Detailed Project Report
Popcorn Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.48 L
- Term loan from bank
- ₹11.36 L
- Promoter’s contribution
- ₹1.75 L
- Subsidy
- ₹4.37 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.09 L
- Average DSCR
- -1.47
- 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
Pop, season and pack maize kernels as ready-to-eat popcorn.
| Main product or service | Popcorn Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Kirana and general stores
- Cinemas, fairs and events
- Schools and canteens
- Distributors
- Direct supply to retailers
- Online
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Popcorn machine, pan, mixer, packing machine (× 1 lot) | 1 | 1,65,000 | 1,65,000 |
| Popcorn popper | 1 | 0 | 0 |
| Conveyor and Z conveyor (× 1 each) | 1 | 0 | 0 |
| Cooling tumbler | 1 | 0 | 0 |
| Masala seasoning machine | 1 | 0 | 0 |
| Online dryer with vibro dryer | 1 | 0 | 0 |
| Slurry kettle and caramelizer (× 1 each) | 1 | 0 | 0 |
| Pouch packaging machine | 1 | 0 | 0 |
| Air compressor and weighing scale (× 1 each) | 1 | 0 | 0 |
| Full Samadhan machine set (all of the above) (× 1 set) | 1 | 15,00,000 | 15,00,000 |
| Total | 16,65,000 |
Pre-filled from: KVIC Project Profile — Popcorn Manufacturing Unit (PMEGP); PMEGP sample project report — Popcorn (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Maize (makka), ghee, salt — ₹12.00 L a year in the KVIC profile
- Corn kernels, oil, salt and spices — ₹90–140 per kg average raw material cost in the Samadhan report; projections use ₹90 per kg in year 1
- Moisture-proof pouches and corrugated outer cartons — for packing and bulk transport
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.65 |
| Contingency | 0.83 |
| Total fixed capital | 17.48 |
| Working capital margin | 0.00 |
| Total project cost | 17.48 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.75 | 10.0 |
| Subsidy | 4.37 | 25.0 |
| Term loan from bank | 11.36 | 65.0 |
| Total | 17.48 | 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 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 |
| Operating profit (EBITDA) | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 |
| Depreciation | 2.62 | 2.23 | 1.89 | 1.61 | 1.37 | 1.16 | 0.99 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.23 | 1.07 | 0.87 | 0.68 | 0.49 | 0.30 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.17 | -6.61 | -6.09 | -5.61 | -5.17 | -4.78 | -4.41 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.17 | -6.61 | -6.09 | -5.61 | -5.17 | -4.78 | -4.41 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.17 | -6.61 | -6.09 | -5.61 | -5.17 | -4.78 | -4.41 |
| Depreciation | 2.62 | 2.23 | 1.89 | 1.61 | 1.37 | 1.16 | 0.99 |
| Cash accruals (PAT + depreciation) | -4.55 | -4.38 | -4.19 | -4.00 | -3.81 | -3.61 | -3.42 |
| Term loan repaid | 0.87 | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.42 | -6.13 | -5.94 | -5.75 | -5.55 | -5.36 | -5.17 |
| Cash and bank | -5.42 | -11.55 | -17.49 | -23.24 | -28.79 | -34.15 | -39.32 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 6.12 | 6.12 | 6.12 | 6.12 | 6.12 | 6.12 | 6.12 |
| Reserves and surplus | -7.17 | -13.78 | -19.87 | -25.47 | -30.65 | -35.43 | -39.84 |
| Term loan outstanding | 10.49 | 8.74 | 6.99 | 5.24 | 3.50 | 1.75 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.44 | 1.08 | -6.75 | -14.11 | -21.03 | -27.56 | -33.72 |
| Net fixed assets | 14.86 | 12.63 | 10.74 | 9.13 | 7.76 | 6.59 | 5.60 |
| 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 | -5.42 | -11.55 | -17.49 | -23.24 | -28.79 | -34.15 | -39.32 |
| Total assets | 9.44 | 1.08 | -6.75 | -14.11 | -21.03 | -27.56 | -33.72 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.58 | -1.18 | -1.27 | -1.37 | -1.48 | -1.62 | -1.79 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.47 |
|---|---|
| Lowest DSCR | -1.79 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.62 | 2.23 | 1.89 | 1.61 | 1.37 | 1.16 | 0.99 |
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 | 11.36 | 1.23 | 0.87 | 10.49 |
| 2 | 10.49 | 1.07 | 1.75 | 8.74 |
| 3 | 8.74 | 0.87 | 1.75 | 6.99 |
| 4 | 6.99 | 0.68 | 1.75 | 5.24 |
| 5 | 5.24 | 0.49 | 1.75 | 3.50 |
| 6 | 3.50 | 0.30 | 1.75 | 1.75 |
| 7 | 1.75 | 0.10 | 1.75 | 0.00 |
17 Licences and registrations
- FSSAI licence or registration
- Udyam registration
- GST
- Legal Metrology registration for packed goods
- Trademark for the brand
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)
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
19 Sources
- KVIC Project Profile — Popcorn Manufacturing Unit (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/POPCORN_MANUFACTURING_UNIT_%28_AGRO_BASED_FOOD_PROCESSING_INDUSTRY_%29.pdf
- PMEGP sample project report — Popcorn (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Popcorn_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 19 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0419_2022e.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.