Detailed Project Report
Polyhouse Farming (1 acre)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.37 L
- Term loan from bank
- ₹0.33 L
- Promoter’s contribution
- ₹0.04 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-2.95 L
- Average DSCR
- -44.02
- 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
Capsicum, cucumber, flowers — high-value farming under cover.
| Main product or service | Polyhouse Farming (1 acre) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Vegetable wholesalers and mandis
- Supermarkets and hotels
- Florists and flower traders
- Mandi sale
- Direct supply to retail chains and hotels
- Flower auctions and traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Naturally ventilated polyhouse, tubular GI structure (up to 4,000 sq m per farmer) | 1 | 840 | 840 |
| Fan-and-pad polyhouse | 1 | 1,400 | 1,400 |
| Shade net house, tubular structure | 1 | 710 | 710 |
| Plastic mulching | 1 | 32,000 | 32,000 |
| Drip system: PVC main lines, 16 mm LLDPE laterals, inline drippers (1.3–2.4 litres/hour), valves | 1 | 0 | 0 |
| Fogging system with 4-way foggers | 1 | 0 | 0 |
| Filtration unit: disc and sand filters, venturi, air release valve | 1 | 0 | 0 |
| Cladding: UV-stabilised 200 micron 5-layer poly film; 40-mesh insect net; 50% shade net | 1 | 0 | 0 |
| GI trellis wire for capsicum, tomato and cucumber | 1 | 0 | 0 |
| Total | 34,950 |
Pre-filled from: Telangana State Horticulture Mission – MIDH Implementation Guidelines 2023-24; National Horticulture Board – Cost Norms and Pattern of Assistance (MIDH, XII Plan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Planting material and cultivation: high-value vegetables — ₹140 per sq m
- Planting material and cultivation: carnation and gerbera — ₹610 per sq m
- Planting material and cultivation: rose and lilium — ₹426 per sq m
- Planting material and cultivation: orchid and anthurium — ₹700 per sq m
- GI steel for the structure — about 22 tonnes per acre
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.35 |
| Contingency | 0.02 |
| Total fixed capital | 0.37 |
| Working capital margin | 0.00 |
| Total project cost | 0.37 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.04 | 10.0 |
| Term loan from bank | 0.33 | 90.0 |
| Total | 0.37 | 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 | 0.01 | 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 | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 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 | 0.04 | 0.03 | 0.03 | 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 | -2.98 | -2.97 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -2.98 | -2.97 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -2.98 | -2.97 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
| Depreciation | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 |
| Cash accruals (PAT + depreciation) | -2.92 | -2.92 | -2.91 | -2.91 | -2.90 | -2.90 | -2.89 |
| Term loan repaid | 0.03 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.95 | -2.97 | -2.97 | -2.96 | -2.95 | -2.95 | -2.94 |
| Cash and bank | -2.95 | -5.92 | -8.89 | -11.85 | -14.80 | -17.75 | -20.69 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Reserves and surplus | -2.98 | -5.95 | -8.90 | -11.84 | -14.78 | -17.70 | -20.61 |
| Term loan outstanding | 0.30 | 0.25 | 0.20 | 0.15 | 0.10 | 0.05 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.64 | -5.66 | -8.66 | -11.65 | -14.64 | -17.61 | -20.57 |
| Net fixed assets | 0.31 | 0.27 | 0.23 | 0.19 | 0.16 | 0.14 | 0.12 |
| 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 | -2.95 | -5.92 | -8.89 | -11.85 | -14.80 | -17.75 | -20.69 |
| Total assets | -2.64 | -5.66 | -8.66 | -11.65 | -14.64 | -17.61 | -20.57 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -47.24 | -35.33 | -37.92 | -40.92 | -44.44 | -48.62 | -53.66 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -44.02 |
|---|---|
| Lowest DSCR | -53.66 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 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 | 0.33 | 0.04 | 0.03 | 0.30 |
| 2 | 0.30 | 0.03 | 0.05 | 0.25 |
| 3 | 0.25 | 0.03 | 0.05 | 0.20 |
| 4 | 0.20 | 0.02 | 0.05 | 0.15 |
| 5 | 0.15 | 0.01 | 0.05 | 0.10 |
| 6 | 0.10 | 0.01 | 0.05 | 0.05 |
| 7 | 0.05 | 0.00 | 0.05 | 0.00 |
17 Licences and registrations
- Land papers
- Registration with the State Horticulture Department/MIDH (for the subsidy, only through an empanelled vendor)
- Electricity connection
18 Government schemes that may apply
- NHB Capital Investment Subsidy – Commercial Horticulture & Cold Storage (Scheme 1 and Cold Storage Scheme)
- Agriculture Infrastructure Fund (AIF)
- Stand-Up India
19 Sources
- Telangana State Horticulture Mission – MIDH Implementation Guidelines 2023-24 — https://shm.tg.nic.in/Download/Implementation%20Guidelines%20-%202023-24.pdf
- National Horticulture Board – Cost Norms and Pattern of Assistance (MIDH, XII Plan) — https://nhb.gov.in/hindi/pdf/Cost%20Norms.pdf
- FSSAI – Public Notice: List of mapped ITC HS codes with FSS Regulations — https://fssai.gov.in/upload/advisories/2020/03/5e6b37c994302Public_Notice_HS_Code_13_02_2020.pdf
- APEDA – Product groups (Cereals, Processed Foods, Animal Products, Fruits & Vegetables, Floriculture) — https://apeda.gov.in/
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.