JYOTHIS SOLAR
RENEWABLE ENERGY SOLUTIONS

BUSINESS EXPANSION &
INVENTORY FUNDING
PROPOSAL

Proposed Inventory-Backed Funding Facility
Target Funding Facility
₹ 3,00,00,000
(Rupees Three Crores Only)
Purpose: Solar Inventory Procurement & Working Capital
Location: KERALA, INDIA
Website: www.jyotissolar.in
Document ID: JS-IFP-2026-V1
Executive Summary

JYOTHIS SOLAR presents this comprehensive business expansion and inventory funding proposal to secure a ₹3.00 Crore facility dedicated to high-efficiency solar equipment inventory procurement. This strategic funding will catalyze business growth, optimize purchasing margins, and shorten project execution timelines across residential, commercial, and industrial segments in Kerala.

Core Objective: Capitalize on rising commercial solar adoption by creating a rapid-deployment inventory reserve comprising 768 kWp of tier-1 solar panels and 784 kW of grid-tied string inverters.
Key Metrics Details / Values
Facility Size₹ 3,00,00,000
Core Inventory Allocation₹ 2,35,40,966
Working Capital & Balance Allocation₹ 64,59,034
Target Solar Module Capacity768 kWp (1,280 Units)
Target Inverter Capacity784 kW (208 Units)
Primary Operational GeographyKerala, India

By leveraging bulk procurement directly from tier-1 manufacturers, Jyotis Solar will secure competitive unit pricing, insulate operations from supply-chain volatility, and instantly serve customer orders without long procurement delays.

About Jyothis Solar

Jyothis Solar is a premier solar Engineering, Procurement, and Construction (EPC) entity operating across Kerala. Founded with a mission to deliver clean, highly reliable, and economically viable renewable energy, the company specializes in turn-key solar photovoltaic solutions for commercial establishments, industrial institutions, and residential clients.

Engineering Excellence

Comprehensive technical site inspections, exact structural load assessments, and optimized string design ensure maximum energy output across all installations.

Quality Infrastructure

Exclusively utilizing Tier-1 ALMM-compliant PV modules and high-efficiency string inverters backed by strict factory-level QA and long-term performance warranties.

Operational Milestones

Current Business Position

Jyothis Solar has established a strong operational footprint characterized by steady order intake and robust project execution pipelines. However, current project-by-project procurement limits margin capture and creates lead-time bottlenecks.

Operational Parameter Current Status Target Post-Funding
Procurement Strategy Order-backed Just-In-Time (JIT) Bulk Inventory Backed
Avg. Turnaround Time 21–30 Days 7–10 Days
Module Procurement Cost Standard Retail / Wholesale Rate Direct Tier-1 Volume Rate
Monthly Pipeline Capacity ~50 kW - 80 kW 200 kW - 300 kW
Transitioning from order-based purchasing to structured inventory holding enables immediate execution upon order confirmation, increasing operational throughput by over 300%.
Market Opportunity

The renewable energy sector in Kerala is experiencing an unprecedented surge in demand, driven by rising commercial electricity tariffs, favorable state policy frameworks, and increased public awareness of solar economics.

Commercial & Industrial Demand

Commercial tariffs make solar grid-tied systems financially compelling, offering return-on-investment (ROI) cycles of 3 to 4 years for businesses.

Residential Segment Growth

Subsidized state and central schemes continue to drive strong adoption in the 3 kW to 10 kW residential bracket requiring reliable off-the-shelf inventory.

Market Advantage of Ready Inventory

Customers prioritize EPC contractors who guarantee immediate installation over competitors suffering 4-to-6-week equipment transit delays. Holding immediate stock provides a decisive market advantage in winning high-value contracts.

Proposed Funding Requirement

To execute the business expansion strategy, Jyothis Solar is seeking a total capital allocation of ₹3,00,00,000 structured primarily around direct core equipment inventory procurement.

Funding Allocation Category Amount (₹) % Allocation
Core Inventory Procurement (Panels & Inverters) ₹ 2,35,40,966 78.47 %
Balance Fund Utilisation (BOS, Logistics, Reserves) ₹ 64,59,034 21.53 %
TOTAL FUNDING FACILITY ₹ 3,00,00,000 100.00 %

This structure ensures that almost 80% of total funding is directly locked into tangible, highly liquid tier-1 equipment inventory, providing substantial security and collateral backing for the funding partner.

Solar Panel Procurement Plan

The module selection centers on high-efficiency 600 Wp Mono PERC / TOPCon solar panels, offering maximum wattage density for commercial and space-constrained rooftop projects.

Specification Item Procurement Detail
Panel Unit Rating600 Wp
Total Unit Quantity1,280 Units
Total Cumulative Capacity768 kWp
Base Cost Per Unit₹ 14,400
Total Base Cost₹ 1,84,32,000
Applicable GST (5%)₹ 9,21,600
TOTAL SOLAR PANEL PROCUREMENT COST ₹ 1,93,53,600

All panels will be sourced directly from Tier-1 manufacturers, fully compliant with MNRE guidelines and ALMM listings, accompanied by 12-year product and 25-year performance warranties.

Inverter Inventory Plan

To match module capacity and cater to diverse client installation sizes, a balanced inventory mix of single-phase (3 kW) and three-phase (5 kW) grid-tied string inverters will be acquired.

Inverter Model / Capacity Quantity Total Capacity Total Cost (Incl. Tax)
3 kW Grid-Tied Inverters 128 384 kW ₹ 20,96,102
5 kW Grid-Tied Inverters 80 400 kW ₹ 20,91,264
TOTAL INVERTER INVENTORY 208 Units 784 kW ₹ 41,87,366

The total inverter capacity of 784 kW perfectly balances the 768 kWp panel procurement, enabling complete turn-key kit configurations for distribution and installation.

Core Inventory Cost Structure

The primary core inventory represents direct physical assets comprising solar modules and inverter equipment. The exact financial breakdown is summarized below:

Equipment Description Capacity Metric Total Allocation (₹)
600 Wp Solar Modules (1,280 Units) 768 kWp ₹ 1,93,53,600
3 kW Grid String Inverters (128 Units) 384 kW ₹ 20,96,102
5 kW Grid String Inverters (80 Units) 400 kW ₹ 20,91,264
TOTAL CORE INVENTORY CAPITAL 768 kWp / 784 kW ₹ 2,35,40,966
Core equipment represents ₹2,35,40,966 of physical, easily deployable inventory, maintaining high liquidation value and asset security.
Balance Fund Utilisation

The remaining balance of ₹64,59,034 from the ₹3.00 Crore facility is systematically deployed to cover essential Balance of System (BOS) components, logistics, installation accessories, and initial project operations.

Category & Deployment Purpose Amount (₹)
Total Proposed Funding Facility ₹ 3,00,00,000
Less: Core Inventory Procurement (Modules + Inverters) - ₹ 2,35,40,966
REMAINING BALANCE FUND ALLOCATION ₹ 64,59,034

Utilisation Breakdown of Balance Funds:

Inventory Rotation & Working Capital Cycle

A disciplined 10-stage working capital pipeline guarantees rapid capital turnover, maximizing project throughput and maintaining constant liquidity.

01. FUNDING FACILITY₹ 3.00 Cr Capital Deployment
02. BULK PROCUREMENTDirect Manufacturer Sourcing
03. READY INVENTORYWarehoused & Insured
04. CUSTOMER / DEALER ORDERSImmediate Kit Dispatch
05. PROJECT INSTALLATIONRapid Turnaround Execution
06. COMMISSIONINGGrid Interconnection & Testing
07. CUSTOMER BILLINGFinal Invoicing
08. COLLECTIONBank Loan / Cash Realization
09. REINVESTMENTCapital Recycling
10. NEXT PROJECT CYCLEContinuous Operational Rotation
Why Inventory Funding is Critical

Having bulk inventory readily available solves the single greatest growth hurdle in the regional solar EPC market: procurement lead times.

Without Inventory Funding

  • 3 to 5 weeks delay per project order
  • Higher individual freight and transit costs
  • Vulnerability to price spikes in modules
  • Customer dissatisfaction due to long timelines

With ₹3.00 Cr Inventory Facility

  • Immediate dispatch within 24–48 hours
  • Maximum wholesale price discounts
  • Fixed module cost insulation
  • Dominant competitive edge in winning bids
Inventory funding shifts Jyothis Solar from a reactive, slow-cycle installer to a high-capacity regional solar distribution and execution powerhouse.
Sales & Channel Expansion Strategy

To ensure rapid inventory absorption, Jyothis Solar is expanding its sales ecosystem through a dual-channel strategy targeting direct retail/commercial installations alongside a regional dealer partner network.

1. Direct EPC Model (High Margin)

Direct targeting of commercial rooftops, factories, hospitals, and educational institutions. Offers maximum margins and strong brand positioning.

2. Sub-Dealer & Partner Network (High Volume)

Supplying complete standardized solar equipment kits (Panels + Inverters) to local Electrical Contractors and smaller solar integrators who lack capital to import bulk stock independently.

Target Channel Primary Product Focus Target Rotation Share
Direct Commercial EPC 50 kW – 100 kW Systems 50 %
Sub-Dealer Equipment Kits 3 kW – 10 kW Standard Kits 35 %
Direct Residential EPC 3 kW – 5 kW Premium Rooftops 15 %
Project Execution & Inventory Control

Robust operational controls and digital inventory tracking systems will be deployed to maintain complete physical and financial accounting of all funded assets.

Key Control Protocols:

1. Serialized QR Tracking: Every solar panel (600 Wp) and inverter unit is logged in a digital inventory database upon warehouse entry, tied directly to manufacturer serial numbers.
2. Material Release Authorization: Inventory is released from the central warehouse only against verified customer purchase orders or signed banking loan sanction letters.
3. Comprehensive Warehousing Insurance: All physical stock stored in the central facility is fully covered under an All-Risk Material Policy including fire, theft, and natural peril protection.
Funding Partner Monitoring & Transparency

To provide full confidence to the funding partner, Jyothis Solar offers total visibility and governance mechanisms over the utilization of funds and stock levels.

Transparency Protocol Implementation & Frequency
Monthly Stock Audit Reports Detailed breakdown of physical vs. dispatched stock furnished on the 1st of every month.
Escrow / Dedicated Account All project revenues and kit sales collections deposited into a monitored business account.
Joint Physical Verification Open access for funding partner representatives to conduct unannounced warehouse audits.
Quarterly Financial Review Formal review of margin capture, capital rotation speed, and working capital balance.
This transparent framework guarantees complete visibility of funded assets from procurement through project commissioning and cash realization.
Risk Management & Mitigation

A comprehensive risk management matrix addresses operational, market, and financial contingencies to ensure asset protection and continuous revenue flow.

Identified Risk Severity Mitigation Strategy
Price Fluctuation Medium Immediate bulk order locks in component pricing; inventory turned over within 45–60 days.
Transit Damage Low Comprehensive marine transit insurance covering all shipments from factory to warehouse.
Delayed Collections Medium Customer orders backed by approved bank sanction letters or mandatory upfront milestone deposits.
Technology Obsolescence Low Procuring high-efficiency, industry-standard TOPCon/Mono PERC 600 Wp modules with long market utility.
Business Growth & Long-Term Expansion

The immediate inventory facility forms Phase 1 of a broader multi-year expansion blueprint designed to establish Jyothis Solar as a leading clean-energy entity in South India.

Phase 1 (Immediate / Months 1–6)

Deploy ₹3.00 Cr inventory facility; achieve 768 kWp panel rotation; expand dealer network across Kerala.

Phase 2 (Months 7–18)

Scale total revolving inventory facility; expand operational coverage into neighboring regional markets; introduce commercial energy storage systems (BESS).

Phase 3 (Long Term)

Establish dedicated solar kit assembling & regional logistics hubs to capture higher supply chain value.

Funding Proposal & Conclusion

Jyothis Solar extends this proposal to enter into a formal funding arrangement for the total value of ₹3,00,00,000 (Rupees Three Crores Only) to power its inventory procurement and regional expansion.

Proposal Summary Terms

Facility TypeInventory Procurement & Working Capital Facility
Facility Amount₹ 3,00,00,000
Core Inventory Security1,280 Modules (768 kWp) + 208 Inverters (784 kW)
Primary GeographyKerala, India

We welcome the opportunity to present this proposal in person, discuss customized structure options, and establish a mutually rewarding, long-term strategic partnership.

JYOTHIS SOLAR
Authorized Signatory & Management
Accepted & Agreed For Funding Partner
Signature & Corporate Seal