Detailed Project Report
Milk Collection Centre with Bulk Milk Cooler (FPO-run)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.61 L
- Term loan from bank
- ₹6.85 L
- Promoter’s contribution
- ₹0.76 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.42 L
- Average DSCR
- -2.25
- 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 farmer producer organisation buys members' milk at automatic collection units, chills it in a bulk cooler and sells it to hotels, processors and the milk union.
| Main product or service | Milk Collection Centre with Bulk Milk Cooler (FPO-run) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Hotels
- Private milk processors and dairy plants
- The district milk union
- Daily supply of chilled milk in 40-litre cans
- Annual tie-up with a dairy or milk union, with loan repayment routed from sale proceeds
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Automatic milk collection unit (weighing system, electronic milk tester, computer with printer, battery) (× 2) | 1 | 2,40,000 | 2,40,000 |
| Bulk milk cooler, 500 litres, with accessories | 1 | 2,78,000 | 2,78,000 |
| Generator, weighing machine, weighing bowl, roller conveyor, can wash tub, electricity connection and installation | 1 | 1,77,000 | 1,77,000 |
| Milk cans, 40 litres (× 25) | 1 | 30,000 | 30,000 |
| Total | 7,25,000 |
Pre-filled from: NABARD model bankable project — Milk Collection Unit by FPO. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw milk from FPO members — bought at ₹26 a litre; about 3 litres a day per member
- Diesel for the generator — taken at ₹750 a day
- Testing chemicals, printing and stationery — miscellaneous cost of ₹0.10 per litre
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.25 |
| Contingency | 0.36 |
| Total fixed capital | 7.61 |
| Working capital margin | 0.00 |
| Total project cost | 7.61 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.76 | 10.0 |
| Term loan from bank | 6.85 | 90.0 |
| Total | 7.61 | 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 | 1.14 | 0.97 | 0.83 | 0.70 | 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 | 0.74 | 0.64 | 0.53 | 0.41 | 0.29 | 0.18 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.95 | -4.68 | -4.42 | -4.18 | -3.96 | -3.76 | -3.56 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.95 | -4.68 | -4.42 | -4.18 | -3.96 | -3.76 | -3.56 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.95 | -4.68 | -4.42 | -4.18 | -3.96 | -3.76 | -3.56 |
| Depreciation | 1.14 | 0.97 | 0.83 | 0.70 | 0.60 | 0.51 | 0.43 |
| Cash accruals (PAT + depreciation) | -3.81 | -3.71 | -3.60 | -3.48 | -3.37 | -3.25 | -3.13 |
| Term loan repaid | 0.53 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.34 | -4.77 | -4.65 | -4.53 | -4.42 | -4.30 | -4.19 |
| Cash and bank | -4.34 | -9.11 | -13.76 | -18.29 | -22.71 | -27.01 | -31.20 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 |
| Reserves and surplus | -4.95 | -9.64 | -14.06 | -18.24 | -22.20 | -25.96 | -29.52 |
| Term loan outstanding | 6.32 | 5.27 | 4.22 | 3.16 | 2.11 | 1.05 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.13 | -3.61 | -9.08 | -14.32 | -19.33 | -24.14 | -28.76 |
| Net fixed assets | 6.47 | 5.50 | 4.68 | 3.97 | 3.38 | 2.87 | 2.44 |
| 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 | -4.34 | -9.11 | -13.76 | -18.29 | -22.71 | -27.01 | -31.20 |
| Total assets | 2.13 | -3.61 | -9.08 | -14.32 | -19.33 | -24.14 | -28.76 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.42 | -1.81 | -1.94 | -2.10 | -2.28 | -2.49 | -2.75 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.25 |
|---|---|
| Lowest DSCR | -2.75 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.14 | 0.97 | 0.83 | 0.70 | 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 | 6.85 | 0.74 | 0.53 | 6.32 |
| 2 | 6.32 | 0.64 | 1.05 | 5.27 |
| 3 | 5.27 | 0.53 | 1.05 | 4.22 |
| 4 | 4.22 | 0.41 | 1.05 | 3.16 |
| 5 | 3.16 | 0.29 | 1.05 | 2.11 |
| 6 | 2.11 | 0.18 | 1.05 | 1.05 |
| 7 | 1.05 | 0.06 | 1.05 | 0.00 |
17 Licences and registrations
- Registration of the FPO as a producer company or cooperative society
- FSSAI licence or registration
- GST registration where applicable
- Legal Metrology verification of the weighing equipment
- Electricity connection of adequate load
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- NABARD model bankable project — Milk Collection Unit by FPO — https://www.nabard.org/auth/writereaddata/tender/0303200848Business%20Model%20on%20Milk%20Collection%20Unit%20by%20FPO.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.