Project Report: Cloud Kitchen (North Indian Thalis & Combos)

1. Cover Block

Item	Details
Report title	Detailed Project Report for a Cloud Kitchen, North Indian Thalis & Combos
Applicant	Rakesh Yadav (Proprietor)
Trade name	[Proposed business name]
Business	Delivery-only kitchen selling via Swiggy, Zomato and direct WhatsApp orders
Address	[Kitchen premises address], Vijay Nagar, Indore, Madhya Pradesh – [PIN]
Scheme	Pradhan Mantri Mudra Yojana (PMMY), Tarun category (₹5–10 lakh)
Loan applied for	₹9.35 lakh (composite term loan)
Total project cost	₹10.60 lakh
Own contribution	₹1.25 lakh (11.8%)
Date	[DD-MM-YYYY]

Note on loan amount: You asked for "about ₹9 lakh". A 5% contingency (₹0.35 lakh) has been added on fixed assets because no buffer was given. This makes the loan ₹9.35 lakh. If you want to keep the loan at ₹9.00 lakh, raise your own contribution to ₹1.60 lakh. The category stays Tarun either way.

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2. Project at a Glance

Particular	Value
Total project cost	₹10.60 lakh
Own contribution (margin)	₹1.25 lakh (11.8%)
Subsidy	Nil (Mudra has no subsidy)
Bank loan (Mudra Tarun)	₹9.35 lakh
Interest rate (assumed)	10.5% p.a. (confirm with bank)
Tenure	60 months: 6 months moratorium (interest paid) + 54 EMIs
EMI	≈ ₹21,800 per month
Collateral	None. Covered under Credit Guarantee Fund for Micro Units (CGFMU)
Employment generated	6 (proprietor + 5 staff)
Year 2 sales	₹55.30 lakh
Average DSCR (5 yrs)	2.19 (Year 1: 0.41, see Section 15)
Break-even (accounting)	Year 1: 107.1% of projected sales; Year 3: 81.4%

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3. Promoter Profile

Item	Details
Name	Rakesh Yadav
Age	34 years
Form of business	Sole proprietorship
Experience	7 years as Head Chef at a 3-star hotel in Indore ([hotel name], [years from–to])
Education	[Highest qualification / hotel management diploma, if any]
Residential address	[Address]
PAN / Aadhaar	[PAN no.] / [Aadhaar no.]
Udyam Registration	[Udyam registration no.], to be obtained
Existing loans	[None / details]
Family support during start-up	[Spouse's income / savings available for household expenses]

Relevance of experience:

• Seven years of running a hotel kitchen covers menu costing, bulk cooking and food safety.
• It also covers staff supervision and vendor handling.
• The North Indian thali menu (tandoor, curries, dal, rice, breads) matches a head chef's core skill set.
• The promoter will personally supervise production and quality.

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4. Business Description

4.1 Product / Service

• Products: North Indian thalis (veg / non-veg, if planned [confirm]) and combos, for example:
  • roti / naan with sabzi and dal
  • rice bowls
  • tandoori items
• Average order value: ₹190 (assumed exclusive of GST; see assumptions).
• Channels:
  • About 70% through Swiggy and Zomato.
  • About 30% through direct WhatsApp orders, with own delivery or third-party delivery [specify arrangement].
• Format: Delivery-only kitchen. No dine-in, so no seating, waiters or high-street rent.

4.2 Service Flow

1. Daily purchase of vegetables, dairy and bread flour. Weekly purchase of dry grocery, spices and packaging.
2. Pre-preparation in the morning: cutting, marination, gravies, dough.
3. Order received on aggregator tablet or WhatsApp. Order ticket printed.
4. Cooking and assembly at stations (tandoor, curry, rice).
5. Packing in tamper-proof containers with an order sticker.
6. Handover to aggregator rider or own delivery partner.
7. Daily cash/UPI reconciliation. Weekly reconciliation of aggregator payouts.
8. Closing: cleaning, waste disposal, stock check for the next day.

4.3 Capacity

• Steady-state capacity: 110 orders/day × 28 days/month = 3,080 orders/month.
• Operating hours: [e.g., 11 am–3 pm and 7 pm–11 pm].
• Staff: 5 in total.
  • Typical split: 2 cooks/helpers, 1 tandoor cook, 1 packer, 1 kitchen cleaner/helper.
  • Indicate actual roles: [roles].

4.4 Licences Required (to be obtained; not yet held)

Licence / Registration	Remarks
Udyam Registration	Free, online at udyamregistration.gov.in
FSSAI	Projected turnover exceeds ₹12 lakh, so a State Licence is likely needed (confirm with FSSAI/Food Safety Officer, Indore)
GST registration	Generally required by Swiggy/Zomato for onboarding. Aggregators collect and pay 5% GST on restaurant orders under Sec 9(5); direct orders above threshold need your own GST (CA to confirm)
Shop & Establishment registration	Under MP Shops & Establishments Act / Indore Municipal Corporation
Trade / health licence	Indore Municipal Corporation, as applicable
Commercial LPG connection	Required for burners/tandoor
Fire NOC	If required for the premises/building
MP Pollution Control Board consent	Check applicability for tandoor/chimney exhaust
Swiggy/Zomato partner onboarding	Needs FSSAI, GST, PAN, bank account, menu

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5. Market Potential and Marketing Plan

5.1 Demand Drivers (qualitative)

• Vijay Nagar is a commercial and residential hub of Indore, with offices, coaching institutes, hostels and PG accommodation.
• This gives steady lunch and dinner delivery demand.
• Working professionals and students want affordable, filling meals. A thali at about ₹190 fits the "daily meal" segment rather than occasional indulgence.
• Food delivery app usage in Indore is high, and Vijay Nagar is usually well covered by aggregator riders.
• Repeat ordering is likely for home-style thalis. This supports building a direct WhatsApp customer base.

5.2 Target Customers

• Office staff in Vijay Nagar and nearby areas [list nearby localities/office complexes].
• Students and PG/hostel residents.
• Families ordering weekend dinners and small party orders.
• Bulk lunch orders for small offices: tiffin-style monthly subscriptions via WhatsApp.

5.3 Competition (generic)

• Other cloud kitchens and thali outlets on aggregator apps.
• Local tiffin services and mess.
• Dine-in restaurants also delivering.

Differentiation:

• Hotel-chef quality and consistent taste.
• Tandoor breads freshly made.
• Hygienic packaging.
• Value combos.
• A direct-order loyalty offer.

5.4 Pricing

• Average order value ₹190.
• Menu range: [e.g., ₹129–₹299].
• Direct WhatsApp prices can be slightly lower than app prices and still give a better margin, because no commission is paid.

5.5 Marketing Plan (budget ₹10,000/month)

• Aggregator ads and offers within the budget. Good photos and menu descriptions.
• Rating management: aim for 4+ stars from the first month.
• Leaflets with QR code and WhatsApp number inside every parcel.
• A WhatsApp Business catalogue, broadcast lists and daily menu status.
• Monthly lunch subscription offer for offices and PGs.
• Google Business Profile listing.
• Tie-ups with nearby PGs, hostels and coaching centres.

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6. Cost of Project (₹ lakh)

#	Item	Amount	Basis
1	Land & building	0.00	Rented premises
2	Rent deposit	1.00	As per rent agreement [to attach]
3	Commercial kitchen equipment (tandoor, burners, chimney, fridge, deep freezer)	5.50	As per quotation [supplier name, quotation no., date]
4	Interiors, exhaust & electrical	1.50	Quotation required [contractor name]
5	Pre-operative (FSSAI, GST, licences, onboarding)	0.25	Estimate
6	Contingency (5% of items 3+4)	0.35	Added as buffer
7	Margin for working capital / initial cash	2.00	Opening stock, packaging, first months' running costs
	Total project cost	10.60

Equipment of ₹5.50 lakh plus contingency of ₹0.35 lakh (₹5.85 lakh) is capitalised as plant & machinery. Interiors and electrical (₹1.50 lakh) are treated as furniture & fittings.

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7. Means of Finance (₹ lakh)

Source	Amount	%
Promoter's own contribution	1.25	11.8%
Mudra loan, Tarun (term loan)	9.35	88.2%
Subsidy	0.00	—
Total	10.60	100%

Notes:

• Category:
  • The loan of ₹9.35 lakh falls in Tarun (₹5–10 lakh).
  • Tarun Plus (above ₹10 lakh) is not applicable here. It is available only to those who have availed and repaid an earlier Tarun loan.
• Collateral: No collateral is required under Mudra. The loan is covered by CGFMU. Banks may pass on the annual guarantee fee; confirm with your bank.
• Structure:
  • Modelled as a single term loan.
  • Some banks give the working-capital part (₹2.00 lakh) as a Mudra OD/CC instead. If so, interest on that part will be charged only on usage.
• Margin: 11.8% own contribution is within the 10–15% banks usually expect for Tarun (confirm with your bank).

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8. Assumptions

Item	Assumption
Working days	28 days/month, 336 days/year
Steady-state orders	110/day (stated by applicant) = 100% capacity
Capacity utilisation	Y1 65%, Y2 75%, Y3 85%, Y4 90%, Y5 90% (new unit, default ramp)
Average order value	₹190 in Y1, +5% per year. Assumed exclusive of GST
Channel mix	70% aggregator / 30% direct (all years)
Aggregator commission	25% (incl. GST on commission) on aggregator sales = 17.5% of total sales
Raw material	36% of sales (as given)
Packaging	6% of sales (as given)
Total variable cost	59.5% of sales. Food inflation assumed passed on through prices
Rent	₹30,000/month; +5% per year
Salaries	5 staff, ₹85,000/month; +8% per year
Gas & electricity	₹18,000/month; +6% per year (treated as fixed)
Marketing	₹10,000/month; +5% per year
Other overheads (repairs, internet, accounting, renewals, insurance)	₹5,000/month (added; not in user input); +6% per year
Interest	10.5% p.a. on term loan; no CC modelled
Tenure	60 months incl. 6 months moratorium (interest serviced)
Depreciation (WDV)	Plant & machinery 15%; furniture/fittings 10%
Pre-operative	₹0.25 lakh written off over 5 years
Stock	7 days of raw material + packaging
Debtors (aggregator payout lag)	7 days of aggregator net receipts (52.5% of sales)
Creditors	7 days of raw material + packaging
Income tax	Nil in all years. Profit below ₹12 lakh, so new-regime rebate u/s 87A assumed, with no other income. CA to confirm
Drawings	Y1 nil; Y2 ₹5,000/month; Y3 ₹15,000/month; Y4 ₹20,000/month; Y5 ₹25,000/month
CGFMU fee	Not included. Add if bank passes it on (confirm)

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9. Projected Sales / Capacity Utilisation

Particular	Y1	Y2	Y3	Y4	Y5
Capacity utilisation	65%	75%	85%	90%	90%
Orders per day	71.5	82.5	93.5	99.0	99.0
Orders per year	24,024	27,720	31,416	33,264	33,264
Average order value (₹)	190.00	199.50	209.48	219.95	230.95
Sales (₹ lakh)	45.65	55.30	65.81	73.16	76.82
Of which aggregator (70%)	31.96	38.71	46.07	51.21	53.77
Of which direct (30%)	13.70	16.59	19.74	21.95	23.05

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10. Projected Profit & Loss (₹ lakh)

Particular	Y1	Y2	Y3	Y4	Y5
Sales	45.65	55.30	65.81	73.16	76.82
Raw material (36%)	16.43	19.91	23.69	26.34	27.66
Packaging (6%)	2.74	3.32	3.95	4.39	4.61
Aggregator commission (17.5%)	7.99	9.68	11.52	12.80	13.44
Total variable cost	27.16	32.91	39.16	43.53	45.71
Contribution	18.49	22.39	26.65	29.63	31.11
Salaries & wages	10.20	11.02	11.90	12.85	13.88
Rent	3.60	3.78	3.97	4.17	4.38
Gas & electricity	2.16	2.29	2.43	2.57	2.73
Marketing	1.20	1.26	1.32	1.39	1.46
Other overheads	0.60	0.64	0.67	0.71	0.76
Total cash fixed cost	17.76	18.99	20.29	21.69	23.21
EBITDA	0.73	3.40	6.36	7.94	7.90*
Interest on term loan	0.96	0.81	0.61	0.39	0.14
Interest on CC	0.00	0.00	0.00	0.00	0.00
Depreciation + pre-op write-off	1.08	0.94	0.80	0.70	0.61
PBT	(1.31)	1.65	4.95	6.85	9.15
Income tax (CA to confirm)	0.00	0.00	0.00	0.00	0.00
PAT	(1.31)	1.65	4.95	6.85	9.15

*Y5 EBITDA = 31.11 − 23.21 = 7.90; PBT = 7.90 − 0.14 − 0.61 = 7.15.

Correction to Y5: Recomputing Y5 gives PBT 7.15, not 9.15. The tables below use the corrected Y5 PAT of ₹7.15 lakh.

Corrected P&L Summary Lines (₹ lakh)

Particular	Y1	Y2	Y3	Y4	Y5
EBITDA	0.73	3.40	6.36	7.94	7.90
PBT / PAT	(1.31)	1.65	4.95	6.85	7.15
Net profit margin	(2.87%)	2.98%	7.52%	9.36%	9.31%

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11. Projected Cash Flow (₹ lakh)

Particular	Y1	Y2	Y3	Y4	Y5
Sources
Own capital introduced	1.25	—	—	—	—
Mudra term loan	9.35	—	—	—	—
PAT	(1.31)	1.65	4.95	6.85	7.15
Depreciation + write-off	1.08	0.94	0.80	0.70	0.61
Increase in creditors	0.40	0.08	0.10	0.06	0.03
Total sources	10.77	2.67	5.85	7.61	7.79
Uses
Fixed assets (P&M 5.85 + F&F 1.50)	7.35	—	—	—	—
Rent deposit	1.00	—	—	—	—
Pre-operative expenses	0.25	—	—	—	—
Increase in stock	0.40	0.08	0.10	0.06	0.03
Increase in debtors	0.50	0.10	0.12	0.08	0.04
Term loan principal repaid	0.84	1.80	2.01	2.23	2.47
Drawings	0.00	0.60	1.80	2.40	3.00
Total uses	10.34	2.58	4.03	4.77	5.54
Net cash flow	0.43	0.09	1.82	2.84	2.25
Opening cash	0.00	0.43	0.52	2.34	5.18
Closing cash	0.43	0.52	2.34	5.18	7.43

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12. Projected Balance Sheet (₹ lakh, as at year end)

Particular	Y1	Y2	Y3	Y4	Y5
Liabilities
Proprietor's capital	1.25	1.25	1.25	1.25	1.25
Retained profit (cumulative PAT − drawings − tax)	(1.31)	(0.26)	2.89	7.34	11.49
Net worth (TNW)	(0.06)	0.99	4.14	8.59	12.74
Mudra term loan outstanding	8.51	6.71	4.70	2.47	0.00
Cash credit	0.00	0.00	0.00	0.00	0.00
Sundry creditors	0.40	0.48	0.58	0.64	0.67
Total liabilities	8.85	8.18	9.42	11.70	13.41
Assets
Net fixed assets	6.32	5.43	4.68	4.03	3.47
Pre-operative (unamortised)	0.20	0.15	0.10	0.05	0.00
Rent deposit	1.00	1.00	1.00	1.00	1.00
Stock	0.40	0.48	0.58	0.64	0.67
Debtors (aggregator receivable)	0.50	0.60	0.72	0.80	0.84
Cash & bank	0.43	0.52	2.34	5.18	7.43
Total assets	8.85	8.18	9.42	11.70	13.41

The balance sheet balances in every year.

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13. Depreciation Schedule (WDV, ₹ lakh)

Block (rate)	Particular	Y1	Y2	Y3	Y4	Y5
Plant & machinery (15%)	Opening WDV	5.85	4.97	4.22	3.59	3.05
	Depreciation	0.88	0.75	0.63	0.54	0.46
	Closing WDV	4.97	4.22	3.59	3.05	2.59
Furniture & fittings (10%)	Opening WDV	1.50	1.35	1.21	1.09	0.98
	Depreciation	0.15	0.14	0.12	0.11	0.10
	Closing WDV	1.35	1.21	1.09	0.98	0.88
Pre-operative (5 yrs)	Write-off	0.05	0.05	0.05	0.05	0.05
Total charge		1.08	0.94	0.80	0.70	0.61
Net fixed assets		6.32	5.43	4.68	4.03	3.47

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14. Term Loan Repayment Schedule (₹ lakh)

Loan terms: ₹9.35 lakh at 10.5% p.a.; 6 months moratorium with interest serviced; then 54 EMIs of about ₹21,800.

Year	Opening	Interest	Principal	Total paid	Closing
Y1 (6 m interest only + 6 EMIs)	9.35	0.96	0.84	1.80	8.51
Y2	8.51	0.81	1.80	2.61	6.71
Y3	6.71	0.61	2.01	2.62	4.70
Y4	4.70	0.39	2.23	2.62	2.47
Y5	2.47	0.14	2.47	2.61	0.00
Total		2.91	9.35	12.26

The figures come from a monthly reducing balance. Minor rounding differences are adjusted in principal so that closing balances tie.

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15. Ratios

15.1 DSCR

DSCR = (PAT + Depreciation + TL interest) / (TL interest + Principal)

Year	PAT	Dep.	Interest	Principal	Cash available	Debt service	DSCR
Y1	(1.31)	1.08	0.96	0.84	0.73	1.80	0.41
Y2	1.65	0.94	0.81	1.80	3.40	2.61	1.30
Y3	4.95	0.80	0.61	2.01	6.36	2.62	2.43
Y4	6.85	0.70	0.39	2.23	7.94	2.62	3.03
Y5	7.15	0.61	0.14	2.47	7.90	2.61	3.03
Average							2.04

The average is corrected for the Y5 recomputation: (0.41 + 1.30 + 2.43 + 3.03 + 3.03) / 5 = 2.04. Use 2.04 in place of 2.19 in Section 2.

15.2 Other Ratios

Ratio	Y1	Y2	Y3	Y4	Y5
Current ratio (CA ÷ creditors + next-year TL instalment)	0.60	0.64	1.30	2.13	13.33
TOL / TNW	n.m. (TNW negative)	7.26	1.28	0.36	0.05
Net profit margin	(2.87%)	2.98%	7.52%	9.36%	9.31%

15.3 Break-Even

Particular	Y1	Y3
Fixed cost (cash fixed + TL interest + depreciation)	19.80	21.70
Contribution	18.49	26.65
Accounting BEP (% of projected sales)	107.1%	81.4%
Cash BEP (excl. depreciation)	101.2%	78.4%
BEP sales value (₹ lakh)	48.89	53.57
BEP orders/day at that year's price	≈ 76.6 (70% capacity)	≈ 76.1 (69% capacity)

Reading:

• The kitchen needs about 77 orders/day to break even in Year 1, against 71.5 projected.
• From Year 2 (82.5/day) onwards it is above break-even.

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16. SWOT

Strengths

• Promoter has 7 years as head chef at a 3-star hotel in Indore, so product quality and kitchen control are strong.
• Delivery-only format means no dine-in rent or service staff.
• A thali/combo menu gives predictable food costing (36%) and quick packing.
• A 30% direct-order channel carries no commission.

Weaknesses

• 70% dependence on aggregators: 25% commission and platform terms set by them.
• Variable costs at 59.5% of sales leave a thin contribution margin (40.5%).
• A new brand has no ratings history on the apps at launch.
• The proprietor has no prior experience as a business owner (bookkeeping, GST, aggregator ads).

Opportunities

• Office, coaching and PG density in and around Vijay Nagar suits daily meal orders.
• Monthly lunch subscriptions for offices and PGs give assured volume.
• Bulk and party orders, and festival thalis.
• A second brand on the same kitchen (e.g., a tandoor-only or rice-bowl menu) can add orders without new rent.

Threats

• Many cloud kitchens and tiffin services compete in the same delivery radius.
• Aggregator commission hikes, discount-led competition, or delisting on poor ratings.
• Volatile prices of vegetables, dairy and commercial LPG.
• Food-safety complaints or poor ratings can cut order flow quickly.
• Staff attrition among cooks.

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17. What the Bank Officer Will Check

1. Year 1 DSCR is 0.41 and Year 1 shows a loss of ₹1.31 lakh. At 65% utilisation (71.5 orders/day), the kitchen is below its ~77 orders/day break-even. Cutting the loan does not solve this: at ₹8 lakh, debt service falls only by about ₹0.25 lakh. The problem is operating margin. Concrete fixes, with Year 1 effect:
   • Keep 4 staff in Year 1 instead of 5 (saves about ₹2.04 lakh). Add the fifth when orders cross 85/day.
   • Push direct orders to 40% through WhatsApp subscriptions and parcel leaflets. Aggregator share falls to 60%, saving 2.5% of sales (≈ ₹1.14 lakh).
   • With both fixes, Y1 PAT ≈ +₹1.87 lakh and Y1 DSCR ≈ 2.17. Revise the projections with these changes before submission if you can commit to them.
   • Alternatively, show evidence for Y1 volume of 77+ orders/day, such as letters of intent from offices or PGs, or a pre-launch WhatsApp list. Each +5 points of utilisation adds about ₹1.42 lakh of contribution; at 70% utilisation Y1 DSCR is about 1.19.
2. No drawings in Year 1 and only ₹5,000/month in Year 2. The officer will ask how your household runs after you leave the hotel job. Be ready with proof of other family income or savings, such as [spouse's salary slip / FD statement].
3. Net worth is negative at the end of Year 1 (−₹0.06 lakh), and current ratio is below 1 in Years 1–2. Both improve if fix 1 is applied. Adding ₹0.50 lakh more own capital would also keep net worth positive.
4. Sales value and GST treatment.
   • Confirm the ₹190 average is net of GST. On aggregator orders, the 5% GST is collected by the platform. If ₹190 includes GST, sales are overstated by about 4.8%.
   • Also confirm that the 25% commission matches your actual Swiggy/Zomato agreement. Platforms also deduct payment and ad charges.
5. Gas and electricity at ₹18,000/month is low for a tandoor plus burners at 100+ orders/day. Get one month's estimate from a commercial LPG supplier. If it is higher, the margin falls further.
6. Quotations. Equipment (₹5.50 lakh) is quoted. Interiors, exhaust and electrical (₹1.50 lakh) need a written quotation. Banks usually pay suppliers directly against quotations.
7. Premises.
   • The rent agreement should be registered and should run at least as long as the loan tenure (5 years), or have a renewal clause.
   • The kitchen should be in a zone where FSSAI licensing and commercial LPG are allowed.
   • Ask the bank whether the CGFMU guarantee fee will be charged to you, and add it as an expense if so.

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18. Documents to Attach (Mudra Tarun)

• Mudra loan application form (bank's format)
• KYC: PAN, Aadhaar, 2 passport photos
• Residence proof (electricity bill / rent agreement of residence)
• Udyam Registration certificate
• Equipment quotation (₹5.50 lakh) on the supplier's letterhead with GSTIN
• Interiors/exhaust/electrical quotation (₹1.50 lakh)
• Rent agreement for kitchen premises plus landlord's NOC and ownership proof
• FSSAI licence / application acknowledgement
• GST registration (or application)
• Shop & Establishment / trade licence (or application)
• Experience certificate from the hotel ([hotel name]) and last 6 months' salary slips
• Bank statement for the last 6–12 months (personal)
• ITR for the last 2–3 years (salaried ITR), if filed
• Proof of own contribution of ₹1.25 lakh (bank balance / FD)
• This project report with projections
• Declaration of no existing default and details of any existing loans
• Caste/category certificate, only if the bank offers a concession for it

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19. Declaration

I, Rakesh Yadav, proprietor of [business name], declare that the information in this project report is true to the best of my knowledge. The projections are based on my estimates and assumptions stated above.

Signature: ____________________ Place: Indore Date: [DD-MM-YYYY]

If the bank asks, these projections can be certified by a Chartered Accountant.