Detailed Project Report
Sago (Sabudana) and Tapioca Starch Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹22.42 L
- Term loan from bank
- ₹14.57 L
- Promoter’s contribution
- ₹2.24 L
- Subsidy
- ₹5.60 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.99 L
- Average DSCR
- -1.19
- 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
Washing and rasping tapioca roots, settling out the starch, and rolling part of it into sago pearls for sale with the remaining starch.
| Main product or service | Sago (Sabudana) and Tapioca Starch Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Sago wholesalers and commission agents
- Papad, snack and namkeen makers
- Textile, paper and adhesive units (for starch)
- Sago trade markets and cooperative sales
- Wholesale grain and grocery markets
- Direct supply to food and industrial users
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Roots washing machine | 1 | 3,75,000 | 3,75,000 |
| Rasper with blades (× 3) | 1 | 2,25,000 | 2,25,000 |
| Sieves (4' × 8') (× 6) | 1 | 1,80,000 | 1,80,000 |
| Stokes | 1 | 30,000 | 30,000 |
| Pulleys (× 15) | 1 | 45,000 | 45,000 |
| Belt (100') | 1 | 15,000 | 15,000 |
| Flour roller (spike mill) | 1 | 75,000 | 75,000 |
| Globulator set | 1 | 1,20,000 | 1,20,000 |
| Sago sieves | 1 | 1,50,000 | 1,50,000 |
| Electric motor | 1 | 1,80,000 | 1,80,000 |
| Stitching machine | 1 | 1,50,000 | 1,50,000 |
| Weighing machine | 1 | 60,000 | 60,000 |
| Storage racks | 1 | 75,000 | 75,000 |
| Material handling trolleys | 1 | 1,00,000 | 1,00,000 |
| Misc. tools and tackles (× 1 set) | 1 | 30,000 | 30,000 |
| Standby generator set (32 kVA) | 1 | 3,25,000 | 3,25,000 |
| Total | 21,35,000 |
Pre-filled from: NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Sago. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Fresh tapioca (cassava) roots — processed within 1–2 days of harvest; raw materials taken at 60% of sales value
- Water — about 5,000 litres for each tonne of tubers
- Bags, stitching thread and markers — packing material
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 21.35 |
| Contingency | 1.07 |
| Total fixed capital | 22.42 |
| Working capital margin | 0.00 |
| Total project cost | 22.42 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.24 | 10.0 |
| Subsidy | 5.60 | 25.0 |
| Term loan from bank | 14.57 | 65.0 |
| Total | 22.42 | 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 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.44 | 3.44 | 3.44 | 3.44 | 3.44 | 3.44 | 3.44 |
| Operating profit (EBITDA) | -3.44 | -3.44 | -3.44 | -3.44 | -3.44 | -3.44 | -3.44 |
| Depreciation | 3.36 | 2.86 | 2.43 | 2.07 | 1.76 | 1.49 | 1.27 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.58 | 1.37 | 1.12 | 0.87 | 0.63 | 0.38 | 0.13 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.38 | -7.67 | -6.99 | -6.38 | -5.82 | -5.31 | -4.84 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.38 | -7.67 | -6.99 | -6.38 | -5.82 | -5.31 | -4.84 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.38 | -7.67 | -6.99 | -6.38 | -5.82 | -5.31 | -4.84 |
| Depreciation | 3.36 | 2.86 | 2.43 | 2.07 | 1.76 | 1.49 | 1.27 |
| Cash accruals (PAT + depreciation) | -5.02 | -4.81 | -4.56 | -4.31 | -4.07 | -3.82 | -3.57 |
| Term loan repaid | 1.12 | 2.24 | 2.24 | 2.24 | 2.24 | 2.24 | 2.24 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.14 | -7.05 | -6.80 | -6.56 | -6.31 | -6.06 | -5.82 |
| Cash and bank | -6.14 | -13.19 | -19.99 | -26.54 | -32.85 | -38.92 | -44.73 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.85 | 7.85 | 7.85 | 7.85 | 7.85 | 7.85 | 7.85 |
| Reserves and surplus | -8.38 | -16.05 | -23.04 | -29.41 | -35.24 | -40.55 | -45.39 |
| Term loan outstanding | 13.45 | 11.21 | 8.97 | 6.73 | 4.48 | 2.24 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 12.92 | 3.01 | -6.22 | -14.84 | -22.91 | -30.46 | -37.55 |
| Net fixed assets | 19.05 | 16.20 | 13.77 | 11.70 | 9.95 | 8.45 | 7.19 |
| 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 | -6.14 | -13.19 | -19.99 | -26.54 | -32.85 | -38.92 | -44.73 |
| Total assets | 12.92 | 3.01 | -6.22 | -14.84 | -22.91 | -30.46 | -37.55 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.28 | -0.95 | -1.02 | -1.10 | -1.20 | -1.31 | -1.45 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.19 |
|---|---|
| Lowest DSCR | -1.45 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.36 | 2.86 | 2.43 | 2.07 | 1.76 | 1.49 | 1.27 |
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 | 14.57 | 1.58 | 1.12 | 13.45 |
| 2 | 13.45 | 1.37 | 2.24 | 11.21 |
| 3 | 11.21 | 1.12 | 2.24 | 8.97 |
| 4 | 8.97 | 0.87 | 2.24 | 6.73 |
| 5 | 6.73 | 0.63 | 2.24 | 4.48 |
| 6 | 4.48 | 0.38 | 2.24 | 2.24 |
| 7 | 2.24 | 0.13 | 2.24 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- FSSAI licence or registration
- Factory licence
- State Pollution Control Board consent (starch effluent)
- Legal Metrology registration for packaged goods
18 Government schemes that may apply
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- NIFTEM-Thanjavur (IIFPT) PMFME model DPR — Sago — https://niftem-t.ac.in/pmfme/dpr-sago.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.