Detailed Project Report
Milk Powder Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹10.68 L
- Term loan from bank
- ₹6.94 L
- Promoter’s contribution
- ₹1.07 L
- Subsidy
- ₹2.67 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.84 L
- Average DSCR
- -2.28
- 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
Evaporate and spray-dry milk into milk powder packed in one-kg tins or bulk bags.
| Main product or service | Milk Powder Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Chocolate, ice-cream, sweet and bakery makers
- Animal feed makers
- Bulk supply to food manufacturers in 25 kg bags
- Retail tins through shops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Storage tank (× 2) | 1 | 2,40,000 | 2,40,000 |
| Feed pump (× 2) | 1 | 27,000 | 27,000 |
| Pre-condenser (× 2) | 1 | 50,000 | 50,000 |
| Spray drier (× 2) | 1 | 2,00,000 | 2,00,000 |
| Baby boiler (× 2) | 1 | 2,00,000 | 2,00,000 |
| Chilling plant (× 2) | 1 | 3,00,000 | 3,00,000 |
| Total | 10,17,000 |
Pre-filled from: PMEGP sample project report — Milk Powder (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
- Milk — 2,25,000 litres a year at full capacity, ₹30 a litre; 7.5 litres make 1 kg of powder
- Chemicals (citric acid, magnesium oxide, NaCl, CaCO3) — ₹2.50 lakh a year (lump sum, with other material)
- Tin containers — for one-kg packs
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 10.17 |
| Contingency | 0.51 |
| Total fixed capital | 10.68 |
| Working capital margin | 0.00 |
| Total project cost | 10.68 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.07 | 10.0 |
| Subsidy | 2.67 | 25.0 |
| Term loan from bank | 6.94 | 65.0 |
| Total | 10.68 | 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 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 |
| Operating profit (EBITDA) | -3.15 | -3.15 | -3.15 | -3.15 | -3.15 | -3.15 | -3.15 |
| Depreciation | 1.60 | 1.36 | 1.16 | 0.98 | 0.84 | 0.71 | 0.60 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.75 | 0.65 | 0.53 | 0.42 | 0.30 | 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 | -5.50 | -5.16 | -4.84 | -4.55 | -4.28 | -4.04 | -3.81 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.50 | -5.16 | -4.84 | -4.55 | -4.28 | -4.04 | -3.81 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.50 | -5.16 | -4.84 | -4.55 | -4.28 | -4.04 | -3.81 |
| Depreciation | 1.60 | 1.36 | 1.16 | 0.98 | 0.84 | 0.71 | 0.60 |
| Cash accruals (PAT + depreciation) | -3.90 | -3.80 | -3.68 | -3.56 | -3.45 | -3.33 | -3.21 |
| Term loan repaid | 0.53 | 1.07 | 1.07 | 1.07 | 1.07 | 1.07 | 1.07 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.43 | -4.87 | -4.75 | -4.63 | -4.51 | -4.40 | -4.28 |
| Cash and bank | -4.43 | -9.30 | -14.05 | -18.68 | -23.19 | -27.59 | -31.86 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 |
| Reserves and surplus | -5.50 | -10.66 | -15.50 | -20.04 | -24.33 | -28.36 | -32.18 |
| Term loan outstanding | 6.41 | 5.34 | 4.27 | 3.20 | 2.14 | 1.07 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.64 | -1.58 | -7.49 | -13.10 | -18.45 | -23.56 | -28.44 |
| Net fixed assets | 9.08 | 7.72 | 6.56 | 5.57 | 4.74 | 4.03 | 3.42 |
| 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 | -4.43 | -9.30 | -14.05 | -18.68 | -23.19 | -27.59 | -31.86 |
| Total assets | 4.64 | -1.58 | -7.49 | -13.10 | -18.45 | -23.56 | -28.44 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.45 | -1.83 | -1.97 | -2.12 | -2.30 | -2.52 | -2.78 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.28 |
|---|---|
| Lowest DSCR | -2.78 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.60 | 1.36 | 1.16 | 0.98 | 0.84 | 0.71 | 0.60 |
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 | 6.94 | 0.75 | 0.53 | 6.41 |
| 2 | 6.41 | 0.65 | 1.07 | 5.34 |
| 3 | 5.34 | 0.53 | 1.07 | 4.27 |
| 4 | 4.27 | 0.42 | 1.07 | 3.20 |
| 5 | 3.20 | 0.30 | 1.07 | 2.14 |
| 6 | 2.14 | 0.18 | 1.07 | 1.07 |
| 7 | 1.07 | 0.06 | 1.07 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST registration
- Trademark for your brand (if needed)
- State pollution control board consent (dairy effluent)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Agriculture Infrastructure Fund (AIF)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Milk Powder (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Milk_Powder_%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.