Model Detailed Project Report

CHANNA MAKING UNIT

HARSH PATEL
182037104925\

PARUL UNIVERSITY

DAIRY TECHNOLOGY
1. INTRODUCTION

Channa is a South Asian variety of soft cheese obtained by acid and heat
coagulation of milk. It is a popular indigenous dairy product of India, is similar to
an unripened variety of soft cheese which is used in the preparation of a variety of
culinary dishes and snacks. It is obtained by heat and acid coagulation of milk,
entrapping almost all the fat, casein complexed with denatured whey proteins and a
portion of salts and lactose. It is a rich source of high-quality animal protein, fat,
minerals and vitamins. The production of Channa has been largely confined to the
unorganized dairy sector which employs traditional, inefficient methods of
manufacture.

2. MARKET POTENTIAL:

Channa is a staple ingredient in many Indian dishes and can be used fresh or deep
fried. Channa is commonly used in sweets, snacks or with vegetables. Various
other uses are follows:

 Channa can be included in curries, particularly with tomatoes, potatoes or peas.

 Cubes of Channa can be added to soup to provide texture.

 Fresh Channa can be boiled in sugar syrup and served as a sweet.

 Channa itself has a rather bland flavour but it can act as a flavour carrier.
Therefore, it is excellent marinated or used in a curry or sauce.
The Channa market in India grew at a CAGR of 12.5% during 2014-2019. As a
considerable part of population consists of vegetarians, Channa emerges as a viable
option. Apart from this, factors such as increasing population, urbanisation rates,
improved cold supply chain and growing deep freezer penetration are also
influencing the market growth. We can expect the market to exhibit strong growth
during 2020-2025.

3. PRODUCT DESCRIPTION

3.1 PRODUCT BENEFITS

 Reduces the Risk of Breast Cancer

 Makes Teeth & Bones Strong

 Aids in Weight Loss

 Ensures a Healthy Digestive System.

 Great for Those Having Diabetes.

3.2 RAW MATERIAL

Basic raw material requirement are as follows:

1. Milk
2. Citric Acid
3. Packing Material
3.3 MANUFACTURING PROCESS

The milk is procured from vendors and stored in storage tanks prior to primary
processing of milk, boiler is utilized to generate steam which is utilized in various
process of plant which generally includes heating of milk in this case.

This steam is utilized in pasteurizer to heat the milk for pasteurization at

temperature ranging from 80 to 90 degree Celsius, after appropriate holding time
which is 5 minutes at high temperature steady state, milk is sent to another holding
tank which stores the milk so as to cool it to 80 to 75 degree Celsius. As cooling
curve for milk is exponential, it does not require any significant cooling time even
without any addition cooling arrangement. If a faster cooling is to be achieved
ambient water circulation through jackets of holding tank s sufficient.

After this temperature is achieved, the milk is pumped into coagulation tank, which
has steam jackets to maintain temperature of milk, once steady state temperature is
achieved which is 70 degree Celsius for buffalo milk and 80 degree Celsius for
cow milk, coagulant is added citric acid, lactic acid etc. The milk is stirred gently
and manually till whey separates out.

The mixture is allowed to settle and excess whey is drained out, till it reaches close
to top surface of coagulated mass. This coagulated mass is fed to Channa press,
which essential press the Channa in order to drain out most of water within
coagulated mass, in order to obtain a large block of paneer.

This Channa block is manually cut in required sizes, checked for required weight,
packed and stored in IBT Chilling Machine prior to dispatch, which is essential in
order to reduce bacterial growth as well as allows Channa to be stored till dispatch.

4. PROJECT COMPONENTS

4.1 Land & Building

The approximate total area required for complete small-scale factory setup is
1000-1200 Sq. ft. approximately smooth production
4.2 Plant & Machinery

Milk There are two distinct purposes for

Pasteurizer the process of milk pasteurization:
Public Health Aspect - to
make milk and milk products safe
for human consumption by
destroying all bacteria that may be
harmful to health (pathogens)
Keeping Quality Aspect - to
improve the keeping quality
of milk and milk products.
IBT (Ice Ice Bank Tank (IBT) is a system
Bank Tank) which is used to store energy in
Type Chilling the form of ice. It is applicable in
Machine dairy industry for quick process in
short time with certain limit of
power
load.
Channa Press It is used to press Channa
according to the requirement of
moisture and texture in the
Paneer. This press has great
applicability in pressing Channa
from coagulated
milk.
Channa
This tank is used for milk tearing
Coagulation purpose
Tank
Milk Storage The milk storage tank is ideal
Tank for cooling and holding milk at a
cold temperature until it's futher
processed. The machine is made
of stainless steel and used to store
the raw milk in good condition.
The milk storage tank is
specifically selected based on the
needs and requirements of each
individual customer.

Boiler Boilers are used to produce steam.

The generation part of a steam
system uses a boiler to add energy
to a feedwater supply to generate
steam.

Weighing It is used to measure the quantity

balance weight of the product and raw
material composition.

Note: Approx. Total Machinery cost shall be Rs 12.50 lakhs excluding GST and
Transportation Cost.
4.3 Power Requirement

The borrower shall require power load of 30 KW which shall be applied with
Power Corporation. However, for standby power arrangement the borrower shall
purchase DG Set.

4.4 Manpower Requirement

13 Manpower are required for the Channa Manufacturing

business: Includes:

1 Supervisor

1 Plant Operator

2 Skilled Labour

4 Unskilled Labour

4 Administrative Staffs

1 Accountant
5. FINANCIALS

5.1 Cost of Project

Own Bank
PARTICULARS AMOUNT Contribution Finance
25.00% 75.00%
Land & Building Owned /rented

Plant & Machinery 12.50 3.13 9.38

Furniture & Fixtures and Other Assets 1.00 0.25 0.75

Working capital 8.00 2.00 6.00

Total 21.50 5.38 16.13

5.2 Means of Finance

PARTICULARS AMOUNT

Own Contribution 5.38

Bank Loan 10.13

Working capital Limit 6.00

Total 21.50
5.3 Projected Balance Sheet

PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities

Capital
opening balance 6.18 7.49 9.82 12.13
Add:- Own Capital 5.38
Add:- Retained Profit 2.05 3.32 5.33 7.31 9.34
Less:- Drawings 1.25 2.00 3.00 5.00 7.00
Closing Blance 6.18 7.49 9.82 12.13 14.47

Term Loan 9.00 6.75 4.50 2.25 -

Working Capital Limit 6.00 6.00 6.00 6.00 6.00
Sundry Creditors 1.31 1.49 1.69 1.90 2.12

TOTAL : 22.49 21.73 22.00 22.27 22.59

Assets
Fixed Assets (Gross) 13.50 13.50 13.50 13.50 13.50
Gross Dep. 1.98 3.66 5.09 6.32 7.36
Net Fixed Assets 11.53 9.84 8.41 7.18 6.14

Current Assets
Sundry Debtors 7.03 8.18 9.25 10.40 11.65
Stock in Hand 2.28 2.58 2.89 3.23 3.61
Cash and Bank 1.65 1.14 1.46 1.46 1.19
TOTAL: 22.49 21.73 22.00 22.27 22.59

5.4 Projected Cash Flow

PROJECTED CASH FLOW STATEMENT (in Lacs)

1st 2nd 3rd 4th
PARTICULARS year year year year 5th year
SOURCES OF FUND

Own Margin 5.38

Net Profit 2.05 3.32 5.34 7.43 9.57

Depreciation & Exp. W/off 1.98 1.68 1.44 1.22 1.04

Increase in Cash Credit 6.00 - - - -

Increase In Term Loan 10.13 - - - -

Increase in Creditors 1.31 0.18 0.20 0.21 0.23

TOTAL : 26.84 5.18 6.97 8.87 10.84

APPLICATION OF FUND

Increase in Fixed Assets 13.50

Increase in Stock 2.28 0.30 0.32 0.34 0.37

Increase in Debtors 7.03 1.14 1.07 1.16 1.25

Repayment of Term Loan 1.13 2.25 2.25 2.25 2.25

Drawings 1.25 2.00 3.00 5.00 7.00

Taxation - - 0.02 0.12 0.23

TOTAL : 25.18 5.69 6.65 8.87 11.10

Opening Cash & Bank Balance - 1.65 1.14 1.46 1.46

Add: Surplus 1.65 (0.51) 0.32 (0.00) (0.26)

Closing Cash & Bank Balance 1.65 1.14 1.46 1.46 1.19
5.5 Projected Profitability

PROJECTED PROFITABILITY STATEMENT (in Lacs)

2nd 3rd 4th

PARTICULARS 1st year year year year 5th year
Capacity Utilisation % 60% 65% 70% 75% 80%

SALES
Gross Sale

Paneer 84.38 98.10 110.95 124.83 139.83

Total 84.38 98.10 110.95 124.83 139.83

COST OF SALES

Raw Material Consumed 56.16 63.88 72.24 81.27 91.03

Electricity Expenses 4.32 4.75 5.23 5.75 6.32

Depreciation 1.98 1.68 1.44 1.22 1.04

Wages & labour 9.30 10.23 11.25 12.38 13.62

Repair & maintenance 1.69 2.45 2.77 3.12 3.50

Cost of Production 73.44 83.00 92.93 103.74 115.51

Add: Opening Stock /WIP - 1.71 1.94 2.17 2.42

Less: Closing Stock /WIP 1.71 1.94 2.17 2.42 2.70

Cost of Sales 71.73 82.78 92.70 103.49 115.23

GROSS PROFIT 12.65 15.33 18.25 21.34 24.60

15.00% 15.62% 16.45% 17.10% 17.59%

Salary to Staff 5.10 5.61 6.17 6.79 7.47

Interest on Term Loan 1.00 0.88 0.63 0.38 0.13

Interest on working Capital 0.60 0.60 0.60 0.60 0.60

Rent 1.80 1.98 2.18 2.40 2.64

Selling & Adm exp 2.11 2.94 3.33 3.75 4.19

TOTAL 10.60 12.01 12.91 13.91 15.03

NET PROFIT 2.05 3.32 5.34 7.43 9.57

2.43% 3.38% 4.82% 5.95% 6.84%
Taxation - - 0.02 0.12 0.23

PROFIT (After Tax) 2.05 3.32 5.33 7.31 9.34

5.6 Production and Yield

COMPUTATION OF PRODUCTION OF PANEER

Items to be Manufactured
Paneer

Machine Production capacity per Hour 25.00 kg

Working hours in a day 8

Production Per Day 200.00 kg

No of Working Days in Month 25

No of Working Days in a Year 300

Machine capacity per annum 60,000 kg

Production per annum 120,000 pack of 500 gm

Production of Paneer

Production Capacity pack of 500 gm

1st year 60% 72,000.00
2nd year 65% 78,000.00
3rd year 70% 84,000.00
4th year 75% 90,000.00
5th year 80% 96,000.00

Raw Material Cost

Year Capacity Rate Amount
Utilization (per pack) (Rs. in lacs)
1st year 60% 78.00 56.16

2nd year 65% 81.90 63.88

3rd year 70% 86.00 72.24
4th year 75% 90.30 81.27
5th year 80% 94.82 91.03

5.7 Sales Revenue

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year

Op Stock - 1,680.00 1,820.00 1,960.00 2,100.00

Production 72,000.00 78,000.00 84,000.00 90,000.00 96,000.00

Less : Closing Stock 1,680.00 1,820.00 1,960.00 2,100.00 2,240.00

Net Sale 70,320.00 77,860.00 83,860.00 89,860.00 95,860.00

Avg sale price per pack 120.00 126.00 132.30 138.92 145.87

Sales (in Lacs) 84.38 98.10 110.95 124.83 139.83

5.8 Working Capital Assessment

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)

1st 2nd 3rd 4th
PARTICULARS year year year year 5th year
Finished Goods

1.71 1.94 2.17 2.42 2.70

Raw Material

0.56 0.64 0.72 0.81 0.91

Closing Stock 2.28 2.58 2.89 3.23 3.61

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Own Margin Bank Finance
Amount
Finished Goods & Raw
2.28
Material
Less: Creditors 1.31
Paid stock 0.96 25% 75% 0.72
0.24
Sundry Debtors 7.03 25% 75% 5.27
1.76
8.00 6.00
2.00

WORKING CAPITAL LIMIT DEMAND (from Bank)

6.00

5.9 Power, Salary & Wages Calculation

Utility Charges (per month)
Particulars value Description
Power connection required 30 KWH
consumption per day 240 units

Consumption per month 6,000 units

Rate per Unit 10 Rs.

power Bill per month 60,000 Rs.

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per
Month Employees Salary

Supervisor 15,000 1 15,000

Plant operator 12,500 1 12,500

Skilled (in thousand rupees) 10,000 2 20,000

Unskilled (in thousand
rupees) 7,500 4 30,000
Total salary per month 77,500
Total annual labour
charges (in lacs) 9.30

BREAK UP OF STAFF
SALARY

Particulars Salary No of Total

Rs. per
Month Employees Salary

Accountant 12,500 1 12,500

Administrative Staffs 7,500 4 30,000
Total salary per month 42,500
Total annual Staff charges (in lacs) 5.10
5.10 Financial Ratio Analysis

FINANCIAL INDICATORS

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

TURNOVER 84.38 98.10 110.95 124.83 139.83

GROSS PROFIT 12.65 15.33 18.25 21.34 24.60

G.P. RATIO 15.00% 15.62% 16.45% 17.10% 17.59%

NET PROFIT 2.05 3.32 5.34 7.43 9.57

N.P. RATIO 2.43% 3.38% 4.82% 5.95% 6.84%

CURRENT ASSETS 10.96 11.89 13.60 15.09 16.45

CURRENT LIABILITIES 7.31 7.49 7.69 7.90 8.12

CURRENT RATIO 1.50 1.59 1.77 1.91 2.03

TERM LOAN 9.00 6.75 4.50 2.25 -

TOTAL NET WORTH 6.18 7.49 9.82 12.13 14.47

DEBT/EQUITY 1.46 0.90 0.46 0.19 -

TOTAL NET WORTH 6.18 7.49 9.82 12.13 14.47

TOTAL OUTSIDE LIABILITIES 16.31 14.24 12.19 10.15 8.12

TOL/TNW 2.64 1.90 1.24 0.84 0.56

PBDIT 5.62 6.48 8.01 9.64 11.34

INTEREST 1.60 1.48 1.23 0.98 0.73

INTEREST COVERAGE RATIO 3.52 4.39 6.51 9.82 15.45

WDV 11.53 9.84 8.41 7.18 6.14

TERM LOAN 9.00 6.75 4.50 2.25 -

FACR 1.28 1.46 1.87 3.19 -

5.11 DSCR

CALCULATION OF D.S.C. R

1st 2nd 3rd

PARTICULARS year year year 4th year 5th year

CASH ACCRUALS 4.03 5.00 6.76 8.53 10.38

Interest on Term Loan 1.00 0.88 0.63 0.38 0.13

Total 5.02 5.88 7.39 8.92 10.52

REPAYMENT

Instalment of Term Loan 1.13 2.25 2.25 2.25 2.25

Interest on Term Loan 1.00 0.88 0.63 0.38 0.13

Total 2.12 3.13 2.88 2.63 2.38

DEBT SERVICE COVERAGE RATIO 2.37 1.88 2.57 3.39 4.41

AVERAGE D.S.C.R. 2.87

5.12 Depreciation
COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 12.50 1.00 13.50

Total 12.50 1.00 13.50

Less: Depreciation 1.88 0.10 1.98

WDV at end of Year 10.63 0.90 11.53

Additions During the Year - - -

Total 10.63 0.90 11.53

Less: Depreciation 1.59 0.09 1.68

WDV at end of Year 9.03 0.81 9.84

Additions During the Year - - -

Total 9.03 0.81 9.84

Less: Depreciation 1.35 0.08 1.44

WDV at end of Year 7.68 0.73 8.41

Additions During the Year - - -

Total 7.68 0.73 8.41

Less : Depreciation 1.15 0.07 1.22

WDV at end of Year 6.53 0.66 7.18

Additions During the Year - - -

Total 6.53 0.66 7.18

Less: Depreciation 0.98 0.07 1.04

WDV at end of Year 5.55 0.59 6.14

Additions During the Year - - -
Total 5.55 0.59 6.14

Less: Depreciation 0.83 0.06 0.89

WDV at end of Year 4.71 0.53 5.25

Less: Depreciation 0.71 0.05 0.76

WDV at end of Year 4.01 0.48 4.49

Less: Depreciation 0.60 0.05 0.65

WDV at end of Year 3.41 0.43 3.84

5.13 Repayment schedule

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
Opening
ist Balance

1st month - 10.13 10.13 - - 10.13

2nd month 10.13 - 10.13 0.09 - 10.13

3rd month 10.13 - 10.13 0.09 - 10.13

4th month 10.13 - 10.13 0.09 10.13

5th month 10.13 - 10.13 0.09 10.13

6th month 10.13 - 10.13 0.09 10.13

7th month 10.13 - 10.13 0.09 0.19 9.94

8th month 9.94 - 9.94 0.09 0.19 9.75

9th month 9.75 - 9.75 0.09 0.19 9.56

10th month 9.56 - 9.56 0.09 0.19 9.38

11th month 9.38 - 9.38 0.09 0.19 9.19

12th month 9.19 - 9.19 0.08 0.19 9.00

1.00 1.13
Opening
2nd Balance

1st month 9.00 - 9.00 0.08 0.19 8.81

2nd month 8.81 - 8.81 0.08 0.19 8.63

3rd month 8.63 - 8.63 0.08 0.19 8.44

4th month 8.44 - 8.44 0.08 0.19 8.25

5th month 8.25 - 8.25 0.08 0.19 8.06

6th month 8.06 - 8.06 0.07 0.19 7.88

7th month 7.88 - 7.88 0.07 0.19 7.69

8th month 7.69 - 7.69 0.07 0.19 7.50

9th month 7.50 - 7.50 0.07 0.19 7.31

10th month 7.31 - 7.31 0.07 0.19 7.13

11th month 7.13 - 7.13 0.07 0.19 6.94

12th month 6.94 - 6.94 0.06 0.19 6.75

0.88 2.25
Opening
3rd Balance

1st month 6.75 - 6.75 0.06 0.19 6.56

2nd month 6.56 - 6.56 0.06 0.19 6.38

3rd month 6.38 - 6.38 0.06 0.19 6.19

4th month 6.19 - 6.19 0.06 0.19 6.00

5th month 6.00 - 6.00 0.06 0.19 5.81

6th month 5.81 - 5.81 0.05 0.19 5.63

7th month 5.63 - 5.63 0.05 0.19 5.44

8th month 5.44 - 5.44 0.05 0.19 5.25

9th month 5.25 - 5.25 0.05 0.19 5.06

10th month 5.06 - 5.06 0.05 0.19 4.88

11th month 4.88 - 4.88 0.04 0.19 4.69

12th month 4.69 - 4.69 0.04 0.19 4.50

0.63 2.25
Opening
4th Balance

1st month 4.50 - 4.50 0.04 0.19 4.31

2nd month 4.31 - 4.31 0.04 0.19 4.13

3rd month 4.13 - 4.13 0.04 0.19 3.94

4th month 3.94 - 3.94 0.04 0.19 3.75

5th month 3.75 - 3.75 0.03 0.19 3.56

6th month 3.56 - 3.56 0.03 0.19 3.38

7th month 3.38 - 3.38 0.03 0.19 3.19

8th month 3.19 - 3.19 0.03 0.19 3.00

9th month 3.00 - 3.00 0.03 0.19 2.81

10th month 2.81 - 2.81 0.03 0.19 2.63

11th month 2.63 - 2.63 0.02 0.19 2.44

12th month 2.44 - 2.44 0.02 0.19 2.25

0.38 2.25
Opening
5th Balance

1st month 2.25 - 2.25 0.02 0.19 2.06

2nd month 2.06 - 2.06 0.02 0.19 1.88

3rd month 1.88 - 1.88 0.02 0.19 1.69

4th month 1.69 - 1.69 0.02 0.19 1.50

5th month 1.50 - 1.50 0.01 0.19 1.31

6th month 1.31 - 1.31 0.01 0.19 1.13

7th month 1.13 - 1.13 0.01 0.19 0.94

8th month 0.94 - 0.94 0.01 0.19 0.75

9th month 0.75 - 0.75 0.01 0.19 0.56

10th month 0.56 - 0.56 0.01 0.19 0.38

11th month 0.38 - 0.38 0.00 0.19 0.19

12th month 0.19 - 0.19 0.00 0.19 -

0.13 2.25

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS

5.14 Break Even Point Analysis

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 84.38 98.10 110.95 124.83 139.83
Less: Op. WIP Goods - 1.71 1.94 2.17 2.42

Add: Cl. WIP Goods 1.71 1.94 2.17 2.42 2.70

Total Sales 86.10 98.33 111.18 125.09 140.11

Variable & Semi Variable Exp.

Raw Material Consumed 56.16 63.88 72.24 81.27 91.03

Electricity Exp/Coal Consumption at 85% 3.67 4.04 4.44 4.89 5.38

Wages & Salary at 60% 8.64 9.50 10.45 11.50 12.65

Selling & adminstrative Expenses 80% 1.69 2.35 2.66 3.00 3.36
Interest on working Capital 0.6 0.6 0.6 0.6 0.6

Repair & maintenance 1.69 2.45 2.77 3.12 3.50

Total Variable & Semi Variable Exp 72.45 82.83 93.17 104.37 116.50

Contribution 13.65 15.49 18.00 20.71 23.60

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.65 0.71 0.78 0.86 0.95

Wages & Salary at 40% 5.76 6.34 6.97 7.67 8.43
Interest on Term Loan 1.00 0.88 0.63 0.38 0.13
Depreciation 1.98 1.68 1.44 1.22 1.04
Selling & administrative Expenses 20% 0.42 0.59 0.67 0.75 0.84

Rent 1.80 1.98 2.18 2.40 2.64

Total Fixed Expenses 11.60 12.18 12.66 13.28 14.03

Capacity Utilization 60% 65% 70% 75% 80%

OPERATING PROFIT 2.05 3.32 5.34 7.43 9.57
BREAK EVEN POINT 51% 51% 49% 48% 48%
BREAK EVEN SALES 73.17 77.28 78.19 80.20 83.32
6. LICENSE & APPROVALS

 Obtain the GST registration.

 Additionally, obtain the Udyog Aadhar registration Number.
 Fire/pollution license as required.
 FSSAI License
 Factory License
 Choice of a Brand Name of the product and secure the name with Trademark if
required.

7. ASSUMPTIONS

1. Production Capacity of Channais 200 kg per day. First year, Capacity has been
taken @ 60%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 3 days and Finished goods Closing Stock has

been taken for 7 days.

4. Credit period to Sundry Debtors has been given for 25 days.

5. Credit period by the Sundry Creditors has been provided for 7 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,

1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 30 KW.

10.Increase in sales and raw material costing has been taken @ 5% on a yearly
basis.
Limitations of the Model DPR and Guidelines for Entrepreneurs

Limitations of the Model DPR

i. This model DPR has provided only the basic standard components and methodology to be
adopted by an entrepreneur while submitting a proposal under the Formalization of Micro Food
Processing Enterprises Scheme of MoFPI.

i. This is a model DPR made to provide general methodological structure not for specific
entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and structure
(proprietorship/partnership/cooperative/ FPC/joint stock company) ofbhuissiness, details of
proposed DPR, project location, raw material base/contract sourcing, entrepreneurs own SWOT
analysis, detailed market research, rationale of the project for specific location, community
advantage/benefit from the project, employment generation and many more detailed aspects not
included.

i. The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization,
output recovery rate and so on. However, these assumptions in reality may vary across places,
markets and situations; thus the resultant calculations will also change accordingly.