Detailed Project Report
Tea Blending and Packing Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹19.95 L
- Term loan from bank
- ₹17.96 L
- Promoter’s contribution
- ₹2.00 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.92 L
- Average DSCR
- -0.95
- 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
Blend bought-in tea with herbs and pack milk tea, green tea and herbal tea in packs and tea bags.
| Main product or service | Tea Blending and Packing Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Offices, hotels and canteens
- Health-conscious buyers for green and herbal tea
- Kirana shops through distributors
- Supermarkets and online stores
- Bulk supply to HoReCa
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Main machine (dehumidifier, tea-bag machine) | 1 | 15,00,000 | 15,00,000 |
| Ancillary machines (punch sealing etc.) | 1 | 4,00,000 | 4,00,000 |
| Total | 19,00,000 |
Pre-filled from: PMEGP sample project report — Tea Blending 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
- Tea for milk tea — ₹140–150 a kg (₹150 in year 1 of the report)
- Green tea — ₹450–500 a kg (₹460 in year 1)
- Herbal tea ingredients — ₹500–550 a kg (₹520 in year 1)
- Packaging and tea-bag material — packaging cost ₹2.35 lakh in year 1
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 19.00 |
| Contingency | 0.95 |
| Total fixed capital | 19.95 |
| Working capital margin | 0.00 |
| Total project cost | 19.95 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.00 | 10.0 |
| Term loan from bank | 17.96 | 90.0 |
| Total | 19.95 | 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 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 |
| Insurance | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Total cost of operations | 3.38 | 3.38 | 3.38 | 3.38 | 3.38 | 3.38 | 3.38 |
| Operating profit (EBITDA) | -3.38 | -3.38 | -3.38 | -3.38 | -3.38 | -3.38 | -3.38 |
| Depreciation | 2.99 | 2.54 | 2.16 | 1.84 | 1.56 | 1.33 | 1.13 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.94 | 1.68 | 1.38 | 1.08 | 0.77 | 0.47 | 0.16 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.31 | -7.61 | -6.92 | -6.29 | -5.71 | -5.17 | -4.67 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.31 | -7.61 | -6.92 | -6.29 | -5.71 | -5.17 | -4.67 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.31 | -7.61 | -6.92 | -6.29 | -5.71 | -5.17 | -4.67 |
| Depreciation | 2.99 | 2.54 | 2.16 | 1.84 | 1.56 | 1.33 | 1.13 |
| Cash accruals (PAT + depreciation) | -5.32 | -5.06 | -4.76 | -4.45 | -4.15 | -3.85 | -3.54 |
| Term loan repaid | 1.38 | 2.76 | 2.76 | 2.76 | 2.76 | 2.76 | 2.76 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.70 | -7.82 | -7.52 | -7.22 | -6.91 | -6.61 | -6.31 |
| Cash and bank | -6.70 | -14.53 | -22.05 | -29.27 | -36.18 | -42.79 | -49.09 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| Reserves and surplus | -8.31 | -15.92 | -22.84 | -29.13 | -34.85 | -40.02 | -44.69 |
| Term loan outstanding | 16.57 | 13.81 | 11.05 | 8.29 | 5.52 | 2.76 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 10.25 | -0.11 | -9.80 | -18.85 | -27.33 | -35.27 | -42.70 |
| Net fixed assets | 16.96 | 14.41 | 12.25 | 10.41 | 8.85 | 7.52 | 6.40 |
| 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 | -6.70 | -14.53 | -22.05 | -29.27 | -36.18 | -42.79 | -49.09 |
| Total assets | 10.25 | -0.11 | -9.80 | -18.85 | -27.33 | -35.27 | -42.70 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.02 | -0.76 | -0.82 | -0.88 | -0.96 | -1.05 | -1.15 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.95 |
|---|---|
| Lowest DSCR | -1.15 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.99 | 2.54 | 2.16 | 1.84 | 1.56 | 1.33 | 1.13 |
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 | 17.96 | 1.94 | 1.38 | 16.57 |
| 2 | 16.57 | 1.68 | 2.76 | 13.81 |
| 3 | 13.81 | 1.38 | 2.76 | 11.05 |
| 4 | 11.05 | 1.08 | 2.76 | 8.29 |
| 5 | 8.29 | 0.77 | 2.76 | 5.52 |
| 6 | 5.52 | 0.47 | 2.76 | 2.76 |
| 7 | 2.76 | 0.16 | 2.76 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST registration
- Fire and pollution clearances as required
- Trademark for the brand
- Legal Metrology registration for packaged goods
- Tea Board registration if you buy at tea auctions
18 Government schemes that may apply
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Tea Blending Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Tea_Blending_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.