Detailed Project Report
Potato Chips and Wafers
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹14.44 L
- Term loan from bank
- ₹9.38 L
- Promoter’s contribution
- ₹1.44 L
- Subsidy
- ₹3.61 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.53 L
- Average DSCR
- -1.74
- 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
Peel, slice, fry and pack potato (or banana) chips for local snack shops.
| Main product or service | Potato Chips and Wafers |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Kirana and general stores
- Bakeries and sweet shops
- Canteens, hotels and travel points
- Distributors and wholesalers
- Direct supply to shops
- Own brand
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Boiler, steam-jacketed kettle, potato peeling machine, pouch sealing machine, frying pan (× 1 lot) | 1 | 1,50,000 | 1,50,000 |
| Potato peeler, power slicing machine, hydro extractor with motor, deep fat fryer, bag sealing machine, salting drum (one each) (× 1 lot) | 1 | 1,50,000 | 1,50,000 |
| Line: hopper with metered feeder, grader, de-stoner, peeler, inspection conveyor, slicer, de-oiling conveyor, heat exchanger (× 1 set) | 1 | 10,75,000 | 10,75,000 |
| Total | 13,75,000 |
Pre-filled from: KVIC Project Profile — Potato Chips/Wafer Manufacturing (PMEGP); KVIC Project Profile — Potato/Banana Wafers (PMEGP). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Potatoes — large, oval, fully mature, few eyes (KVIC wafers profile)
- Raw bananas — for banana wafers (KVIC wafers profile)
- Potato, oil and spices — ₹30 per kg average in the Samadhan report
- Labels and packing material — ₹1.00 L a year in the KVIC wafers profile; ₹50,000 in the small KVIC unit
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 13.75 |
| Contingency | 0.69 |
| Total fixed capital | 14.44 |
| Working capital margin | 0.00 |
| Total project cost | 14.44 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.44 | 10.0 |
| Subsidy | 3.61 | 25.0 |
| Term loan from bank | 9.38 | 65.0 |
| Total | 14.44 | 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 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Insurance | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Total cost of operations | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 |
| Operating profit (EBITDA) | -3.24 | -3.24 | -3.24 | -3.24 | -3.24 | -3.24 | -3.24 |
| Depreciation | 2.17 | 1.84 | 1.56 | 1.33 | 1.13 | 0.96 | 0.82 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.02 | 0.88 | 0.72 | 0.56 | 0.40 | 0.24 | 0.09 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.42 | -5.96 | -5.53 | -5.13 | -4.78 | -4.45 | -4.14 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.42 | -5.96 | -5.53 | -5.13 | -4.78 | -4.45 | -4.14 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.42 | -5.96 | -5.53 | -5.13 | -4.78 | -4.45 | -4.14 |
| Depreciation | 2.17 | 1.84 | 1.56 | 1.33 | 1.13 | 0.96 | 0.82 |
| Cash accruals (PAT + depreciation) | -4.26 | -4.12 | -3.96 | -3.80 | -3.64 | -3.49 | -3.33 |
| Term loan repaid | 0.72 | 1.44 | 1.44 | 1.44 | 1.44 | 1.44 | 1.44 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.98 | -5.56 | -5.41 | -5.25 | -5.09 | -4.93 | -4.77 |
| Cash and bank | -4.98 | -10.54 | -15.95 | -21.20 | -26.28 | -31.21 | -35.99 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.05 | 5.05 | 5.05 | 5.05 | 5.05 | 5.05 | 5.05 |
| Reserves and surplus | -6.42 | -12.38 | -17.91 | -23.04 | -27.82 | -32.27 | -36.41 |
| Term loan outstanding | 8.66 | 7.22 | 5.78 | 4.33 | 2.89 | 1.44 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 7.29 | -0.11 | -7.08 | -13.66 | -19.88 | -25.77 | -31.36 |
| Net fixed assets | 12.27 | 10.43 | 8.87 | 7.54 | 6.41 | 5.45 | 4.63 |
| 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 | -4.98 | -10.54 | -15.95 | -21.20 | -26.28 | -31.21 | -35.99 |
| Total assets | 7.29 | -0.11 | -7.08 | -13.66 | -19.88 | -25.77 | -31.36 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.87 | -1.39 | -1.50 | -1.62 | -1.75 | -1.92 | -2.12 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.74 |
|---|---|
| Lowest DSCR | -2.12 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.17 | 1.84 | 1.56 | 1.33 | 1.13 | 0.96 | 0.82 |
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 | 9.38 | 1.02 | 0.72 | 8.66 |
| 2 | 8.66 | 0.88 | 1.44 | 7.22 |
| 3 | 7.22 | 0.72 | 1.44 | 5.78 |
| 4 | 5.78 | 0.56 | 1.44 | 4.33 |
| 5 | 4.33 | 0.40 | 1.44 | 2.89 |
| 6 | 2.89 | 0.24 | 1.44 | 1.44 |
| 7 | 1.44 | 0.09 | 1.44 | 0.00 |
17 Licences and registrations
- FSSAI licence or registration
- Udyam registration
- GST
- Pollution control board consent where required
- Fire NOC
- 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 — Potato Chips/Wafer Manufacturing (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/POTATO_CHIPS-WAFER_MANUFACTURING_%28_AGRO_BASED_FOOD_PROCESSING_INDUSTRY_%29.pdf
- KVIC Project Profile — Potato/Banana Wafers (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/POTATO-BANANA_WAFERS_%28_AGRO_BASED_FOOD_PROCESSING_INDUSTRY_%29.pdf
- PMEGP sample project report — Potato Chips (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Potato_Chips_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 20 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0420_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.