Detailed Project Report
Papad Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.70 L
- Term loan from bank
- ₹10.85 L
- Promoter’s contribution
- ₹1.67 L
- Subsidy
- ₹4.17 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.94 L
- Average DSCR
- -1.53
- 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
Roll urad dough into papad by hand in a small home unit, or by machine in a larger plant.
| Main product or service | Papad Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Kirana shops and supermarkets
- Hotels and caterers
- Distributors and wholesalers
- Own brand in retail packs of about 100 papads
- Khadi outlets and fairs
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Sieve, marble-top tables, rolling pins, utensils and balance (hand unit) (× 1 set) | 1 | 40,000 | 40,000 |
| Flour kneading machine (× 1 set) | 1 | 70,000 | 70,000 |
| Extruder machine (× 1 set) | 1 | 85,000 | 85,000 |
| Dough sheeter machine (× 1 set) | 1 | 2,50,000 | 2,50,000 |
| Papad cutter machine (× 1 set) | 1 | 2,05,000 | 2,05,000 |
| Papad drier machine (× 1 set) | 1 | 4,00,000 | 4,00,000 |
| Hot air generator (× 1 set) | 1 | 1,50,000 | 1,50,000 |
| Control panel box (× 1 set) | 1 | 95,000 | 95,000 |
| Counting, stacking and packing machine (× 1 set) | 1 | 2,50,000 | 2,50,000 |
| Other machines, kitchen tools and equipment (× 1 lot) | 1 | 45,000 | 45,000 |
| Total | 15,90,000 |
Pre-filled from: KVIC Project Profile — Papad Manufacturing (PMEGP); PMEGP sample project report — Papad (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Urad flour — 1,50,000 kg a year at ₹90 a kg in the machine unit
- Hing (asafoetida) — 150 kg a year at ₹8,500 a kg
- Black pepper — 3,000 kg a year at ₹800 a kg
- Salt and sodium bicarbonate (papad khar) — 6,000 kg salt at ₹15; 4,500 kg papad khar at ₹40 a kg
- Oil, water and packing material — oil and water ₹2.00 lakh; packing ₹4.50 lakh a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 15.90 |
| Contingency | 0.80 |
| Total fixed capital | 16.70 |
| Working capital margin | 0.00 |
| Total project cost | 16.70 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.67 | 10.0 |
| Subsidy | 4.17 | 25.0 |
| Term loan from bank | 10.85 | 65.0 |
| Total | 16.70 | 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 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 |
| Operating profit (EBITDA) | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 |
| Depreciation | 2.50 | 2.13 | 1.81 | 1.54 | 1.31 | 1.11 | 0.94 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.17 | 1.02 | 0.83 | 0.65 | 0.47 | 0.28 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.98 | -6.44 | -5.94 | -5.49 | -5.07 | -4.69 | -4.34 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.98 | -6.44 | -5.94 | -5.49 | -5.07 | -4.69 | -4.34 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.98 | -6.44 | -5.94 | -5.49 | -5.07 | -4.69 | -4.34 |
| Depreciation | 2.50 | 2.13 | 1.81 | 1.54 | 1.31 | 1.11 | 0.94 |
| Cash accruals (PAT + depreciation) | -4.47 | -4.32 | -4.13 | -3.95 | -3.76 | -3.58 | -3.40 |
| Term loan repaid | 0.83 | 1.67 | 1.67 | 1.67 | 1.67 | 1.67 | 1.67 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.31 | -5.98 | -5.80 | -5.62 | -5.43 | -5.25 | -5.07 |
| Cash and bank | -5.31 | -11.29 | -17.09 | -22.71 | -28.14 | -33.39 | -38.46 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.84 | 5.84 | 5.84 | 5.84 | 5.84 | 5.84 | 5.84 |
| Reserves and surplus | -6.98 | -13.42 | -19.36 | -24.85 | -29.92 | -34.61 | -38.95 |
| Term loan outstanding | 10.02 | 8.35 | 6.68 | 5.01 | 3.34 | 1.67 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.88 | 0.77 | -6.84 | -13.99 | -20.74 | -27.10 | -33.11 |
| Net fixed assets | 14.19 | 12.06 | 10.25 | 8.71 | 7.41 | 6.30 | 5.35 |
| 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 | -5.31 | -11.29 | -17.09 | -22.71 | -28.14 | -33.39 | -38.46 |
| Total assets | 8.88 | 0.77 | -6.84 | -13.99 | -20.74 | -27.10 | -33.11 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.64 | -1.23 | -1.32 | -1.42 | -1.54 | -1.69 | -1.86 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.53 |
|---|---|
| Lowest DSCR | -1.86 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.50 | 2.13 | 1.81 | 1.54 | 1.31 | 1.11 | 0.94 |
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 | 10.85 | 1.17 | 0.83 | 10.02 |
| 2 | 10.02 | 1.02 | 1.67 | 8.35 |
| 3 | 8.35 | 0.83 | 1.67 | 6.68 |
| 4 | 6.68 | 0.65 | 1.67 | 5.01 |
| 5 | 5.01 | 0.47 | 1.67 | 3.34 |
| 6 | 3.34 | 0.28 | 1.67 | 1.67 |
| 7 | 1.67 | 0.10 | 1.67 | 0.00 |
17 Licences and registrations
- FSSAI registration or licence
- Udyam registration
- GST registration
- Legal Metrology packaged-commodity registration (for packed goods)
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
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- KVIC Project Profile — Papad Manufacturing (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PAPAD_MANUFACTURING_%28_AGRO_BASED_FOOD_PROCESSING_INDUSTRY_%29.pdf
- PMEGP sample project report — Papad (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Papad_%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.