Detailed Project Report
Olive Oil Extraction Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹12.87 L
- Term loan from bank
- ₹8.37 L
- Promoter’s contribution
- ₹1.29 L
- Subsidy
- ₹3.22 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.24 L
- Average DSCR
- -1.93
- 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
Washing fresh olives, crushing and kneading them, pressing and centrifuging the oil, and bottling it.
| Main product or service | Olive Oil Extraction Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Health-conscious households in cities
- Hotels, restaurants and bakeries
- Cosmetic and massage-oil makers
- Supermarkets and gourmet stores
- Online marketplaces and own website
- Direct supply to hotels and restaurants
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Cold storage (1,500 kg) | 1 | 5,00,000 | 5,00,000 |
| Rotary washing machine with screen | 1 | 80,000 | 80,000 |
| Hammer mill | 1 | 1,40,000 | 1,40,000 |
| Malaxator | 1 | 90,000 | 90,000 |
| Oil expeller | 1 | 1,50,000 | 1,50,000 |
| Vertical centrifuge machine | 1 | 80,000 | 80,000 |
| Oil storage tank with heater (100 litre) | 1 | 30,000 | 30,000 |
| Induction sealer | 1 | 25,000 | 25,000 |
| Bottle filling machine | 1 | 75,000 | 75,000 |
| Weighing balance | 1 | 6,000 | 6,000 |
| Accessories | 1 | 50,000 | 50,000 |
| Total | 12,26,000 |
Pre-filled from: NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Olive Oil. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Fresh olives — ₹120 a kg in the DPR; 17% oil recovery; 6.21 kg for 1 kg of oil
- Bottles, caps and labels — packing material
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 12.26 |
| Contingency | 0.61 |
| Total fixed capital | 12.87 |
| Working capital margin | 0.00 |
| Total project cost | 12.87 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.29 | 10.0 |
| Subsidy | 3.22 | 25.0 |
| Term loan from bank | 8.37 | 65.0 |
| Total | 12.87 | 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 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 |
| Operating profit (EBITDA) | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 |
| Depreciation | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.91 | 0.78 | 0.64 | 0.50 | 0.36 | 0.22 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.04 | -5.63 | -5.24 | -4.89 | -4.57 | -4.28 | -4.01 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.04 | -5.63 | -5.24 | -4.89 | -4.57 | -4.28 | -4.01 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.04 | -5.63 | -5.24 | -4.89 | -4.57 | -4.28 | -4.01 |
| Depreciation | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| Cash accruals (PAT + depreciation) | -4.11 | -3.99 | -3.84 | -3.70 | -3.56 | -3.42 | -3.28 |
| Term loan repaid | 0.64 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.75 | -5.27 | -5.13 | -4.99 | -4.85 | -4.71 | -4.57 |
| Cash and bank | -4.75 | -10.02 | -15.16 | -20.15 | -25.00 | -29.70 | -34.27 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.51 | 4.51 | 4.51 | 4.51 | 4.51 | 4.51 | 4.51 |
| Reserves and surplus | -6.04 | -11.67 | -16.91 | -21.80 | -26.37 | -30.64 | -34.65 |
| Term loan outstanding | 7.72 | 6.44 | 5.15 | 3.86 | 2.57 | 1.29 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 6.19 | -0.72 | -7.25 | -13.43 | -19.29 | -24.85 | -30.14 |
| Net fixed assets | 10.94 | 9.30 | 7.91 | 6.72 | 5.71 | 4.86 | 4.13 |
| 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 | -4.75 | -10.02 | -15.16 | -20.15 | -25.00 | -29.70 | -34.27 |
| Total assets | 6.19 | -0.72 | -7.25 | -13.43 | -19.29 | -24.85 | -30.14 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.07 | -1.55 | -1.66 | -1.79 | -1.94 | -2.13 | -2.35 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.93 |
|---|---|
| Lowest DSCR | -2.35 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
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 | 8.37 | 0.91 | 0.64 | 7.72 |
| 2 | 7.72 | 0.78 | 1.29 | 6.44 |
| 3 | 6.44 | 0.64 | 1.29 | 5.15 |
| 4 | 5.15 | 0.50 | 1.29 | 3.86 |
| 5 | 3.86 | 0.36 | 1.29 | 2.57 |
| 6 | 2.57 | 0.22 | 1.29 | 1.29 |
| 7 | 1.29 | 0.08 | 1.29 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- FSSAI licence or registration
- Trade licence or factory permission from the local body
- Legal Metrology registration for packaged goods
18 Government schemes that may apply
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Olive Oil — https://niftem-t.ac.in/pmfme/dpr-ooil.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.