Detailed Project Report
Oyster Mushroom (Dhingri) Farming
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.28 L
- Term loan from bank
- ₹0.25 L
- Promoter’s contribution
- ₹0.03 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-2.94 L
- Average DSCR
- -57.15
- 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 small 300 sq ft growing room that raises 400 kg of oyster mushroom a year on wheat straw.
| Main product or service | Oyster Mushroom (Dhingri) Farming |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Local vegetable markets and shops
- Hotels and households in nearby towns
- Processing units that dry and powder mushroom for export
- Fresh mushroom in perforated polythene pouches of 250 or 500 g
- Pouches on crushed ice in trays or baskets, sent by truck or bus
- Dried mushroom in sealed pouches, which keeps 3-4 months
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Growing room of high-density polythene sheet (300 sq ft at ₹50 a sq ft) | 1 | 15,000 | 15,000 |
| Iron racks (× 9) | 1 | 9,000 | 9,000 |
| Sprayer room | 1 | 1,500 | 1,500 |
| Galvanised tubs (× 4) | 1 | 1,000 | 1,000 |
| Thermometers | 1 | 400 | 400 |
| Total | 26,900 |
Pre-filled from: National Horticulture Board model bankable project — Oyster Mushroom. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wheat straw — 5 quintals a year at ₹150 a quintal = ₹750
- Wheat or rice bran for supplementation — 50 kg a year at ₹2.5 a kg
- Polythene bags (125-150 gauge) — 15 kg a year at ₹80 a kg = ₹1,200
- Grain spawn — 100 bottles a year, ₹800; spawn 20-30 days old is best
- Bavistin and formaldehyde — ₹210 a year, for treating straw and fumigating the room
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.27 |
| Contingency | 0.01 |
| Total fixed capital | 0.28 |
| Working capital margin | 0.00 |
| Total project cost | 0.28 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.03 | 10.0 |
| Term loan from bank | 0.25 | 90.0 |
| Total | 0.28 | 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 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 |
| Operating profit (EBITDA) | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 |
| Depreciation | 0.04 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.03 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 | -2.91 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 | -2.91 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 | -2.91 |
| Depreciation | 0.04 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 |
| Cash accruals (PAT + depreciation) | -2.91 | -2.91 | -2.91 | -2.90 | -2.90 | -2.89 | -2.89 |
| Term loan repaid | 0.02 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.93 | -2.95 | -2.95 | -2.94 | -2.94 | -2.93 | -2.93 |
| Cash and bank | -2.93 | -5.88 | -8.83 | -11.77 | -14.71 | -17.64 | -20.57 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Reserves and surplus | -2.96 | -5.90 | -8.84 | -11.77 | -14.69 | -17.60 | -20.51 |
| Term loan outstanding | 0.23 | 0.20 | 0.16 | 0.12 | 0.08 | 0.04 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.69 | -5.68 | -8.66 | -11.62 | -14.58 | -17.53 | -20.48 |
| Net fixed assets | 0.24 | 0.20 | 0.17 | 0.15 | 0.13 | 0.11 | 0.09 |
| 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 | -2.93 | -5.88 | -8.83 | -11.77 | -14.71 | -17.64 | -20.57 |
| Total assets | -2.69 | -5.68 | -8.66 | -11.62 | -14.58 | -17.53 | -20.48 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -61.34 | -45.86 | -49.23 | -53.13 | -57.69 | -63.12 | -69.67 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -57.15 |
|---|---|
| Lowest DSCR | -69.67 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.04 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 |
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 | 0.25 | 0.03 | 0.02 | 0.23 |
| 2 | 0.23 | 0.02 | 0.04 | 0.20 |
| 3 | 0.20 | 0.02 | 0.04 | 0.16 |
| 4 | 0.16 | 0.02 | 0.04 | 0.12 |
| 5 | 0.12 | 0.01 | 0.04 | 0.08 |
| 6 | 0.08 | 0.01 | 0.04 | 0.04 |
| 7 | 0.04 | 0.00 | 0.04 | 0.00 |
17 Licences and registrations
- No licence is needed to grow mushrooms
- FSSAI registration to sell packed fresh or dried mushroom
- Udyam registration if you run it as a business and want a bank loan
- APEDA registration if you export
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- National Horticulture Board model bankable project — Oyster Mushroom — https://nhb.gov.in/model-project-reports/Oyster%20Mushroom.htm
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.