For entrepreneurs in India seeking to start a pickle manufacturing unit under the PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) scheme, a bank-ready project report is the cornerstone of loan approval. This report, tailored to NIC code 10303 and project costs between ₹2–25 lakh, must include detailed CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) calculations, and 5-year financial projections. The PMFME scheme offers a 35% capital subsidy (max ₹10 lakh) for eligible units, making it a highly attractive option. A well-structured project report demonstrates viability, repayment capacity, and compliance with FSSAI and other regulations. It typically covers raw material sourcing (e.g., mango, lemon, mixed vegetables), production capacity, machinery list, working capital requirements, and market strategy. Without a professional report, banks often reject applications or delay processing. This page provides a practical guide to creating a PMFME-compliant project report specifically for pickle manufacturing, including subsidy details, format, and essential financial metrics.
To avail PMFME subsidy for pickle manufacturing, the unit must be a micro food processing enterprise (investment in plant & machinery up to ₹1 crore). The scheme covers individual entrepreneurs, FPOs, SHGs, and cooperatives. Key eligibility: the business must be registered as a sole proprietorship, partnership, LLP, or private limited company. A valid FSSAI license is mandatory. The project cost should be between ₹2–25 lakh, with the promoter contributing at least 10% (5% for SC/ST/women). The subsidy is 35% of eligible project cost (max ₹10 lakh) and is released in two installments. Additionally, the unit must have a DPR (Detailed Project Report) approved by the state nodal agency. For pickle manufacturing, the report must specify the type of pickle (e.g., oil-based, vinegar-based), production capacity (e.g., 200 kg/day), and raw material sourcing plan.
A typical pickle manufacturing unit with a project cost of ₹10 lakh (for 100 kg/day capacity) breaks down as: land & building (if needed) ₹1.5 lakh, plant & machinery ₹4 lakh (including SS tanks, cutting machine, filling machine, sealing machine), working capital ₹3.5 lakh (raw materials like mango, oil, spices, salt, vinegar; packaging materials; salaries), and preliminary expenses ₹1 lakh. Under PMFME, the subsidy (35% = ₹3.5 lakh) reduces the loan requirement. The bank loan (65% = ₹6.5 lakh) is covered under CGTMSE up to ₹2 crore without collateral. Repayment is typically 5–7 years with a moratorium of 6–12 months. Ensure the project report includes a detailed CMA statement showing current ratio >1.33, DSCR >1.5, and net worth positive. Working capital assessment should factor in a 60-day credit period for retailers and 30-day inventory for raw materials.
1. Prepare a Detailed Project Report (DPR) as per PMFME format, including product mix (e.g., mango pickle 60%, lemon pickle 30%, mixed pickle 10%), production process flow, machinery specifications, and financials. 2. Register on the PMFME portal (pmfme.gov.in) and submit the DPR to the District Nodal Officer (DNO). 3. The DNO approves the DPR and issues a letter of intent. 4. Apply for a loan from a scheduled commercial bank, regional rural bank, or cooperative bank. Attach the approved DPR, subsidy claim form, and other documents. 5. Bank sanctions loan and disburses in tranches. 6. After 50% loan disbursement, apply for first subsidy installment (up to 50% of subsidy). 7. Complete project implementation and start production. 8. After full loan disbursement and project completion, apply for second subsidy installment. Ensure all machinery invoices, FSSAI license, and utility bills are ready for verification.
The project report must include: (a) Land documents (lease deed or ownership proof), (b) FSSAI registration or license, (c) GST registration (if turnover > ₹40 lakh), (d) Aadhaar and PAN of promoter, (e) Quotations for machinery (at least 3), (f) Raw material supply agreements or purchase contracts, (g) Market agreement or MOUs with buyers (if any), (h) Electricity connection bill and load requirement (typically 5–10 HP), (i) Water quality test report (for food safety), (j) Pollution clearance (if applicable), (k) Insurance cover for plant & machinery. For the CMA data, include: 3 years of projected P&L, balance sheet, cash flow, and ratio analysis. The DSCR should be calculated as (Net Profit + Depreciation + Interest) / (Principal Repayment + Interest). A minimum DSCR of 1.5 is required by most banks.
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Project Report
Consumer electronics repair, servicing & spare-parts retail
Vaishali Nagar, Jaipur, Rajasthan
Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur
The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.
The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.
Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.
| Particulars | Basis | Amount (₹) |
|---|---|---|
| Renovation & civil work | 200 sq.ft. additional area, electrical, ESD flooring | 1,20,000 |
| Diagnostic & repair equipment | As per quotations — Annexure IX | 2,40,000 |
| Computers, software & service tools | 2 systems, billing software, tool kits | 80,000 |
| Furniture, air-conditioning & display fixtures | Counter, racks, 1.5 T AC | 60,000 |
| Margin money for working capital | Stock, receivables & operating cash | 5,00,000 |
| Total project cost | 10,00,000 |
A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.
| Source | Amount (₹) | % of project cost |
|---|---|---|
| Promoter's own contribution | 2,00,000 | 20.00% |
| Term loan under MUDRA Tarun | 8,00,000 | 80.00% |
| Subsidy / margin money grant | Nil | — |
| Total | 10,00,000 | 100.00% |
Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.
For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.
| Equipment | Qty | Rate (₹) | Amount (₹) |
|---|---|---|---|
| BGA rework station with preheater | 1 | 95,000 | 95,000 |
| Digital storage oscilloscope with probes | 1 | 45,000 | 45,000 |
| Universal IC programmer | 1 | 35,000 | 35,000 |
| Ultrasonic PCB cleaning unit | 1 | 22,000 | 22,000 |
| Soldering / desoldering stations | 3 | 8,000 | 24,000 |
| Precision tool kits & ESD workbench | 2 | 9,500 | 19,000 |
| Total | 2,40,000 |
Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Service & repair income | 24.00 | 28.32 | 32.57 | 36.80 | 41.22 |
| Sale of spares & accessories | 9.60 | 11.33 | 13.03 | 14.73 | 16.49 |
| Total revenue | 33.60 | 39.65 | 45.60 | 51.53 | 57.71 |
| Cost of spares & materials (45%) | 15.12 | 17.84 | 20.52 | 23.19 | 25.97 |
| Gross profit | 18.48 | 21.81 | 25.08 | 28.34 | 31.74 |
| Salaries & wages | 6.72 | 7.26 | 7.84 | 8.47 | 9.14 |
| Rent | 1.44 | 1.51 | 1.59 | 1.67 | 1.75 |
| Power & fuel | 0.72 | 0.78 | 0.83 | 0.89 | 0.95 |
| Repairs & maintenance | 0.30 | 0.33 | 0.36 | 0.39 | 0.42 |
| Marketing & business promotion | 0.36 | 0.40 | 0.44 | 0.48 | 0.52 |
| Administrative & miscellaneous | 0.60 | 0.66 | 0.72 | 0.78 | 0.84 |
| Insurance | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 |
| Total operating expenses | 10.26 | 11.07 | 11.92 | 12.83 | 13.78 |
| EBITDA | 8.22 | 10.74 | 13.16 | 15.51 | 17.96 |
| Depreciation (WDV, as per IT Act) | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| EBIT | 7.36 | 10.08 | 12.64 | 15.09 | 17.61 |
| Interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Profit before tax | 6.58 | 9.44 | 12.16 | 14.78 | 17.50 |
| Income tax (as applicable) | 0.30 | 0.62 | 0.95 | 1.35 | 1.80 |
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.
| Year | Opening balance | Principal repaid | Interest | Total outgo | Closing balance |
|---|---|---|---|---|---|
| 1 | 8,00,000 | 1,28,404 | 77,937 | 2,06,341 | 6,71,596 |
| 2 | 6,71,596 | 1,42,555 | 63,787 | 2,06,341 | 5,29,041 |
| 3 | 5,29,041 | 1,58,265 | 48,077 | 2,06,341 | 3,70,776 |
| 4 | 3,70,776 | 1,75,706 | 30,635 | 2,06,341 | 1,95,070 |
| 5 | 1,95,070 | 1,95,070 | 11,272 | 2,06,341 | Nil |
| Total | 8,00,000 | 2,31,707 | 10,31,705 |
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
| Add: depreciation | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| Add: interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Cash available for debt service (A) | 7.92 | 10.12 | 12.21 | 14.16 | 16.16 |
| Principal repayment | 1.28 | 1.43 | 1.58 | 1.76 | 1.95 |
| Interest | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Total debt service (B) | 2.06 | 2.07 | 2.06 | 2.07 | 2.06 |
| DSCR (A ÷ B) | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 |
Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| LIABILITIES | |||||
| Capital account (net of drawings) | 4.08 | 7.50 | 12.11 | 17.74 | 24.44 |
| Term loan — long-term portion | 5.29 | 3.71 | 1.95 | — | — |
| Term loan — current maturity | 1.43 | 1.58 | 1.76 | 1.95 | — |
| Sundry creditors (30 days) | 1.26 | 1.49 | 1.71 | 1.93 | 2.16 |
| Other current liabilities & provisions | 0.30 | 0.35 | 0.40 | 0.45 | 0.50 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| ASSETS | |||||
| Net fixed assets | 4.14 | 3.48 | 2.96 | 2.54 | 2.19 |
| Stock of spares (45 days) | 1.86 | 2.20 | 2.53 | 2.86 | 3.20 |
| Sundry debtors (10 days) | 0.92 | 1.09 | 1.25 | 1.41 | 1.58 |
| Cash & bank balance | 5.44 | 7.86 | 11.19 | 15.26 | 20.13 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| Sources | Amount | Applications | Amount |
|---|---|---|---|
| Profit after tax | 6.28 | Capital expenditure | 5.00 |
| Depreciation | 0.86 | Increase in stock | 1.86 |
| Increase in creditors & provisions | 1.56 | Increase in debtors | 0.92 |
| Term loan drawn | 8.00 | Repayment of term loan | 1.28 |
| Promoter's capital introduced | 2.00 | Drawings | 4.20 |
| Closing cash & bank | 5.44 | ||
| Total | 18.70 | Total | 18.70 |
Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.
| Particulars | Amount |
|---|---|
| Stock of spares | 1.86 |
| Sundry debtors | 0.92 |
| Cash & bank balance | 5.44 |
| Total current assets (TCA) | 8.22 |
| Sundry creditors | 1.26 |
| Other current liabilities & provisions | 0.30 |
| Current maturity of term loan | 1.43 |
| Other current liabilities (OCL) | 2.99 |
| Working capital gap (TCA − OCL) | 5.23 |
| 25% of TCA — stipulated margin | 2.06 |
| Maximum permissible bank finance (Method II) | 3.18 |
No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.
CMA statements included in the full report
| Ratio | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Bank norm |
|---|---|---|---|---|---|---|
| Current ratio | 2.75 | 3.26 | 3.87 | 4.51 | 9.36 | ≥ 1.25 |
| Debt–equity ratio | 1.65 | 0.71 | 0.31 | 0.11 | Nil | ≤ 3.00 |
| DSCR | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 | ≥ 1.25 |
| Net profit margin | 18.7% | 22.2% | 24.6% | 26.1% | 27.2% | — |
| Interest coverage | 9.4 | 15.8 | 26.3 | 48.7 | 160.1 | ≥ 2.00 |
| Particulars | Amount |
|---|---|
| Fixed costs (salaries, rent, admin, depreciation, interest) | 10.88 |
| Variable costs (materials, power, maintenance) | 16.14 |
| Contribution (revenue − variable costs) | 17.46 |
| P/V ratio | 51.96% |
| Break-even sales | 20.94 |
| Break-even as % of Year-1 revenue | 62.3% |
| Cash break-even as % of Year-1 revenue | 57.4% |
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PMFME format + pickle manufacturing economics combined correctly.
Subsidy/margin money for PMFME auto-computed.
Project cost ₹2–25 Lakh, NIC 10303.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — PMFME (35% capital subsidy) is commonly used for pickle manufacturing. The report is formatted to PMFME requirements with subsidy/margin money shown.
35% capital subsidy — computed automatically in the means-of-finance and subsidy sections.
Register free, pick the scheme & loan amount, and the full bank-ready report is drafted for you (CMA data, DSCR, 5-year projections) in under 60 seconds. First report free; clean exports ₹499.
The PMFME scheme provides a capital subsidy of 35% of the eligible project cost, subject to a maximum of ₹10 lakh per unit. For example, if your project cost is ₹25 lakh, the subsidy is ₹8.75 lakh (capped at ₹10 lakh). The subsidy is disbursed in two installments: 50% after 50% loan disbursement, and the remaining after project completion.
Yes, loans up to ₹2 crore under PMFME are covered by CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), meaning no collateral is required. However, the bank may ask for a personal guarantee. For loans above ₹2 crore, collateral is needed. Ensure your project report includes a CGTMSE cover note.
The repayment period is usually 5–7 years, with a moratorium of 6–12 months (principal repayment holiday). Interest rates are typically 7–10% per annum, depending on the bank and your credit score. The project report should show a DSCR above 1.5 to assure the bank of repayment capacity.
Yes, an FSSAI license is mandatory for all food processing units, including pickle manufacturing. You need a state-level FSSAI license (if turnover is between ₹12 lakh and ₹20 crore) or a central license (if turnover exceeds ₹20 crore). The license must be obtained before applying for the subsidy. Include the license number in your project report.