Project On

SOLAR COOKER

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 ABSTRACT

The objective of this project is to provide all the information related to setting up a new unit
of solar cooker. This project profile explains aspect such as basic description of what a solar
cooker is, implementation timelines, market potential with respect to Bihar, production
capacity. Also, the cost required for set up and the method used for calculating the financials.

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 ACKNOWLEDGEMENT

We would like to express our gratitude to Prof. Sriranga Vishnu who gave us the opportunity
to showcase our knowledge and skills through this project. This project helped us in doing a
lot of research with respect to set up of a new unit of Solar Cooker. It broadened our
perspective to think in a holistic way. We take this opportunity to express our profound sense
of gratitude and respect to all those who helped us throughout a lot in finalizing this project
within the limited time frame.

Further, we extend thanks to the whole group for the input and support at each and every
stage.

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Table of Contents

1. INTRODUCTION............................................................................................................5
1.1 IMPLEMENTATION SCHEDULE...........................................................................6
2. MARKET POTENTIAL..................................................................................................6
3. PRODUCTION.................................................................................................................7
3.1 STATUTORY CLEARANCE BY...............................................................................7
4. FINANCIAL ASPECTS...................................................................................................8
5. NAME OF MANUFACTURERS....................................................................................9
5.1 RAW MATERIAL SUPPLIERS..................................................................................9
References……………………………………………………………………………………………………………….11

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 PROJECT PROFILE ON SOLAR COOKER

i. PRODUCT: SOLAR COOKER

ii. PRODUCTION CAPACITY: QUANTITY: 4000 Nos. (Per Annum)
iii. YEAR OF PREPARATION: 2020-2021
iv. PREPARED BY: GROUP 4

1. INTRODUCTION

Solar Cooker is a device which uses the energy of direct sunlight to heat, cook
or pasteurize drink and other food materials. It is the new concept of a domestic appliance
intended for cooling in the summer season. Solar Cooker is an essential appliance to save the
electric energy. It is a basic need where electric energy is not available, as in small towns and
rural areas. Large-scale solar cookers can cook for hundreds of people. Solar cooker uses no
fuel and costs nothing to operate, many non-profit organizations are promoting their use
worldwide in order to help reduce fuel costs (especially where monetary reciprocity is low).
It is one-time investment and after its installation it is free to use. It also helps to reduce air
pollution, and to slow down the deforestation and desertification caused by gathering
firewood for cooking.

Solar Cooker is designed to achieve temperature of 65 degree Celsius (baking temperature) to

400 degree Celsius (grilling/searing temperature) on sunny day.

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1.1 IMPLEMENTATION SCHEDULE

The major activities in the implementation of the project has been listed and the average time
for implementation of the project is estimated as 12 months:

Sl. No. Activity Period (In Months)

1 Preparation of project report 1
2 Registration and other formalities 1
3 Sanction of loan by financial Institutions 3
4 Plant and Machinery:
a) Placements of orders 1
b) Procurement 2
c) Power connection/ Electrification 2
d) Installation/Erection of machinery/Test 2
Equipment
5 Procurement of raw materials 2
6 Recruitment of Technical personnel etc 2
7 Trial production 11
8 Commercial production 12
Notes: -

1. Many of the above activities shall be initiated concurrently.

2. Procurement of raw materials commences from the 8th month onwards.

3. If imported plant and machinery are required, the implementation period of project may
vary from 12 months to 15 months.

2. MARKET POTENTIAL
The solar cooker concept is becoming popular in Bihar households. In 2011 there were only
475 solar cookers in the state. It is basic need of this state because there is a major shortage of
electric energy especially in rural areas. The solar cookers are such idle devices which uses
only sunlight to cook. There striking feature lies in zero consumption of fuel and negligible
cost in operating. The models may be possible in portable sizes as well, so that it may be
easy to carry wherever required. In present scenario the demand for solar cooker in Bihar is 4
lakhs approx. This by itself is bound to increase demand for solar cooker in future.

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3. PRODUCTION
i. The basis for calculation of production capacity has been taken on single shift basis
on 75% efficiency.
ii. The maximum capacity utilization on single shift basis for 300 days a year. During
first year and second year of operations the capacity utilization is 60% and 80%
respectively. The unit is expected to achieve full capacity utilization from the third
year onwards.
iii. The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the
prevailing rates in and around Bihar. These cost factors are likely to vary with time
and location.
iv. Interest on term loan and working capital loan has been taken at the rate of 14% on
an average. This rate may vary depending upon the policy of the financial the policy
of the financial institutions/agencies from time to time.
v. The cost of machinery and equipment’s refer to a particular make/model and prices
are approximate.
vi. The break-even point percentage indicated is of full capacity utilization.
vii. The project preparation cost etc. whenever required could be considered under pre-
operative expenses.
viii. The essential production machinery and test production machinery and tes equipment
required for the project have been indicted. The unit may also utilize common test
facilities available at Electronics Test and Development Centres (ETDCs) and
Electronic Regional Test Laboratories (ERTLs) and MSME Testing Centres
(MSME-TCs).

3.1 STATUTORY CLEARANCE BY

 Bihar Government
 Bureau of Indian Standard
 MNRE (Indian ministry of new and renewable energy)
 The statutory clearance is on the basic of these aspects: -
 India having acceded to the Montreal Protocol in September, 1992, the production and
use of Ozone Depleting Substances (ODS) like Chloro-flouro Carbon (CFCs), Carbon
Tetrachloride, Halons and Methyl Chloroform etc. need to be phased out immediately
with alternative chemicals/solvents. A notification for detailed rules to regulate ODS

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 phase out under the Environment Protection Act,1986 have been put in place with
effect from 19th July 2000.
 With the growing energy needs and shortage coupled with rising energy cost, a
greater thrust in energy efficiency in industrial sector has been given by the Govt. of
India since 1980s. the energy Conservation Act 2001 has been enacted on 18th
August’2001 which provides for efficient us of energy, its conservation & Capacity
building of Bureau of Energy Efficiency created under the Act.
 Checking finishing of all the parts and fitting as electrical switches, sides of cooker
body, Solar Panel, leads connection wiring done fitted at proper places and necessary
etc. After complete manufacturing of various parts and components the solar cooker is
assembled, tested and packed. The quality Control and Standards are as per IS.

4. FINANCIAL ASPECTS

A. FIXED CAPITAL

(i) Land and Building

Build up Area 250 Sq. Metres

Office, Store 75 Sq. Metres

Assemble and
Testing 175 Sq. Metres
Rent payable/
annum Rs. 2,50,000 (Rs. 20,800 per month)

(ii) Machinery and Equipment

Amounts
Sl. No. Description Qty.
(Rs.)
1 Bench vice 2no. 8,000

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 2 Cooling ducts 3no. 24,000

3 Drilling Machine ½” cap. 1 no. 12,000

4 H. V. tester 1 no. 8,500

5 Ammeter and Voltmeter 2 nos. 2,000

6 Megger 1 no. 3,500

7 Solar battery Connectors 2 no. 2,500

8 Multimeter (Digital) 1 no. 2,500

9 Watt meter 1 no. 2,000

10 Variable transformer (8 amp) 1 no. 3,000

Total 57,000

Other fixed assets

Electrification charges @ 10% of the cost of 5,700
machinery and equipment
Office equipments, furniture and working table 60,000
etc.
Dies three types ,. 2,50,000
Finishing tools,and cutting tools etc 2,000

Pre-operative expenses 5,000

Total 3,22,700
Total fixed Capital 3,79,700
Say 3,80,000

B. WORKING CAPITAL (PER MONTH)

Sl. Staff & Labour

(i)        Designation Nos. Rate (Rs.) Amounts
no. (Rs.)
1 Factory Manager cum Engineer 1 50,000 50,000
2 Skilled Worker 2 2 25,000 50,000

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 3 Semi- Skilled Worker 8 8,000 64,000
4 Clerk cum-typist 1 15,000 15,000
5 Accountant 1 15,000 15,000
6 Peon cum Watchman 1 10,000 10,000
Total 2,04,000
Prerequisites @ 15 %
Total 30,600
Say 30,600

(ii)        Utilities (Per Month)

Power 12,000

Water 3,000

Total 15,000

Say 15,000

(iii) Raw Materials requirement per month

Rate Amounts
Sl. No. Particulars Qty.
(Rs.) (Rs.)
1 Plastic graduals 1800 Kg 100 1,80,000
2 Packing Tape 100 Nos 12 12,00
3 Speed Switches, Pump Switches etc 300 Nos 60 18,000
4 Fan Motor 300 Nos 300 90,000
5 Pump Motor 300 Nos 800 2,40,000

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 6 Screw nuts, washers steel spring rod etc. 250 kg 40 10,000

7 Wiring sets 300 Sets 20 6,000

8 Cable 3-Core complete with 3 mtrs 300 Sets 30 9,000
9 Packages 300 Box 80 24,000
10 Solar Panels 25 Watts 300 Nos. 3000 9,00,000

11 Battery 36 AH (as Use in Car) 300 Nos 1500 4,50,000

12 Misc. 15,000
TOTAL 19,43,200
Say 19,43,000

(iv) Other Contingent expenses per month

Sl. No. Description Amounts (Rs.)

1 Rent 20,800
2 Postage, stationery and 6,000
3 Telephone/Telex/Fax Charges 8,000
4 Repairs and Maintenance 8,000

5 Transport and conveyance charges 15,000

6 Advt. and publicity 25,000

7 Insurance and taxes 5000
8 Miscellaneous expenditure 5,000
Total 92,800
Say 92,800

Total recurring expenditure per month

(i+ii+iii+iv) Rs. 2081400

Say Rs.21,00,000

C.  TOTAL CAPITAL INVESTMENT

Fixed Capital Rs.5,00,000

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 Working Capital on 3 months basis Rs.61,71,000

Total Rs.67,71,000

D.  FINANCIAL ANALYSIS

(i)          Cost of production per annum

Total recurring expenditure Rs.2,52,00,000

Depreciation on machinery and equipment @ 10 % Rs. 5,700

Depreciation on tools, jigs and fixtures @ 25% Rs. 95,000

Depreciation on office equipment, furniture @ 20% Rs. 20,000

Interest on total capital investment @ 14% Rs. 9,47,100

Insurance Rs.10,000
Total Rs. 2,62,77,800
say Rs. 2,71,00,000

(ii)          Turn over per annum

Item Qty. (Nos.) Rate/Unit (Rs.) Total Sales (Rs.)

Solar Cooker 4000 8000 Rs.3,20,00,000

Profit per annum (Before taxes)

Rs.3,20,00,000-Rs.2,71,00,000
Turn over per annum- cost of production per
= Rs.4900000
annum

Profit ratio = (Profit/Annum) x100

(4900000 /4,00,00,000) x 100
(Sales/annum) = 12.25%

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 (Total/Capital Investment)
=490,0,000x100/6
Rate of Return = (Profit/Annum) x100
7,71000 = 72.36%

 BREAK EVEN POINT

 Fixed cost per annum

Rent Rs. 20,800

Depreciation on machinery and equipment @ 10% Rs. 6,000

Depreciation on tools, jigs and fixtures @ 25% Rs. 95,000

Depreciation on office equipment, furniture @ 20% Rs. 20,000

Interest on total capital investment @ 14% Rs. 9,17,100

Insurance Rs. 10,000

salaries & wages Rs 2,40,000

other contingent & utilities (excluding rent & insurance) Rs. 1,87,200

Total fixed cost Rs. 14,96,100

Break-even point
Fixed cost *100/ fixed cost + profit = 1496100*100/ 1496100+ 1290000= 75.32%

5. NAME OF MANUFACTURERS
 M/S Geetanjali Solar Enterprises at East Kolkata Township- Kolkata

 M/s. Fabrako Engineers Rae- Bareli (U P)

 M/s. Taylormade Solar Solutions Pvt. Ltd. (TSS)- Ahmedabad, Gujarat.

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5.1 RAW MATERIAL SUPPLIERS

i. Nalanda aluminium section- Bihar Sharif For aluminium

ii. Plastimber impex WPC PVC foam sheet manufacturer For plastic

iii. Bharat glass designer- Bihar Sharif For glass

References: -

1. MSME - https://msme-gov.org/
2. Udyog Mitra - www.udyogmitrabihar.in
3. BREDA - www.breda.bih.nic.in
4. http://radhasolar.com/about.html

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