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Manufacturing Plant Feasibility

Pick a typical Indian plant — food, auto components or garments — read the verdict against Indian benchmarks (EBITDA, DSCR, IRR, payback), then fine-tune CapEx, working capital, power cost, subsidies and the full pro-forma.

Live model

Total CapExFull build cost incl. stamp duty, contingency and construction-period interest.

₹37.8 Cr

Project IRRThe plant's own annual return, before any loan — compare with your hurdle rate.

12.6%

Equity IRRAnnual return on your own money after loan repayments. Borrowing amplifies this.

19.7%

Pick a preset or set the seven decisions, read the verdict — then fine-tune any assumption below. Export or share a live link to this exact model.

Bottom line: Viable at these assumptionsHow this is calculated →

A 1.0M unit/yr plant at ₹37.8 Cr all-in runs a 18% EBITDA margin and pays back in 7.2 yr at 19.7% equity IRR. Full breakdown below.

Your project

Start from a typical Indian plant, then adjust the seven decisions that drive the whole model: how much you make, what it sells for, what materials cost, how hard the plant runs, how it's funded, what power costs and what your state chips in. Everything else — land, building, machinery, working capital, tax — has sensible Indian-market defaults you can fine-tune below.

What it costs & what it returns

Live results — every number updates instantly as you change anything, here or in the fine-tune sections below.

Setting up this 10,00,000 unit/yr plant costs ₹37.8 Cr all-in (₹378 per unit of capacity), plus ₹10.9 Cr tied up in stock and receivables once running — a bank cash-credit line funds 75% of that, your margin the rest. Once ramped up (around year 3) it bills ₹52.9 Cr a year, keeping ₹9.39 Cr as EBITDA (18% — within the typical 1218% for Indian manufacturing). The investment pays back in 7.2 yr and returns 12.6% on the project / 19.7% on equity over 12 years — creating ₹1.6 Cr of value at your 12% hurdle rate.

Bottom line: Viable at these assumptions

Total investmentEverything it takes to build: land with stamp duty, building, machinery, contingency and interest paid during construction.

₹37.8 Cr

₹378 / unit capacity

Revenue / yr (steady)Annual billing once the plant settles at its steady utilization.

₹52.9 Cr

at 80% utilization

EBITDA / yrOperating profit before loan interest, depreciation and tax. Working-capital interest is already deducted as a running cost.

₹9.39 Cr

18% margin

Within typical 12–18%

PaybackYears of operation until the cash earned covers the investment.

7.2 yr

Within typical 5–8 yr

Project IRRThe plant's own annual return, before any loan — compare it with your hurdle rate.

12.6%

Equity IRRAnnual return on your own money, after loan repayments. Borrowing amplifies this — both ways.

19.7%

NPVToday's value of all future cash minus the investment, at your hurdle rate. Positive = the project creates value.

₹1.6 Cr

Peak equity neededThe most of your own cash in the project at any point, including your working-capital margin — the cheque you must be able to write.

₹16.8 Cr

Min DSCRWorst-year cash cover on loan payments — yearly cash earned ÷ yearly loan payment. Banks want at least 1.3× before sanctioning.

1.43×

clears lender norm ≥1.3×

Equity multipleTotal cash returned to you per rupee of equity invested over the whole horizon.

4.60×

Asset turnoverRevenue at full capacity per rupee of project cost. The first sanity check a DPR appraiser runs — most Indian plants sit between 1.2× and 2×.

1.59×

Within typical 1.2–2.0×

Working capitalCash tied up in stock and unpaid invoices once steady. The bank cash-credit limit funds most of it; you fund the margin.

₹10.9 Cr

bank CC ₹8.16 Cr · your ₹2.72 Cr

Break-even utilizationRun the plant below this and the project destroys value. The gap between this and your steady utilization is your cushion.

78%

Cumulative cash flow — paybackCash in minus cash out, added up year by year. The curve crossing zero is your payback point.

Utilization ramp-upHow hard the plant runs each year, from first production to steady state.

Fine-tune

Every assumption below is editable — the verdict updates live.

Output & ramp-up

10,00,000 units/yr · ₹600/unit · ramps 50→80% over 3 yrs — open to edit capacity, pricing and the ramp curve.

Build cost (CapEx)

₹37.8 Cr total incl. IDC · ₹378/unit capacity — open to edit land, building, machinery and every cost line.

Running cost (OpEx)

₹43.5 Cr/yr at steady state · power ₹25.5/unit · WC interest ₹85.6 L/yr — open to edit labour, power, maintenance and the working-capital cycle.

Revenue & financing

60% debt @ 10% over 8 yrs · min DSCR 1.43× · IRR 12.6% project / 19.7% equity — open for the loan terms, tax, the full per-year P&L and a phased build.

Energy & ESG

2,400 MWh/yr · 1,704 t CO₂/yr at steady state — open for throughput, energy and carbon detail.

Charts

Cost mix, payback curve, revenue vs cost, earnings trend, utilization ramp and loan coverage — the full visual read.

Stress test

What breaks the case first — move one driver, rank all drivers by impact, cross two, or solve back from a target return.

Scenarios

Snapshot the current inputs as a named scenario (Base case / Optimistic / Pessimistic …) and compare side by side. Snapshots live in this browser tab only.

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Project inquiry

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Manufacturing model summary

Annual capacity10,00,000 units/yr
Price / RM cost₹600/unit · ₹350/unit RM
Total CapEx (incl. IDC)₹37.8 Cr
Working capital (steady)₹10.9 Cr · 75 days
Steady revenue/yr · EBITDA margin₹52.9 Cr · 18%
Payback7.2 yr
Project / Equity IRR12.6% · 19.7%
Min DSCR · Equity multiple1.43× · 4.60×