Detailed Project Report
Biodegradable Plastic (PLA) Pellets Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹18.01 L
- Term loan from bank
- ₹11.70 L
- Promoter’s contribution
- ₹1.80 L
- Subsidy
- ₹4.50 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.18 L
- Average DSCR
- -1.43
- 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
Make polylactic acid (PLA) pellets from starch or sugar crops for bioplastic products.
| Main product or service | Biodegradable Plastic (PLA) Pellets Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Compostable bag makers
- Packaging and shrink-wrap converters
- 3D-printing filament makers
- Direct supply to plastic converters
- Polymer traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Hammer mill (dry crops) | 1 | 50,000 | 50,000 |
| Pulping machine (juicy crops) | 1 | 25,000 | 25,000 |
| Industrial mixing vessels (× —) | 1 | 30,000 | 30,000 |
| Fermentation vessels (× —) | 1 | 0 | 0 |
| Jacketed reaction vessel | 1 | 30,000 | 30,000 |
| Vacuum crystalliser | 1 | 3 | 3 |
| Polymerisation reactor (SS 304) | 1 | 1 | 1 |
| Vacuum degasser | 1 | 2 | 2 |
| Pelletiser | 1 | 0 | 0 |
| Pellet packing machine | 1 | 0 | 0 |
| Heat exchangers (× —) | 1 | 1 | 1 |
| Centrifugal pumps (× —) | 1 | 30,000 | 30,000 |
| Total plant & machinery (× —) | 1 | 15,50,000 | 15,50,000 |
| Total | 17,15,007 |
Pre-filled from: PMEGP sample project report — Biodegradable Plastic Pellets (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Starch or sugar crops and crop residues — fermented to lactic acid
- Plasticisers (glycerol, ethylene glycol, polyglycerol) — 2–30% of the blend
- Flexibility agents (urea, citric acid, PVA) — 10–40% of the blend
- Binders, hydrophobic agents and emulsifiers — small shares of the blend
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 17.15 |
| Contingency | 0.86 |
| Total fixed capital | 18.01 |
| Working capital margin | 0.00 |
| Total project cost | 18.01 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.80 | 10.0 |
| Subsidy | 4.50 | 25.0 |
| Term loan from bank | 11.70 | 65.0 |
| Total | 18.01 | 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 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 | 3.33 |
| Operating profit (EBITDA) | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 | -3.33 |
| Depreciation | 2.70 | 2.30 | 1.95 | 1.66 | 1.41 | 1.20 | 1.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.27 | 1.10 | 0.90 | 0.70 | 0.50 | 0.31 | 0.11 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.30 | -6.72 | -6.18 | -5.69 | -5.24 | -4.83 | -4.46 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.30 | -6.72 | -6.18 | -5.69 | -5.24 | -4.83 | -4.46 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.30 | -6.72 | -6.18 | -5.69 | -5.24 | -4.83 | -4.46 |
| Depreciation | 2.70 | 2.30 | 1.95 | 1.66 | 1.41 | 1.20 | 1.02 |
| Cash accruals (PAT + depreciation) | -4.60 | -4.43 | -4.23 | -4.03 | -3.83 | -3.64 | -3.44 |
| Term loan repaid | 0.90 | 1.80 | 1.80 | 1.80 | 1.80 | 1.80 | 1.80 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.50 | -6.23 | -6.03 | -5.83 | -5.63 | -5.44 | -5.24 |
| Cash and bank | -5.50 | -11.73 | -17.76 | -23.59 | -29.22 | -34.66 | -39.90 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.30 | 6.30 | 6.30 | 6.30 | 6.30 | 6.30 | 6.30 |
| Reserves and surplus | -7.30 | -14.02 | -20.20 | -25.89 | -31.14 | -35.97 | -40.43 |
| Term loan outstanding | 10.80 | 9.00 | 7.20 | 5.40 | 3.60 | 1.80 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.81 | 1.28 | -6.70 | -14.19 | -21.23 | -27.87 | -34.13 |
| Net fixed assets | 15.31 | 13.01 | 11.06 | 9.40 | 7.99 | 6.79 | 5.77 |
| 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 | -5.50 | -11.73 | -17.76 | -23.59 | -29.22 | -34.66 | -39.90 |
| Total assets | 9.81 | 1.28 | -6.70 | -14.19 | -21.23 | -27.87 | -34.13 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.54 | -1.15 | -1.23 | -1.33 | -1.45 | -1.58 | -1.75 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.43 |
|---|---|
| Lowest DSCR | -1.75 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.70 | 2.30 | 1.95 | 1.66 | 1.41 | 1.20 | 1.02 |
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 | 11.70 | 1.27 | 0.90 | 10.80 |
| 2 | 10.80 | 1.10 | 1.80 | 9.00 |
| 3 | 9.00 | 0.90 | 1.80 | 7.20 |
| 4 | 7.20 | 0.70 | 1.80 | 5.40 |
| 5 | 5.40 | 0.50 | 1.80 | 3.60 |
| 6 | 3.60 | 0.31 | 1.80 | 1.80 |
| 7 | 1.80 | 0.11 | 1.80 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Pollution control board NOC
- Fire NOC
- Labour licence
- Trademark (optional)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Biodegradable Plastic Pellets (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Biodegradable_Plastic_Pellets_%28_Samadhan_Projects_%29.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.