1. Product: Cooking is an indispensable function in food preparation. There are several types of fuel used for cooking purpose. Electricity can be used in an electric stove. Electric stove can be used for the preparation of different types of food.
2. Rational: The problems of fuel and charcoal scarcity and associated rising cost are prevalent in the Region. There is an acute problem of deteriorating natural forest condition due to deforestation. The main reason for deforestation is usage of wood as fuel for preparation of food. It is highly essential to have an alternative fuel resource to tackle the problem. The manufacturing of electric stove will reduce the problem at large. Presently there is no factory that produces Electric Stove in the Region.
3. Market: Electricity mainly from hydro-electricity domestic dams is available in almost all major towns sufficiently. The government is also launching electrification of rural areas in the region. As fuel from wood and charcoal became more expensive, the alternative of an Electric Stove demand will increase in the near future.
4. Source of Raw Material: The Electric Stove is manufactured from steel and refractory base which are available locally. The main fuel source, electricity is available from domestic supply. Main raw material of electric stove:
- Mild Steal flats and angles - Cast iron plates
- Mild steel rods - Chemicals
- Nichrome wire - Switches bolts and nuts
5. Production Process and Technology
(a) Production Process: Electric Stove making involves basically the process of shearing /cutting mild steel/ iron plate pressing (blanking and deep drawing) of mild steel places cleaning and painting, preparation of refectory base, baking of refectory base straightening of Nichrome wire, coiling of the wire, fitting of coils into refectory base, assembling, inspection, and packing.
b) Production Equipment
- Shearing machine - Bench grinder
- Circular cutting machine - Reel carrier
- Presses (power, fly, screw, hydraulic) - Air compressor
- Coil winding machines - Other (hard sheering equipment, coil
- Bending/forging equipment cutter spray guns tools work tables)
- Welding sets (spot, gas)
- Bench drilling machine
All machinery and equipment with the exception of work tables are assumed to be imported.
6. Estimated Investment:-The total investment including building, machinery and equipment and working capital is estimated to be Birr 500,000.00
7. Location:-The location of an electric stove making plant has to be in main towns of the region to serve the surrounding rural areas.