Feasibility model · Free, no signup
Manufacturing plant feasibility
Preparing a project report for a factory loan? Pick a plant like yours, see what it costs to build, how much cash stock and unpaid invoices tie up, when it pays back, and whether it can carry the loan. Then change any number.
- Starts from typical Indian numbers. Change any of them.
- Download a spreadsheet, print it, or share a link
- A planning check on your numbers, not a bank’s decision
Total investmentEverything it takes to build: land with stamp duty, building, machinery, a buffer for surprises, and loan interest during construction.
₹37.8 Cr
Project return (IRR)The yearly return of the plant itself, before any loan. Compare it with the return you need (your hurdle rate).
12.6%
Return on your moneyEquity IRR: the yearly return on the money you put in yourself, after loan repayments. Borrowing makes it swing more, both ways.
19.7%
Pick a starting point or set the seven key numbers, read the result, then fine-tune anything below. Download, print or share a link to this exact model.
Built to make 10,00,000 units a year, this plant costs ₹37.8 Cr to build, keeps a 18% operating margin, pays back in 7.2 years and returns 19.7% a year on your own money. The detail is below.
A planning check on the numbers entered, not a lender’s decision. Banks run their own appraisal.
Your project
Start from a plant like yours, then set the seven numbers that drive everything: how much you make, what it sells for, what raw material costs, how busy the plant runs, how much you borrow, what power costs and any subsidy. Everything else (land, building, machinery, working capital, tax) starts at a typical Indian figure you can change further down.
Pick a starting point. Each one is an illustration built from typical Indian numbers, not a recommendation and not ClarWorks data. Change anything after.
What it costs and what it returns
These update as soon as you change any number. The “usual” ranges are rough planning ranges from public sources, not ClarWorks data and not a promise.
Setting up this 10,00,000-unit-a-year plant costs ₹37.8 Cr all in (₹378 per unit of yearly capacity): land and stamp duty, building, machinery, a buffer for surprises and loan interest during construction. Once running, it also ties up ₹10.9 Cr in raw material, stock and unpaid invoices (working capital); a bank cash-credit limit usually funds 75% of that and you fund the rest. Once it is busy (around year 3) it bills ₹52.9 Cr a year and keeps ₹9.39 Cr as operating profit, a 18% margin (within the usual 12–18% for an Indian plant). It pays back in 7.2 yr (usual range 5–8 years) and returns 12.6% a year on the whole project and 19.7% a year on your own money over 12 years. That is ₹1.6 Cr ahead of the 12% a year you set as your minimum return.
Bottom line: Works at these numbers
Total investmentEverything it takes to build: land with stamp duty, building, machinery, a buffer for surprises and loan interest during construction.
₹37.8 Cr
₹378 per unit of yearly capacity
Yearly revenue, once busyWhat the plant bills in a year once output settles at its steady level. This is the top line, not take-home.
₹52.9 Cr
at 80% utilisation
Operating profit a yearEBITDA: profit from running the plant, before loan interest, depreciation and tax, in a settled year. Interest on the working-capital loan is already taken off as a running cost.
₹9.39 Cr
18% margin
Inside the usual 12–18%
PaybackYears of operation until the cash earned covers what went in.
7.2 yr
Inside the usual 5–8 years
Project return (IRR)The yearly return of the plant itself, before any loan. Compare it with the minimum return you want (your hurdle rate).
12.6%
Return on your moneyEquity IRR: the yearly return on the money you put in yourself, after loan repayments. Borrowing makes it swing more, both ways.
19.7%
Value above your hurdle (NPV)Net present value: all future cash in today’s money, minus the investment, at your minimum return. Above zero means the project beats it.
₹1.6 Cr
Your money at peakThe most of your own money in the project at any point, including your share of the working capital: the cheque you must be able to write.
₹16.8 Cr
Lowest loan cover (DSCR)Debt service coverage ratio in the worst year: cash available ÷ loan repayment. Banks usually look for at least 1.3× before they sanction; below 1.0 the plant can’t pay its EMIs from its own cash.
1.43×
Meets the 1.3× banks look for
Money back per ₹1 you put inEquity multiple: total cash returned to you for every rupee of your own money, over the years modelled.
4.60×
Sales per ₹1 of project costAsset turnover: revenue at full capacity ÷ total project cost. It is one of the first checks a bank appraiser runs on a project report; most Indian plants sit between 1.2× and 2×.
1.59×
Inside the usual 1.2–2.0×
Working capitalCash tied up in raw material, finished stock and unpaid customer invoices once output is steady. The bank’s cash-credit (CC) limit funds most of it; you fund the rest (your margin).
₹10.9 Cr
bank ₹8.16 Cr · you ₹2.72 Cr
Break-even utilisationHow busy the plant must be in a settled year just to earn your minimum return. The gap between this and your steady-state utilisation is your cushion.
78%
Cash position over timeCash in minus cash out, added up year by year. Where the line crosses zero is your payback point.
How busy the plant getsCapacity utilisation each year: how much of its full capacity the plant uses, from first production to a steady level.
Fine-tune the assumptions
Each section below opens to show the detail. Change any number and the result above updates straight away.
Output and ramp-up
10,00,000 units a year · ₹600 a unit · utilisation 50% rising to 80% over 3 years. Open to change capacity, prices and the ramp-up.
Set-up cost (CapEx)
₹37.8 Cr in total, including loan interest during construction · ₹378 per unit of yearly capacity. Open to change land, building, machinery and each cost line.
Running costs (OpEx) and working capital
₹43.5 Cr a year once busy · power ₹25.5 a unit · working-capital interest ₹85.6 L a year. Open to change labour, power, maintenance and how long cash is tied up.
Loan, tax and the year-by-year P&L
60% loan at 10% over 8 years · lowest loan cover 1.43× · project return 12.6%, return on your money 19.7%. Open for the loan terms, tax, the profit and loss for every year, and a phased build.
Output, energy and carbon
2,400 MWh of power and 1,704 tonnes of CO₂ a year once busy. Open for output, energy and carbon detail.
Charts
Where the money goes, when it pays back, revenue against running costs, profit over time, how busy the plant gets, and loan cover.
Stress test
What breaks the case first? Move one number (price, raw material, utilisation and more), see which matters most, change two at once, or work back from the return you want.
Compare scenarios
Save the numbers you have now as a scenario, change them, save again, and compare side by side. Saved scenarios stay in this browser tab only.
Advisory · Project report and bank finance
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