Detailed Project Report
Vermicompost Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.38 L
- Term loan from bank
- ₹0.25 L
- Promoter’s contribution
- ₹0.04 L
- Subsidy
- ₹0.09 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-2.95 L
- Average DSCR
- -59.34
- 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
Earthworm compost from dung and waste — rising demand from organic farming.
| Main product or service | Vermicompost Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Farmers, especially vegetable and fruit growers
- Plant nurseries
- Home and terrace gardeners
- Direct sale to nearby farmers
- Bags sold through agri-input shops and nurseries
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Vermicompost pit/unit, 3 m × 2 m × 1 m | 1 | 26,000 | 26,000 |
| HDPE vermicompost bed, 12 ft × 4 ft × 2 ft (450 GSM) | 1 | 5,200 | 5,200 |
| HDPE vermicompost bed, 12 ft × 4 ft × 2 ft (350 GSM) | 1 | 4,700 | 4,700 |
| Total | 35,900 |
Pre-filled from: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: VermiCompost; NABARD Andhra Pradesh RO – Comprehensive Guide of Unit Costs 2025-26. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw materials (the report does not list them item by item) — ₹15.90 lakh a year at 60% capacity, against sales of ₹21.00 lakh
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.36 |
| Contingency | 0.02 |
| Total fixed capital | 0.38 |
| Working capital margin | 0.00 |
| Total project cost | 0.38 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.04 | 10.0 |
| Subsidy | 0.09 | 25.0 |
| Term loan from bank | 0.25 | 65.0 |
| Total | 0.38 | 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 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 | 2.89 |
| Operating profit (EBITDA) | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 |
| Depreciation | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.03 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -2.97 | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -2.97 | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -2.97 | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 |
| Depreciation | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 |
| Cash accruals (PAT + depreciation) | -2.92 | -2.91 | -2.91 | -2.90 | -2.90 | -2.90 | -2.89 |
| Term loan repaid | 0.02 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.93 | -2.95 | -2.95 | -2.94 | -2.94 | -2.93 | -2.93 |
| Cash and bank | -2.93 | -5.88 | -8.83 | -11.77 | -14.71 | -17.64 | -20.57 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Reserves and surplus | -2.97 | -5.93 | -8.88 | -11.82 | -14.75 | -17.67 | -20.58 |
| Term loan outstanding | 0.23 | 0.19 | 0.15 | 0.11 | 0.08 | 0.04 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.61 | -5.61 | -8.60 | -11.58 | -14.54 | -17.50 | -20.45 |
| Net fixed assets | 0.32 | 0.27 | 0.23 | 0.20 | 0.17 | 0.14 | 0.12 |
| 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 | -2.93 | -5.88 | -8.83 | -11.77 | -14.71 | -17.64 | -20.57 |
| Total assets | -2.61 | -5.61 | -8.60 | -11.58 | -14.54 | -17.50 | -20.45 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -63.69 | -47.62 | -51.12 | -55.16 | -59.90 | -65.54 | -72.34 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -59.34 |
|---|---|
| Lowest DSCR | -72.34 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.06 | 0.05 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 |
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 | 0.25 | 0.03 | 0.02 | 0.23 |
| 2 | 0.23 | 0.02 | 0.04 | 0.19 |
| 3 | 0.19 | 0.02 | 0.04 | 0.15 |
| 4 | 0.15 | 0.01 | 0.04 | 0.11 |
| 5 | 0.11 | 0.01 | 0.04 | 0.08 |
| 6 | 0.08 | 0.01 | 0.04 | 0.04 |
| 7 | 0.04 | 0.00 | 0.04 | 0.00 |
17 Licences and registrations
- Fertiliser Control Order — state registration/authorisation to sell organic manure/vermicompost
- Udyam
- GST (if you sell branded packets)
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Agriculture Infrastructure Fund (AIF)
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- Prime Minister's Employment Generation Programme (PMEGP)
19 Sources
- UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: VermiCompost — https://msme1connect.up.gov.in/Projectreport/Project%20Report638658532729314471.pdf
- NABARD Andhra Pradesh RO – Comprehensive Guide of Unit Costs 2025-26 — https://www.nabard.org/auth/writereaddata/tender/pub_2409250327511846.pdf
- NABARD Bihar RO – Unit Cost for Investment Activities in Agriculture & Allied Sectors 2025-26 — https://www.nabard.org/auth/writereaddata/tender/pub_0810250453461849.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.