Mushroom industry in India is developing fast especially cultivation of white button mushrooms and processed mushrooms. World production of mushrooms is 55 million MT 2006-07 but India contributes only 55,000 MT and stands nowhere in the world mushroom map. Punjab topped all other state in mushroom production. Mushroom cultivation has spread to almost all parts of the country. Production of mushroom in Maharashtra state is also increasing very fast. This crop required less space and water but the productivity per unit area is more. Generally in about 45 of mushrooms produced are consumed in the fresh form. The rest of the 55 is processed with 5 in the dehydrated form and 50 in canned form. This is because their self life in the fresh form is very short. Hence mushrooms are traded in the world market mostly in the processed form. Keeping in view the increasing demand of fresh white button mushroom as well as processed mushroom due to globalization and open Indian economy, a large scale ownership based mushroom production and processing unit viz, “Eco Valley Farms & Foods Ltd, Pune.” was selected for the study. The analyzed data on cost and returns from fresh mushroom production, marketing cost, margin and price spread, profitability of processing unit for the year 2006-07 have been presented. The main objectives of the studies are to estimate per unit cost of production, to analyze the marketing cost, margins and price spread and work out the profitability of the unit year.