Detailed Project Report
Red Chilli Powder Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.56 L
- Term loan from bank
- ₹4.91 L
- Promoter’s contribution
- ₹0.76 L
- Subsidy
- ₹1.89 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.27 L
- Average DSCR
- -3.14
- 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
Clean, dry, grind and pack dried red chillies into chilli powder for shops and bulk buyers.
| Main product or service | Red Chilli Powder Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Hotels, restaurants and caterers
- Food processors and masala makers
- Exporters
- Kirana shops through distributors
- Wholesale spice markets
- Bulk supply to food businesses
- Export through registered exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Impact pulveriser without sieve | 1 | 3,00,000 | 3,00,000 |
| Packaging machine | 1 | 1,80,000 | 1,80,000 |
| Material handling and other equipment (bins, trolley, weighing machine, kitchen tools) (× 1 lot) | 1 | 2,40,000 | 2,40,000 |
| Total | 7,20,000 |
Pre-filled from: PMEGP sample project report — Red Chilli Powder Unit (prepared by Udyami/Samadhan); DGFT — ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Dried red chilli — the only raw material; ₹39.00 L of chillies in year 1 of the report
- Packing material — pouches and cartons for retail and bulk packs
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.20 |
| Contingency | 0.36 |
| Total fixed capital | 7.56 |
| Working capital margin | 0.00 |
| Total project cost | 7.56 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.76 | 10.0 |
| Subsidy | 1.89 | 25.0 |
| Term loan from bank | 4.91 | 65.0 |
| Total | 7.56 | 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 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 |
| Operating profit (EBITDA) | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 |
| Depreciation | 1.13 | 0.96 | 0.82 | 0.70 | 0.59 | 0.50 | 0.43 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.53 | 0.46 | 0.38 | 0.29 | 0.21 | 0.13 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.73 | -4.49 | -4.27 | -4.06 | -3.87 | -3.70 | -3.54 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.73 | -4.49 | -4.27 | -4.06 | -3.87 | -3.70 | -3.54 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.73 | -4.49 | -4.27 | -4.06 | -3.87 | -3.70 | -3.54 |
| Depreciation | 1.13 | 0.96 | 0.82 | 0.70 | 0.59 | 0.50 | 0.43 |
| Cash accruals (PAT + depreciation) | -3.60 | -3.53 | -3.45 | -3.36 | -3.28 | -3.20 | -3.11 |
| Term loan repaid | 0.38 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.98 | -4.29 | -4.20 | -4.12 | -4.04 | -3.95 | -3.87 |
| Cash and bank | -3.98 | -8.26 | -12.47 | -16.59 | -20.62 | -24.58 | -28.45 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.65 | 2.65 | 2.65 | 2.65 | 2.65 | 2.65 | 2.65 |
| Reserves and surplus | -4.73 | -9.23 | -13.49 | -17.55 | -21.43 | -25.13 | -28.67 |
| Term loan outstanding | 4.54 | 3.78 | 3.02 | 2.27 | 1.51 | 0.76 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.45 | -2.80 | -7.82 | -12.64 | -17.27 | -21.73 | -26.02 |
| Net fixed assets | 6.43 | 5.46 | 4.64 | 3.95 | 3.35 | 2.85 | 2.42 |
| 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 | -3.98 | -8.26 | -12.47 | -16.59 | -20.62 | -24.58 | -28.45 |
| Total assets | 2.45 | -2.80 | -7.82 | -12.64 | -17.27 | -21.73 | -26.02 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.37 | -2.52 | -2.71 | -2.92 | -3.17 | -3.47 | -3.83 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.14 |
|---|---|
| Lowest DSCR | -3.83 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.13 | 0.96 | 0.82 | 0.70 | 0.59 | 0.50 | 0.43 |
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 | 4.91 | 0.53 | 0.38 | 4.54 |
| 2 | 4.54 | 0.46 | 0.76 | 3.78 |
| 3 | 3.78 | 0.38 | 0.76 | 3.02 |
| 4 | 3.02 | 0.29 | 0.76 | 2.27 |
| 5 | 2.27 | 0.21 | 0.76 | 1.51 |
| 6 | 1.51 | 0.13 | 0.76 | 0.76 |
| 7 | 0.76 | 0.05 | 0.76 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam
- GST
- Legal Metrology registration for packed goods
- Spices Board registration (CRES) if you export
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)
19 Sources
- PMEGP sample project report — Red Chilli Powder Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Red_Chilli_Powder_Unit_%28_Samadhan_Projects_%29.pdf
- DGFT — ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.