Water Heater Study

Feasibility Report of Water Heaters
(June 2022)
By:
Engr. Muhammad Hussnain
Water Heater Report
Table of Contents
1 Technical Parameters of Water Heater...............................................................3
1.1 What is water Heater?..................................................................................................................3
1.2 Types of water heater:..................................................................................................................3
1.3 Working of Water Heater:...........................................................................................................3
1.4 Parts of Water Heater:..................................................................................................................4
1.5 Havells Water Heater Specifications............................................................................................8
1.6 Specification we focus on:.........................................................................................................17
1.7 SWOT of Electric and Gas water heaters in Pakistan................................................................18
1.8 Pros & Cons of Gas and Electric water heater:..........................................................................19
1.9 Factors effecting the choice of water heater:..............................................................................20
2 Financial Parameters.........................................................................................21
2.1 Estimated Cost of Electric Instant Water Heater........................................................................21
2.2 Quotations of OEM of Water Heaters........................................................................................23
2.2.1 Quotations of Welcome Industry:......................................................................................23
2.2.2 Quotation of Allied Home Appliances:..............................................................................23
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Water Heater Report
1 Technical Parameters of Water Heater

1.1 What is water Heater?
A system which provide a continual supply of hot water is called water heater.
1.2 Types of water heater:

 Instant water heaters.
 Storage water heaters.
 Solar water heaters.
 Heat pump water heaters.
These are the types of water heaters, but in this report we will only elaborate Instant water heater
and Gas water heater. Instant water heaters are also classified into Electric water heater and
Gas Water heater. Same as the storage water heater.
In Pakistan, water heaters are made mostly with metallic body and remaining world is converted
their technology into plastic body, whose main advantage is light in weight.
1.3 Working of Water Heater:

The principle on which the electric water geyser works is simply the conversion of electrical
energy into heat through the use of heating elements to raise the temperature of water through
conduction of the heat to the water. They are works on the phenomenon of resistance heating.
A water heater's thermostat controls the temperature of the water inside the tank. Normally, you
can set the temperature anywhere between 120- and 180-degrees Fahrenheit (49 to 82 degrees
Celsius). The water temperature setting recommended by most manufacturers is between 120 to
140 degrees Fahrenheit (49 to 60 degrees Celsius). This is hot enough to be efficient for
household use, but not so hot that it can pose a scalding risk. If there are children living in your
home, it's wise to stay closer to the lower end of the range.
Setting your water heater to a lower temperature saves energy, too, and if you remember to dial
back the heat when you go on vacation, you'll experience even more energy savings. Usually, the
thermostat is located underneath a protective cover plate and has a knob or dial you can turn to
set the temperature.
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Water Heater Report
The dip tube feeds cold water from your home's water lines to the bottom of the tank's interior,
where the water starts to warm up. The heating mechanism, either a burner or an element, stays
on until the water reaches temperature. As the water heats, it rises to the top of the tank. The
heat-out pipe is located near the top of the tank. Water exiting the water heater at the top is
always the hottest in the tank at any given moment because it's the nature of hot water to rise
above denser, cold water.
The secret to a water heater's design for separating cold, incoming water from hot, outgoing
water is that it relies on the principle that heat rises to do the hard part. The position of the heat-
out pipe at the top of the tank does the rest.
1.4 Parts of Water Heater:

 Tank - The inner shell of a water heater is a heavy metal tank containing a water
protective liner that holds 40 to 60 gallons (151 to 227 liters) of hot water at around 50 to
100 pounds per square inch (PSI), within the pressure range of a typical residential water
system. The exterior of the tank is covered in an insulating material like polyurethane
foam. Over that, there's a decorative outer shell and possibly an additional insulating
blanket.
 Dip tube - Water enters the water heater through the dip tube at the top of the tank and
travels to the tank bottom where it's then heated.
 Shut-off valve -The shut-off valve stops water flow into the water heater. It's a separate
component from the heater located outside and above the unit.
 Heat-out pipe -Suspended toward the top of the tank's interior, the heat-out pipe allows
the hot water to exit the water heater.
 Thermostat - This is a thermometer- and temperature-control device. Some electric
water heaters have a separate thermostat for each element.
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Water Heater Report
It controls both the upper and lower elements. A thermostat is essentially a temperature-activated
switch. When the thermostat senses a water temperature below its set point, it will energize one
of the elements in response to this “call for heat.”
 Drain valve - Located near the bottom of the exterior housing, the drain valve makes it
easy to empty the tank to replace the elements, remove sediment or move the tank to
another location.
 Pressure relief valve - This safety device keeps the pressure inside the water heater
within safe limits.
 Sacrificial anode rod - Made of magnesium or aluminum with a steel core, the
sacrificial anode rod is suspended in the water heater tank to help retard corrosion.
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Water Heater Report
The purpose of anode rod is to attract the sediment and corrosive elements (like minerals in the
water) so that they corrode the anode rod rather than the inside of your water heater tank.
 Heating mechanism - Electric water heaters have heating elements inside the tank to
heat the water. Gas water heaters use a burner and chimney system instead.
In Electric water heater, heating element is used for heating purpose. In Gas water heater, burner
is used to heat up the water temperature.
The question raised here is that which heating element is mostly used in electric water heaters.
Nichrome is a metal alloy made up of around 20 percent of chromium and 80 percent nickel.
The key to the workings of an electrical heating element is the role of the nichrome in it.
Nichrome has fast emerged as the leading alloy to be used in terms of electrical heating element.
Nichrome is used for making heating element of electrical appliances. Because nichrome does
not oxidize and burn easily at high temperature i.e.it has higher melting and boiling point than
metals. Thus it does not melt even when a large amount of heat is produced due to passage of
current.
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Water Heater Report
Incoloy® 800 is another type of heating element. It is mostly used in Havells water heaters. It
consists of Nickel-Iron-Chromium alloy, which has good strength and excellent resistance to
oxidation and carburization in high temperature atmospheres. Incoloy® 800 also resists
corrosion in many aqueous environments, and has been used in some steam generation plants
due to its resistance to stress cracking.
Ceramic, PTC (positive temperature coefficient), quartz, wire and aluminum are the other types
of heating element which are used according to the requirements.
Thermowatt (Italy) and Camco are the two companies which specially made heating elements
and have different types.
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Water Heater Report
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Water Heater Report
1.5 Havells Water Heater Specifications

Instant Water Heater
OPAL
TECHNICAL SPECIFICATION
BASIC FEATURES
Rated capacity 3L
Heating Indicator Yes
PERFORMANCE FEATURES
Rated pressure 0.65 MPa
POWER DETAILS
Rated Power Input 4500 W
Rated input current 25 Ampere
Rated voltage 230 V, 1 Phase, 50 Hz AC
DIMENSIONS WEIGHT
Height, width, length 320 mm, 250 mm, 235 mm
Packing dimensions LxWxH 29 cm x 26.5 cm x 42.5 cm

(cm)
WARRANTY \ GUARANTEE
Tank Warranty & Body and 5 year & 2 year

electrical components Warranty
SAFETY FEATURES
Thermostat Yes
Thermal cut off Yes
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Water Heater Report
INSTANIO
BASIC FEATURES
Rated capacity 3L
Ideal for Kitchen , High rise buildings
Heating Indicator Yes
Mixing factor maximum ( % ) 30%
POWER DETAILS
DIMENSIONS WEIGHT
Packing dimensions LxWxH 26 cm x 29 cm x 41.8 cm

(cm)
Weight when empty 3 kg
TANK FEATURES
Heating element Copper Heating element
Tank material SS TANK
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Water Heater Report

SAFETY FEATURES
Thermostat Yes
Thermal cut off Yes
Multifunctional safety valve Yes
RENATO
BASIC FEATURES
Rated capacity 3L
Installation Vertical
Indicator Twin Indicator lamp for power & heating
POWER DETAILS
DIMENSIONS WEIGHT
Packing dimensions LxWxH 27 cm x 23.5 cm x 41.8 cm

(cm)
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Water Heater Report
Weight when empty 3 kg

SAFETY FEATURES
Thermostat Yes
Thermal cut off Yes
Storage Water Heater

MAGNATRON
BASIC FEATURES
Rated capacity 25 L
Temperature setting Digital temperature display
Whirl flow technology Yes
Standing loss in kWh / 24 h / 45 0.562 kWh

°C
Reheating time in minutes to 40 minutes

raise
50 °C
POWER DETAILS
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Water Heater Report
Rated input current 8.7 Ampere
Energy efficiency feature Energy saving high density PUF insulation
DIMENSIONS WEIGHT
Packing dimensions LxWxH 46.8 cm x 45.5 cm x 70.5 cm

(cm)
Weight when empty 15.2 kg
TANK FEATURES
Heating element No heating element
Tank material Made of ultra-thick super cold rolled steel plates
Tank finish and coating Feroglas dry powder coating technology
Extreme hard water resistance Yes
Anode rod rust and corrosion Heavy duty magnesium anode rod with steel core
resistance to protect enameled tank from rust and corrosion

SAFETY FEATURES
Thermostat Yes
Thermal cut off Yes
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Water Heater Report
Geyser protection from water IPX4 technology to protect electrical parts from
splash water splash, No
Electrical safety Shock safe plug
ADONIA R
The innovative feroglas TM technology in the inner container withstands hard water to give years of
water trouble-free service.
BASIC FEATURES
Rated capacity 25 L
Ideal for Bathroom , High rise buildings
Whirl flow technology Yes

°C
Reheating time in minutes to raise 35 minutes

50 °C
POWER DETAILS
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Water Heater Report
DIMENSIONS WEIGHT
Height, width, length 453 mm, 453 mm. 394 mm
Packing dimensions LxWxH (cm) 46 cm x 45.5 cm x 44.5 cm
TANK FEATURES
Heating element Incoloy 800 glass coated heating element offers

superior heating performance and resistance to
oxidation and carbonation at high temperatures
Anode rod rust and corrosion Heavy duty magnesium anode rod with steel core to
resistance protect enameled tank from rust and corrosion
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Water Heater Report

SAFETY FEATURES
Thermostat Yes
Electrical safety Earth Leakage Current Breaker to cut off power

immediately in case of current leakage and protect
users from electric shock
Geyser protection from water IPX4 technology to protect electrical parts from water
splash splash, No
MONZA DIGI
BASIC FEATURES
Rated capacity 25 L
Installation Vertical
Ideal for Bathroom , High rise buildings
LED Digital Display Yes

°C
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Water Heater Report
Reheating time in minutes to 35 minutes

raise
50 °C
POWER DETAILS
DIMENSIONS WEIGHT
Packing dimensions LxWxH 41.5 cm x 41.5 cm x 68.5 cm

(cm)
TANK FEATURES
Heating element Incoloy 800 glass coated heating element offers

superior heating performance and resistance to
oxidation and carbonation at high temperatures
Extreme hard water resistance Yes
Anode rod rust and corrosion Heavy duty magnesium anode rod with steel core
resistance to protect enamelled tank from rust and corrosion
Tank Warranty 7 year
Body and electrical components 2 Year
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Water Heater Report
Warranty
Heating element Warranty 4 Year
SAFETY FEATURES
Thermostat Yes
Thermal cut off Yes
Geyser protection from water IPX4 technology to protect electrical parts from
splash water splash
1.6 Specification we focus on:

Specifications for Electric Instant Water Heater
Tank Capacity 3-6 Liters
Rated Pressure 0.6 MPa
Power Input 2 – 3 KW
Current Input 16 Amp
Rated voltage 230 V
Heating Element Nichrome / Thermowatt (imported)
Specifications for Electric Storage Water Heater

Tank Capacity 25-30 liters
Rated Pressure 0.6 MPa
Power Input 2 KW
Input Current 8-9 Amp
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Water Heater Report
Heating Element Nichrome / Thermowatt (imported)
Rated Voltage 230 V
In Gas water heater, heating elements replaced with burner.
Heating Element: Copper vs Nichrome

Melting point for a nichrome wire is greater than copper wire, so that the resistance at nichrome
wire will be greater than copper wire. Therefore, the electric current can flow (maximum flow)
on the nichrome wire will be smaller than the copper wire. Nichrome also have very high
resistivity and resistance to oxidation at high temperatures.
1.7 SWOT of Electric and Gas water heaters in Pakistan
Electric Gas
Sr.
Model Capacity Price Model Capacity Price
No.
Super Asia
1 GH-106 4.2 L 12,900

2 GH-506 6L 10,400
3 GH-508 8L 11,600
4 GH-208 08 L 14,400
5 SEH-10 10 L 16,500 GH-110 Di 10 L 21,000
6 SEH-15 15 L 18,000
7 EH-620 20 G 20,400
8 GH-525Ai 25 G 34,800
Nasgas
9 DG Crystal 06 L 12,150
10 DG SUPER 07 L 12,950
11 DG Crystal 08 L 16,150
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Water Heater Report
12 DG SUPER 09 L 16,900
13 SEM-12 12 L 15,500 DG SUPER 12 L 18,650
14 SEM-115 20 L 15,000
15 DE 8G 15,275
16 DE 10 G 16,000
DG SUPER
17 DE 15 G 18,800 15 G 27,300
DELUX
Canon
18 EWH-08 08 L 15,100
19 EWH-10 10 L 16,200
20 EWH-12 12 L 17,400
21 EWH-15 15 L 18,800
GWH-25
22 25 G 33,900
Gold
23 EWH-35 35 G 32,800 GWH-35 C 35 G 33,900

24 EWH-55 55 G 37,900 GWH-55 C 55 G 39,300
1.8 Pros & Cons of Gas and Electric water heater:
Electric Water Heater Gas Water Heater
Pros Less expensive at purchase. Less expensive to run.

Minimal maintenance needed. Faster to heat the water.
Wide range of sizes available. Can be used in a power outage.
No safety concerns. Wide range of sizes available.
Little energy loss. Energy-efficiency models available.
Cons More expensive to run. More expensive at purchase.

Can’t use during a power outage. Needs more maintenance.
No high-efficiency models Registers more energy loss.
available.
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Water Heater Report
Slower to heat water. More safety concerns.
1.9 Factors effecting the choice of water heater:

There are the factors to take into account when choosing your home’s water heater.
Size
Both types of water heaters come in multiple sizes that range anywhere between 20 and 100
gallons. The larger the tank, the more water it will hold. However, electric water heaters can also
be installed at point of origin, which means the water heater is smaller but it’s installed directly
at a faucet. This provides hot water on demand.
Another consideration when it comes to size is the space that the water heater takes up. Whether
you install it in the utility room or your basement, you might not want to give up too much space.
In this case, an electric water heater is a better option, as it takes less space. Gas heaters will take
up more space because they need to vent. Not only are that, but the options for placement more
limited, since they have pipes that need to go out of your house.
Hot Water Availability

Since most homes have both electricity and gas lines, hot water availability is not a very big
issue for any of the models. The only difference is that you can use a gas heater during a power
outage, but not an electric one. On the same note, if there is a disruption in the gas line, you
won’t have hot water with a gas heater, but you’ll still have it with an electric one.
The important consideration here is the FHR, or first hour rating. This is a measurement of how
much hot water your tank can provide in the first hour of use. A higher FHR means hot water
will be available faster, so that’s one thing to look for and take into account when making your
decision.
Energy-Efficiency
Energy-efficiency should not be confused with the cost of running the appliance. From the pros
and cons table, you can see that gas water heaters are cheaper to run, but that’s only because the
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Water Heater Report
cost of natural gas is lower than the cost of electricity. In fact, electric water heaters are more
efficient than gas models.
The reason why gas heaters are not so energy-efficient is their operating process. As mentioned
above, they have to vent spent gas and this takes some of the heat away. An electric heater uses
almost all the energy it receives heating up the water, so there is very little waste.
Installation
The installation process of a water heater is pretty straightforward and you should also have a
licensed professional perform the work. You can replace a gas heater with either another gas
model or an electric one. In order to install an electric heater, it needs to be plumbed and
grounded.
An electric heater it’s typically replaced with the same because there’s quite a difficulty in
switching from electric to gas. A gas heater installation requires not only that the tank is
plumbed, but you’ll also need to run a gas line to the location. Then, a vent needs to be created,
which oftentimes means drilling into the side of the house. This will take longer and cost you
more money.
2 Financial Parameters
2.1 Estimated Cost of Electric Instant Water Heater
Parts Price (PKR)
Heating Element with Thermostat 2000
Anode rod 600
SS 304 (for tank) 8L 2000
Drain Valve 500
Shut off valve 500
Pressure relief valve 500
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Water Heater Report
Dip tube 1000
Upper Body + knob (ABS) 1200
Total Production per day = 250 units / 10 hours
Total Production per month = 6500 units
Fixed Cost
Molds cost (outer shells + knobs) = 13,060,000=/ PKR
Assume, Manufacturing 15000 units per season;
Variable Cost
Electricity cost per unit = 100
Labor cost per unit = 30
Maintenance cost per unit = 30
Cost of Electric water heater per unit = 8460=/ PKR
The Retail price of 8L Electric water heater is approximately 15000=/ PKR.
Selling price per unit after 30% discount to dealers = 10500=/ PKR.
Profit = 2040=/ PKR
Total cost for making 15000 unit = 126,900,000=/ PKR
Profit Generated after selling 15000 units = 30,600,000=/ PKR (which is 24.1% of the capital
we invested).
2.2 Quotations of OEM of Water Heaters
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Water Heater Report
2.2.1 Quotations of Welcome Industry:

Type Capacity Price
Semi instant water heater 15 L 12500

(Electric)
(Electric)
(Electric)
(Electric)
Additional Charges:
 Breaker wire (optional) = Rs. 900
 Double safety cut off device = Rs. 500
 Color theme (optional) = Rs. 200
Main Specifications:
 Imported heating element and thermostat.
 Powder coated paint body with safety valve.
 Heating Element is of 2000 watts.
2.2.2 Quotation of Allied Home Appliances:
Type Capacity Price

(electric) – Galvanized Sheet
Tank
(electric) – SS Sheet Tank
(electric) – Galvanized Sheet
Tank
(electric) – SS Sheet Tank
Main Specifications:
 Italian Thermowatt Heating Element 2000 Watt.
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Water Heater Report
 Thermopore Insulation inside for temperature control.

 Auto controller easy operating system for temperature selection.
 Digital temperature gauge.
 Available in Galvanized sheet and SS tank.
 Available in Metal Body and ABS Plastic material.
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Feasibility Report of Water Heaters

1 Technical Parameters of Water Heater

1.2 Types of water heater:

1.3 Working of Water Heater:

1.4 Parts of Water Heater:

1.5 Havells Water Heater Specifications

Heating Indicator Yes

Rated pressure 0.65 MPa

Rated Power Input 4500 W

Rated input current 25 Ampere

Rated voltage 230 V, 1 Phase, 50 Hz AC

Height, width, length 320 mm, 250 mm, 235 mm

Packing dimensions LxWxH 29 cm x 26.5 cm x 42.5 cm

Tank Warranty & Body and 5 year & 2 year

Thermal cut off Yes

Ideal for Kitchen , High rise buildings

Heating Indicator Yes

Rated pressure 0.65 MPa

Mixing factor maximum ( % ) 30%

Rated Power Input 3000 W

Rated input current 16 Ampere

Rated voltage 230 V, 1 Phase, 50 Hz AC

Height, width, length 373 mm, 225 mm, 190 mm

Packing dimensions LxWxH 26 cm x 29 cm x 41.8 cm

Weight when empty 3 kg

Heating element Copper Heating element

Tank material SS TANK

Tank Warranty & Body and 5 year & 2 year

Thermal cut off Yes

Multifunctional safety valve Yes

Indicator Twin Indicator lamp for power & heating

Rated pressure 0.65 MPa

Rated Power Input 3000 W

Rated input current 16 Ampere

Rated voltage 230 V, 1 Phase, 50 Hz AC

Height, width, length 373 mm, 255 mm, 194 mm

Packing dimensions LxWxH 27 cm x 23.5 cm x 41.8 cm

Weight when empty 3 kg

Tank Warranty & Body and 5 year & 2 year

Thermal cut off Yes

Storage Water Heater

Temperature setting Digital temperature display

Whirl flow technology Yes

Rated pressure 0.8 MPa

Standing loss in kWh / 24 h / 45 0.562 kWh

Mixing factor maximum ( % ) 30%

Reheating time in minutes to 40 minutes

Rated Power Input 2000 W

Rated input current 8.7 Ampere

Energy efficiency feature Energy saving high density PUF insulation

Rated voltage 230 V, 1 Phase, 50 Hz AC

Height, width, length 560 mm, 413 mm, 310 mm

Packing dimensions LxWxH 46.8 cm x 45.5 cm x 70.5 cm

Weight when empty 15.2 kg

Heating element No heating element

Tank material Made of ultra-thick super cold rolled steel plates

Tank finish and coating Feroglas dry powder coating technology

Extreme hard water resistance Yes

Tank Warranty & Body and 7 year & 2 year

Thermal cut off Yes

Multifunctional safety valve Yes

Electrical safety Shock safe plug

Ideal for Bathroom , High rise buildings