Detailed Project Report (DPR): Button Mushroom Farming
Project Title: Shivpuri Button Mushroom Farm
Prepared For: Agri-business / Startup / Bank Loan Proposal
Date: June 2025
1. Executive Summary
- Project: Controlled-environment Button Mushroom Cultivation
- Location: Shivpuri, Madhya Pradesh
- Land Area: 1 Bigha (~0.62 acres)
- Annual Production: ~18,000-20,000 kg
- Investment: Rs.17.5 Lakhs (Fixed) + Rs.8.8 Lakhs/year (OPEX)
- Revenue Potential: Rs.23-28 Lakhs/year
- Net Profit (Year 2 onwards): Rs.15-18 Lakhs/year
- Break-even: ~13-15 months
- Subsidy/Loan: Eligible under NHB & PM-MUDRA schemes
2. Business Objectives
- To set up a profitable mushroom cultivation unit with scalable infrastructure.
- To provide fresh, chemical-free button mushrooms to local markets.
- To generate sustainable income and rural employment.
3. Promoter's Background
[Insert Promoter's Name]
- Educational background in agriculture/business preferred.
- Interest in sustainable farming practices and agri-entrepreneurship.
4. Project Location Analysis
- Shivpuri offers moderate climate, access to water, and good market access.
- Adequate power, road connectivity, and availability of labor.
5. Product Description
- Product: Button Mushroom (Agaricus bisporus)
- Variety: Commercial white button
- Packaging: 200g, 500g, or 1 kg trays
- Shelf Life: 5-7 days at 4°C
6. Cultivation Methodology
- Infrastructure: Controlled Shed, Humidifiers, Compost Area, Racks
- Total Cycle: ~65-70 days, 4 cycles/year
7. Financial Estimates
a) Capital Investment: Rs.17,50,000
b) Operating Costs: Rs.8,80,000/year
c) Revenue: Rs.23,40,000/year
d) Net Profit: Rs.14,60,000/year
8. Marketing Strategy
- Target: Hotels, Restaurants, Retailers
- Promotion: WhatsApp groups, local ads
9. SWOT Analysis
Strengths: High demand, good margins
Weaknesses: Requires climate control
Opportunities: Export, subsidy
Threats: Market fluctuation
10. Risk Mitigation
- Maintain hygiene, backups, diversified markets
11. Licensing
- FSSAI, Udyam, NHB Subsidy, Electricity Subsidy
12. Funding
- Own Capital: Rs.5-7 Lakhs
- Loan: Rs.10-12 Lakhs
- Subsidy: 35-50% NHB Mushroom Scheme
13. 5-Year Financial Projection
Year 1: Revenue Rs.23.4L, Loss Rs.2.9L (Capex)
Year 2: Profit Rs.15.57L
Year 3: Profit Rs.16.60L
Year 4: Profit Rs.17.60L
Year 5: Profit Rs.18.70L
Total Net Profit (5 Years): Rs.65.2 Lakhs
Conclusion
The project is financially viable with quick break-even and strong long-term potential.