Food Processing — Bank Loan & Subsidy

Biscuit Manufacturing Unit Project Report

Bank-ready biscuit manufacturing project report — project cost ₹10 Lakh–1 Cr, CMA data, DSCR ≥ 1.50 and 5-year projections for PMFME, PMEGP, CGTMSE.

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About This Scheme

This page provides a comprehensive 2025 project report for starting a biscuit manufacturing unit in India, specifically for entrepreneurs seeking bank loans under schemes like PMFME, PMEGP, or CGTMSE. Biscuit manufacturing, classified under NIC 10712, is a high-demand food processing business with a typical project cost ranging from ₹10 lakh to ₹1 crore. A bank-ready project report is critical for loan approval—it must include CMA data, DSCR calculations, and 5-year financial projections. This guide covers the project cost breakup, machinery list, subsidy eligibility, and step-by-step documentation. Whether you are applying for a MUDRA loan or a PMFME subsidy, a well-prepared report demonstrates viability to lenders and increases your chances of funding. Use this template to create a customized report for your specific location and capacity.

₹10 Lakh–1 Cr
Typical Project Cost
10712
NIC Code
PMFME
Best-fit Scheme
manufacturing
Segment
≥ 1.50
DSCR (bank norm)
60 seconds
Turnaround
PDF · Word · Excel
Formats
Free
First Report

Project Cost & Financing Structure

For a biscuit manufacturing unit, the total project cost typically includes land & building (if new), plant & machinery, preliminary expenses, and working capital. For a small-scale unit (capacity 100-200 kg/day), the cost ranges from ₹10-25 lakh; for medium-scale (500-1000 kg/day), ₹50 lakh to ₹1 crore. Under PMFME, a capital subsidy of 35% (up to ₹10 lakh) is available for individual micro food processing units. PMEGP offers margin money subsidy of 15-35% depending on category. Bank loans under CGTMSE require no collateral up to ₹2 crore. A typical financing mix is 70% term loan, 20% working capital, and 10% promoter contribution. Ensure your project report includes a detailed cost breakup and sources of funds.

Machinery & Equipment List

Essential machinery for biscuit manufacturing includes: dough mixer (planetary or spiral), dough sheeter, rotary moulder or cutting machine, baking oven (electric or diesel-fired, tunnel or deck type), cooling conveyor, and packaging machine (flow wrap or pillow pack). For a 200 kg/day unit, approximate machinery cost is ₹6-10 lakh. Add-ons like sugar grinder, oil sprayer, and metal detector are optional but improve quality. Always get quotations from at least three suppliers and include installation, commissioning, and transportation costs in your project report. Energy-efficient ovens can reduce operating costs and improve DSCR.

Eligibility & Documentation for Bank Loan

Eligibility: Individual, partnership, or private limited company with experience or training in food processing. For PMFME, the applicant must be an existing or new micro food processing unit. Documents required: Aadhaar, PAN, business address proof, project report with CMA data, quotations for machinery, land documents (if owned), lease deed (if rented), and GST registration. For loan above ₹10 lakh, audited financials (if existing) or IT returns for 3 years. CGTMSE cover eliminates collateral for loans up to ₹2 crore. Ensure your project report includes DSCR (minimum 1.25), debt-equity ratio, and repayment schedule.

5-Year Financial Projections & DSCR

A bank-ready project report must include projected profit & loss, balance sheet, cash flow, and DSCR for 5 years. For a biscuit unit, assume capacity utilization: 60% in Year 1, 75% in Year 2, 85% in Year 3, and 90% thereafter. Gross margin typically 25-35%. Operating expenses: raw material (flour, sugar, fat) 60-65% of sales, packaging 5%, labor 8%, power 3%, overheads 5%. DSCR should be above 1.5 for comfortable repayment. Include assumptions for inflation (5% p.a.) and price escalation. Use realistic sales prices (₹80-120/kg for plain biscuits, ₹150-250/kg for cream/filled).

What Your Report Includes

Every report is formatted to the exact standards required by Indian banks and government departments.

  • Executive Summary with scheme-specific highlights
  • Promoter profile & KYC details
  • Business description & market analysis
  • Machinery & equipment list with quotations
  • Raw material & manpower planning
  • 5-year financial projections (P&L, Balance Sheet, Cash Flow)
  • CMA Data in IBA-approved format
  • Working Capital Assessment — Tandon Method II (RBI norms)
  • Loan repayment schedule with DSCR ≥ 1.25
  • SWOT analysis
  • Declarations & undertakings as per scheme guidelines

Eligibility Checklist

  • Anyone planning a biscuit manufacturing in India
  • Valid Aadhaar & PAN
  • Eligible for PMFME, PMEGP, CGTMSE
  • Udyam (MSME) registration recommended
  • New or existing business
  • Premises with basic utilities
Export formats
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Why Use Cred for This Report?

Accurate biscuit manufacturing economics: NIC 10712, ₹10 Lakh–1 Cr project cost, machinery & raw material.

Scheme-ready for PMFME, PMEGP, CGTMSE.

Bankable financials (CMA, DSCR ≥ 1.50, P&L, Balance Sheet, Cash Flow).

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Frequently Asked Questions

What is the cost of a biscuit manufacturing?

A typical biscuit manufacturing project costs ₹10 Lakh–1 Cr depending on scale, location and machinery. The report breaks down land/building, machinery, working capital and pre-operative costs.

Which scheme & how much loan for a biscuit manufacturing?

PMFME, PMEGP, CGTMSE are commonly used. Banks fund ~75–90% of project cost as term loan + working capital.

How do I get the biscuit manufacturing report?

Register free, pick the scheme & loan amount, and the AI drafts the full bank-ready report (CMA data, DSCR, 5-year projections) in under 60 seconds. First report free; clean exports ₹499.

What is the minimum project cost for a biscuit manufacturing unit under PMFME?

Under PMFME, the minimum project cost is not fixed, but for subsidy eligibility, the capital investment should be at least ₹10 lakh. Typically, a small unit with 100 kg/day capacity requires ₹10-15 lakh. The subsidy is 35% of eligible capital investment, up to ₹10 lakh per unit.

Can I get a bank loan without collateral for a biscuit unit?

Yes, under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), loans up to ₹2 crore are covered without collateral. The guarantee covers up to 85% of the loan amount. However, the borrower must provide personal guarantee and project viability.

What is the typical repayment period for a biscuit manufacturing loan?

Term loans for biscuit units are typically repaid over 5-7 years, with a moratorium of 6-12 months. Working capital loans are usually renewable annually. The repayment schedule is based on projected cash flows and DSCR.

What licenses are required to start a biscuit manufacturing business?

Key licenses include FSSAI registration (or license for larger units), GST registration, Udyam Aadhaar registration, and local municipal/trade license. If using a trademark, register it. Additionally, factory license and fire safety NOC are required for units with more than 10 workers.

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