Induction Furnace Report

Muhammad Asad Yaseen 01-133132-230

Muhammad Humair Khan 01-133132-230

A&H Appliances
Concept Statement
• Induction heating is a non-
contact heating process which
is used to bond, harden or
soften metals or other
conductive materials.
• An electromagnetic field is
produced around the wire in a
direction determined by the
“right hand rule” as shown in
Figure.

A&H Appliances
IDEA SCREENING AND SELECTION
Cognation
Brain Storming

A&H Appliances
Feasibility analysis
Product/Market feasibility
◦ Instruments are also easily available in Pakistan.
◦ Economy of scale is low.
Industry attractiveness
◦ The product is Business to Business (B2B) e.g.
Jewellers.
◦ Business to Consumer (B2C) e.g. student or any
college, university.
◦ Number of competitors: In the field of Induction
furnace number of players are very less so it industry
attractive.
◦ Entry and exit barriers are very low.
A&H Appliances
Financial feasibility
◦ The cost of this project is Rs. 50,000(one unit)
which is very cheap as compare to other direct
heating methods and it is one time investment
no other required to run this project.
◦ Break-even point: We can easily achieve our
break-even point due to less investment.

A&H Appliances
Organizational feasibility
◦ Organization will run by the investment of
two members. The business structure will be
partnership (i.e. two partners).
◦ Resources are sufficient there is no need to
outsource any task all the task can easily
perform by the management team and
technical staff of organization.

A&H Appliances
Entry and exit barrier
Entry barriers in this field are not so much
high because numbers of players already
in the market are less so we can easily
establish our organization.
Exit barrier are very low we can easily
come out from this business.

A&H Appliances
Industrial Analysis
Threat of New Entrants
◦ Threat of new entrant is very high because of
less investment and components are easily
available.
Economy of scale
◦ Induction heating is not characterized by large
economy of scale.

A&H Appliances
Industrial Analysis (cont.)
Bargaining power of supplier
 Very low
Bargaining power of buyers
 Very high
Rivalry among the existing competitors
 This industry is an oligopoly Eagle industries and
S.Vagadia innovative are the direct competitors in
the production of this product so numbers of
players already in this are very less and the
competition b/w is low.

A&H Appliances
Industrial Analysis (cont.)
Government and Legal Barriers
 No barriers from government side
Capital requirement
 Very low
Threat of Backward and forward
Integration
 Backward integration is low
 Forward integration is very high

A&H Appliances
ENVIORMENTAL ANALYSIS
Political Analysis
 This industry can be effected by government
because induction heating disturb the power factor
so if any metal comes in the vicinity of magnetic
field of furnace it will get melt with in a seconds
which is very harmful, government can ban us due
to this reason.
 Taxes.

A&H Appliances
ENVIORMENTAL ANALYSIS(cont.)
Economic Analysis
 The economy will also not affect the organization.
Sociocultural Analysis
 Sociocultural of Pakistan will not affect the
organization.
Technology Analysis
 If any other organization launch a better or cheaper
furnace fulfilling the same needs or a better
technique.

A&H Appliances
MARKETITING PLAN
STRENGTH: OPPORTUNITIES:
 Engineering background. The core team comprises  Helps jewelers to melt the precious metals easily.
of engineers who have great knowledge about the  Job opportunities for engineers.
field of power.  NO waste of metal.
 Non-contact heating process.
 Portable.
 Low cost.

WEAKNESS: THREATS:
 Affect the power factor.  New Technology of heating can be introduced.
 High maintenance.
 Effects electronic devices.
 Disturbs signals.
 Low efficiency.

A&H Appliances
MARKETITING PLAN(cont.)
Target market
P’s of Marketing
◦ Product
 Product Line
 Product Positioning
 Prototype
 Product Design & Style
 Pricing
◦ Pricing
 Price adjustment techniques
 Offer discount on a large purchase
 Give discounts for regular customers
A&H Appliances
MARKETITING PLAN(cont.)
Promotion
 Direct marketing technique
Process
 Directly supplied to jewelry shops, universities,
power sector
 No retailer or supplier

A&H Appliances
ORGANIZATIONAL/HR PLAN
CEO
HR specialist
Marketing manager
Finance manager
Lawyer/Legal advisor
Hardware expert
Office Boy

A&H Appliances
COMPANY HIERARCHY

CEO

HR MANAGER

FINANACE MARKETING HARDWARE

MANAGER MANAGER EXPERT

A&H Appliances
GROWTH STRATEGIES
Market expansion
Product expansion
Diversification
Acquisition

A&H Appliances
FINANCIAL PLAN
Costing of 20 units
Research and development RS 100,000

Office expense RS 100,000

HR manager, Marketing manager, Finance manager salary RS 200,000

Manufacturing Cost RS 1,000,000

Employees Salary RS 500,000

Office rent RS 100,000

Total amount Rs 2,000,000

A&H Appliances
INTERNATIONAL EXPANSION OPPORTUNITIES

We can extend our business to India

because the demand of our product is very
high in India.
Motivation
◦ Demand
◦ Energy crisis in power sector in Pakistan
◦ No language barriers
◦ Neighbor country

A&H Appliances