Detailed Project Report
Wax Candle Making
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.12 L
- Term loan from bank
- ₹0.73 L
- Promoter’s contribution
- ₹0.11 L
- Subsidy
- ₹0.28 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.09 L
- Average DSCR
- -20.04
- 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
Melt paraffin wax, pour it into moulds with wicks and pack candles for homes, temples, churches and festivals.
| Main product or service | Wax Candle Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Temples, churches and other religious places
- Hotels and restaurants
- Gift and décor buyers
- Kirana and general stores
- Festival stalls and fairs
- Gift shops and online sales
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Moulds of various sizes (× 1 set) | 1 | 20,000 | 20,000 |
| Wax melting vessels (× 1 set) | 1 | 2,000 | 2,000 |
| Stove for melting wax | 1 | 2,000 | 2,000 |
| Common balance | 1 | 1,000 | 1,000 |
| Miscellaneous (× 1 lot) | 1 | 2,000 | 2,000 |
| Plant & machinery in the Samadhan report (× total) | 1 | 80,000 | 80,000 |
| Total | 1,07,000 |
Pre-filled from: KVIC Project Profile — Wax Candles (PMEGP); PMEGP sample project report — Wax Candles (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Paraffin wax — 1,250 kg a month for ₹37,500 in the KVIC profile
- Wicks — 54 bundles a month for ₹2,000
- Lubricating oil for moulds — ₹500 a month
- Packing covers — 1,300 covers a month for ₹1,000
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.07 |
| Contingency | 0.05 |
| Total fixed capital | 1.12 |
| Working capital margin | 0.00 |
| Total project cost | 1.12 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.11 | 10.0 |
| Subsidy | 0.28 | 25.0 |
| Term loan from bank | 0.73 | 65.0 |
| Total | 1.12 | 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 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 |
| Operating profit (EBITDA) | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 |
| Depreciation | 0.17 | 0.14 | 0.12 | 0.10 | 0.09 | 0.07 | 0.06 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.08 | 0.07 | 0.06 | 0.04 | 0.03 | 0.02 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.16 | -3.12 | -3.09 | -3.06 | -3.03 | -3.00 | -2.98 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.16 | -3.12 | -3.09 | -3.06 | -3.03 | -3.00 | -2.98 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.16 | -3.12 | -3.09 | -3.06 | -3.03 | -3.00 | -2.98 |
| Depreciation | 0.17 | 0.14 | 0.12 | 0.10 | 0.09 | 0.07 | 0.06 |
| Cash accruals (PAT + depreciation) | -2.99 | -2.98 | -2.96 | -2.95 | -2.94 | -2.93 | -2.91 |
| Term loan repaid | 0.06 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.04 | -3.09 | -3.08 | -3.06 | -3.05 | -3.04 | -3.03 |
| Cash and bank | -3.04 | -6.13 | -9.21 | -12.27 | -15.32 | -18.36 | -21.39 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 |
| Reserves and surplus | -3.16 | -6.28 | -9.36 | -12.42 | -15.44 | -18.45 | -21.42 |
| Term loan outstanding | 0.67 | 0.56 | 0.45 | 0.34 | 0.22 | 0.11 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.09 | -5.32 | -8.52 | -11.69 | -14.83 | -17.94 | -21.03 |
| Net fixed assets | 0.95 | 0.81 | 0.69 | 0.59 | 0.50 | 0.42 | 0.36 |
| 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 | -3.04 | -6.13 | -9.21 | -12.27 | -15.32 | -18.36 | -21.39 |
| Total assets | -2.09 | -5.32 | -8.52 | -11.69 | -14.83 | -17.94 | -21.03 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -21.51 | -16.08 | -17.26 | -18.63 | -20.23 | -22.13 | -24.43 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -20.04 |
|---|---|
| Lowest DSCR | -24.43 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.17 | 0.14 | 0.12 | 0.10 | 0.09 | 0.07 | 0.06 |
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 | 0.73 | 0.08 | 0.06 | 0.67 |
| 2 | 0.67 | 0.07 | 0.11 | 0.56 |
| 3 | 0.56 | 0.06 | 0.11 | 0.45 |
| 4 | 0.45 | 0.04 | 0.11 | 0.34 |
| 5 | 0.34 | 0.03 | 0.11 | 0.22 |
| 6 | 0.22 | 0.02 | 0.11 | 0.11 |
| 7 | 0.11 | 0.01 | 0.11 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Shop/trade licence from the local body
- Legal Metrology packer registration for packaged goods
18 Government schemes that may apply
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- 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
- KVIC Project Profile — Wax Candles (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/WAX_CANDLES_%28_POLYMER_AND_CHEMICAL_BASED_INDUSTRY_%29.pdf
- PMEGP sample project report — Wax Candles (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wax_Candles_%28_Samadhan_Projects_%29.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.