Detailed Project Report
Poultry Hatchery (Day-Old Chicks)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.92 L
- Term loan from bank
- ₹5.33 L
- Promoter’s contribution
- ₹0.59 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.08 L
- Average DSCR
- -2.86
- 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
Keep a parent flock, incubate its eggs and sell vaccinated day-old broiler or layer chicks to poultry farms.
| Main product or service | Poultry Hatchery (Day-Old Chicks) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Broiler and layer poultry farms
- Buyers of culled birds and infertile eggs
- Direct sale to farms in the area
- Chick dealers and feed dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Automatic egg setter, 13,500 eggs (× 2) | 1 | 2,00,000 | 2,00,000 |
| Automatic egg hatcher, 4,500 eggs (× 2) | 1 | 1,40,000 | 1,40,000 |
| Generator, 10 KVA | 1 | 90,000 | 90,000 |
| Feeders, waterers and brooders (× lot) | 1 | 35,000 | 35,000 |
| Air conditioner, 1.5 TR | 1 | 25,000 | 25,000 |
| Refrigerator | 1 | 25,000 | 25,000 |
| Electrification and installation (× lot) | 1 | 25,000 | 25,000 |
| Buckets, trays, baskets (× lot) | 1 | 10,000 | 10,000 |
| Veterinary instruments (× lot) | 1 | 6,000 | 6,000 |
| Weighing balance | 1 | 5,000 | 5,000 |
| Electric debeaker | 1 | 1,250 | 1,250 |
| Egg weighing scale | 1 | 750 | 750 |
| Electric egg tester | 1 | 600 | 600 |
| Total | 5,63,600 |
Pre-filled from: DC-MSME project profile — Hatchery; World Customs Organization – HS Nomenclature 2022, Chapter 1. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Parent-stock day-old chicks — 1,500 to start; 225 a month for replacement at ₹75 each in the report
- Poultry feed — 8 tonnes a month at ₹6,000 a tonne
- Medicines, vaccines and antibiotics — ₹20,000 a month
- Chick baskets — 175 a month at ₹35 each
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.64 |
| Contingency | 0.28 |
| Total fixed capital | 5.92 |
| Working capital margin | 0.00 |
| Total project cost | 5.92 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.59 | 10.0 |
| Term loan from bank | 5.33 | 90.0 |
| Total | 5.92 | 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 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 |
| Operating profit (EBITDA) | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 |
| Depreciation | 0.89 | 0.75 | 0.64 | 0.55 | 0.46 | 0.39 | 0.33 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.58 | 0.50 | 0.41 | 0.32 | 0.23 | 0.14 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.49 | -4.28 | -4.08 | -3.89 | -3.72 | -3.56 | -3.41 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.49 | -4.28 | -4.08 | -3.89 | -3.72 | -3.56 | -3.41 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.49 | -4.28 | -4.08 | -3.89 | -3.72 | -3.56 | -3.41 |
| Depreciation | 0.89 | 0.75 | 0.64 | 0.55 | 0.46 | 0.39 | 0.33 |
| Cash accruals (PAT + depreciation) | -3.60 | -3.53 | -3.44 | -3.35 | -3.26 | -3.17 | -3.08 |
| Term loan repaid | 0.41 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.01 | -4.35 | -4.26 | -4.17 | -4.08 | -3.99 | -3.90 |
| Cash and bank | -4.01 | -8.36 | -12.62 | -16.78 | -20.86 | -24.85 | -28.74 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.59 | 0.59 | 0.59 | 0.59 | 0.59 | 0.59 | 0.59 |
| Reserves and surplus | -4.49 | -8.77 | -12.85 | -16.74 | -20.47 | -24.03 | -27.44 |
| Term loan outstanding | 4.92 | 4.10 | 3.28 | 2.46 | 1.64 | 0.82 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.02 | -4.09 | -8.98 | -13.70 | -18.23 | -22.61 | -26.85 |
| Net fixed assets | 5.03 | 4.28 | 3.63 | 3.09 | 2.63 | 2.23 | 1.90 |
| 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 | -4.01 | -8.36 | -12.62 | -16.78 | -20.86 | -24.85 | -28.74 |
| Total assets | 1.02 | -4.09 | -8.98 | -13.70 | -18.23 | -22.61 | -26.85 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.07 | -2.30 | -2.46 | -2.66 | -2.89 | -3.16 | -3.49 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.86 |
|---|---|
| Lowest DSCR | -3.49 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.89 | 0.75 | 0.64 | 0.55 | 0.46 | 0.39 | 0.33 |
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 | 5.33 | 0.58 | 0.41 | 4.92 |
| 2 | 4.92 | 0.50 | 0.82 | 4.10 |
| 3 | 4.10 | 0.41 | 0.82 | 3.28 |
| 4 | 3.28 | 0.32 | 0.82 | 2.46 |
| 5 | 2.46 | 0.23 | 0.82 | 1.64 |
| 6 | 1.64 | 0.14 | 0.82 | 0.82 |
| 7 | 0.82 | 0.05 | 0.82 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board no-objection certificate, as the report advises
- Registration or permission from the state animal husbandry department, where the state requires it
- BIS mark to IS 9800:1981 for day-old chicks is optional
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Stand-Up India
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Hatchery — https://www.dcmsme.gov.in/publications/pmryprof/food/ch13.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 1 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0101_2022e.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 4 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0104_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.