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YUDEEP Solar water Heater


EXECUTIVE SUMMARY
1. PARTICIPANTS NAME:

Deepak Subhash Mahale.
B.Tech Mechanical, College of Engineering Pune
Currently Working in
Johnson Control India, Pune Division
HVAC LOB, Operation Department.

Yuvraj Prakash Pawar.
B.Tech Mechanical, College of Engineering Pune
Currently pursuing M.Tech Degree.

2. BUSINESS MODEL:

Fig1: working model of Solar water heating using zeolite


3. CUSTOMER NEEDS/PROBLEMS:
To get hot water with low or no cost for application such as in residential, industry
and commercial sector. With zeolite technology which increase efficiency of existing solar
water heater.

4. SOLUTION:
The innovative business idea is Solar water heating using zeolite
Hot water application sectors can be broadly classified in residential, industry and
commercial sector. According to MNRE survey, the share of hot water usage in these sectors
are 80% , 6% and 9% respectively. And remaining all other sectors share is 5%.
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The working principle of our product is based on chemical reaction of zeolite. Zeolite
goes in exothermic and endothermic reaction cycles to raise the temperature of water. When
water comes in contact with dry zeolite, chemical reaction takes place and zeolite releases the
heat. This heat is used to raise the temperature of water up to 50 to 60 degree Celsius, which
is well enough for bathing and cooking purpose in residential sector. The reaction is
reversible; means when heat is applied to wet zeolite endothermic reaction takes place and
water get released which makes zeolite dry again. So the dry zeolite will be ready to heat the
water again. The research shows that, zeolite retains its properties for number of cycles. The
reaction goes something like this:
ZEOLITE + WATER WET ZEOLITE + HEAT
The system consists of Zeolite chamber, solar reflector, Zeolite, and Vacuum pump.
The idea is to use solar heat to recharge (to make dry) the zeolite. As we have noticed that
zeolite requires more heat (high temp) to recharge, around 100 to 200 degree Celsius. With
alone solar heat we cannot recharge the zeolite up to the requirement.
As we know the boiling temp of water is dependent on pressure. In this system we
will be using the vacuum pump to reduce the pressure in zeolite chamber, such that the water
will evaporates (boils) by the solar heat. This pump will work on electricity. Generally the
running cost of vacuum pump will be very less as it will be running for only 15 minutes per
day.
We can be able to raise the temp of zeolite up to 50 to 60 degree Celsius. So we will
maintain the pressure in the chamber such that water will boil at 50 degree Celsius. This
recharging procedure is to be done when the water is not flowing through the chamber and
preferably before the start of the day.
At the time of hot water requirement, the water can be passed through the chamber of
zeolite. Chemical reaction will take place and water will get heated.

5. VALUATION EXPECTED & 3-5 YRS REVENUE FORECAST &
GROSS MARGIN

a. Land rented 200000 (yearly rent)
b. Building and ancillary civil
work
rented 100000
c. Plant & Machinery New machinery should be
bought. Inventory of raw
material required for at least
50 products.
500000
d. Electrical Installation Electrical Connection required
as per machinery
25000
e. Fire fighting (both dry &
wet)
20000
f. Water supply & ETP (if
reqd)
water connection can be taken
from municipal corporation
10000
g. Miscellaneous items Eg.
Pollution control eqpt ( if
reqd), office equip.
furniture, stationary, pc's
required
50000
h. Contingencies

25000
i. Pre-project expenses
including architects &
consultant's fees and

20000
j. Margin for working capital

30000
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Total estimated cost of the project (a to j) 980000

Working capital requirement for 100 product (approx monthly target)
1 Raw material 800000
2 Label, Packaging and transportation 100000
3 wages and salaries 100000
4 administrative expenses 40000
5 overheads 100000
6 Insurance 50000
7 Taxes 150000

Cost Analysis
1 Fixed Cost 290000
2 Variable Cost 1050000

Economic Analysis
a. Expected Yearly Income

Yearly Sale Target is 1000
Product. Aprrox product
price will be 15000/- (all
inclusive)
17000000
b. Expected Yearly
Expenses
Fixed Cost + Variable cost
(12*(290000+1050000))
16080000
c. Expected Yearly Profit 920000

Number of years to achieve Break Even
Yearly Fixed Cost 3480000
Yearly Variable cost 12600000
Yearly Income 17000000
Gross profit 920000
Cost of the project 980000
Net Surplus after one year -60000
So in worst case scenario break even can be achieved in 1.5years or after 1500 products
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6. MARKET SIZE
Estimated breakup: Functional Solar Water Heater (SWH) Installation Till 2009

sector Million m2
Residential (80%) 2.108
Hotel (6%) 0.158
Hospital (3%) 0.079
Industry (6%) 0.158
Other (Railway+ defence + hostel + religious place,
other) (5%)
0.132
Total 2.635

SWH potential under realistic scenario (cumulative million m
2)

2010 2013 2017 2022
Residential 2.58 4.25 7.68 15.74
Commercial /Institutional
Hotels 0.19 0.35 0.61 0.97
Hospitals 0.10 0.17 0.27 0.43
Other 0.18 0.27 0.39 0.52
Industry 0.19 0.33 0.57 1.05
Total 3.24 5.37 9.52 18.70

7. DISTRIBUTION STRATEGY:
At initial stage we start out official website make online advertising of product and then when
market size expands we will start dealership program. Following steps which we will take for
Distribution strategy.

8. PRODUCT PRICING: Approximate price of product will be 15000 Rs

9. COMPETITION:
There are many solar water heater manufacturers such as Videocon, Tata power,
Jain irrigation system, Sunray etc. but this is innovative product which does not exist in
market. So it can be in new segmentation of water heater.

Contact details:
Product Name: YUDEEP Solar
Address @: yudeepsolar@gmail.com

Contact Persons:
Deepak Subhash Mahale.
@: dsmahale.coep@gmail.com
Mob. No: 9657462775

Yuvraj Prakash Pawar.
@: Pawar.yuvraj9@gmail.com
Mob. No.: 9420468919