CASE STUDY · OPERATING LEASE
₹30 Cr of new capacity.
No upfront cash.
How a leading Indian frozen food manufacturer expanded production for domestic and export demand on a 60-month operating lease, with no upfront cash or promoter contribution.
CAPEX FINANCED
₹30 Cr
TENURE
60 months
STRUCTURE
Operating lease
ASSETS COVERED
Plant machinery
THE CLIENT
A farm-to-fork frozen food exporter.
The client is a leading Indian food processing company specialising in frozen potato products and dehydrated potato flakes.
Its vertically integrated model spans contract farming, manufacturing and global exports, supporting thousands of farmers and serving customers in India and overseas.
Client name withheld for confidentiality.
CLIENT PROFILE
₹1,000 Cr+
Annual revenue
1,000+
Employees
3+
Manufacturing units
10+
Export markets
THE CHALLENGE
Export orders don't wait
for funding.
Rising domestic demand and growing export orders called for a ₹30 Cr capacity expansion, and every traditional way to fund it came with a catch.
Large CapEx requirement
A ₹30 Cr outlay would have constrained liquidity.
Pressure on existing bank lines
The client's bank lines were already partially utilised.
Risk of stretched working capital
Using internal cash or promoter funds would have stretched working capital.
Need to expand quickly
Speed mattered to hold market leadership in a competitive global segment.
HOW CAPEXO STRUCTURED IT
Machinery on the line now, rentals over time.
Capexo financed the processing equipment on a 60-month operating lease, so the client could use it straight away and pay in periodic rentals.
01
Capexo financed the machinery
₹30 Cr of food processing machinery and equipment for the expansion.
02
Put to work immediately
The client used the assets from day one while paying periodic lease rentals over 60 months.
03
No upfront cash needed
The financing required no upfront cash and no promoter contribution.
KEY BENEFITS
What the lease made possible.
Five gains the client saw from leasing its machinery instead of buying it.
Zero upfront investment
The client avoided tying up ₹30 Cr in fixed assets.
Preserved liquidity
Cash stayed free to strengthen supply chain operations.
Cashflow efficiency
Predictable rentals matched revenue inflows.
Stronger balance sheet
Debt stayed off formal bank borrowing lines.
Competitive edge
Faster line commissioning enabled timely fulfilment of major international orders.
RESULTS
More capacity online.
Balance sheet clean.
The client executed ₹30 Cr of CapEx to acquire processing machinery and equipment. The leasing model delivered maximum tax efficiency, a better balance sheet position, and more confidence from bankers and investors for future fundraising.
Clean balance sheet
Financial covenants intact
Working capital preserved
Maximum tax efficiency
Stronger case for future fundraising
Planning a capacity expansion?
Tell us what your plant needs. We'll show you how an operating lease could fund it.