Detailed Project Report
Milk-Based Products Unit (Ghee, Butter, Paneer, Sweets)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹10.50 L
- Term loan from bank
- ₹6.83 L
- Promoter’s contribution
- ₹1.05 L
- Subsidy
- ₹2.63 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.81 L
- Average DSCR
- -2.32
- 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
Turn milk into ghee, butter, paneer, cheese, buttermilk and milk sweets for local shops and homes.
| Main product or service | Milk-Based Products Unit (Ghee, Butter, Paneer, Sweets) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Sweet shops, hotels and caterers
- Grocery and dairy shops
- Own counter or shop
- Supply to local retailers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Equipment set: SS/aluminium-top work tables (2), cream separator, deep freezer, baby boiler with accessories, electric dryer, laboratory items, milk fat tester, pasteuriser, pouch sealing machine, weighing balances (× set) | 1 | 10,00,000 | 10,00,000 |
| Total | 10,00,000 |
Pre-filled from: KVIC Project Profile — Milk Based Products (PMEGP); 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 — raw material ₹50.00 lakh a year at full capacity
- Sugar (for milk sweets) — added for sweets as per the profile
- Labels and packing material — ₹5.00 lakh a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 10.00 |
| Contingency | 0.50 |
| Total fixed capital | 10.50 |
| Working capital margin | 0.00 |
| Total project cost | 10.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.05 | 10.0 |
| Subsidy | 2.63 | 25.0 |
| Term loan from bank | 6.83 | 65.0 |
| Total | 10.50 | 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 | 3.14 | 3.14 | 3.14 | 3.14 | 3.14 | 3.14 | 3.14 |
| Operating profit (EBITDA) | -3.14 | -3.14 | -3.14 | -3.14 | -3.14 | -3.14 | -3.14 |
| Depreciation | 1.58 | 1.34 | 1.14 | 0.97 | 0.82 | 0.70 | 0.59 |
| 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 | 0.52 | 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 | -5.46 | -5.12 | -4.81 | -4.52 | -4.26 | -4.02 | -3.80 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.46 | -5.12 | -4.81 | -4.52 | -4.26 | -4.02 | -3.80 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.46 | -5.12 | -4.81 | -4.52 | -4.26 | -4.02 | -3.80 |
| Depreciation | 1.58 | 1.34 | 1.14 | 0.97 | 0.82 | 0.70 | 0.59 |
| Cash accruals (PAT + depreciation) | -3.88 | -3.78 | -3.67 | -3.55 | -3.44 | -3.32 | -3.21 |
| 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 | -4.41 | -4.83 | -4.72 | -4.60 | -4.49 | -4.37 | -4.26 |
| Cash and bank | -4.41 | -9.24 | -13.96 | -18.56 | -23.04 | -27.41 | -31.67 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.68 | 3.68 | 3.68 | 3.68 | 3.68 | 3.68 | 3.68 |
| Reserves and surplus | -5.46 | -10.58 | -15.38 | -19.90 | -24.16 | -28.18 | -31.98 |
| Term loan outstanding | 6.30 | 5.25 | 4.20 | 3.15 | 2.10 | 1.05 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.52 | -1.65 | -7.51 | -13.08 | -18.38 | -23.45 | -28.30 |
| Net fixed assets | 8.93 | 7.59 | 6.45 | 5.48 | 4.66 | 3.96 | 3.37 |
| 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 | -4.41 | -9.24 | -13.96 | -18.56 | -23.04 | -27.41 | -31.67 |
| Total assets | 4.52 | -1.65 | -7.51 | -13.08 | -18.38 | -23.45 | -28.30 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.49 | -1.86 | -2.00 | -2.15 | -2.34 | -2.56 | -2.82 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.32 |
|---|---|
| Lowest DSCR | -2.82 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.58 | 1.34 | 1.14 | 0.97 | 0.82 | 0.70 | 0.59 |
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 | 6.83 | 0.74 | 0.53 | 6.30 |
| 2 | 6.30 | 0.64 | 1.05 | 5.25 |
| 3 | 5.25 | 0.52 | 1.05 | 4.20 |
| 4 | 4.20 | 0.41 | 1.05 | 3.15 |
| 5 | 3.15 | 0.29 | 1.05 | 2.10 |
| 6 | 2.10 | 0.18 | 1.05 | 1.05 |
| 7 | 1.05 | 0.06 | 1.05 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST registration
- Trade licence from the local body
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
- KVIC Project Profile — Milk Based Products (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/MILK_BASED_PRODUCTS_%28_AGRO_BASED_FOOD_PROCESSING_INDUSTRY_%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.