Detailed Project Report
Lemongrass Oil (Cultivation and Distillation)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.25 L
- Term loan from bank
- ₹3.41 L
- Promoter’s contribution
- ₹0.53 L
- Subsidy
- ₹1.31 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.84 L
- Average DSCR
- -4.44
- 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
Grow lemongrass on 20 acres and steam-distil the oil on your own farm.
| Main product or service | Lemongrass Oil (Cultivation and Distillation) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Soap, toiletry and perfume makers
- Flavour and fragrance companies
- Pharmaceutical makers (pain balm, disinfectant, mosquito repellent)
- Essential-oil traders
- Sale to essential-oil traders and aggregators
- Direct supply to industrial buyers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Hydro-steam distillation unit, lifting type, 1.0 MT per batch, SS-304 with accessories | 1 | 3,20,000 | 3,20,000 |
| Distillation shed 25 ft × 16 ft × 15 ft (posts, CGI roof, brick floor) | 1 | 1,00,000 | 1,00,000 |
| Water supply: 2,000-litre tank at 14 ft, bore well, 3 hp diesel pump, pipes (× 1 set) | 1 | 60,000 | 60,000 |
| Installation | 1 | 20,000 | 20,000 |
| Total | 5,00,000 |
Pre-filled from: PMEGP sample project report — Lemon Grass Oil (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
- Lemongrass slips (Krishna, CKP-25) — 50,000 slips per ha at ₹0.40 each in the report; from registered or government nurseries
- Leased land — ₹12,000 per ha a year in the report
- FYM or compost — 1.5–2.0 t per acre at land preparation
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.00 |
| Contingency | 0.25 |
| Total fixed capital | 5.25 |
| Working capital margin | 0.00 |
| Total project cost | 5.25 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.53 | 10.0 |
| Subsidy | 1.31 | 25.0 |
| Term loan from bank | 3.41 | 65.0 |
| Total | 5.25 | 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 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 |
| Operating profit (EBITDA) | -3.01 | -3.01 | -3.01 | -3.01 | -3.01 | -3.01 | -3.01 |
| Depreciation | 0.79 | 0.67 | 0.57 | 0.48 | 0.41 | 0.35 | 0.30 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.37 | 0.32 | 0.26 | 0.20 | 0.15 | 0.09 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.17 | -4.00 | -3.84 | -3.70 | -3.57 | -3.45 | -3.34 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.17 | -4.00 | -3.84 | -3.70 | -3.57 | -3.45 | -3.34 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.17 | -4.00 | -3.84 | -3.70 | -3.57 | -3.45 | -3.34 |
| Depreciation | 0.79 | 0.67 | 0.57 | 0.48 | 0.41 | 0.35 | 0.30 |
| Cash accruals (PAT + depreciation) | -3.38 | -3.33 | -3.27 | -3.22 | -3.16 | -3.10 | -3.04 |
| Term loan repaid | 0.26 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.64 | -3.86 | -3.80 | -3.74 | -3.68 | -3.63 | -3.57 |
| Cash and bank | -3.64 | -7.50 | -11.30 | -15.04 | -18.72 | -22.35 | -25.91 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 |
| Reserves and surplus | -4.17 | -8.17 | -12.01 | -15.71 | -19.28 | -22.73 | -26.07 |
| Term loan outstanding | 3.15 | 2.63 | 2.10 | 1.58 | 1.05 | 0.53 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.82 | -3.71 | -8.07 | -12.30 | -16.39 | -20.37 | -24.23 |
| Net fixed assets | 4.46 | 3.79 | 3.22 | 2.74 | 2.33 | 1.98 | 1.68 |
| 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 | -3.64 | -7.50 | -11.30 | -15.04 | -18.72 | -22.35 | -25.91 |
| Total assets | 0.82 | -3.71 | -8.07 | -12.30 | -16.39 | -20.37 | -24.23 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.77 | -3.56 | -3.82 | -4.13 | -4.48 | -4.90 | -5.41 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.44 |
|---|---|
| Lowest DSCR | -5.41 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.79 | 0.67 | 0.57 | 0.48 | 0.41 | 0.35 | 0.30 |
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 | 3.41 | 0.37 | 0.26 | 3.15 |
| 2 | 3.15 | 0.32 | 0.53 | 2.63 |
| 3 | 2.63 | 0.26 | 0.53 | 2.10 |
| 4 | 2.10 | 0.20 | 0.53 | 1.58 |
| 5 | 1.58 | 0.15 | 0.53 | 1.05 |
| 6 | 1.05 | 0.09 | 0.53 | 0.53 |
| 7 | 0.53 | 0.03 | 0.53 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Land lease agreement
- Boiler or still safety checks as required by your state
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Lemon Grass Oil (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Lemon_Grass_Oil_%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.