Detailed Project Report
Medicinal Plant Cultivation (Kalmegh, Bhringraj and Others)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.33 L
- Term loan from bank
- ₹15.59 L
- Promoter’s contribution
- ₹1.73 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.39 L
- Average DSCR
- -1.07
- 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 makoi, kalmegh, bhringraj, vach, ekangi and amada (mango ginger) on 5 hectares and sell them dried to Ayurvedic and pharma buyers.
| Main product or service | Medicinal Plant Cultivation (Kalmegh, Bhringraj and Others) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Pharmaceutical companies
- Ayurvedic manufacturers
- Nutraceutical companies
- Export buyers
- Supply contracts and contract farming
- Direct-to-consumer sales of packed herbs
- Export market development
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Drip and sprinkler irrigation system | 1 | 3,50,000 | 3,50,000 |
| Tractor, tiller and sprayers (× 1 set) | 1 | 6,00,000 | 6,00,000 |
| Solar and mechanical dryers (× 1 set) | 1 | 2,50,000 | 2,50,000 |
| Processing equipment (grinders, separators) (× 1 set) | 1 | 3,00,000 | 3,00,000 |
| Packing equipment (weighing, sealing, labelling) (× 1 set) | 1 | 1,50,000 | 1,50,000 |
| Total | 16,50,000 |
Pre-filled from: Uttarakhand DUY project profile — Herbal and Medicinal Plant Cultivation. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Seeds and planting material — ₹15,000–30,000 a hectare depending on the crop
- Organic fertilisers — ₹12,000–20,000 a hectare
- Biopesticides — ₹8,000–12,000 a hectare
- Packing material — ₹6,000–12,000 a hectare
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.50 |
| Contingency | 0.83 |
| Total fixed capital | 17.33 |
| Working capital margin | 0.00 |
| Total project cost | 17.33 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.73 | 10.0 |
| Term loan from bank | 15.59 | 90.0 |
| Total | 17.33 | 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 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 |
| Operating profit (EBITDA) | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 |
| Depreciation | 2.60 | 2.21 | 1.88 | 1.60 | 1.36 | 1.15 | 0.98 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.69 | 1.46 | 1.20 | 0.93 | 0.67 | 0.41 | 0.14 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.60 | -6.98 | -6.39 | -5.84 | -5.34 | -4.87 | -4.44 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.60 | -6.98 | -6.39 | -5.84 | -5.34 | -4.87 | -4.44 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.60 | -6.98 | -6.39 | -5.84 | -5.34 | -4.87 | -4.44 |
| Depreciation | 2.60 | 2.21 | 1.88 | 1.60 | 1.36 | 1.15 | 0.98 |
| Cash accruals (PAT + depreciation) | -5.00 | -4.78 | -4.51 | -4.25 | -3.98 | -3.72 | -3.46 |
| Term loan repaid | 1.20 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.20 | -7.17 | -6.91 | -6.65 | -6.38 | -6.12 | -5.85 |
| Cash and bank | -6.20 | -13.37 | -20.28 | -26.93 | -33.31 | -39.43 | -45.29 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 |
| Reserves and surplus | -7.60 | -14.58 | -20.97 | -26.82 | -32.16 | -37.03 | -41.47 |
| Term loan outstanding | 14.39 | 11.99 | 9.60 | 7.20 | 4.80 | 2.40 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.53 | -0.86 | -9.65 | -17.89 | -25.63 | -32.90 | -39.73 |
| Net fixed assets | 14.73 | 12.52 | 10.64 | 9.04 | 7.69 | 6.53 | 5.55 |
| 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 | -6.20 | -13.37 | -20.28 | -26.93 | -33.31 | -39.43 | -45.29 |
| Total assets | 8.53 | -0.86 | -9.65 | -17.89 | -25.63 | -32.90 | -39.73 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.15 | -0.86 | -0.92 | -0.99 | -1.08 | -1.18 | -1.30 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.07 |
|---|---|
| Lowest DSCR | -1.30 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.60 | 2.21 | 1.88 | 1.60 | 1.36 | 1.15 | 0.98 |
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 | 15.59 | 1.69 | 1.20 | 14.39 |
| 2 | 14.39 | 1.46 | 2.40 | 11.99 |
| 3 | 11.99 | 1.20 | 2.40 | 9.60 |
| 4 | 9.60 | 0.93 | 2.40 | 7.20 |
| 5 | 7.20 | 0.67 | 2.40 | 4.80 |
| 6 | 4.80 | 0.41 | 2.40 | 2.40 |
| 7 | 2.40 | 0.14 | 2.40 | 0.00 |
17 Licences and registrations
- Land title or lease papers for the farm
- Organic certification under NPOP for premium buyers (optional)
- GACP (good agricultural and collection practices) certification, which pharma buyers often ask for
- Udyam and GST once you process and sell packed herbs
18 Government schemes that may apply
- Agriculture Infrastructure Fund (AIF)
19 Sources
- Uttarakhand DUY project profile — Herbal and Medicinal Plant Cultivation — https://duy-heduk.org/downloads/project-profiles/herbal_and_medicinal_plant_cultivation.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.