Detailed Project Report
Sodium Sulphate (Glauber's Salt)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹10.27 L
- Term loan from bank
- ₹6.67 L
- Promoter’s contribution
- ₹1.03 L
- Subsidy
- ₹2.57 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.76 L
- Average DSCR
- -2.36
- 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
Heat common salt with sulphuric acid to make sodium sulphate, with hydrochloric acid as a by-product.
| Main product or service | Sodium Sulphate (Glauber's Salt) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Detergent makers
- Kraft paper and board mills
- Glass makers
- Textile dyeing units
- Direct supply to factories
- Chemical traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Furnace | 1 | 2,50,000 | 2,50,000 |
| Filter | 1 | 35,000 | 35,000 |
| Solution tank | 1 | 50,000 | 50,000 |
| Crystalliser | 1 | 1,25,000 | 1,25,000 |
| Steam boiler | 1 | 2,65,000 | 2,65,000 |
| Centrifuge | 1 | 1,00,000 | 1,00,000 |
| Testing equipment | 1 | 65,000 | 65,000 |
| Installation and erection (10% of machinery) (× LS) | 1 | 88,000 | 88,000 |
| Total | 9,78,000 |
Pre-filled from: PMEGP sample project report — Sodium Sulphate (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Common salt — 313.20 MT a year at ₹2,500 per MT (full capacity)
- Sulphuric acid (concentrated) — 288 MT a year at ₹8,500 per MT
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 9.78 |
| Contingency | 0.49 |
| Total fixed capital | 10.27 |
| Working capital margin | 0.00 |
| Total project cost | 10.27 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.03 | 10.0 |
| Subsidy | 2.57 | 25.0 |
| Term loan from bank | 6.67 | 65.0 |
| Total | 10.27 | 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 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.14 | 3.14 | 3.14 | 3.14 | 3.14 | 3.14 | 3.14 |
| Operating profit (EBITDA) | -3.14 | -3.14 | -3.14 | -3.14 | -3.14 | -3.14 | -3.14 |
| Depreciation | 1.54 | 1.31 | 1.11 | 0.95 | 0.80 | 0.68 | 0.58 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.72 | 0.63 | 0.51 | 0.40 | 0.29 | 0.17 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.40 | -5.07 | -4.76 | -4.48 | -4.23 | -3.99 | -3.78 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.40 | -5.07 | -4.76 | -4.48 | -4.23 | -3.99 | -3.78 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.40 | -5.07 | -4.76 | -4.48 | -4.23 | -3.99 | -3.78 |
| Depreciation | 1.54 | 1.31 | 1.11 | 0.95 | 0.80 | 0.68 | 0.58 |
| Cash accruals (PAT + depreciation) | -3.86 | -3.76 | -3.65 | -3.54 | -3.42 | -3.31 | -3.20 |
| Term loan repaid | 0.51 | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 | 1.03 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.37 | -4.79 | -4.68 | -4.56 | -4.45 | -4.34 | -4.22 |
| Cash and bank | -4.37 | -9.16 | -13.84 | -18.40 | -22.85 | -27.19 | -31.42 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.59 | 3.59 | 3.59 | 3.59 | 3.59 | 3.59 | 3.59 |
| Reserves and surplus | -5.40 | -10.47 | -15.23 | -19.72 | -23.94 | -27.94 | -31.72 |
| Term loan outstanding | 6.16 | 5.13 | 4.11 | 3.08 | 2.05 | 1.03 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.36 | -1.74 | -7.53 | -13.04 | -18.30 | -23.32 | -28.12 |
| Net fixed assets | 8.73 | 7.42 | 6.31 | 5.36 | 4.56 | 3.87 | 3.29 |
| 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 | -4.37 | -9.16 | -13.84 | -18.40 | -22.85 | -27.19 | -31.42 |
| Total assets | 4.36 | -1.74 | -7.53 | -13.04 | -18.30 | -23.32 | -28.12 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.54 | -1.90 | -2.04 | -2.20 | -2.39 | -2.61 | -2.88 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.36 |
|---|---|
| Lowest DSCR | -2.88 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.54 | 1.31 | 1.11 | 0.95 | 0.80 | 0.68 | 0.58 |
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 | 6.67 | 0.72 | 0.51 | 6.16 |
| 2 | 6.16 | 0.63 | 1.03 | 5.13 |
| 3 | 5.13 | 0.51 | 1.03 | 4.11 |
| 4 | 4.11 | 0.40 | 1.03 | 3.08 |
| 5 | 3.08 | 0.29 | 1.03 | 2.05 |
| 6 | 2.05 | 0.17 | 1.03 | 1.03 |
| 7 | 1.03 | 0.06 | 1.03 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate
- Factories Act registration and hazardous-chemical safety rules
- Product testing to IS 255 / IS 256 if buyers ask
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Sodium Sulphate (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Sodium_sulphate_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.