Handy Oven PACE

INDEX

SL.NO DESCRIPTION P.NO

1 Introduction 2

2 Market potential 3

3 Manufacturing process 4

4 Flow sheet diagram 7

5 Basis and Presumption 10

6 Inspection and quality control 10

7 Production Capacity 10

8 Pollution control 11

9 Financial aspects - Fixed capital 11

10 Recurring expenditure 12

11 Working capital assessments 14

12 Other financial aspects 14

13 Profitability Statement 17

14 Conclusion 18

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1. INTRODUCTION:

Handy Oven is one of the easy portable, wireless food heaters, which has similar
functions as a simple microwave. Due to its small sizes, the device makes easier
quotidian lifestyle of overloaded people, who often take cold lunch because of lack of
time and possibilities.

• Up to 15 times of use
• Full charge in 3 Hrs.
• AC ADAPTER input 100-240V 50-60Hz 4.0A
• 1 use lasts 3 minutes
• Heats food to 70°C/158°F
• Working temperature -35°C to 45°C/-31°F to 113°F

After thorough studies and researches the Team created this innovative heater called
Handy Oven. It has many peculiarities. With simple yet attractive design, the device is
easy to use, it works with a battery and two buttons: Start and Stop.

The inner storage is quite containable, you can once heat food for two. Handy Oven can
be used either in mountains or by the sea, it has been tested for heat resistance multiple
times and in different places.

While making the idea of the device a reality the team was concentrated on finding the
exact temperature which would keep the nutritional useful components of any meal.
And they succeeded! This is another advantage that is worth mentioning. One can use
the heater without any fear of eating spoiled meal.

So, it goes without saying that each of us prefers to have homemade warm food at work,
on our way or even while mountain hiking. But It’s not always possible to enjoy the
takeout food served hot.

Now with Handy Oven you can take your favorite food wherever you want and heat it
with just one touch.

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2. MARKET POTENTIAL

Global Microwave Oven Market is expected to garner $25.4 billion by 2020, registering a
CAGR of 6.07% during the forecast period 2015-2020.

Microwave ovens, today, form an integral part of kitchen appliances. Microwave oven
functions on thermal energy by heating the polar molecules in food, a process also known as
dialectic heating. The microwave radiations emitted from microwave ovens are of shorter
wavelength, but possess enormous amount of energy which facilitate faster Heating.
Microwave ovens are manufactured with varied features, which include, touch display panels,
a heating chamber, vents and a glass turntable.

The convection microwave oven accounts for the bigger market share within the global market.
Owing to its high functionality feature, convection microwave oven is witnessing a rapid
growth. The report is also analysed from the perspective of application of microwave oven.

The global microwave oven market is expected to register a notable growth in the near future,
owing to a significant increase in disposable income and growing working class segment in
emerging markets. The increasing propensity of consumers to spend on appliances which assist
them in kitchen chores has generated an increasing demand for microwave ovens. Additionally,
the changing lifestyle of consumers has encouraged the users to opt for stylish and convenient
appliances which complement their living standards. However, the prominent use of traditional
cooking equipment in the less developed regions of Asian countries, limits the growth of the
market. Moreover, the need of energy efficient kitchen appliances and growing demand for
smart appliances are factors that will drive the growth of the market.

Top players are adopting various strategies in the market in order to acquire a bigger market
share in the microwave oven market. Their key development strategies include product launch
and acquisition & expansion.

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3. MANUFACTURING PROCESS:

This Handy Oven is the segment of 5G Technology, which comprises forms of energy that
move through space, generated by the interaction of electric and magnetic fields. The spectrum
is commonly broken into subgroups determined by the different wavelengths (or frequencies)
and emission, transmission, and absorption behaviours of various types of waves. From longest
to shortest wavelengths, the spectrum includes electric and radio waves, microwaves, infrared
(heat) radiation, visible light, ultraviolet radiation, X-rays, gamma rays, and electromagnetic
cosmic rays.

3.1 Design

The basic design of a Handy Oven is simple, and most operate in essentially the same manner.
The oven's various relays, and control circuits are located on the exterior casing, to which the
oven cavity is bolted. A front panel allows the user to program the microwave, and the door
frame has a small window to enable the cook to view the food while it is cooking.

3.2 Product Materials

The cover or outer case of the Handy Oven is usually a one-piece, wrap-around metal
enclosure. The oven's inside panels and lid are made of galvanized or stainless steel and are
given a coating of acrylic enamel, usually light in colour to offer good visibility. The cooking
surface is generally made of ceramic or glass. Inside the oven, electromechanical components
and controls consist of switches, and relays. Also, inside the oven are the 5G Heating Tube, the
waveguide, and the stirrer fan, all made of metal. The hardware that links the various
components consists of a variety of metal and plastic parts such as gears, pulleys, belts, nuts,
screws, washers, and cables.

3.2.1 Oven cavity and Lid manufacture

• The process of manufacturing a microwave oven starts with the cavity and the lid. First,
the frame is formed using automatic metal-forming presses that make about 12 to 15
parts per minute. The frame is then rinsed in alkaline cleaner to get rid of any dirt or oil
and further rinsed with water to get rid of the alkaline solution.
• Next, each part is treated with zinc phosphate, which prepares it for electro-deposition.
Electro-deposition consists of immersing the parts in a paint tank at 200 volts for 2.5

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minutes. The resulting coating is about 1.5 mils thick. The parts are then moved through
a paint bake operation where the paint is cured at 300 degrees Fahrenheit (149 degrees
Celsius) for 20 minutes.
• After the lid has been painted, a perforated metal plate is attached to its window
aperture.

3.2.2 The 5G tube subassembly

• The 5G tube assembly consists of a cathode cylinder, a filament heater, a metal anode,
and an antenna. The filament is attached to the cathode, and the cathode is enclosed in
the anode cylinder; this antenna will provide the electricity that will help to generate
the microwaves A thermal protector is mounted directly on the tube to prevent damage
to the tube from overheating.
• An antenna enclosed in a glass tube is mounted on top of the anode, and the air within
the tube is pumped out to create a vacuum. Finally, a plastic fan is attached to the motor,
where it will draw air from outside the oven and direct it towards the vanes.

3.2.3 Main chassis assembly

• The chassis assembly work is performed on a pallet a work-holding device used in

conjunction with other tools located at the station. First, the main chassis is placed on
the pallet, and the cavity is screwed on to the chassis. Next, the lid is attached to the
cavity and chassis by means of hinges.

3.2.4 Control switches, relays, and motors

• The cook switch provides power to the transformer by energizing a relay and a timer.
The relay is mounted close to the power transformer, while the timer is mounted on the
control board. The defrost switch works like the cook switch, activating a motor and
timer to operate the defrost cycle. Also mounted on the control board are a timer bell
that rings when the cooking cycle is complete and a light switch that allows viewing of
the cavity. The interlocking switches are sometimes grouped together with a safety
switch that monitors the other switches and provides protection if the lid accidently
opens during oven operation.

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3.2.5 Front lid

• A front lid that allows the operator to select the features available for cooking is
attached to the chassis. Behind the front lid, the control circuit board is attached. The
board, which controls the various programmed operations in their proper sequence
when the switches are pushed on the front lid, is connected to the various components
and the front lid by means of plug-in sockets and cables.

3.2.6 Lithium-Ion Battery

• A lithium-ion (Li-ion) battery is an advanced battery technology that uses lithium ions
as a key component of its electrochemistry. During a discharge cycle, lithium atoms in
the anode are ionized and separated from their electrons. The lithium ions move from
the anode and pass through the electrolyte until they reach the cathode, where they
recombine with their electrons and electrically neutralize. The lithium ions are small
enough to be able to move through a micro-permeable separator between the anode and
cathode. In part because of lithium’s small size (third only to hydrogen and helium),
Li-ion batteries are capable of having a very high voltage and charge storage per unit
mass and unit volume.

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4.FLOW SHEET DIAGRAM

Fig: Working of Handy Oven

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4.2 Developing Procedure of Handy Oven

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4.3 Graphical Representation of Handy Oven

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5. BASIS AND PRESUMPTION OF THE PROJECT:

▪ The process of manufacture is on the basis of double shift of eight + eight hours per day
with three hundred working days in a year.
▪ Labor and wages mentioned in profile are as per prevailing local rates.
▪ Interest rate at 12.5% considered in the project

▪ The Promoter contribution will be 10% of the total project cost. However, it may be
vary for women entrepreneurs.
▪ Subsidy and other concessions may be applicable as per the MSME Act of Karnataka
2006.
▪ The capacity of the plant 40,000 nos. of paper cups per day on the double shift basis.

6. INSPECTION AND QUALITY CONTROL:

Aforeserve Labs provide the safety testing of Microwave oven as per IS: 302-2-25 to
confirm whether the manufacturers follow the design measures to reduce the risk of injury
or damage to the user or service person, An appliance that complies with the text of IS: 302-
2-25 shall not necessarily be considered to comply with the safety principles of the standard
if, when examined and tested, it is found to have other features which impair the level of
safety covered by the requirements. An appliance employing materials or having forms of
construction differing from those detailed in the requirements of the standard may be
examined and tested according to the intent of the requirements and, if found to be
substantially equivalent, may be considered to comply the standard.

7. PRODUCTION CAPACITY PER ANNUM:

Quantity: 20 number of Handy Oven per day 6,200 number of Handy Oven per
annum (310 days)

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8. POLLUTION CONTROL

The technology adopted for making Handy Oven is eco‐friendly. Oven forming process is
totally automatically done by the machine, only feeding and packaging involves manual
work. The study was conducted keeping in mind the growing user base of the electrical
appliance across EU. 'Microwaves account for the largest percentage of sales of all type
of ovens in the European Union (EU), with numbers set to reach nearly 135 million by
2020', says the report. Researchers have investigated 12 different environmental factors
altogether, including depletion of resources and climate change during the manufacturing
process, and increase in ecological toxicity.

9. FINANCIAL ASPECTS

9.1. FIXED CAPITAL:

Machinery and Equipment:

Quantity
S.NO DESCRIPTION Rate (RS)

Outer Body Design Machine

1 2 3,00,000

2. 2 2,60,000
Inner Glass Materials & Parts

Office equipment (Computer, Table Chair etc.,)

3. 1,50,000

TOTAL 7,10,000

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10. RECURRING EXPENDITURE (PER MONTH):

(A) Product Material Per Month:

S.NO DESCRIPTION QTY RATE AMOUNT(RS)

1 Microwave Cavity 480 350 1,68,000

2 Wire Mesh 480 80 38,400

3 5G Tube (3 set each) 480 4,200 20,16,000

4 Lid latch slot 480 50 24,000

Total (A) 22,46,400

(B) Salaries & Wages Per Month:

S.NO DESIGNATION NO SALARY AMOUNT(RS)

1 Chief Executive Officer (CEO) 1
30,000 30,000
2 Chief Operating Officer (COO) 1
26,000 26,000
3 Chief Technical Officer (CTO) 1
22,000 22,000
4 Chief Recruitment Officer (CRO) 1
20,000 20,000
5 Chief Financial Officer (CFO) 1
18,000 18,000
6 Production cum Marketing 1
15,000 15,000
Manager (Proprietor)
7 Workers 5 8,000 40,000
8 Machine Operators 2 8,000 16,000

9 Checking & Packaging 2 5,000 10,000

10 Office Assistant 1 7,000 7,000

Total 2,04,000

Perquisites 15 % 3,975

Total (B) 2,07,975

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C) Utilities Per Month:

S.NO DESCRIPTION AMOUNT(RS)

1 Power 5 HP 850 Units @ Rs. 5 per Unit 4,250

2 Plastic and Stainless steel 25,000

Total (C) 29,250

(D) Other Expenses Per Month:

S.NO DESCRIPTION AMOUNT(RS)

1 Rent 12,000
2 Marketing expenses & Advertisement 15,000
3 Postage and stationery 800
4 Repairs and maintenance 6,000
5 Traveling and transportation 16,000
6 Insurance 14,500
7 Telephone, Mobile & Internet 2,500
8 Packing Materials 8,000
Total (D) 74,800

10.1 RECURRING EXPENDITURE PER MONTH:

A + B + C + D = Rs. 25,58,425/-

Recurring Expenditure for three months = Rs. 76,75,275/-

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11. WORKING CAPITAL ASSESSMENT

S.NO DESCRIPTION AMOUNT (Rs)

1 Product Material
(Required for one month) 33,50,400

2 Work in progress 51,975

(Required for one month)

3 Finished Good
(Required for 15 days) 1,50,000
4 Bill receivable
(Required for 15 days) 2,00,000
TOTAL 37,52,375
Say 37,53,000

12.FINANCIAL ASPECTS

12.A. Total Project Cost

Plant & Machinery 7,10,000

Working capital 37,53,000

Total 44,63,000

12.B. Means of Finance

Total Project cost 45,00,000

Promoter contribution 10% 4,30,000

Total 49,30,000

Finance required from the Bank 49,30,000/-

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12.C. Cost of Production Per Annum:

S.NO DESCRIPTION AMOUNT(RS)

1 Total recurring cost 76,75,275

2 Interest on Bank Loan @12.5% 3,62,750

3 Total Depreciation on Machinery & Stabilizer 1,60,000

@15%

4 Total Depreciation on furniture’s and other 30,000

equipment’s @ 20%

TOTAL 82,28,025/-

12.D. Turnover Per Annum:

By sale of 6,200 number of Handy Oven Rs. 7,200, Rs. 4,46,40,000/-

12.E. Profit Per Annum:

Turnover - Cost of Production

4,46,40,000 – 82,28,025

= 3,64,11,975/-

% of profit on sales = Profit/annum X 100

Turnover

= 3,68,11,975 X 100
4,46,40,000

= 82.46%

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12.F. Rate of Return = Profit/annum * 100

Total Capital investment

= 3,68,11,975 X 100

44,63,000

= 82.48%

13.Break Even Analysis:

Fixed expenditure per annum:

Interest on Loan 3,62,750

Total Depreciation 1,60,000

40% of salary and wages 4,39,000

40% of other expenses & Utilities 82,800

Total 10,44,550

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14. Profitability Statement

Year 1 2 3 4 5 6
S.NO Capacity
65% 70% 75% 80% 85% 90%
Utilization
Turnover (crores)
1. 4.46 9.14 12.59 14.17 16.88 19.72
Raw materials(lakh)
2. 40.61 42.14 43.74 45.43 47.20 49.06
Manpower(lakh) 6.65
3. 6.83 7.02 7.22 7.43 7.65
Utilities(lakh)
4. 0.57 0.59 0.62 0.65 0.69 0.72
Other
5. expenses(lakh) 1.50 1.57 1.65 1.73 1.82 1.91
Depreciation(lakh)
6. 0.94 0.83 0.73 0.64 0.57 0.51
Total Interest(lakh)
7. 3.70 2.48 1.16 0.86 0.54 0.51

Repayment of
8. 1.24 2.48 2.48 2.48 2.48 2.56
loan(lakh)
Total (2 to 8)
9. 50.21 52.92 54.40 56.01 57.73 59.92
Profit before tax
10. 8.59 8.22 9.19 9.16 10.15 10.80
Provision fortax
11. 2.50 3.00 3.50 4.00 4.50 5.00

12. Profit after tax 15.09 15.22 15.69 15.16 15.65 16.80
Less
13 2.94 2.83 2.73 3.64 3.57 3.51
depreciation
14 Cash accrual 6.15 5.39 5.96 6.52 6.08 6.29

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Conclusion

The report first focuses on enhancing the basic knowledge of the entrepreneur about the
main product, by elucidating details like product definition, its uses and applications, industry
segmentation as well as an overall overview of the industry sector in India. The report then
helps an entrepreneur identify the target customer group of its product. It further helps in
making sound investment decision by listing and then elaborating on factors that will
contribute to the growth of product consumption in India and also talks about the foreign
trade of the product along with the list of top importing and top exporting countries. Report
includes graphical representation and forecasts of key data discussed in the above-mentioned
segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with
their contact information and recent developments. It includes crucial information like raw
material requirements, list of machinery and manufacturing process for the plant. Core
project financials like plant capacity, costs involved in setting up of project, working capital
requirements, projected revenue and profit are further listed in the report.

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