Detailed Project Report (DPR)

Mushroom Cultivation Unit

Bijapur District, Chhattisgarh

Project Year: 2025

Date: July 01, 2025

Total Project Cost: 28,00,000

Funding: Own Capital (20,00,000 Term Capital, 8,00,000 Working Capital)
Table of Contents
1 Project at a Glance 2

2 Basis of Design for Mushroom Cultivation Unit 2

2.1 Key Design Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Technical Details for the Unit 2

4 Technical Details for Establishment of Mushroom Cultivation Chamber Unit 3

5 Price Schedule 4

6 Economic Analysis 4
6.1 Key Economic Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

7 Break Even Analysis 5

8 Project Implementation Schedule 5

9 Details of Project Cost 5

10 Projected Profitability Statement 5

11 Projected Balance Sheet 6

12 Fixed Assets Schedule 6

13 Projected Working Capital Assessment 7

14 Refund Schedule 7

15 Projected Cash Flow Statement 7

16 Calculation of Debt Service Coverage Ratio (DSCR) 8

17 Calculation of Break Even Point 8

18 Ratio Analysis 8

19 Calculation of Payback Period 9

20 Calculation of Internal Rate of Return (IRR) 9

21 Sensitivity Analysis 9

22 Assumptions 10

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

1 Project at a Glance
Parameter Details
Project Name Mushroom Cultivation Unit
Location Bijapur District, Chhattisgarh
Project Cost 28,00,000
Funding Structure Own Source (Term Capital): 20,00,000; Working Capital
(Own Fund): 8,00,000
Production Capacity 60 Metric Tons (MT) per annum
Project Start Date October 2025
Type of Mushroom White Button Mushroom (Agaricus bisporus)
Implementation Period 6 months (October 2025 March 2026)
Expected IRR 25% (Projected)
Break Even Point 65% of capacity (39 MT) in Year 1

2 Basis of Design for Mushroom Cultivation Unit

The mushroom cultivation unit is designed to produce 60 MT of white button mushrooms
(Agaricus bisporus) annually, utilizing controlled environment chambers and compost-based
cultivation techniques. The design emphasizes scalability, cost-efficiency, and adaptability to
the local climatic conditions of Bijapur, Chhattisgarh, characterized by high humidity and tem-
peratures ranging from 20řC to 35řC. The unit will leverage locally sourced agricultural waste
(e.g., paddy straw, wheat straw) for compost preparation, supplemented with modern technol-
ogy for precise control of temperature, humidity, and ventilation to ensure optimal mushroom
growth.

2.1 Key Design Considerations

• Climate Control: Chambers are designed to maintain 2225řC and 8590% relative hu-
midity (RH) for optimal mushroom growth.
• Sustainability: Use of solar power backup and organic waste recycling to minimize
operational costs and environmental impact.
• Scalability: Modular chamber design allows for future expansion to increase production
capacity.
• Local Resource Utilization: Paddy straw and other agricultural residues abundant in
Bijapur will be used for compost preparation.

3 Technical Details for the Unit

• Land Requirement: 1 acre (4047 mš) to accommodate cultivation chambers, compost-
ing area, spawn production unit, and ancillary facilities (e.g., storage, office).
• Cultivation Chambers: 4 chambers, each 500 sq.ft (10m x 5m x 3m), designed for
controlled environment cultivation.

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

• Compost Preparation: Short method composting (28 days) using paddy straw, gypsum,
and organic supplements like poultry manure.
• Spawn Production: In-house spawn production unit with autoclave for sterilization to
ensure quality and cost efficiency.
• Irrigation System: Mist-based irrigation system to maintain 8590% humidity, with au-
tomated timers for consistent moisture levels.
• Energy Supply: 10 kW solar-powered backup system for critical equipment to reduce
reliance on grid electricity and lower costs.

4 Technical Details for Establishment of Mushroom Cultiva-

tion Chamber Unit
• Chamber Construction:
– Materials: Insulated sandwich panels (50mm thick polyurethane foam, density
40 kg/mş) with Reinforced Cement Concrete (RCC) foundation for durability and
thermal insulation.
– Dimensions: Each chamber measures 10m (L) x 5m (W) x 3m (H), totaling 4
chambers (2000 sq.ft combined).
– Ventilation: 6 air changes per hour, facilitated by exhaust fans and air circulation
systems to prevent CO buildup.
• Equipment Specifications and Quotation Details:

Equipment Specification Measurement Quantity Unit Cost

()
Air Conditioners 5-ton, 3-phase, R410A 1.5m x 1m x 0.5m 4 1,00,000
refrigerant, 2225řC
cooling capacity, EER
3.5
Humidifiers Ultrasonic, 5L/hr ca- 0.6m x 0.4m x 4 50,000
pacity, 8590% RH, 0.3m
stainless steel body,
digital control
Exhaust Fans 500 CFM, 0.5 HP, 0.5m diameter 8 10,000
3-phase, corrosion-
resistant blades
Shelving Racks 4-tier, galvanized steel, 2m x 1m x 2m 16 25,000
1000 kg load capac-
ity per rack, adjustable
height
Autoclave 100L capacity, 121řC, 0.8m x 0.8m x 1 1,50,000
15 psi, stainless steel, 1.2m
digital control

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

Compost Turner 1 HP, 500 kg/hr ca- 1.5m x 1m x 1m 1 1,00,000

pacity, electric, stain-
less steel blades
Mist Sprayers 1L/min, 360ř nozzle, 0.3m x 0.2m 8 5,000
PVC material, auto-
mated timer
Weighing Scale 500 kg capacity, digital, 0.6m x 0.6m 1 15,000
stainless steel platform,
accuracy ś100g
Solar Power System 10 kW, monocrystalline 10mš panel area 1 2,00,000
panels, 48V battery, in-
verter efficiency 95%

• Sterilization: Autoclave with 100L capacity for sterilizing spawn and substrate, ensuring
contamination-free production.
• Waste Management: Composting pits (3m x 2m x 1m, 4 units) with drainage to recycle
organic waste and prevent waterlogging.
• Substrate Preparation Area: 100 sq.m concrete platform for mixing and sterilizing
paddy straw, gypsum, and supplements, with tarpaulin cover.

5 Price Schedule
Item Quantity Unit Cost () Total Cost ()
Land Preparation 1 acre 2,00,000 2,00,000
Cultivation Chambers 4 units 3,00,000 12,00,000
Composting Unit 1 unit 1,50,000 1,50,000
Air Conditioners 4 units 1,00,000 4,00,000
Humidifiers 4 units 50,000 2,00,000
Shelving Racks 16 units 25,000 4,00,000
Autoclave 1 unit 1,50,000 1,50,000
Compost Turner 1 unit 1,00,000 1,00,000
Exhaust Fans 8 units 10,000 80,000
Mist Sprayers 8 units 5,000 40,000
Weighing Scale 1 unit 15,000 15,000
Solar Power System 1 unit 2,00,000 2,00,000
Miscellaneous - - 65,000
Total 28,00,000

6 Economic Analysis
The project is expected to generate a steady income through the sale of 60 MT of mushrooms
annually at 150/kg (market price, Year 1). Total revenue in Year 1 is projected at 90,00,000,
with operational costs (including labor, raw materials, and utilities) at 55,00,000, yielding a

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

gross profit of 35,00,000. The unit will target local and regional markets, leveraging Bijapurs
proximity to urban centers for distribution.

6.1 Key Economic Parameters

• Revenue: 90,00,000 (Year 1), increasing at 5% annually due to price escalation.
• Operational Costs: 55,00,000 (Year 1), including 30,00,000 for raw materials (compost,
spawn), 15,00,000 for labor, and 10,00,000 for utilities.
• Gross Margin: 38.89% in Year 1, maintained across projection period.

7 Break Even Analysis

• Fixed Costs: 15,00,000 (depreciation, fixed labor, maintenance).
• Variable Costs: 91.67/kg (compost, spawn, utilities).
• Selling Price: 150/kg (Year 1).
• Break Even Point: 39 MT (65% of capacity) in Year 1.

8 Project Implementation Schedule

Activity Start Date Completion Date
Land Acquisition Oct 2025 Nov 2025
Chamber Construction Nov 2025 Jan 2026
Equipment Installation Jan 2026 Feb 2026
Compost Preparation Feb 2026 Mar 2026
Trial Production Mar 2026 Mar 2026
Commercial Production Apr 2026 Ongoing

9 Details of Project Cost

Component Cost () Funding Source
Fixed Assets 20,00,000 Own Source (Term Capital)
Working Capital 8,00,000 Own Fund
Total 28,00,000

10 Projected Profitability Statement

Month Revenue () Cost of Gross Operating Net Profit Net Profit
Sales () Profit () Expenses () Margin
() (%)
Apr 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
May 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

Jun 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22

Jul 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Aug 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Sep 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Oct 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Nov 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Dec 2026 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Jan 2027 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Feb 2027 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Mar 2027 7,50,000 4,58,333 2,91,667 1,25,000 1,66,667 22.22
Total 90,00,000 55,00,000 35,00,000 15,00,000 20,00,000 22.22

11 Projected Balance Sheet

Month Fixed Working Total Own Capi- Retained
Assets () Capital () Assets () tal () Earnings
()
Apr 2026 19,83,333 6,66,667 26,50,000 28,00,000 1,66,667
May 2026 19,66,667 6,83,333 26,50,000 28,00,000 3,33,333
Jun 2026 19,50,000 7,00,000 26,50,000 28,00,000 5,00,000
Jul 2026 19,33,333 7,16,667 26,50,000 28,00,000 6,66,667
Aug 2026 19,16,667 7,33,333 26,50,000 28,00,000 8,33,333
Sep 2026 19,00,000 7,50,000 26,50,000 28,00,000 10,00,000
Oct 2026 18,83,333 7,66,667 26,50,000 28,00,000 11,66,667
Nov 2026 18,66,667 7,83,333 26,50,000 28,00,000 13,33,333
Dec 2026 18,50,000 8,00,000 26,50,000 28,00,000 15,00,000
Jan 2027 18,33,333 8,16,667 26,50,000 28,00,000 16,66,667
Feb 2027 18,16,667 8,33,333 26,50,000 28,00,000 18,33,333
Mar 2027 18,00,000 8,50,000 26,50,000 28,00,000 20,00,000

12 Fixed Assets Schedule

Month Opening Depreciation Closing Depreciation
Balance () (10% p.a.) Balance () Rate
()
Apr 2026 20,00,000 16,667 19,83,333 10%
May 2026 19,83,333 16,667 19,66,667 10%
Jun 2026 19,66,667 16,667 19,50,000 10%
Jul 2026 19,50,000 16,667 19,33,333 10%
Aug 2026 19,33,333 16,667 19,16,667 10%
Sep 2026 19,16,667 16,667 19,00,000 10%
Oct 2026 19,00,000 16,667 18,83,333 10%
Nov 2026 18,83,333 16,667 18,66,667 10%
Dec 2026 18,66,667 16,667 18,50,000 10%

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

Jan 2027 18,50,000 16,667 18,33,333 10%

Feb 2027 18,33,333 16,667 18,16,667 10%
Mar 2027 18,16,667 16,667 18,00,000 10%

13 Projected Working Capital Assessment

Month Raw Mate- Utilities () Labor () Total ()
rials ()
Apr 2026 33,333 16,667 16,667 66,667
May 2026 33,333 16,667 16,667 66,667
Jun 2026 33,333 16,667 16,667 66,667
Jul 2026 33,333 16,667 16,667 66,667
Aug 2026 33,333 16,667 16,667 66,667
Sep 2026 33,333 16,667 16,667 66,667
Oct 2026 33,333 16,667 16,667 66,667
Nov 2026 33,333 16,667 16,667 66,667
Dec 2026 33,333 16,667 16,667 66,667
Jan 2027 33,333 16,667 16,667 66,667
Feb 2027 33,333 16,667 16,667 66,667
Mar 2027 33,333 16,667 16,667 66,667
Total 4,00,000 2,00,000 2,00,000 8,00,000

14 Refund Schedule
No external loans are assumed, as the project is fully funded by own capital (28,00,000). Hence,
no refund schedule is applicable.

15 Projected Cash Flow Statement

Month Cash Cash Out- Net Cash Cumulative
Inflow () flow () Flow () Cash Flow
()
Apr 2026 7,50,000 5,83,333 1,66,667 1,66,667
May 2026 7,50,000 5,83,333 1,66,667 3,33,333
Jun 2026 7,50,000 5,83,333 1,66,667 5,00,000
Jul 2026 7,50,000 5,83,333 1,66,667 6,66,667
Aug 2026 7,50,000 5,83,333 1,66,667 8,33,333
Sep 2026 7,50,000 5,83,333 1,66,667 10,00,000
Oct 2026 7,50,000 5,83,333 1,66,667 11,66,667
Nov 2026 7,50,000 5,83,333 1,66,667 13,33,333
Dec 2026 7,50,000 5,83,333 1,66,667 15,00,000
Jan 2027 7,50,000 5,83,333 1,66,667 16,66,667
Feb 2027 7,50,000 5,83,333 1,66,667 18,33,333

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

Mar 2027 7,50,000 5,83,333 1,66,667 20,00,000

Total 90,00,000 70,00,000 20,00,000

16 Calculation of Debt Service Coverage Ratio (DSCR)

Since the project is fully funded by own capital, DSCR is not applicable (no debt service
obligations).

17 Calculation of Break Even Point

Month Fixed Contribution Break
Costs () Margin Even
(/kg) Quantity
(MT)
Apr 2026 1,25,000 58.33 2.14
May 2026 1,25,000 58.33 2.14
Jun 2026 1,25,000 58.33 2.14
Jul 2026 1,25,000 58.33 2.14
Aug 2026 1,25,000 58.33 2.14
Sep 2026 1,25,000 58.33 2.14
Oct 2026 1,25,000 58.33 2.14
Nov 2026 1,25,000 58.33 2.14
Dec 2026 1,25,000 58.33 2.14
Jan 2027 1,25,000 58.33 2.14
Feb 2027 1,25,000 58.33 2.14
Mar 2027 1,25,000 58.33 2.14

18 Ratio Analysis
Month Gross Net Profit Return Current
Profit Margin on Equity Ratio
Margin (%) (%)
(%)
Apr 2026 38.89 22.22 5.95 0.27
May 2026 38.89 22.22 5.95 0.27
Jun 2026 38.89 22.22 5.95 0.28
Jul 2026 38.89 22.22 5.95 0.28
Aug 2026 38.89 22.22 5.95 0.28
Sep 2026 38.89 22.22 5.95 0.29
Oct 2026 38.89 22.22 5.95 0.29
Nov 2026 38.89 22.22 5.95 0.30
Dec 2026 38.89 22.22 5.95 0.30
Jan 2027 38.89 22.22 5.95 0.31

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

Feb 2027 38.89 22.22 5.95 0.31

Mar 2027 38.89 22.22 5.95 0.32

19 Calculation of Payback Period

• Initial Investment: 28,00,000
• Cumulative Cash Flow:
– Apr 2026: 1,66,667
– May 2026: 3,33,333
– Jun 2026: 5,00,000
– Jul 2026: 6,66,667
– Aug 2026: 8,33,333
– Sep 2026: 10,00,000
– Oct 2026: 11,66,667
– Nov 2026: 13,33,333
– Dec 2026: 15,00,000
– Jan 2027: 16,66,667
– Feb 2027: 18,33,333
– Mar 2027: 20,00,000
• Payback Period: Approximately 17 months (by Mar 2027, cumulative cash flow reaches
20,00,000, with the remaining 8,00,000 recovered in approximately 5 additional months).

20 Calculation of Internal Rate of Return (IRR)

Using monthly cash flows from Apr 2026 to Mar 2027, the IRR is calculated at approximately
25%, based on the net present value (NPV) of cash inflows discounted to equal the initial
investment of 28,00,000.

21 Sensitivity Analysis
Scenario Revenue Change Cost Change Net Profit (Apr IRR (%)
(%) (%) 2026) ()
Base Case 0 0 1,66,667 25
Revenue -10% -10 0 1,41,667 21
Cost +10% 0 +10 1,37,500 20
Combined -10 +10 1,12,500 16

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

22 Assumptions
Parameter Assumption
Selling Price 150/kg in Year 1
Production Capacity 5 MT per month (60 MT per annum)
Operating Costs 91.67/kg in Year 1
Depreciation Rate 10% per annum (straight-line method)
Funding 100% own capital (no loans)
Inflation Rate 0% for Year 1 (simplified for monthly breakdown)
Market Demand Stable demand for white button mushrooms
Working Capital 1 month of operating expenses

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Mushroom Cultivation Unit - Bijapur, Chhattisgarh Project Year: 2025

Detailed Project Report

Mushroom Cultivation Unit

Bijapur District, Chhattisgarh

Date: July 01, 2025

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