1. Product Description: An immersion heater is an electrical domestic or household appliance used to warm water in a container by transferring electric heat/energy from a socket to the water. Immersion heaters are used to warm water for taking bath, for washing clothes and for other purposes which need warm water. The appliance is a very convenient household item for improving personal hygiene in homes where there are no electrical water heaters. Immersion heaters are relatively less expensive that water heaters and they can be acquired by people of modest income.
2. Rationale: Over 95 percent of urban homes which are supplied with electric power do not have water heaters in their bath-rooms or kitchens. One main reason for this is that the majority of the homes do not have in-house water and plumbing systems. As a result, people are not provided with proper facilities for taking bathes in their homes. This is a serious hygienic problem which has negative consequence on the health situation of people living under such conditions. Immersion heaters are very convenient gadgets both in terms of price and handling for facilitating the shower and bath needs of people. Promoting the production and distribution of immersion heaters can not be considered from the point of industrial development, but it should also be seen from the stand point of health care development. Hence, production of immersion heaters should promoted on a priority basis by the Region.
3. Market Potential: Considering the size of the urban population without water heaters, market limitation will not be a problem for immersion water heaters. The potential market for the product is much greater than the production volume of a viable plant. If we assume that only 10 percent of the urban families in the Amhara Region use immersion water heaters, this translates into a demand figure of about 40,000 units. This will sustain a viable immersion heater producing plant.
IMPORT OF IMMERSION WATER HEATERS
4. Source of Raw Material: The main raw materials are copper or brass and magnesia.
5. Process and Technology: In the manufacturing process of immersion heater, copper or brass tube are used. The diameter of the rod should be of proper size as the service life of the heater depends on it. The tubes are then filled with fused magnesia and element. The element should be in the center and no air gap remains there. After filling, the thick copper lead is welded on both ends. At one end the rods are shaped into coils and these are immersed into the water intended to be heated. Finally electric cable is attached to the rods. Machinery required include swaging machine, gas welding equipment, slitting saw, pipe bending fixture, vibrating platform and H.V. tester.
6. Estimated Investment: For a plant which will produce 1500 immersion heaters per month, the estimated investment will be as follows:
n Building/Shade 100m2 at Birr 1500/m2 = Birr 150,000
n Machinery = Birr 100,000
n Working Capital = Birr 80,000
330,000
7. Benefits: Saves foreign exchange at national level and financial resources at region level, contributes to the improvement of health in the Region, introduces new skills and technology to the Region, and facilitates the follow of finance to the Region through the export of the product.
8. Location: Debre Birhan, Combolcha.