Detailed Project Report
Palm Oil Processing
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.06 L
- Term loan from bank
- ₹11.09 L
- Promoter’s contribution
- ₹1.71 L
- Subsidy
- ₹4.27 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.01 L
- Average DSCR
- -1.50
- 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
Sterilise, thresh, digest and press oil palm fruit bunches into crude palm oil.
| Main product or service | Palm Oil Processing |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Edible oil refiners and packers
- Bakery, confectionery and snack makers
- Soap and cosmetic makers
- Bulk sale to refineries
- Oil traders and brokers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pressurised vessel sterilizer | 1 | 1,90,000 | 1,90,000 |
| Rotating drum thresher | 1 | 4,00,000 | 4,00,000 |
| Mechanical digester | 1 | 2,80,000 | 2,80,000 |
| Screw press | 1 | 2,00,000 | 2,00,000 |
| Filter press | 1 | 1,00,000 | 1,00,000 |
| Jacketed heating vessels (× 1 set) | 1 | 1,00,000 | 1,00,000 |
| Oil clarification and storage tank (× 1 set) | 1 | 1,55,000 | 1,55,000 |
| Material handling and other equipment (trolley, weighing machine, boiler, pumps) (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Total | 16,25,000 |
Pre-filled from: PMEGP sample project report — Palm Oil_DPR (prepared by Udyami/Samadhan); DGFT – ITC(HS) 2022 import-export schedule (Notification 54 dated 9 Feb 2022, with annexures). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Oil palm fresh fruit bunches — arrive from the field as bunches or loose fruit; fruit holds about 30–35% oil
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.25 |
| Contingency | 0.81 |
| Total fixed capital | 17.06 |
| Working capital margin | 0.00 |
| Total project cost | 17.06 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.71 | 10.0 |
| Subsidy | 4.27 | 25.0 |
| Term loan from bank | 11.09 | 65.0 |
| Total | 17.06 | 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 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 | 3.31 |
| Operating profit (EBITDA) | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 | -3.31 |
| Depreciation | 2.56 | 2.18 | 1.85 | 1.57 | 1.34 | 1.14 | 0.97 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.20 | 1.04 | 0.85 | 0.66 | 0.48 | 0.29 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.07 | -6.52 | -6.01 | -5.54 | -5.12 | -4.73 | -4.37 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.07 | -6.52 | -6.01 | -5.54 | -5.12 | -4.73 | -4.37 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.07 | -6.52 | -6.01 | -5.54 | -5.12 | -4.73 | -4.37 |
| Depreciation | 2.56 | 2.18 | 1.85 | 1.57 | 1.34 | 1.14 | 0.97 |
| Cash accruals (PAT + depreciation) | -4.51 | -4.35 | -4.16 | -3.97 | -3.78 | -3.60 | -3.41 |
| Term loan repaid | 0.85 | 1.71 | 1.71 | 1.71 | 1.71 | 1.71 | 1.71 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.36 | -6.05 | -5.87 | -5.68 | -5.49 | -5.30 | -5.11 |
| Cash and bank | -5.36 | -11.41 | -17.28 | -22.96 | -28.45 | -33.75 | -38.86 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.97 | 5.97 | 5.97 | 5.97 | 5.97 | 5.97 | 5.97 |
| Reserves and surplus | -7.07 | -13.59 | -19.60 | -25.14 | -30.26 | -34.99 | -39.36 |
| Term loan outstanding | 10.24 | 8.53 | 6.83 | 5.12 | 3.41 | 1.71 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.14 | 0.91 | -6.80 | -14.05 | -20.87 | -27.31 | -33.39 |
| Net fixed assets | 14.50 | 12.33 | 10.48 | 8.91 | 7.57 | 6.44 | 5.47 |
| 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 | -5.36 | -11.41 | -17.28 | -22.96 | -28.45 | -33.75 | -38.86 |
| Total assets | 9.14 | 0.91 | -6.80 | -14.05 | -20.87 | -27.31 | -33.39 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.61 | -1.20 | -1.29 | -1.39 | -1.51 | -1.66 | -1.83 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.50 |
|---|---|
| Lowest DSCR | -1.83 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.56 | 2.18 | 1.85 | 1.57 | 1.34 | 1.14 | 0.97 |
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 | 11.09 | 1.20 | 0.85 | 10.24 |
| 2 | 10.24 | 1.04 | 1.71 | 8.53 |
| 3 | 8.53 | 0.85 | 1.71 | 6.83 |
| 4 | 6.83 | 0.66 | 1.71 | 5.12 |
| 5 | 5.12 | 0.48 | 1.71 | 3.41 |
| 6 | 3.41 | 0.29 | 1.71 | 1.71 |
| 7 | 1.71 | 0.10 | 1.71 | 0.00 |
17 Licences and registrations
- FSSAI registration or licence
- Udyam registration
- GST registration
- State Pollution Control Board consent, if your state requires it for this activity
- Boiler registration under the Boilers Act, if your boiler falls under it
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)
- Stand-Up India
19 Sources
- PMEGP sample project report — Palm Oil_DPR (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Palm_Oil_DPR_%28_Samadhan_Projects_%29.pdf
- DGFT – ITC(HS) 2022 import-export schedule (Notification 54 dated 9 Feb 2022, with annexures) — https://content.dgft.gov.in/Website/dgftprod/7d5fd1eb-ad39-4c99-b760-014223657469/Eng-Notification%2054%20dated%209%20Feb%202022%20ITC(HS)%202022%20_with%20Annexures.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.