Detailed Project Report
Patchouli Cultivation and Oil Distillation
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.37 L
- Term loan from bank
- ₹1.23 L
- Promoter’s contribution
- ₹0.14 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.16 L
- Average DSCR
- -11.89
- 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
One acre of patchouli, a shade-loving aromatic herb, with a small on-farm unit to distil perfumery oil from the dried leaves.
| Main product or service | Patchouli Cultivation and Oil Distillation |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Perfumery and fragrance houses
- Makers of cosmetics, soaps, detergents and incense sticks
- Essential-oil traders
- Oil sold in glass bottles or in steel or aluminium drums filled to the brim
- Direct sale of oil distilled on the farm
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Tube-well | 1 | 30,000 | 30,000 |
| Pump set and electrical installation | 1 | 30,000 | 30,000 |
| Drip system with fertigation equipment | 1 | 20,000 | 20,000 |
| Farm equipment (₹10,000) and distillation unit machinery (₹10,000) | 1 | 20,000 | 20,000 |
| Distillation building (150 sq ft at ₹150 a sq ft) | 1 | 22,500 | 22,500 |
| Drying platform (100 sq ft at ₹80 a sq ft) | 1 | 8,000 | 8,000 |
| Total | 1,30,500 |
Pre-filled from: National Horticulture Board model bankable project — Patchouli. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Rooted patchouli cuttings — 12,000 plants an acre at ₹1 a plant = ₹12,000
- Farmyard manure, fertilisers and plant protection chemicals — input cost ₹11,100 in the first year; 10 to 20 tonnes of farmyard manure or compost go in at land preparation
- Nematicide — mixed into the soil a few days before transplanting, with a second dose after one year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.31 |
| Contingency | 0.07 |
| Total fixed capital | 1.37 |
| Working capital margin | 0.00 |
| Total project cost | 1.37 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.14 | 10.0 |
| Term loan from bank | 1.23 | 90.0 |
| Total | 1.37 | 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 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 |
| Operating profit (EBITDA) | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 |
| Depreciation | 0.21 | 0.17 | 0.15 | 0.13 | 0.11 | 0.09 | 0.08 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.13 | 0.12 | 0.09 | 0.07 | 0.05 | 0.03 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.25 | -3.20 | -3.16 | -3.11 | -3.07 | -3.04 | -3.00 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.25 | -3.20 | -3.16 | -3.11 | -3.07 | -3.04 | -3.00 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.25 | -3.20 | -3.16 | -3.11 | -3.07 | -3.04 | -3.00 |
| Depreciation | 0.21 | 0.17 | 0.15 | 0.13 | 0.11 | 0.09 | 0.08 |
| Cash accruals (PAT + depreciation) | -3.05 | -3.03 | -3.01 | -2.99 | -2.97 | -2.95 | -2.93 |
| Term loan repaid | 0.09 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.14 | -3.22 | -3.20 | -3.18 | -3.16 | -3.14 | -3.12 |
| Cash and bank | -3.14 | -6.36 | -9.56 | -12.74 | -15.90 | -19.03 | -22.15 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Reserves and surplus | -3.25 | -6.46 | -9.62 | -12.73 | -15.80 | -18.84 | -21.85 |
| Term loan outstanding | 1.14 | 0.95 | 0.76 | 0.57 | 0.38 | 0.19 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.98 | -5.37 | -8.72 | -12.02 | -15.29 | -18.52 | -21.71 |
| Net fixed assets | 1.16 | 0.99 | 0.84 | 0.72 | 0.61 | 0.52 | 0.44 |
| 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 | -3.14 | -6.36 | -9.56 | -12.74 | -15.90 | -19.03 | -22.15 |
| Total assets | -1.98 | -5.37 | -8.72 | -12.02 | -15.29 | -18.52 | -21.71 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -12.76 | -9.54 | -10.24 | -11.05 | -12.00 | -13.13 | -14.50 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -11.89 |
|---|---|
| Lowest DSCR | -14.50 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.21 | 0.17 | 0.15 | 0.13 | 0.11 | 0.09 | 0.08 |
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 | 1.23 | 0.13 | 0.09 | 1.14 |
| 2 | 1.14 | 0.12 | 0.19 | 0.95 |
| 3 | 0.95 | 0.09 | 0.19 | 0.76 |
| 4 | 0.76 | 0.07 | 0.19 | 0.57 |
| 5 | 0.57 | 0.05 | 0.19 | 0.38 |
| 6 | 0.38 | 0.03 | 0.19 | 0.19 |
| 7 | 0.19 | 0.01 | 0.19 | 0.00 |
17 Licences and registrations
- No licence is needed to grow the crop on your own farm land
- Land ownership or lease papers for the bank loan and subsidy file
- Udyam registration if the distillation unit is run as a business
- GST registration once oil sales cross the turnover limit
18 Government schemes that may apply
- NHB Capital Investment Subsidy – Commercial Horticulture & Cold Storage (Scheme 1 and Cold Storage Scheme)
19 Sources
- National Horticulture Board model bankable project — Patchouli — https://nhb.gov.in/model-project-reports/Patchouli.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.