DETAILED PROJECT REPORT (DPR)

GREENGROW ORGANICS
~ Turning Waste into Wealth
A VERMICOMPOST MANUFACTURING UNIT

Under PMEGP Scheme

Promoter
M KUMARI
9483898708
1. Promoter Information
Promoter Name M KUMARI
Address W/o Srinivasa, Prathipala Nilaya,
Next to Govt. School, Yanagumba,
Haradanahalli hobli,
Chamarajanagar – 571 127
Mobile / Email 9483898708
Education & Experience PUC
Aadhar / PAN 7730 1285 7392 / GRIPK2530Q
Bank Branch & IFSC State Bank of India, Haradanahalli
IFSC- SBIN0040764
Land/Building Details Owned
Udyam Registration No.
PMEGP Application ID
2. Introduction

Vermicomposting is a natural, eco-friendly process in which earthworms

consume organic waste materials such as crop residues, cattle dung, and
agro-industrial by-products, and convert them into nutrient-rich compost.
This compost, known as vermicompost, improves soil fertility, enhances
water retention capacity, and promotes healthy plant growth.

Karnataka, being one of the leading agrarian states in India, generates vast
quantities of agricultural residues, animal waste, and organic matter that
can be effectively utilized for vermicomposting. The state has a large rural
population engaged in agriculture and allied activities, which provides an
abundant and continuous source of raw material for composting.
Moreover, Karnataka’s varied agro-climatic conditions make it suitable for
a wide range of crops, thereby creating consistent demand for soil-
enriching organic inputs like vermicompost.
The importance of vermicomposting has grown significantly in recent
years due to the following factors:
• Rising awareness among farmers regarding the adverse effects of
chemical fertilizers on soil health and crop quality.
• Increased emphasis on sustainable agriculture and organic farming
practices.
• Government incentives, training programs, and subsidies for
adopting organic farming methods.
• Enhanced profitability for farmers by producing chemical-free crops
that fetch better market prices.
Thus, establishing a vermicompost manufacturing unit in Karnataka is
both environmentally beneficial and commercially viable, providing a
sustainable business opportunity while contributing to soil health and
organic farming movements.
3. Market Demand

The demand for vermicompost and organic soil conditioners is growing

rapidly across Karnataka and India. Several factors contribute to the rising
demand:

1. Government Support and Policy Framework:

o The Government of India and the State Government of

Karnataka have launched multiple schemes to encourage
organic farming, such as the National Mission for Sustainable
Agriculture (NMSA), Paramparagat Krishi Vikas Yojana (PKVY),
and subsidies under the PMEGP scheme. These policies
actively promote the use of vermicompost in place of
chemical fertilizers.

2. Adoption of Sustainable Agriculture:

o Farmers are increasingly adopting Integrated Nutrient

Management (INM) and Integrated Pest Management (IPM)
practices. Vermicompost plays a critical role in these methods
as it improves soil structure, boosts microbial activity, and
provides balanced nutrients for crops.

3. Growing Preference for Chemical-Free Produce:

o Consumers are becoming more health-conscious and are

willing to pay a premium for organic fruits, vegetables, and
grains. This creates a pull factor for farmers to shift towards
organic practices, which directly boosts the demand for
vermicompost.
4. Wider Application Sectors:

o Apart from field crops, vermicompost is extensively used in

horticulture, floriculture, nurseries, landscaping, and
greenhouse farming.

o Karnataka, being a hub for horticultural crops like mango,

banana, spices, and vegetables, has a strong and expanding
market for vermicompost.

5. Export Potential:

o With the global demand for organic products increasing,

vermicompost production in Karnataka also holds export
potential to meet the needs of certified organic farms abroad.
4. Project Cost & Means of Finance
Total Project Cost: ₹9,95,000
Promoter Contribution (5%): ₹49,750
Bank Loan (95%): ₹9,45,250
PMEGP Subsidy (35%): ₹3,48,250 (adjusted as margin money)

5. Capital Expenditure
Particulars Amount (₹)
Civil works: vermi shed, pits, leachate tank, flooring 300000.00
Machinery: shredder, rotary sieve, conveyor 320000.00
HDPE vermi beds / tarps & bins 40000.00
Breeding stock of earthworms 50000.00
Electricals, water pump, piping, installation 30000.00
Office furniture, weighing scale, bag closer 15000.00
Pre-operative, transport & contingency 90000.00
Total Capital Expenditure: ₹845000.00

6. Working Capital Requirement

Particulars Amount (₹)
Raw materials (cow dung/agri waste & inoculum) 60000.00
Wages (2 workers) 36000.00
Utilities: water & electricity 9000.00
Packaging & labels 18000.00
Repairs & maintenance 9000.00
Admin & marketing 18000.00
Total Working Capital: ₹150000.00
7. Sales Revenue (Year 1)
Product Qty x Rate Amount (₹)
Vermicompost (bulk) 90,000 kg @ ₹8/kg 720000.00
Vermicompost 5,000 bags @ ₹15/bag 375000.00
Vermiwash 2,000 L @ ₹30/L 60000.00
Breeder earthworms 75 kg @ ₹600/kg 45000.00
Total Sales Revenue (Year 1): ₹1200000.00

8. Financial Projections (5 Years)

Operating
Depreciation Cash
Year Revenue (₹) Expenses DSCR
(₹) Accrual (₹)
(₹)
1 1200000.0 575000.0 100000.0 515655.32 2.14
2 1260000.0 603750.0 100000.0 535077.5 2.22
3 1323000.0 633937.5 100000.0 555251.08 2.3
4 1389150.0 665634.38 100000.0 576190.67 2.39
5 1458607.5 698916.09 100000.0 597909.11 2.48
9. Cash Flow Statement (5 Years)
Net Cash
Revenue Operating Debt
Year Taxes (₹) After Debt
(₹) Cost (₹) Service (₹)
(₹)
1.0 1200000.0 575000.0 109344.68 241005.24 274650.08
2.0 1260000.0 603750.0 121172.5 241005.24 294072.26
3.0 1323000.0 633937.5 133811.42 241005.24 314245.84
4.0 1389150.0 665634.38 147324.96 241005.24 335185.43
5.0 1458607.5 698916.09 161782.3 241005.24 356903.87
10. EMI Schedule (60 Months)
Closing
Month EMI (₹) Principal (₹) Interest (₹)
Balance (₹)
1.0 20083.77 12206.69 7877.08 933043.31
2.0 20083.77 12308.41 7775.36 920734.91
3.0 20083.77 12410.98 7672.79 908323.93
4.0 20083.77 12514.4 7569.37 895809.53
5.0 20083.77 12618.69 7465.08 883190.84
6.0 20083.77 12723.85 7359.92 870466.99
7.0 20083.77 12829.88 7253.89 857637.11
8.0 20083.77 12936.79 7146.98 844700.32
9.0 20083.77 13044.6 7039.17 831655.72
10.0 20083.77 13153.3 6930.46 818502.42
11.0 20083.77 13262.92 6820.85 805239.5
12.0 20083.77 13373.44 6710.33 791866.06
13.0 20083.77 13484.89 6598.88 778381.17
14.0 20083.77 13597.26 6486.51 764783.92
15.0 20083.77 13710.57 6373.2 751073.35
16.0 20083.77 13824.82 6258.94 737248.52
17.0 20083.77 13940.03 6143.74 723308.49
18.0 20083.77 14056.2 6027.57 709252.29
19.0 20083.77 14173.33 5910.44 695078.96
20.0 20083.77 14291.44 5792.32 680787.51
21.0 20083.77 14410.54 5673.23 666376.97
22.0 20083.77 14530.63 5553.14 651846.35
23.0 20083.77 14651.72 5432.05 637194.63
24.0 20083.77 14773.81 5309.96 622420.82
25.0 20083.77 14896.93 5186.84 607523.89
26.0 20083.77 15021.07 5062.7 592502.82
27.0 20083.77 15146.25 4937.52 577356.57
28.0 20083.77 15272.46 4811.3 562084.11
29.0 20083.77 15399.73 4684.03 546684.37
30.0 20083.77 15528.07 4555.7 531156.31
31.0 20083.77 15657.47 4426.3 515498.84
32.0 20083.77 15787.95 4295.82 499710.9
33.0 20083.77 15919.51 4164.26 483791.38
34.0 20083.77 16052.17 4031.59 467739.21
35.0 20083.77 16185.94 3897.83 451553.27
36.0 20083.77 16320.83 3762.94 435232.44
37.0 20083.77 16456.83 3626.94 418775.61
38.0 20083.77 16593.97 3489.8 402181.64
39.0 20083.77 16732.26 3351.51 385449.38
40.0 20083.77 16871.69 3212.08 368577.69
41.0 20083.77 17012.29 3071.48 351565.4
42.0 20083.77 17154.06 2929.71 334411.35
43.0 20083.77 17297.01 2786.76 317114.34
44.0 20083.77 17441.15 2642.62 299673.19
45.0 20083.77 17586.49 2497.28 282086.7
46.0 20083.77 17733.05 2350.72 264353.65
 47.0 20083.77 17880.82 2202.95 246472.83
48.0 20083.77 18029.83 2053.94 228443.0
49.0 20083.77 18180.08 1903.69 210262.92
50.0 20083.77 18331.58 1752.19 191931.34
51.0 20083.77 18484.34 1599.43 173447.0
52.0 20083.77 18638.38 1445.39 154808.63
53.0 20083.77 18793.7 1290.07 136014.93
54.0 20083.77 18950.31 1133.46 117064.62
55.0 20083.77 19108.23 975.54 97956.39
56.0 20083.77 19267.47 816.3 78688.92
57.0 20083.77 19428.03 655.74 59260.89
58.0 20083.77 19589.93 493.84 39670.97
59.0 20083.77 19753.18 330.59 19917.79
60.0 20083.77 19917.79 165.98 0.0

11. Conclusion
The project for Vermicompost Manufacturing Unit in Karnataka is
financially viable. The DSCR lies consistently between 2.14 and 2.48 for all
5 years, ensuring the repayment capacity of the promoter. Considering the
demand for organic fertilizers, government subsidy support under PMEGP,
and the promoter's own land for setting up, the project is feasible,
bankable, and recommended for financial assistance.