Detailed Project Report
Sweetened Condensed Milk Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹14.16 L
- Term loan from bank
- ₹9.21 L
- Promoter’s contribution
- ₹1.42 L
- Subsidy
- ₹3.54 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.48 L
- Average DSCR
- -1.77
- 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
Boil milk down with sugar under vacuum, homogenise and cool it, and fill it into 200 g cans.
| Main product or service | Sweetened Condensed Milk Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Grocery and kirana shops
- Sweet shops and bakeries
- Ice-cream and confectionery makers
- Tea and coffee stalls
- Food distributors
- Direct supply to bakeries and sweet makers
- Modern retail
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Evaporation tank, 100 litres an hour | 1 | 2,80,000 | 2,80,000 |
| Packing and other equipment | 1 | 2,80,000 | 2,80,000 |
| Can washing machine | 1 | 2,00,000 | 2,00,000 |
| Milk homogeniser, 300 litres an hour | 1 | 1,95,000 | 1,95,000 |
| Milk storage tank, 500 litres | 1 | 1,65,000 | 1,65,000 |
| Refrigerator, 500–1,000 litres | 1 | 1,20,000 | 1,20,000 |
| Baby boiler, 0–500 kg an hour | 1 | 1,00,000 | 1,00,000 |
| Milk weighing machine, 200 kg | 1 | 9,000 | 9,000 |
| Total | 13,49,000 |
Pre-filled from: PMEGP sample project report — Sweet Condensed Milk (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
- Milk — 80,000 litres a year at ₹30 a litre at full capacity
- Sugar — 10,000 kg a year at ₹20 a kg
- Empty cans — 1,50,000 at ₹5
- Preservatives and other chemicals
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 13.49 |
| Contingency | 0.67 |
| Total fixed capital | 14.16 |
| Working capital margin | 0.00 |
| Total project cost | 14.16 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.42 | 10.0 |
| Subsidy | 3.54 | 25.0 |
| Term loan from bank | 9.21 | 65.0 |
| Total | 14.16 | 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 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Insurance | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Total cost of operations | 3.23 | 3.23 | 3.23 | 3.23 | 3.23 | 3.23 | 3.23 |
| Operating profit (EBITDA) | -3.23 | -3.23 | -3.23 | -3.23 | -3.23 | -3.23 | -3.23 |
| Depreciation | 2.12 | 1.81 | 1.54 | 1.30 | 1.11 | 0.94 | 0.80 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.00 | 0.86 | 0.71 | 0.55 | 0.40 | 0.24 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.36 | -5.90 | -5.48 | -5.09 | -4.74 | -4.42 | -4.12 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.36 | -5.90 | -5.48 | -5.09 | -4.74 | -4.42 | -4.12 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.36 | -5.90 | -5.48 | -5.09 | -4.74 | -4.42 | -4.12 |
| Depreciation | 2.12 | 1.81 | 1.54 | 1.30 | 1.11 | 0.94 | 0.80 |
| Cash accruals (PAT + depreciation) | -4.23 | -4.10 | -3.94 | -3.79 | -3.63 | -3.47 | -3.32 |
| Term loan repaid | 0.71 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.94 | -5.51 | -5.36 | -5.20 | -5.05 | -4.89 | -4.73 |
| Cash and bank | -4.94 | -10.45 | -15.81 | -21.01 | -26.06 | -30.95 | -35.69 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.96 | 4.96 | 4.96 | 4.96 | 4.96 | 4.96 | 4.96 |
| Reserves and surplus | -6.36 | -12.26 | -17.74 | -22.83 | -27.57 | -31.98 | -36.10 |
| Term loan outstanding | 8.50 | 7.08 | 5.67 | 4.25 | 2.83 | 1.42 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 7.10 | -0.22 | -7.11 | -13.62 | -19.78 | -25.61 | -31.14 |
| Net fixed assets | 12.04 | 10.23 | 8.70 | 7.39 | 6.28 | 5.34 | 4.54 |
| 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 | -4.94 | -10.45 | -15.81 | -21.01 | -26.06 | -30.95 | -35.69 |
| Total assets | 7.10 | -0.22 | -7.11 | -13.62 | -19.78 | -25.61 | -31.14 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.90 | -1.42 | -1.52 | -1.64 | -1.78 | -1.95 | -2.15 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.77 |
|---|---|
| Lowest DSCR | -2.15 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.12 | 1.81 | 1.54 | 1.30 | 1.11 | 0.94 | 0.80 |
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 | 9.21 | 1.00 | 0.71 | 8.50 |
| 2 | 8.50 | 0.86 | 1.42 | 7.08 |
| 3 | 7.08 | 0.71 | 1.42 | 5.67 |
| 4 | 5.67 | 0.55 | 1.42 | 4.25 |
| 5 | 4.25 | 0.40 | 1.42 | 2.83 |
| 6 | 2.83 | 0.24 | 1.42 | 1.42 |
| 7 | 1.42 | 0.08 | 1.42 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- FSSAI licence (the report lists FSSAI registration)
- Legal Metrology registration for packed goods
- Boiler registration if a steam boiler is used
- Trademark for your brand
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
- PMEGP sample project report — Sweet Condensed Milk (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Sweet_Condensed_Milk_%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.