Detailed Project Report
Milk Chocolate Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.66 L
- Term loan from bank
- ₹4.98 L
- Promoter’s contribution
- ₹0.77 L
- Subsidy
- ₹1.91 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.28 L
- Average DSCR
- -3.10
- 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
Roast cocoa, grind, mix with cocoa butter, sugar and milk powder, temper and mould into 100 g milk chocolate bars.
| Main product or service | Milk Chocolate Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Children and families
- Gift buyers at festivals and occasions
- Bakeries and confectioners
- Kirana, bakery and sweet shops
- Gift hampers and corporate orders
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Chocolate moulding machine (× 1 set) | 1 | 1,00,000 | 1,00,000 |
| Chocolate tempering machine, 15–30 kg (× 1 set) | 1 | 1,26,000 | 1,26,000 |
| Chocolate grinding machine, 10–100 kg/hr (× 1 set) | 1 | 45,000 | 45,000 |
| Automatic roasting machine, 50 kg | 1 | 1,80,000 | 1,80,000 |
| Chocolate refrigerator, 100 litres | 1 | 8,500 | 8,500 |
| Chocolate mixer | 1 | 1,50,000 | 1,50,000 |
| Other equipment and hand tools (× lot) | 1 | 1,20,000 | 1,20,000 |
| Total | 7,29,500 |
Pre-filled from: PMEGP sample project report — Milk Chocolate (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
- Cocoa butter — 2,250 kg a year at full capacity, ₹1,020 a kg
- Cocoa beans — 1,400 kg a year, ₹150 a kg
- Sugar — 3,600 kg a year, ₹20 a kg
- Milk powder — 1,800 kg a year, ₹380 a kg
- Lecithin, vanilla and packing material — ₹2.00 lakh a year (lump sum)
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.30 |
| Contingency | 0.36 |
| Total fixed capital | 7.66 |
| Working capital margin | 0.00 |
| Total project cost | 7.66 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.77 | 10.0 |
| Subsidy | 1.91 | 25.0 |
| Term loan from bank | 4.98 | 65.0 |
| Total | 7.66 | 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 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 |
| Operating profit (EBITDA) | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 |
| Depreciation | 1.15 | 0.98 | 0.83 | 0.71 | 0.60 | 0.51 | 0.43 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.54 | 0.47 | 0.38 | 0.30 | 0.21 | 0.13 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.76 | -4.52 | -4.28 | -4.08 | -3.89 | -3.71 | -3.55 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.76 | -4.52 | -4.28 | -4.08 | -3.89 | -3.71 | -3.55 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.76 | -4.52 | -4.28 | -4.08 | -3.89 | -3.71 | -3.55 |
| Depreciation | 1.15 | 0.98 | 0.83 | 0.71 | 0.60 | 0.51 | 0.43 |
| Cash accruals (PAT + depreciation) | -3.61 | -3.54 | -3.45 | -3.37 | -3.29 | -3.20 | -3.12 |
| Term loan repaid | 0.38 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.99 | -4.30 | -4.22 | -4.14 | -4.05 | -3.97 | -3.88 |
| Cash and bank | -3.99 | -8.30 | -12.52 | -16.65 | -20.71 | -24.67 | -28.56 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 | 2.68 |
| Reserves and surplus | -4.76 | -9.27 | -13.56 | -17.63 | -21.52 | -25.23 | -28.78 |
| Term loan outstanding | 4.60 | 3.83 | 3.06 | 2.30 | 1.53 | 0.77 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.52 | -2.76 | -7.81 | -12.66 | -17.31 | -21.78 | -26.10 |
| Net fixed assets | 6.51 | 5.53 | 4.70 | 4.00 | 3.40 | 2.89 | 2.46 |
| 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 | -3.99 | -8.30 | -12.52 | -16.65 | -20.71 | -24.67 | -28.56 |
| Total assets | 2.52 | -2.76 | -7.81 | -12.66 | -17.31 | -21.78 | -26.10 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.33 | -2.49 | -2.67 | -2.89 | -3.13 | -3.43 | -3.78 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.10 |
|---|---|
| Lowest DSCR | -3.78 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.15 | 0.98 | 0.83 | 0.71 | 0.60 | 0.51 | 0.43 |
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 | 4.98 | 0.54 | 0.38 | 4.60 |
| 2 | 4.60 | 0.47 | 0.77 | 3.83 |
| 3 | 3.83 | 0.38 | 0.77 | 3.06 |
| 4 | 3.06 | 0.30 | 0.77 | 2.30 |
| 5 | 2.30 | 0.21 | 0.77 | 1.53 |
| 6 | 1.53 | 0.13 | 0.77 | 0.77 |
| 7 | 0.77 | 0.05 | 0.77 | 0.00 |
17 Licences and registrations
- FSSAI licence or registration
- GST registration
- Udyam registration
- Trademark for your brand (if needed)
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 — Milk Chocolate (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Milk_Chocolate_%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.