Techno-economic Assessment of Porous Radiant Burner-based cook- stoves
5.7 Sensitivity Analyses
The returns estimated for small, medium and large-scale eateries at the end of each year is represented in Fig. 5.4. It is evident that the investment in a 5-7 kW PRB-based cook-stoves made by the consumer will be gained back in less than twelve weeks for a small-scale eateries; and for medium-scale and large-scale eateries, the investment will be gained back in less than nine weeks and four weeks, respectively.
Fig. 5.4 Returns on the investment of 5-7 kW cook-stoves by small, medium and large-scale eateries
analysis are 10%, 20%, 30%, 40% and 50%. The respective PBPPRB obtained for the profit margins are shown in Fig. 5.5 for 1-3 kW cook-stoves and in Fig. 5.6 for 5-7 kW cook-stoves.
Fig. 5.5 PBPPRB of 1-3 kW PRB-based cook-stoves at different profit margins of manufacturing unit
From Fig. 5.5, it can be understood that the PBPPRB is in co-relation with the profit percentage of the manufacturing unit. The PBPPRB of 1-3 kW PRB-based cook-stove is less than 1.1 years even for up to a profit margin of 50%. The PBPPRB of 5-7 kWfor the eateries at different profit margins of the manufacturing unit is represented in Fig. 5.6. However, for 5-7 kW PRB-based cook-stoves, at small-scale eateries there is a requirement of 3 cook-stoves and for medium and large-scale eateries, there is a requirement of 7 and 12 cook-stoves, respectively.
Fig. 5.6 PBPPRB of 5-7 kW PRB-based cook-stoves at different profit margins of manufacturing unit
0.81 0.88
0.96
1.03 1.1
0 0.2 0.4 0.6 0.8 1 1.2
10% 20% 30% 40% 50%
PBPPRB of the consumers for 1-3 kW in years
Profit Margin in %
0 0.05 0.1 0.15 0.2 0.25 0.3
10% 20% 30% 40% 50%
PBP in years
Profit margin
PBP of small-scale eateries (years) PBP of medium-scale eateries (years) PBP of large-scale eateries (years)
5.7.2 Cost of the cook-stoves
Sensitivity analysis is done to identify different PBPPRB for the end-user at different costs of the cook-stoves of 1-3 kW and 5-7 kW capacities. As the PBPPRB plays a key role in determining the economic viability of a product, this data can help in fixing the SPPRB, so that it will be beneficial for both the consumer and the manufacturing unit. Fig 5.7 shows the details of different PBPPRB at different SPPRB for 1-3 kW domestic cook-stoves and Fig. 5.8 shows the details of different PBPPRB
at 5-7 kW commercial cook-stoves for small, medium and large-scale eateries at different SPPRB.
Fig. 5.7 PBPPRB of 1-3 kW PRB-based cook-stoves at different SPPRB
A product is considered to be economically feasible for the consumer or the end-user if the PBP of that product is less than two years. Figs. 5.7 and 5.8 show that even when the SPPRB of the stove is raised by half of its original SPPRB, the PBPPRB is much lesser which makes the PRB-based cook- stoves of 1-3 kW and 5-7 kW economically feasible for the end-user.
Fig. 5.8 PBPPRB of 5-7 kW PRB-based cook-stoves at different SPPRB
5.7.3 Effect of manufacturing capacity on the PBPPRB of the consumers
Sensitivity analysis is conducted to calculate the PBPPRB for the end-user when the manufacturing unit’s capacity is varied. For a manufacturing unit that has the capacity of manufacturing 50 units of PRB-based cook-stove, the SPPRB of each cook-stove even with a 50% margin is estimated to be 5300 INR for 1-3 kW capacity and 6000 INR for 5-7 kW capacity. Whereas for the manufacturing units that have the capacities of manufacturing 250 and 500 units of PRB-based cook-stoves, the SPPRB of each cook-stove is estimated to be 4400 INR and 3350 INR for 1-3 kW and 5000 INR and 4100 INR for 5-7 kW, respectively. At these SPPRB, the PBPPRB at different plant unit capacities is calculated. Fig. 5.9 shows the PBPPRB of the consumers at different manufacturing capacities of the plant and the respective SPPRB of the plants with different manufacturing capacities for 1-3 kW domestic cook-stoves.
Fig. 5.9 PBPPRB and SPPRB of 1-3 kW PRB-based cook-stoves for different plant capacities
Table 5.3 PBPPRB and SPPRB of 5-7 kW PRB-based cook-stoves for different plant capacities Plant capacity
(No. of units manufactured
per day)
SPPRB
(INR)
PBPPRB of small-scale eateries (years)
PBPPRB of medium-scale eateries (years)
PBPPRB of large-scale eateries (years)
50 6000 0.31 0.24 0.08
250 5000 0.26 0.2 0.068
500 4100 0.21 0.16 0.06
From Fig. 5.9 and Table 5.3, it can be understood that both the SPPRB and PBPPRB for the end-user will be reduced if the manufacturing plant increases the capacity of its production. The PBPPRB for the end-user if the plant manufactures 500 units per day is estimated to be 0.84 years for 1-3 kW domestic stoves and 0.21, 0.16, and 0.06 years respectively for small, medium and large-scale eateries for 5-7 kW for commercial cook-stoves. Whereas the PBPPRB, when the plant manufactures 50 units and 250 units are estimated to be 1.33 and 1.1 years for 1-3 kW domestic cook-stoves and 0.31, 0.24 and 0.08 years for small, medium and large-scale eateries respectively, for 50 units capacity for 5-7 kW cook-stoves. For 250 units capacity of 5-7 kW cook-stoves, the PBPPRB for small, medium and large-scale eateries is 0.26, 0.2 and 0.068 years respectively. Thus, it can be concluded that a plant with a higher manufacturing capacity proves beneficial for the end- users as it results in lower SPPRB and PBPPRB.