Detailed Project Report
Wood Particle Board (Medium Density)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹241.50 L
- Term loan from bank
- ₹217.35 L
- Promoter’s contribution
- ₹24.15 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-51.80 L
- Average DSCR
- -0.21
- 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
Chip wood waste, dry it, mix it with resin and hot-press it into particle boards for furniture, doors and partitions.
| Main product or service | Wood Particle Board (Medium Density) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Furniture makers and modular-furniture units
- Door, partition and interior contractors
- Plywood and board dealers
- Industries and households, as the profile puts it
- Plywood and board wholesalers
- Direct supply to furniture factories
- Interior and building contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Particle board line: chipper, dryer, glue mixer and spreader, hydraulic press, saw cutter and sanding machine (one each; priced as one lot) (× 1 set) | 1 | 2,25,00,000 | 2,25,00,000 |
| Office furniture, equipment and fixtures (× LS) | 1 | 5,00,000 | 5,00,000 |
| Total | 2,30,00,000 |
Pre-filled from: DC-MSME import-substitution DPR — Wooden Boards. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wood particles — mainly wood chips, sawdust and planer shavings — 16,74,000 kg a month at ₹9 a kg = ₹1,50,66,000
- Batten — 48,000 kg a month at ₹10 a kg = ₹4,80,000
- Urea formaldehyde resin — 12,600 kg a month at ₹85 a kg = ₹10,71,000
- Labelling and packing material — ₹50,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 230.00 |
| Contingency | 11.50 |
| Total fixed capital | 241.50 |
| Working capital margin | 0.00 |
| Total project cost | 241.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 24.15 | 10.0 |
| Term loan from bank | 217.35 | 90.0 |
| Total | 241.50 | 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 | 4.83 | 4.83 | 4.83 | 4.83 | 4.83 | 4.83 | 4.83 |
| Insurance | 1.21 | 1.21 | 1.21 | 1.21 | 1.21 | 1.21 | 1.21 |
| Total cost of operations | 8.92 | 8.92 | 8.92 | 8.92 | 8.92 | 8.92 | 8.92 |
| Operating profit (EBITDA) | -8.92 | -8.92 | -8.92 | -8.92 | -8.92 | -8.92 | -8.92 |
| Depreciation | 36.23 | 30.79 | 26.17 | 22.25 | 18.91 | 16.07 | 13.66 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 23.53 | 20.38 | 16.71 | 13.03 | 9.35 | 5.67 | 1.99 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -68.67 | -60.09 | -51.80 | -44.19 | -37.18 | -30.66 | -24.57 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -68.67 | -60.09 | -51.80 | -44.19 | -37.18 | -30.66 | -24.57 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -68.67 | -60.09 | -51.80 | -44.19 | -37.18 | -30.66 | -24.57 |
| Depreciation | 36.23 | 30.79 | 26.17 | 22.25 | 18.91 | 16.07 | 13.66 |
| Cash accruals (PAT + depreciation) | -32.44 | -29.30 | -25.62 | -21.94 | -18.27 | -14.59 | -10.91 |
| Term loan repaid | 16.72 | 33.44 | 33.44 | 33.44 | 33.44 | 33.44 | 33.44 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -49.16 | -62.74 | -59.06 | -55.38 | -51.70 | -48.03 | -44.35 |
| Cash and bank | -49.16 | -111.90 | -170.96 | -226.35 | -278.05 | -326.08 | -370.43 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 24.15 | 24.15 | 24.15 | 24.15 | 24.15 | 24.15 | 24.15 |
| Reserves and surplus | -68.67 | -128.76 | -180.56 | -224.75 | -261.92 | -292.58 | -317.16 |
| Term loan outstanding | 200.63 | 167.19 | 133.75 | 100.32 | 66.88 | 33.44 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 156.11 | 62.58 | -22.65 | -100.28 | -170.90 | -235.00 | -293.01 |
| Net fixed assets | 205.28 | 174.48 | 148.31 | 126.06 | 107.15 | 91.08 | 77.42 |
| 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 | -49.16 | -111.90 | -170.96 | -226.35 | -278.05 | -326.08 | -370.43 |
| Total assets | 156.11 | 62.58 | -22.65 | -100.28 | -170.90 | -235.00 | -293.01 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.22 | -0.17 | -0.18 | -0.19 | -0.21 | -0.23 | -0.25 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.21 |
|---|---|
| Lowest DSCR | -0.25 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 36.23 | 30.79 | 26.17 | 22.25 | 18.91 | 16.07 | 13.66 |
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 | 217.35 | 23.53 | 16.72 | 200.63 |
| 2 | 200.63 | 20.38 | 33.44 | 167.19 |
| 3 | 167.19 | 16.71 | 33.44 | 133.75 |
| 4 | 133.75 | 13.03 | 33.44 | 100.32 |
| 5 | 100.32 | 9.35 | 33.44 | 66.88 |
| 6 | 66.88 | 5.67 | 33.44 | 33.44 |
| 7 | 33.44 | 1.99 | 33.44 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- No-objection certificates from the local authority, fire department and forest department
- State Pollution Control Board consent, and BIS licence to IS 3087 where a quality control order applies
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Wooden Boards — https://dcmsme.gov.in/43_Wooden%20Board%20by%20RK%20Choudhry-converted.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.