Bank-ready candle manufacturing project report — project cost ₹1–15 Lakh, CMA data, DSCR ≥ 1.50 and 5-year projections for PMEGP, MUDRA Kishor, PM Vishwakarma.
No credit card • Free preview • Ready in 60 seconds
Starting a candle manufacturing unit in India is a viable small-scale business with low capital requirements and steady demand from households, religious institutions, hotels, and events. NIC code 32990 covers this activity. For 2025, a typical project cost ranges from ₹1 lakh to ₹15 lakh, depending on scale and automation. A bank-ready project report is essential for loan approval under schemes like PMEGP (subsidy up to 35%), MUDRA Kishor (loans up to ₹5 lakh), or PM Vishwakarma (collateral-free credit up to ₹1 lakh). The report must include CMA data (current ratio, debt-equity ratio), DSCR (minimum 1.25), and 5-year financial projections (profit & loss, cash flow, balance sheet). It also details raw materials (paraffin wax, stearic acid, wicks, dyes), machinery (melting tanks, moulds, cooling racks), and working capital needs. This page provides a practical guide to preparing a project report that meets bank norms and helps you secure funding quickly.
Any Indian entrepreneur above 18 years can apply. For PMEGP, the project cost limit is ₹25 lakh (manufacturing) with subsidy of 15-35% (general category: 15%, special categories: 25%, hill/NE: 35%). MUDRA Kishor offers loans up to ₹5 lakh under the 'Shishu' (₹50,000) and 'Kishor' (₹5 lakh) categories, no collateral required. PM Vishwakarma, launched in 2023, provides collateral-free loans up to ₹1 lakh at 5% interest, with a 10% down payment. Banks also consider CGTMSE coverage for loans up to ₹2 crore without collateral. Key eligibility: the applicant should have passed at least 8th standard for PMEGP, and for MUDRA, no formal education is mandatory. A project report must demonstrate technical feasibility and financial viability.
For a 500 kg/month candle unit, typical costs: Machinery & Equipment (₹1.5-2 lakh) — wax melting tank (₹30,000), moulds & dies (₹40,000), cooling racks (₹15,000), wick cutting machine (₹10,000), weighing scale (₹5,000), hand tools (₹5,000). Raw material stock (₹50,000) — paraffin wax (₹80/kg), stearic acid (₹60/kg), wicks (₹200/kg), dyes (₹500/kg). Working capital (₹30,000) for electricity, packaging, labor. Total project cost ~₹2.5-3 lakh. Financing: Own contribution 10-20% (PM Vishwakarma: 10% down payment; PMEGP: 10-25% margin), bank loan covers the rest. MUDRA Kishor loan up to ₹5 lakh covers 100% if project cost is within limit. Repayment period: 3-5 years. DSCR should be above 1.25, current ratio above 1.5.
1. Identity proof: Aadhaar, PAN, Voter ID. 2. Address proof: utility bill, rent agreement. 3. Business plan/project report (with CMA, DSCR, 5-year projections). 4. Quotations for machinery & raw materials. 5. Proof of education (for PMEGP: 8th pass certificate). 6. Caste/category certificate (if applicable for subsidy). 7. Land/building proof (ownership or lease). 8. Two passport-size photos. 9. Bank statement (last 6 months). 10. GST registration (optional but recommended). For PM Vishwakarma, the application is via Common Service Centres (CSC) and requires a simple form plus Aadhaar. Banks may ask for a detailed project report from a CA or consultant; ensure it includes assumptions, break-even analysis, and repayment schedule.
Every report is formatted to the exact standards required by Indian banks and government departments.
Create your account in 30 seconds — no credit card needed.
Enter applicant details, select the scheme, set your loan amount.
Our AI drafts the full report with financials, projections, and CMA data in under 60 seconds.
Export PDF on the free plan (branded). Upgrade for clean exports plus Word (.docx) + Excel (.xlsx). Submit to bank or DIC office.
Accurate candle manufacturing economics: NIC 32990, ₹1–15 Lakh project cost, machinery & raw material.
Scheme-ready for PMEGP, MUDRA Kishor, PM Vishwakarma.
Bankable financials (CMA, DSCR ≥ 1.50, P&L, Balance Sheet, Cash Flow).
Localise to any city, or pick a loan amount for exact financials.
Word + Excel exports; first report free, clean export ₹499.
A typical candle manufacturing project costs ₹1–15 Lakh depending on scale, location and machinery. The report breaks down land/building, machinery, working capital and pre-operative costs.
PMEGP, MUDRA Kishor, PM Vishwakarma are commonly used. Banks fund ~75–90% of project cost as term loan + working capital.
Register free, pick the scheme & loan amount, and the AI drafts the full bank-ready report (CMA data, DSCR, 5-year projections) in under 60 seconds. First report free; clean exports ₹499.
You can start with as low as ₹1 lakh for a very small unit (100 kg/month) using manual moulds and basic melting equipment. However, a bank loan typically requires a project cost above ₹50,000. For MUDRA Kishor, the minimum loan is ₹50,000; for PMEGP, the minimum project cost is ₹1 lakh. Most banks prefer projects above ₹2 lakh to justify processing costs.
Yes, under MUDRA (up to ₹10 lakh), PM Vishwakarma (up to ₹1 lakh), and CGTMSE (up to ₹2 crore) loans are collateral-free. PMEGP loans above ₹10 lakh may require collateral. For loans up to ₹5 lakh, no collateral is needed if you opt for MUDRA or PM Vishwakarma. CGTMSE covers 85% of the loan amount for loans up to ₹5 lakh, reducing bank risk.
PMEGP subsidy is 15% of project cost for general category (max ₹3.75 lakh for ₹25 lakh project), 25% for SC/ST/OBC/women/ex-servicemen (max ₹6.25 lakh), and 35% for hill/NE states (max ₹8.75 lakh). The subsidy is released after the unit is operational. For a ₹3 lakh project, a general category entrepreneur gets ₹45,000 subsidy.
Banks check Debt Service Coverage Ratio (DSCR) — minimum 1.25, meaning net profit + depreciation + interest should be at least 1.25 times the annual loan repayment. Current Ratio should be above 1.5 (current assets/current liabilities). Debt-Equity Ratio should be 3:1 or lower. Break-even point should be within 2-3 years. The project report must show these ratios in the CMA format.