Project Dates
Oct 07
Project Photos
Project Details
Background: Narasimha Murthy P (NMP) is one of the entrepreneurs who has installed energy efficient stoves in the silk sector having taken our support for this purpose. However, due to subsidies not having come from the silk department, his liabilities remain with us, upto Rs. 2.8 lakhs. We have explored legal options to get the liabilities from NMP and believe that recovering the dues from NMP is not in his means. Since, he has the potential to be a biomass oven entrepreneur and S3IDF can look to recover the liabilities by engaging with him, this EST was to utilize NMP’s resources to slowly build his biomass business by adopting a different financial structuring.
There are a number of small home based units in and around cities and towns where people prepare fried food items such as mixtures, sweets etc. these industries need thermal heat the heat oil. The options these units use for the thermal heat are inefficient biomass stoves, kerosene and LPG. However, due to the increasing cost of kerosene and LPG and lack of supply of these fossil fuels, many of these units are struggling to run. This EST will explore installing energy efficient biomass stoves in such units. At Magadi, there is a potential of installing around 10 to 15 stoves. With a profit margin of Rs. 1000 per stove, a total profit of Rs. 10,000 to Rs. 15,000 is expected from installing such stoves in Magadi.
Currently such units in Magadi use kerosene for their thermal needs. One unit spends 10 liters a day on kerosene at Rs. 38 per liter of kerosene.
The names of the customers where the two stoves will be installed are:
- Narasimaiah, RR Road, Magadi, Ph: 9448297816
- Umesh, RR Road, Magadi, Ph: 9449350146
One of the biggest challenges in cracking this industry is the lack of awareness of such energy efficient stoves with such units. Also, these units are highly demanding making getting orders from them not a easy task. Since the market potential for this is large, more than 1000 units in South Karnataka it is a market worth exploring.
This EST will start by supporting NMP to install two units at Magadi, a town 60 km from Bangalore. Magadi was chosen as NMP is doing a survey on the behalf of S3IDF to explore the potential of installing biomass stoves in schools who need it for their midday meal program.
The costing of one stove is as follows:
Fabrication (metal) – Rs. 750
Refractory bricks – Rs. 480(1 box)
Fire grade cement – Rs. 550 (10 kg at Rs. 55/kg)
Local bricks – Rs. 225 (75 bricks at Rs. 3/brick)
Mud and cement – Rs. 300
Labour for one day – One mason (Rs. 200/day) and one helper (Rs. 100/day)
Transport and others – Rs. 200
Total – Rs. 2755
Selling price – Rs. 3500
Profit: Rs. 750 per stove
Project Size Details
Two stoves with a selling price of Rs. 3500 each, so Rs. 7500. This could expand to 10 stoves, when the total project cost will be Rs. 35,000
Project Impact Details
The main impact will be reduction in the usage of fossil fuels, Kerosene at the rate of Rs. 10 lts a day. Also, where biomass is used a reduction of atleast 30% in the usage is expected.
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Partners
NMP
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