Detailed Project Report
Milk Processing Plant (1,000 litres a day)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹22.84 L
- Term loan from bank
- ₹14.84 L
- Promoter’s contribution
- ₹2.28 L
- Subsidy
- ₹5.71 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-7.07 L
- Average DSCR
- -1.17
- 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
Collect 1,000 litres of milk a day, pasteurise and pouch-pack toned milk, and make curd, buttermilk and paneer.
| Main product or service | Milk Processing Plant (1,000 litres a day) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Milk booths and kirana shops
- Sweet shops, hotels and caterers (paneer, curd)
- Daily route delivery to retailers
- Own milk booths
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Bulk milk cooler, 1 KL | 1 | 1,75,000 | 1,75,000 |
| Milk pump | 1 | 20,000 | 20,000 |
| Milk pasteuriser, 200 LPH | 1 | 2,50,000 | 2,50,000 |
| Milk packing machine | 1 | 2,45,000 | 2,45,000 |
| Storage tank, 1 KL | 1 | 1,15,000 | 1,15,000 |
| Curd coagulation tank, 200 litres | 1 | 65,000 | 65,000 |
| Hot room (6×6) | 1 | 1,25,000 | 1,25,000 |
| Blast room (6×6) | 1 | 1,75,000 | 1,75,000 |
| Paneer PHE set, dump tanks and balance tank (× set) | 1 | 2,45,000 | 2,45,000 |
| Ghee kettle, clarifier and 500-litre storage tank (× set) | 1 | 2,70,000 | 2,70,000 |
| IBT 1.5 TR | 1 | 95,000 | 95,000 |
| Boiler, 500 litres | 1 | 1,25,000 | 1,25,000 |
| Curd section piping and erection | 1 | 45,000 | 45,000 |
| Utility piping, erection and commissioning, electrical goods (× lot) | 1 | 2,25,000 | 2,25,000 |
| Total | 21,75,000 |
Pre-filled from: PMEGP sample project report — Milk Processing Plant(1000 ltr) (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
- Raw milk — 1,000 litres a day; ₹23–34 a litre by season, average ₹30.60
- Packing pouches — ₹3.94 lakh in year 1
- Chemicals — ₹1.20 lakh a year at full capacity
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 21.75 |
| Contingency | 1.09 |
| Total fixed capital | 22.84 |
| Working capital margin | 0.00 |
| Total project cost | 22.84 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.28 | 10.0 |
| Subsidy | 5.71 | 25.0 |
| Term loan from bank | 14.84 | 65.0 |
| Total | 22.84 | 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 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 |
| Operating profit (EBITDA) | -3.45 | -3.45 | -3.45 | -3.45 | -3.45 | -3.45 | -3.45 |
| Depreciation | 3.43 | 2.91 | 2.48 | 2.10 | 1.79 | 1.52 | 1.29 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.61 | 1.39 | 1.14 | 0.89 | 0.64 | 0.39 | 0.14 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.48 | -7.75 | -7.07 | -6.44 | -5.88 | -5.36 | -4.88 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.48 | -7.75 | -7.07 | -6.44 | -5.88 | -5.36 | -4.88 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.48 | -7.75 | -7.07 | -6.44 | -5.88 | -5.36 | -4.88 |
| Depreciation | 3.43 | 2.91 | 2.48 | 2.10 | 1.79 | 1.52 | 1.29 |
| Cash accruals (PAT + depreciation) | -5.06 | -4.84 | -4.59 | -4.34 | -4.09 | -3.84 | -3.59 |
| Term loan repaid | 1.14 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.20 | -7.13 | -6.88 | -6.62 | -6.37 | -6.12 | -5.87 |
| Cash and bank | -6.20 | -13.33 | -20.20 | -26.83 | -33.20 | -39.32 | -45.19 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.99 | 7.99 | 7.99 | 7.99 | 7.99 | 7.99 | 7.99 |
| Reserves and surplus | -8.48 | -16.24 | -23.31 | -29.75 | -35.63 | -40.99 | -45.86 |
| Term loan outstanding | 13.70 | 11.42 | 9.14 | 6.85 | 4.57 | 2.28 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 13.21 | 3.17 | -6.18 | -14.91 | -23.07 | -30.71 | -37.87 |
| Net fixed assets | 19.41 | 16.50 | 14.03 | 11.92 | 10.13 | 8.61 | 7.32 |
| 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 | -13.33 | -20.20 | -26.83 | -33.20 | -39.32 | -45.19 |
| Total assets | 13.21 | 3.17 | -6.18 | -14.91 | -23.07 | -30.71 | -37.87 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.26 | -0.94 | -1.01 | -1.09 | -1.18 | -1.29 | -1.43 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.17 |
|---|---|
| Lowest DSCR | -1.43 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.43 | 2.91 | 2.48 | 2.10 | 1.79 | 1.52 | 1.29 |
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 | 14.84 | 1.61 | 1.14 | 13.70 |
| 2 | 13.70 | 1.39 | 2.28 | 11.42 |
| 3 | 11.42 | 1.14 | 2.28 | 9.14 |
| 4 | 9.14 | 0.89 | 2.28 | 6.85 |
| 5 | 6.85 | 0.64 | 2.28 | 4.57 |
| 6 | 4.57 | 0.39 | 2.28 | 2.28 |
| 7 | 2.28 | 0.14 | 2.28 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST registration
- State pollution control board consent (dairy effluent)
- Boiler registration under the Boilers Act (if applicable)
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 Processing Plant(1000 ltr) (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Milk_Processing_Plant%281000_ltr%29_%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.