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Industrial sector · India's industrial backbone

Debt advisory for Manufacturing.

Working capital for the operating cycle, term loans for capacity expansion, and project finance for greenfield manufacturing. We work with manufacturers across the Indian industrial belt — from auto components to engineering, from textiles to FMCG production.

₹100 Cr+ mandates PLI scheme aligned Pan-India industrial belts
WORKING CAPITAL TERM LOANS PROJECT FINANCE STRUCTURED DEBT ECB NCD INDUSTRIAL MANUFACTURING SECTOR

How does BIG LOANS work with manufacturing companies?

BIG LOANS arranges ₹100 crore-and-above debt mandates for Indian manufacturers across the entire industrial spectrum — from auto components to engineering, FMCG to textiles, electronics to specialty industrial. We structure working capital limits aligned to the operating cycle (debtor days, inventory cycle, packing credit for exporters), term loans for capacity expansion, and project finance for greenfield manufacturing with PLI scheme alignment where applicable. Manufacturing debt in India spans MIDC, GIDC, SIDCUL, MPIDC and similar industrial belts — each with different lender appetite and state-incentive layering.

Section 01 — Manufacturing debt landscape

India's broadest sector by capital appetite.

Manufacturing accounts for roughly 17% of India's GDP and the deepest concentration of large-ticket corporate debt mandates. The Indian manufacturing base spans dozens of sub-sectors — auto components, engineering, electronics, textiles, FMCG production, packaging, specialty industrial — each with its own working-capital cycle, capex profile, and lender appetite.

The PLI (Production-Linked Incentive) schemes have substantially restructured manufacturing capex finance over the last 4 years. Lenders increasingly factor PLI cash-flow visibility into project DSCR, and several PSU banks have dedicated PLI-aligned lending desks. State industrial incentives (Maharashtra MIDC, Gujarat GIDC, UP UPSIDC) layer on top.

GDP share
~17%
PLI schemes
14 sectors
Industrial belts
MIDC, GIDC, SIDCUL
Lender appetite
Broad — all
Typical tenor
5 – 10 years
Section 02 — Common funding situations

When manufacturing businesses approach us.

Five common situations where manufacturing companies approach BIG LOANS.

01

Capacity doubling

Adding a new line at an existing plant, doubling installed capacity. Term loan ₹100-1,000 Cr at 5-8 year tenor, sponsor equity 25-30%.

02

PLI scheme capex

Capex aligned to PLI scheme commitments (electronics, mobile, pharma APIs, white goods, auto components). DSCR factored to include PLI receipts.

03

Greenfield project finance

₹250 Cr+ greenfield plants on freehold or industrial-park leasehold land. Limited-recourse project-finance structure with TEV, sponsor equity, lender consortium.

04

Working capital consortium

₹200 Cr+ working capital needs that exceed single-bank appetite. Multi-banking moves to consortium with Common Loan Agreement and MPBF assessment.

05

Debt refinancing

Replacing higher-cost NBFC or mezz debt with cheaper bank term loans. 100-250 bps savings typical, plus longer tenor and looser covenants.

06

Trade finance + BG/LC

Bank guarantees and letters of credit for tender participation, supplier credit, performance guarantees. Non-fund-based limits up to several times fund-based.

Section 04 — Lender appetite

Broadest lender participation of any sector.

Almost every Indian lender participates in manufacturing debt. Appetite varies by sub-sector, ticket size, and tenor.

01

PSU banks (dominant)

SBI, BOB, PNB, Canara, Union, Indian Bank — strongest in traditional manufacturing (textiles, engineering, agri-processing) with deep industrial-belt relationships.

02

Private banks

HDFC, ICICI, Axis, Kotak — competitive for mid-to-large manufacturers, especially those with structured cash flow. Faster turnaround than PSUs.

03

Foreign banks

StanChart, HSBC, DBS, Citi — focus on export-oriented manufacturers (auto, IT-electronics, pharma APIs). Strong ECB and trade-finance product set.

04

NBFCs

Diversified NBFCs (Bajaj, Aditya Birla, Tata Capital) and specialist industrial NBFCs cover mid-market manufacturing where bank turnaround is slow.

05

AIF credit funds

Active for structured situations — mezz layer, growth capex, refinancing of distressed positions, specialty industrial sub-sectors.

06

Infrastructure NBFCs

REC, PFC, IIFCL — for manufacturing capex that has infrastructure characteristics (port-linked, energy-intensive, large industrial parks).

Section 05 — Our process

How manufacturing mandates close.

Same 5-stage process for any large-ticket corporate debt mandate, applied to manufacturing specifics.

01

Discovery & sector diagnostic

NDA, then a short call to understand the business model, key financial drivers, capital need. Sector-specific risk factors mapped early.

Week 1
02

Structuring & lender shortlist

Optimal facility mix, tenor, security. Lender shortlist tuned to sector appetite — banks for vanilla, NBFCs / AIFs for specialty structures.

Week 2 – 3
03

IM + lender outreach

Sector-grade Information Memorandum, financial model, market analysis. Pitched to shortlisted lenders in parallel.

Week 3 – 8
04

Competing term sheets & sanction

Multiple sanctions negotiated in parallel on pricing, covenants, security. Final lender(s) selected.

Week 8 – 12
05

Documentation & drawdown

Loan agreement, security creation, CPs satisfied, drawdown. Sector-specific compliances (RERA, FEMA, SEBI, etc.) handled along the way.

Week 12 – 16
Section 06 — FAQ

Manufacturing debt — FAQs.

Yes — lenders factor expected PLI receipts (when committed and timing-confirmed) into projected DSCR. SBI, Indian Bank and select private banks have dedicated PLI-aligned lending teams.
Manufacturing MPBF computation is the standard Method II / Method III under RBI Tandon norms — 75% of current assets minus other current liabilities. What varies is the operating cycle: textile mills have 90-120 day cycles, FMCG 30-60 days, auto suppliers 45-90 days. Lenders compute MPBF accordingly.
Usually no. For ₹250 Cr+ capex, project finance makes sense (limited recourse, SPV, TEV mandatory). For ₹100-250 Cr, a regular term loan from the parent balance sheet is structurally simpler, faster, and cheaper.
Yes — Maharashtra (MIDC), Gujarat (GIDC), TN, UP, Karnataka all have industrial incentive packages (capital subsidy, interest subvention, GST refund, electricity duty exemption). Lenders factor confirmed subsidies into cash flow projections.
For natural-hedge exporters with 60%+ FX revenue, ECB is typically 100-300 bps cheaper than rupee debt even after hedging cost. For 30-60% FX revenue, the gap narrows but ECB often still wins. Below 30% FX revenue, rupee debt is usually cheaper.
Manufacturing mandate?

Let's structure your manufacturing funding.

Share a one-page brief on your business and funding need. We respond within one working day with feasibility, structuring and lender shortlist tuned to your sector.

BIG LOANS BIG LOANS

Bigger Support, Brighter Future. India's specialist debt advisor for ₹100 Cr+ corporate funding mandates. Pan-India. Confidential. Senior banker-led.

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BIG LOANS is the trade name of [Legal Entity Pvt. Ltd.], CIN: [xxx], registered at [address]. BIG LOANS is a debt advisory and loan facilitation firm. It is not a bank, NBFC or any other lending institution registered with the Reserve Bank of India, does not accept public deposits, does not lend money on its own books, and does not issue any loan, credit facility or financial product directly. All loans, limits and credit facilities are sanctioned, disbursed and serviced solely by the relevant banks, NBFCs, AIFs and other regulated lenders, in accordance with their internal policies and applicable RBI / SEBI / IRDAI guidelines. BIG LOANS is empanelled as a Direct Selling Agent / Channel Partner with various banks and NBFCs and may earn sourcing fees from such lenders for successful disbursements. Any borrower fees are governed exclusively by a written engagement letter. Information on this website is general in nature and not financial, legal or tax advice. Please consult your CA / advocate before acting.

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