 | Modular Kitchen Manufacturing · 5-Year Business Plan
25/day Cabinet Production - 5,000 sq ft Factory
Complete project report · Investment · P&L · Balance Sheet · Bankability
| TIER 25
V3 · Apr 2026
|
₹0.78 Cr
Total Project Cost
| ₹4.86 Cr
Year 1 Revenue
| ₹0.50 Cr
Year 1 PAT
| ALL GREEN
Bankability (11 ratios)
|
1 · Factory Specification
Infrastructure overview
5,000 sq ft
Factory area required
| 20 people
Total manpower (single shift)
| 25 boards/day
Production capacity
|
405 sq ft/day
Output at 60% OEE
| 300 days/yr
Operating days
| 60% OEE
Overall equipment efficiency
|
2 · Capital Structure (GST-ITC Treatment)
Investment & funding breakdown
Machine Investment (ex-GST)
₹0.22 Cr
| Supporting Equipment (25%)
₹0.06 Cr
| Capex (rounded ₹5L)
₹0.30 Cr
|
Net Working Capital (60 days)
₹0.48 Cr
| Total Project Cost
₹0.78 Cr
| GST @ 18% (ITC Asset)
₹0.04 Cr
|
Self Funding / Equity (30%)
₹0.23 Cr
| Bank Term Loan (70%)
₹0.55 Cr
| Monthly EMI (36M @ 12%)
₹2.11 L
|
Cash Credit Facility
₹0.93 Cr @ 10%
| Bill Discounting Facility
₹0.24 Cr @ 8.5%
| Moratorium
6 months
|
GST treatment: 18% GST on machine (₹0.04 Cr) is paid by the promoter and sits on the balance sheet as Input Tax Credit (ITC) — a recoverable asset offset against output GST over the first 24 months. It is not included in the bank-loan base.
3 · 5-Year Profit & Loss
Revenue to PAT projection
INR Crores · 10% annual escalation · GP 40% · EBITDA 17% · 25% corporate tax
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | ₹4.86 Cr | ₹5.35 Cr | ₹5.88 Cr | ₹6.47 Cr | ₹7.12 Cr |
| Gross Profit (40%) | ₹1.94 Cr | ₹2.14 Cr | ₹2.35 Cr | ₹2.59 Cr | ₹2.85 Cr |
| Manufacturing Opex (15%) | ₹0.73 Cr | ₹0.80 Cr | ₹0.88 Cr | ₹0.97 Cr | ₹1.07 Cr |
| SGA - Selling, General & Admin (8%) | ₹0.39 Cr | ₹0.43 Cr | ₹0.47 Cr | ₹0.52 Cr | ₹0.57 Cr |
| EBITDA (17%) | ₹0.83 Cr | ₹0.91 Cr | ₹1.00 Cr | ₹1.10 Cr | ₹1.21 Cr |
| Depreciation (10yr SLM) | ₹0.03 Cr | ₹0.03 Cr | ₹0.03 Cr | ₹0.03 Cr | ₹0.03 Cr |
| Interest (TL + CC + BD) | ₹0.13 Cr | ₹0.11 Cr | ₹0.09 Cr | ₹0.07 Cr | ₹0.07 Cr |
| Profit Before Tax | ₹0.66 Cr | ₹0.76 Cr | ₹0.88 Cr | ₹1.00 Cr | ₹1.11 Cr |
| Tax @ 25% | ₹0.17 Cr | ₹0.19 Cr | ₹0.22 Cr | ₹0.25 Cr | ₹0.28 Cr |
| Profit After Tax | ₹0.50 Cr | ₹0.57 Cr | ₹0.66 Cr | ₹0.75 Cr | ₹0.83 Cr |
4 · 5-Year Balance Sheet
Assets & liabilities
INR Crores · GST ITC as recoverable asset · Term loan closes end of Year 3
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Fixed Assets (Net of Depreciation) | ₹0.27 Cr | ₹0.24 Cr | ₹0.21 Cr | ₹0.18 Cr | ₹0.15 Cr |
| GST Input Tax Credit (ITC) | ₹0.02 Cr | ₹0.00 Cr | ₹0.00 Cr | ₹0.00 Cr | ₹0.00 Cr |
| Inventory (52 days) | ₹0.42 Cr | ₹0.46 Cr | ₹0.50 Cr | ₹0.55 Cr | ₹0.61 Cr |
| Debtors (60 days) | ₹0.80 Cr | ₹0.88 Cr | ₹0.97 Cr | ₹1.06 Cr | ₹1.17 Cr |
| Cash & Retained Earnings | ₹0.64 Cr | ₹1.23 Cr | ₹1.91 Cr | ₹2.67 Cr | ₹3.52 Cr |
| Total Assets | ₹2.15 Cr | ₹2.81 Cr | ₹3.59 Cr | ₹4.47 Cr | ₹5.45 Cr |
| Equity + Reserves | ₹0.58 Cr | ₹0.98 Cr | ₹1.45 Cr | ₹1.97 Cr | ₹2.55 Cr |
| Term Loan Outstanding | ₹0.45 Cr | ₹0.24 Cr | ₹0.00 Cr | ₹0.00 Cr | ₹0.00 Cr |
| Working Capital Drawn (CC) | ₹0.56 Cr | ₹0.56 Cr | ₹0.56 Cr | ₹0.56 Cr | ₹0.56 Cr |
| Creditors (30 days) | ₹0.24 Cr | ₹0.26 Cr | ₹0.29 Cr | ₹0.32 Cr | ₹0.35 Cr |
5 · Bankability — 11-Ratio Framework
Lender scorecard
Benchmarked against Indian banking norms · MSME & mid-corporate lending
| Ratio | Value | Benchmark | Status |
|---|---|---|---|
| DSCR Debt Service Coverage
| 2.20x | ≥ 1.5x | PASS |
| Debt : Equity Leverage
| 2.33x | ≤ 3.0x | PASS |
| Interest Coverage EBIT / Interest (3y avg)
| 7.85x | ≥ 3.0x | PASS |
| Current Ratio Liquidity
| 1.76x | ≥ 1.25x | PASS |
| ROCE (Year 5) Return on Capital
| 151% | ≥ 15% | PASS |
| GP Margin Gross profitability
| 40% | ≥ 30% | PASS |
| PAT Margin (Y3) Net margin
| 11.2% | ≥ 5% | PASS |
| Inventory Turnover Efficiency
| 7.0x | ≥ 4x | PASS |
| Debtor Turnover Collection
| 6.1x | ≥ 6x | PASS |
| Cash Conversion Cycle Working capital days
| 82 days | ≤ 90 days | PASS |
| Cumulative PAT / Equity Payback
| 14.2x | ≥ 2x | PASS |
Bankability verdict
ALL GREEN - Fully Fundable
All 11 Lamba ratios pass benchmark in every year. Cumulative 5-yr PAT: ₹3.31 Cr
6 · Frequently Asked Questions
Common investor & buyer questions
What is the total investment for a 25 boards/day cabinet-making factory?
Total project cost is ₹0.78 Cr comprising capex of ₹0.30 Cr (machine + supporting equipment) plus ₹0.48 Cr of net working capital (60 days). GST of ₹0.04 Cr is paid separately and held as ITC asset.
|
What is the monthly EMI?
Monthly EMI is ₹2.11 L on a term loan of ₹0.55 Cr at 12% interest over 36 months with a 6-month moratorium.
|
What factory area and manpower are needed?
This tier requires 5,000 sq ft of factory space and 20 people to operate a single shift at 60% OEE.
|
Is this project bankable?
Yes. All 11 ratios in the Lamba bankability framework pass benchmark: DSCR 2.20x, Debt:Equity 2.33x, Interest Coverage 7.85x, Current Ratio 1.76x, ROCE Y5 151%. Meets standard Indian banking norms for MSME and mid-corporate lending.
|
When does the term loan get cleared?
The term loan of ₹0.55 Cr is fully repaid within 36 months (after a 6-month moratorium). The business is debt-free from Year 4 onwards.
|
| Assumptions: Value-add ₹400/sqft · GP 40% · EBITDA 17% · 10-yr SLM depreciation · CC 60% utilisation · BD 80% utilisation · 25% corporate tax · CCC 67 days · 10% annual escalation · 60% OEE · 300 operating days/year. Not a financing commitment. | caple.in |