Investment Required for Industrial Steam Boiler Manufacturing Plant

Funding required for setting up two manufacturing units for production of boilers and related accessories, one in North India and one in West India.

We are looking for funds to set up 2 new manufacturing units in Gujarat and Uttrakhand in India for production of industrial boilers and related accessories. We have been in the business for the last 5 years in Gujarat and are now looking for expansion.

Our target market is manufacturing and production houses and industries like textile, pharma, food and agro based industries and chemical units. We are looking to target these industries in Gujarat, Rajasthan, Uttar Pradesh, Uttrakhand, HImachal Pradesh, Haryana, Punjab and Delhi.

Presently we are looking at a profit margin of 25 to 30% from our business and we will be expanding our business sales keeping the profit margins at the same level.

Setup of both plants will take 5-6 months
Sales and marketing team will cover the target area in the same time and start bringing in orders.
First year turnover is expected to be around INR 4 crores.
Will be achieving target of 10 crore turnover at the end of third year.

Total debt period will be around 8 years. The investor will be paid an interest on the loan amount. There will be a moratorium period of three years and after that the calculated loan will be paid in 5 years.

The company is in the same field from the past 18 years and has its experience in both manufacturing and service domains. The company has all the government licences required for the manufacturing and service of boilers and their systems. We also have an existing client base with whom the company has been working with over the last 18 years in the service domain and over the last 5 years in the manufacturing domain.

Our main advantage being that we are a company who has the infrastructure and experience to complete turnkey basis projects for the clients i.e. supplying a boiler, supplying its accessories like air pre-heaters, bag filters or dust collectors, chimneys etc. and complete installation of the system on site up to commissioning of the system.

With two working units in different parts of India our clients’ range will increase and our past credentials will help us attain more clients in new areas.

Today states like Gujarat, Rajasthan, Himachal Pradesh and Uttrakhand are seeing rapid industrial growth. Nearly 90% of the new industries coming up need boiler systems for their manufacturing processes. Furthermore, the government announced the development of new industrial zones in these areas, which will further increase the industrialization.

With our vast experience, workforce and infrastructure we will be able to get a share of this upcoming market. We will also be getting business from our existing clients as usual for the maintenance and spare parts of the boilers. And as we increase our list of clients we will increase our business for maintenance and spare parts as well.

New workshop in Gujarat - INR 1.5 Crore
New machinery for production - INR 1 Crore
New infrastructure for production and office - INR 80 Lacs
Working capital - INR 2 Crores

New workshop in North India - INR 1.5 Crore
New machinery for production - INR 1 Crore
New infrastructure for production and office - INR 80 Lacs
Working capital - INR 2 Crores

Salaries of employees for three years - INR 1.5 Crore

Total invesment required - INR 12 Crores
Rate of interest - 8 % annually
Payack period - 8 years (3 years moratorium period plus 5 years)

Payment installments can be submitted on monthly or quaterly basis.