 48.01 |
| 3 | 48.01 | 4.80 | 9.60 | 38.40 |
| 4 | 38.40 | 3.74 | 9.60 | 28.80 |
| 5 | 28.80 | 2.68 | 9.60 | 19.20 |
| 6 | 19.20 | 1.63 | 9.60 | 9.60 |
| 7 | 9.60 | 0.57 | 9.60 | 0.00 |
17 Licences and registrations
- No-objection certificate from the panchayat or local body for the farm site
- Consent from the State Pollution Control Board, as required for large poultry farms
- Registration of the farm with the State Animal Husbandry Department where the state requires it
- Electricity connection and approval for a borewell where required
- GST registration if you sell taxable goods above the limit (fresh shell eggs are exempt)
18 Sources
- NABARD model bankable project — Poultry Layer Farming — https://www.nabard.org/auth/writereaddata/ModelBankProject/2009161029Poultry_Layer.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.