Detailed Project Report
LLDPE Agricultural Mulch Film
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹33.60 L
- Term loan from bank
- ₹21.84 L
- Promoter’s contribution
- ₹3.36 L
- Subsidy
- ₹8.40 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-9.04 L
- Average DSCR
- -0.86
- 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
Blow LLDPE granules into mulch film that farmers lay over beds to save water and stop weeds.
| Main product or service | LLDPE Agricultural Mulch Film |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Vegetable, fruit and flower growers
- Agri-input and seed dealers
- Drip and micro-irrigation suppliers
- Horticulture department schemes
- Dealer network in farming districts
- Supply through irrigation contractors
- Direct sale to farmer groups and FPOs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Extrusion blown film plant (90 mm), 120 kg per hour | 1 | 22,00,000 | 22,00,000 |
| Cooling tower | 1 | 3,00,000 | 3,00,000 |
| Compressor | 1 | 3,00,000 | 3,00,000 |
| Moulds and dies (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Other equipment and hand tools (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Total | 32,00,000 |
Pre-filled from: PMEGP sample project report — LLDPE Agricultural Mulch Film (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
- LLDPE granules — 360 MT a year at ₹75,000 per MT at full capacity
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 32.00 |
| Contingency | 1.60 |
| Total fixed capital | 33.60 |
| Working capital margin | 0.00 |
| Total project cost | 33.60 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.36 | 10.0 |
| Subsidy | 8.40 | 25.0 |
| Term loan from bank | 21.84 | 65.0 |
| Total | 33.60 | 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 | 0.67 | 0.67 | 0.67 | 0.67 | 0.67 | 0.67 | 0.67 |
| Insurance | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Total cost of operations | 3.72 | 3.72 | 3.72 | 3.72 | 3.72 | 3.72 | 3.72 |
| Operating profit (EBITDA) | -3.72 | -3.72 | -3.72 | -3.72 | -3.72 | -3.72 | -3.72 |
| Depreciation | 5.04 | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 | 1.90 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.36 | 2.05 | 1.68 | 1.31 | 0.94 | 0.57 | 0.20 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -11.12 | -10.05 | -9.04 | -8.12 | -7.29 | -6.53 | -5.82 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -11.12 | -10.05 | -9.04 | -8.12 | -7.29 | -6.53 | -5.82 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -11.12 | -10.05 | -9.04 | -8.12 | -7.29 | -6.53 | -5.82 |
| Depreciation | 5.04 | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 | 1.90 |
| Cash accruals (PAT + depreciation) | -6.08 | -5.77 | -5.40 | -5.03 | -4.66 | -4.29 | -3.92 |
| Term loan repaid | 1.68 | 3.36 | 3.36 | 3.36 | 3.36 | 3.36 | 3.36 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -7.76 | -9.13 | -8.76 | -8.39 | -8.02 | -7.65 | -7.28 |
| Cash and bank | -7.76 | -16.89 | -25.65 | -34.04 | -42.06 | -49.71 | -56.99 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 11.76 | 11.76 | 11.76 | 11.76 | 11.76 | 11.76 | 11.76 |
| Reserves and surplus | -11.12 | -21.18 | -30.22 | -38.34 | -45.63 | -52.16 | -57.98 |
| Term loan outstanding | 20.16 | 16.80 | 13.44 | 10.08 | 6.72 | 3.36 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 20.80 | 7.38 | -5.02 | -16.50 | -27.15 | -37.04 | -46.22 |
| Net fixed assets | 28.56 | 24.28 | 20.63 | 17.54 | 14.91 | 12.67 | 10.77 |
| 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 | -7.76 | -16.89 | -25.65 | -34.04 | -42.06 | -49.71 | -56.99 |
| Total assets | 20.80 | 7.38 | -5.02 | -16.50 | -27.15 | -37.04 | -46.22 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.92 | -0.69 | -0.74 | -0.80 | -0.87 | -0.95 | -1.04 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.86 |
|---|---|
| Lowest DSCR | -1.04 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.04 | 4.28 | 3.64 | 3.10 | 2.63 | 2.24 | 1.90 |
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 | 21.84 | 2.36 | 1.68 | 20.16 |
| 2 | 20.16 | 2.05 | 3.36 | 16.80 |
| 3 | 16.80 | 1.68 | 3.36 | 13.44 |
| 4 | 13.44 | 1.31 | 3.36 | 10.08 |
| 5 | 10.08 | 0.94 | 3.36 | 6.72 |
| 6 | 6.72 | 0.57 | 3.36 | 3.36 |
| 7 | 3.36 | 0.20 | 3.36 | 0.00 |
17 Licences and registrations
- Udyam registration (the report lists Udyog Aadhaar as optional)
- GST
- State Pollution Control Board consent
- Registration under the Plastic Waste Management Rules with the State Pollution Control Board
- Trademark (optional)
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 — LLDPE Agricultural Mulch Film (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/LLDPE_Agricultural_Mulch_%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.