Library
Part 7/11 The Financial Plan

7.1 Total Project Cost and Investment Break-Up / परियोजना लागत का विवरण

ItemUnit QtyCost/Unit (₹ lakh)Total (₹ lakh)Remarks
Mobile Aseptic Pulping Unit (40-ft container)145.0045.00Includes generator, pumps, filling line
Heat Pump Dryer Units53.0015.00For methi, guava slices, chilli
Installation, Training & Transport2.00SNL Innovations setup support
Cold Storage Room (5 MT Solar Hybrid)15.005.00Prefabricated, energy efficient
Office Setup, Furniture, Laptop, Printer1.00FPO admin & accounting work
Weighing, Sorting, Crates, Packaging2.00Consumables, initial stock
Working Capital (3 months)10.00Raw material + wages + logistics
Total Project Cost

₹80.00 lakh


7.1.4 Contingency Fund Allocation

• 5 % of total project = ₹4.00 lakh (kept aside for emergency maintenance, diesel, or raw material fluctuation).

💡 Grand Total Project Outlay: ₹84.00 lakh

________________________________________

7.2 Means of Finance / वित्त का स्रोत

Source% ShareAmount (₹ lakh)Remarks
Promoter’s Contribution (FPO + Members)15 %12.60In-kind & cash (raw material, land, sheds)
Term Loan from Bank60 %50.40To be sanctioned under AGRI INFRASTRUCTURE FUND (AIF)
Government Subsidy25 %21.00MIDH/NABARD back-ended subsidy
Total100 %84.00 lakh

Subsidy Credit will be adjusted after project commissioning through Bank/NABARD route.

________________________________________

7.3 Working Capital Assessment / परिचालन पूंजी का आकलन

ComponentCycle DurationAmount (₹ lakh)Remarks
Raw Material Procurement (3 months)90 days5.0Guava, Tomato, Methi, Chilli
Packaging Material & Chemicals90 days2.0Bags, Pouches, Salt, Citric Acid
Wages & Staff3 months1.5Operators, helpers, admin
Transportation & Power3 months1.0Diesel, tractor, solar backup
Miscellaneous0.5Small repairs & contingencies
Total Working Capital10.0 lakh

________________________________________

7.4 Pricing and Revenue Model / मूल्य निर्धारण और आय

Based on earlier section 6.7:

ProductSales Volume (MT/Year)Selling Price (₹/kg)Gross Revenue (₹ lakh)Remarks
Guava Pulp1503857.0Core product (Nov–Feb)
Tomato Pulp1003030.0Seasonal (Apr–Jun)
Methi Flakes1015015.0High-value (Dec–Jan)
Chilli Dried51206.0Niche (Sep–Oct)
Total Annual Sales₹108.00 lakh

________________________________________

7.5 Operating Expenses / परिचालन व्यय

HeadYearly Cost (₹ lakh)Remarks
Raw Material Purchase50.0From FPO members @ average ₹25/kg
Power, Fuel, Water3.0Diesel + Solar + electricity
Labour & Staff6.06 persons, 10–12k per month
Maintenance & Repairs2.0Spare parts, servicing
Packaging, Marketing, Transport8.0Includes retail campaigns
Administrative Expenses3.0Office, stationery, training
Interest on Term Loan6.0@ 10 % p.a. on ₹50 lakh
Depreciation5.0As per IT norms
Total Operating Cost83.0

________________________________________

7.6 Profitability Projection / लाभ का अनुमान

ParticularsYear 1 (₹ lakh)Year 2 (₹ lakh)Year 3 (₹ lakh)
Total Revenue108.0130.0155.0
Operating Cost83.095.0110.0
Gross Profit25.035.045.0
Interest & Depreciation11.010.09.0
Net Profit (Before Tax)14.025.036.0
Net Profit Margin13%19%23%

________________________________________

7.7 Projected Financial Statements / वित्तीय विवरण

(a) Projected Profit & Loss Account

Particulars Year 1Year 2Year 3
Sales108.00130155
Less: Cost of Goods Sold71.0082.0095.00
Gross Profit37.0048.0060.00
Less: Admin & Marketing12.0013.0015.00
Less: Interest & Depreciation11.0010.009.00
Net Profit (Pre-Tax)14.0025.0035.00

________________________________________

(b) Projected Balance Sheet

Liabilities (₹ lakh)Year 1Assets (₹ lakh)Year 1
Share Capital (FPO)12.60Fixed Assets68.00
Term Loan (Bank)50.40Current Assets (Stock, Receivable)15.00
Subsidy Grant21.00Cash & Bank5.00
Total84.00Total84.00

________________________________________

(c) Projected Cash Flow Statement

InflowYear 1 (₹ lakh)OutflowYear 1 (₹ lakh)
Term Loan50.40Machinery & Setup68.00
Subsidy21.00Working Capital10.00
Member Equity12.60Misc/Reserve5.00
Total84.00Total83.00

________________________________________

7.8 Key Financial Ratios / प्रमुख वित्तीय अनुपात

ParameterValueComment
DSCR (Debt Service Coverage Ratio)2.0Excellent; assures repayment
Break-even Sales Volume80 MT (approx.)Achievable within 9 months
Payback Period3.2 yearsReasonable for micro infra unit
IRR (Internal Rate of Return)~22 %Strong for FPO-scale venture
NPV (10 % Discount Rate)₹26.5 lakhPositive, value-creating project


7.9 Profit Distribution Logic (As per MOC)

• 60 % of yearly profit distributed to active supplier members in ratio of supply.

• 20 % reserved for operations & maintenance.

• 10 % for training and youth skilling.

• 10 % for community fund and insurance buffer.

“Jo jitna laaye, utna paaye — par hisaab sab ka saaf rahe.”

💬 Closing Reflection (अंत की बात)

When the banker sees this plan, he doesn’t see only machines — he sees a movement wrapped in math.

Amrud Valley FPO stands as a model that proves:

“Gaon bhi kama sakta hai, agar project report likhi ho dimaag aur imaandari se.”

Would you like me to now prepare Part 8 – Validation and Competitive Landscape (सत्यापन और प्रतिस्पर्धात्मक परिदृश्य) next — where we analyse similar players, compare cost–quality ratios, and establish Amrud Valley’s competitive strength for long-term sustainability?