What is a banana and its by-products project report?
A banana and its by-products project report is a detailed project report (DPR) for a unit that turns fresh bananas into shelf-stable products. Typical lines are green banana flour, ripe banana powder and banana figs. The report sets out the process, machinery, fruit yield, project cost, means of finance, five-year projections, DSCR and break-even that a lender needs.
Entrepreneurs in banana-growing districts use it to apply for a term loan, PMFME or PMEGP support; banks use it to check whether drying margins can repay the loan.
Also known as: banana processing project report, banana products DPR, banana powder project report, banana flour business plan.
What a bank checks in a banana processing project
Credit officers test a banana by-products report on a few ratios that show whether drying margins can carry the loan. These are the values in our sample report and why each one matters.
You buy fruit by fresh weight and sell it dry, so every point of yield loss shows up here. Banks compare it with mandi prices in your district.
Banana flour and powder pick up moisture from the air, so they need laminated pouches. That makes packing a bigger cost than in most food units.
Bananas arrive all year in most belts, but price and quality swing. The sample keeps room for gluts, poor lots and dryer maintenance.
The debt service coverage ratio is cash available for repayment divided by the instalments due. Lenders look at the weakest year, not only the average.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, fruit source and buyers.
Banana by-products manufacturing plant cost in India
Cost depends mostly on dryer capacity and on whether you add a drum or spray dryer for ripe banana powder. The middle tier is the unit in our sample report; the other two are indicative ranges.
Small unit
₹25–50 lakh
About 150–300 kg of dry product per day, one tray dryer
- Machinery₹12–25 lakh
- Shed and fit-out (or rent)₹5–12 lakh
- Working capital margin₹3–6 lakh
Can fit PMEGP or PMFME, subject to limits
Mid-size unit
₹121 lakh
640 kg per day, 1,72,800 kg per year
- Plant and machinery₹59.62 lakh
- Building and civil works₹29.94 lakh
- Working capital margin₹7.16 lakh
Term loan ₹91 lakh (75%), promoter ₹30 lakh
Large plant
₹2.5–5 crore
About 2–4 MT per day, with a drum or spray dryer
- Machinery₹1.2–2.5 crore
- Land and building₹0.6–1.2 crore
- Working capital margin₹20–40 lakh
MSME term loan with collateral or guarantee cover
Small and large ranges are indicative. Costs vary with dryer type, fuel, location and whether land is owned.
Banana by-products manufacturing process
Green banana flour, ripe banana powder and banana figs share one line up to the dryer. Only fruit maturity, pre-treatment and final moisture change. The conditions below come from Kerala Agricultural University and ICAR-NRCB work, not from the sample.
- Buying and grading fruit
Green bananas for flour are taken at about three-quarter maturity and processed within 24 hours. Fully ripe fruit goes to powder and figs.
- Washing and peeling
Banana hands (cut clusters) are washed in a bubble washer to remove latex and dirt, then peeled by hand on stainless steel tables.
- Slicing and pre-treatment
Slices are dipped in potassium metabisulphite and citric acid to hold colour. Slices for soft figs can be soaked in 67–70 °Brix sugar syrup first, a step called osmotic dehydration.
- Drying
Raw banana slices start near 71% moisture; in ICAR-NRCB trials they reached 5–6% in about 150 minutes at 65°C. Figs are dried only to 8–18% moisture so they stay soft.
- Milling and sifting
Dry green banana chips are ground in a pulveriser and passed through a vibro sifter; oversize goes back to the mill.
- Cooling and packing
Product is cooled and packed in moisture-proof pouches. Heating dried products to 80°C for one hour is a published way to control insects before storage.
Raw materials and fruit yield
Fresh bananas make up 88% of raw material cost in our sample: 50% green fruit for flour and 38% ripe fruit for powder and figs. Yield decides the margin. Published figures put banana figs at 12–17% of fresh fruit weight, so a 640 kg per day unit handles roughly 4–5 tonnes of fruit a day at full capacity (indicative).
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Raw green bananas | 50% | 57.84 |
| Ripe bananas | 38% | 43.95 |
| Sugar for osmotic dipping | 7% | 8.10 |
| Potassium metabisulphite and citric acid | 5% | 5.78 |
| Total | 100% | 115.67 |
Packing material is costed separately in the sample, at 11.5% of sales.
Machinery for banana flour, powder and figs
The hot air tray dryer is the heart of the unit and the largest single item in our sample, at ₹17.89 lakh or 30% of machinery cost. A biomass hot air generator keeps fuel cost low where agro-waste is cheap.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Bubble washer and sorting conveyor | Removes latex and dirt, sorts by maturity | 4.77 |
| Banana slicing machine | Cuts slices of even thickness for even drying | 5.96 |
| SS dipping and blanching tanks | Anti-browning dip and sugar syrup soak | 3.58 |
| Hot air tray dryer | Dries slices to target moisture | 17.89 |
| Biomass hot air generator | Supplies hot air to the dryer | 5.96 |
| Pulveriser | Grinds dry chips into flour or powder | 5.96 |
| Vibro sifter | Grades flour to an even mesh | 3.58 |
| Pouch filling and sealing machine | Weighs and seals moisture-proof packs | 7.15 |
| SS peeling tables, trays and trolleys | Peeling, loading and moving dryer trays | 4.77 |
| Total plant and machinery | 59.62 | |
Costs are the sample report's estimates for a 640 kg per day line. Get current quotations before you finalise.
Who buys banana flour, powder and figs
India grew 35.36 million tonnes of bananas, about 26% of world output, according to an APEDA release of February 2024. Andhra Pradesh is the largest producer, and five states grow around two-thirds of the crop. Most fruit is sold fresh, so a processor's edge is buying surplus and off-grade lots during gluts.
- Infant food and health food manufacturers
- Gluten-free bakery, pasta and noodle brands
- Ice cream and confectionery makers
- Retail and online grocery sellers of dried fruit
- Exporters of dehydrated foods
Where a new unit wins: location. Banana figs and flour weigh a small fraction of the fresh fruit. A unit inside a banana belt saves freight on the heavy input and ships only the light product.
Licences and approvals for a banana processing unit
| Food safety | FSSAI state licence for a unit processing more than 100 kg and up to 2 MT a day; registration below 100 kg a day; central licence above 2 MT a day or for a 100% export unit |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; food and fruit and vegetable processing is listed in the Orange category on the Odisha board's list, so confirm your state's category |
| GST | 5% on pre-packaged and labelled flour and powder of fruit (heading 1106), under the rate notification of 17 September 2025; confirm the heading for figs with your tax adviser |
| Packaged goods | Registration as a manufacturer or packer of packaged commodities with the state Legal Metrology department |
| Exports | Importer Exporter Code from DGFT, then registration (RCMC) with APEDA |
| Business registration | Udyam (MSME) registration and GST registration |
Loans and subsidies for a banana processing unit
PMFME
35% of project cost, up to ₹10 lakhCredit-linked capital subsidy for micro food processing units, with at least 10% from the promoter. It was approved for 2020-21 to 2025-26, so check that it is open.
PMEGP
Manufacturing projects up to ₹50 lakhMargin-money subsidy of 15–35% by category and area, with 5–10% own contribution. Suits a small flour or figs unit.
MSME term loan
Units above scheme limitsOur ₹121 lakh sample is funded 75:25, with a separate cash credit limit of ₹21 lakh for fruit stock and debtors.
Scheme limits and dates change. Confirm current terms with the bank or the scheme portal before applying.
Mistakes that weaken a banana and its by-products project report
- Using one fixed yield for every product
Figs, flour and spray-dried powder each recover a different share of the fruit. A report that assumes the best yield overstates sales.
- Buying fruit at the wrong maturity
Over-ripe fruit gives sticky, sweet flour, and under-ripe fruit gives hard, astringent figs. The report should show how fruit is graded on arrival.
- Packing before the moisture is right
Flour packed wet or warm cakes and moulds in storage. Budget for a moisture meter, cooling space and dry storage.
- Costing plain poly bags
Dried banana products need barrier pouches. In our sample packing is 11.5% of sales; leaving it low makes profit look better than it is.
How NPCS helps you set up a banana processing unit
- Product mix and capacityDecide the split between flour, powder and figs to suit your fruit supply and buyers.
- Dryer and machinery choiceCompare tray, drum and spray drying and get supplier quotations.
- Bank-ready project reportProjections, DSCR and working capital in the format for PMFME, PMEGP or a term loan.
- Licences and layoutA hygienic plant layout and the FSSAI and pollution approvals list for your state.
NPCS's client list includes 10 assignments for banana and its by-products and 67 in fruit and vegetable processing, for entrepreneurs, banks and companies in India and abroad.
What's inside the banana and its by-products sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Banana and Its By-products project report: frequently asked questions
What is the cost of a banana processing plant in India?
A small banana flour or figs unit with one tray dryer needs roughly ₹25–50 lakh. A 2–4 MT per day plant with a drum or spray dryer needs about ₹2.5–5 crore. Our sample report models a 640 kg per day unit at ₹121 lakh, including ₹59.62 lakh of machinery. These are indicative figures; your own report works out the cost for your capacity and site.
Which by-products can be made from banana?
From the fruit, the main dry products are green banana flour, ripe banana powder and banana figs (dried ripe bananas). Wet lines make banana puree, juice and jam, and fried lines make chips. Our sample report covers a drying unit making flour, powder and figs, because all three share one washing, slicing and tray drying line.
How many kg of bananas are needed for 1 kg of banana powder?
It depends on the product and the fruit. Published figures put banana figs at 12–17% of fresh fruit weight and spray-dried ripe banana powder at 8–11%. So one kilogram of dry product needs roughly 6–12 kg of fresh bananas. Variety, maturity and peel losses move this, so a good project report tests a lower yield as well.
Is the banana powder business profitable?
In our illustrative sample, a 640 kg per day unit earns a 22% return on investment in Year 3. It breaks even at about 41% of capacity and pays back in about 3.5 years. Real profit depends on the fruit price you lock in, your yield, the share of higher-priced figs and powder, and packing cost.
Which licences are needed to make banana flour?
You need an FSSAI licence. A state licence covers a unit processing more than 100 kg and up to 2 MT a day. Above 2 MT a day, or for a 100% export unit, you need a central licence. You also need pollution board consent, GST and Udyam registration, and packer registration with the state Legal Metrology department for packed goods.
Can I get PMFME or PMEGP subsidy for a banana processing unit?
Possibly, if the project fits the scheme. PMFME has offered micro food processing units a 35% credit-linked subsidy up to ₹10 lakh, and PMEGP covers manufacturing projects up to ₹50 lakh with a 15–35% margin-money subsidy. PMFME was approved for 2020-21 to 2025-26, so check with your bank whether it is open before you apply.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- PMFME scheme noteMinistry of Food Processing Industries, via Press Information Bureau, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP) guideDistrict Industries Centre, Ganjam, Government of Odisha, checked Oct 2026
- Eligibility and applicability criteria for FSSAI registration and licenceFood Safety and Standards Authority of India, checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate)Central Board of Indirect Taxes and Customs, checked Oct 2026
- List of Orange category industriesState Pollution Control Board, Odisha, checked Oct 2026
- Registration of manufacturer, packer and importerDepartment of Legal Metrology, Government of Goa, checked Oct 2026
- RCMC registration procedureAgricultural and Processed Food Products Export Development Authority, checked Oct 2026
- Banana production and exports, press release of 18 February 2024Agricultural and Processed Food Products Export Development Authority, checked Oct 2026
- Banana processingCentre for E-Learning, Kerala Agricultural University, checked Oct 2026
- Thin layer drying kinetics of banana var. MonthanICAR-National Research Centre for Banana (Krishi repository), checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.