Domestic LPG Stove

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Product Code 340504005
Quality and Standards IS 4246 : 1984 for LPG Stove
IS 11480:1985 for LPG Grillers
Production Capacity IS 5116:1985 for General requirements for domestic and commercial equipment with LPG
Uploaded on Qty. : 90,000 Nos. (per annum)
Value : 49500000


L.P.G is the most convenient and clean fuel for domestic use and is very popular in these days. The LPG stove industry is about 36 years old and is mainly concentrated in the small-scale sector. LPG is a by product formed during petroleum distillation and is stored and marketed in gas cylinders of 14.2 KG capacity and used generally for cooking stoves and to some extent for industrial purpose also. The domestic LPG stove is primarily being used in the urban areas as well as in rural areas. The industry of domestic LPG stove has grown considerably over the last 18 years and offers a wide range of products i.e.

  • Gas stove with one burner,
  • Gas stove with two burners,
  • Gas stove with two burners, one grill also called as cooking grill,
  • Gas stove with three burners,
  • Gas stove with four burners etc.

Market Potential

In 1980, the Government of India had planned to push the exploration and production of LPG from Bombay High Project, thereby providing tremendous push to the LPG Stove Industry. More and more number of new connections are being released by the Govt. and therefore the demand of LPG stove is also increasing day by day. As per the last Census, there were 186, units manufacturing LPG stoves in India. Out of them, 139 were from SSI sector. Most of the units are located in the state of Delhi and Haryana.

Basis and Presumptions

  • The basis for calculation of production capacity is on double shift , working of 25 days per month on 75% efficiency. The time period required for achieving envisaged capacity utilization is assumed as one year.
  • Break-even Point for the scheme has been calculated on full capacity utilization.
  • Rate of interest has been taken @ 12% on an average. This, however, is likely to change depending upon the location of
    the project.
  • Labour wages have been taken on the basis of applicable rates in industry. These are likely to change depending upon the location of the project.

Building is considered of own

  • Margin money requirement differs from project to project and type of entrepreneurs such as women, SC/ST, physically handicapped etc. and the minimum margin money usually asked by the financial institutions and banks is 15%. Margin money up to 25% in some cases is also asked. The entrepreneurs may check the margin money requirement from financial institutions for the project.
  • Terms of loan differ from one financial institution to another and in general minimum gestation period is 6 months and it could be 2 years also. Maximum period for repayment of loan is 7 years including gestation period. The entrepreneurs may find the exact terms and conditions from the concerned financial institutions .
  • The cost of machinery and equipments as indicated in the scheme is approximate ruling at the time of preparation of the scheme. The entrepreneur may check the exact price for specific make and model of the machine selected.
  • Non-refundable deposits, cost of preparation of project report etc. may be considered under preoperative expenses.
  • The provision made in other respects viz; raw materials, utilities, overheads etc. is drawn on the basis of standard variation and output. The cost indicated against each is approximate based upon local market conditions and observations. The entrepreneur may find out the exact cost from the concerned sources.
  • The operative period of this project is estimated to be about 10 years considering technology obsolescence.
  • Calculations are based on manufacture of double burner stove only.

Implementation Schedule

It is envisaged that from the conception to commercial production, it may take about one and half years, which also includes time for preparation of project report, provisional registration, procurement of Machinery and Equipments, their installation and electrification, clearance from all local authorities, obtaining loan from financial institutions. However, the duration for implementation of project/unit may vary depending upon the circumstance.

Technical Aspects

Process of Manufacture

C.R. sheet is to be cut according to the desired length and width on the guillotine-shearing machine. Then it has to be fed in the double action deep draw press for giving shape of the body of LPG stove. The holes may be cut on power press in the body and burr must be removed. After that, the small holes may be done on drilling machine. Then it may be sent for Ni-crome plating from outside of MC Limit. Then all bought out components like burners, burner tops, pan supporting casting, Gas pipe assembly, gas cook assembly knobs, rubber rolls and name plates etc. are to be fitted on the body. Finally the stove must be tested as per ISI mark requirement and packed for despatching/selling.

Quality Control and Standards

The LPG stove may be manufactured and checked according to IS 4246:1984, IS 11480:1985 and IS 5116:1985. The following testing facilities are required for getting ISI certification mark

  • Strength testing equipment.
  • Thermal efficiency apparatus.
  • Combustion apparatus.
  • Gas soundness testing equipment.
  • Floor wall and ceiling temperaturemeasuring equipment.
  • Gas consumption testing apparatus.

Production Capacity (per annum)

Quantity(per annum) Value (Rs.)
90,000 Nos. Rs. 49500000
Motive Power 16 H.P.
Motive Power 50 KW.

Pollution Control

No pollution control is required in the unit as the unit has to get nickel crome plating from outside. However, the general feature for pollution control must be taken into consideration during the process of the unit.

Energy Conservation

General precautions must be taken into consideration to conserve energy such as shunt capacitors must be used on electric motors and carbide gas must be used with due care while welding and general lighting system.

Financial Aspects

Fixed Capital

(i) Land and Building (per month)

(In Rs.)

(i) Land 350 sq. mtr. @ Rs. 3500 per sq. mtr including registration 1575000
(ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr. 350000
(iii) Total built-up area 300 sq. mtrs. as follows  
Administrative building 75 sq. mtrs. construction cost @ Rs. 7,500 per sq. m 562500
Factory shed 225 sq. mtrs. construction cost @ Rs.5000 per sq. mtr. 1125000
Water System (including Bore Well + over head tank etc) 500000
Total civil cost= cost of land + building 4112500

(ii) Machinery and Equipment


Ind./ Imp.

Qty. Nos.

Total (In Rs.)

Treadle guillotine shearing machine cap. 1250×1.6 mm with 3 HP motor and accessories Ind 1 300000
Double action deep draw press No.6 with 15 HP motor and accessories Ind 1 1100000
Power press cap. 100 tonne with 10 HP motor and accessories Ind 1 450000
Power press cap. 50 tonne with 5 HP motor and accessories -do- 1 280000
Circle cutting machine cap. 50mm dia with one HP motor and accessories -do- 1 50000
Bench drilling machine cap. up to 20 mm with 1 HP motor and accessories -do- 1 20000
Double ended bench grinder 200 mm wheel size with 0.5 HP motor and accessories -do- 1 13000
Flexible shaft grinder -do- 1 8000
Edge folding press No. 12 -do- 1 35000
Fly press No. 4 -do- 1 20000
Gas welding set complete with all accessories -do- 1 15000
Portable drilling machine 12 mm cap. with motor -do- 2 10000
Spot welding set 15 KW -do- 1 80000
Electric welding set cap. 300 amp -do- 1 10000
Total 2391000
Cost of power connection 25500
Electrification and installation charges @ 10% of the cost of machinery 239100
Office furniture racks etc. 100000
Measuring instruments and testing apparatus etc. 100000
Tools dies and fixtures etc. 100000
Total (ii) 2955600
(iii) Pre-operative Expenses 50000
Total Fixed Capital (i+ii+iii) 7118100

Working Capital (per month)

(i) Salary and Wages



Salary (Rs.)

Amount (In Rs.)

Sales-cum-Marketing Manager 1 18000 18000
Clerk-cum-Typist 1 5000 5000
Accountant-cum-Cashier 1 7000 7000
Chowkidar/Peon 2 3000 6000
Sweeper (part time) 1 2000 2000
Engineer 2 15000 30000
Supervisor 3 8000 24000
Skilled Workers 12 6000 72000
  9 4500 40500
Helper 4 3500 14000
Total 218500
Perquisites @22% 48070
Total 266570

(ii) Raw Material (per month)


Rate (Rs.)



Amount (In Rs.)

CR sheet 1.00 mm thickness (20 SWG)/ tonne 43000 Tonne 30 1290000
Bought out Components
Burners and burners tops (ISI mark) 50 pair 7500 375000
Pan suppor- ting casted rings 22 Set 7500 165000
Gas pipe assembly 12 each. 7500 90000
Gas cock assembly ISI mark 90 pair 7500 675000
On and off knob 5 pair 7500 37500
Name plates 1.5 each 7500 11250
Card board boxes for packing 15 each 7500 112500
Total 2756250

(iii) Utilities



Power -10000 kWH @ Rs. 5/unit 50000
Total 50000

(iv) Other Contingent Expenses (per month)


(In Rs.)

i. Telephone 2000
ii. Postage and Stationery 2000
iii. Transport Charges 20000
iv. Repair and Maintenance 10000
v. Nickel crome plating charges 7500 × 50 375000
vi. Consumables like carbide, gas welding rods, oxygen gas etc. 25000
vii. Advertisement and Publicity & marketing 100000
viii. Insurance 8000
ix. Miscellaneous/sales Expenses 10000
Total 552000
(v) Total Recurring Expenditure (per month) [i + ii + iii + iv] 3624820
(vi) Total Working Capital (for 2 months) Rs. 3624820 × 2 7249640

Total Capital Investment

(i) Fixed Capital 7118100
(ii) Working capital for 2 months 7249640
Total 14367740

Machinery Utilisation

The number of machines to be installed has been determined in such a way that planned schedule of process will not cause any bottleneck in operation during bulk production. As such the unit will make utilization of machinery envisaged.

Financial Analysis

Cost of Production (per year)

(In Rs.)

i. Total recurring cost 43497840
ii. Depreciation on machinery @ 10% 239100
iii. Depreciation on Building @5% 205625
iv. Depreciation on office furniture @ 20% 20000
v. Depreciation on dies, tools and fixture @ 25% 25000
vi. Depreciation on measuring and testing apparatus @ 10% 10000
vii. Interest on Total Capital Investment @ 12% 1724129
Total 45721694

Turnover (per year)


Total (In Rs.)

By sales of 90,000 domestic LPG stoves @ Rs. 550 per stove 49500000
Net Profit (per year) Turnover - Cost of Production 3778306

Net Profit Ratio

  Net profit × 100
  Turn over
  3778306 × 100
  = 7.63

Rate of Return

  Net profit × 100
  Total Capital Investment
  3778306 × 100
  = 26.3

Break-even Point

Fixed Cost

(In Rs.)

Total Depreciation 499725
Total interest 1724129
Insurance 96000
40% of Salaries 1279536
40% of other contingent expenses 2649600
Total 6248990

B.E.P Fixed Cost × 100
  Fixed Cost + Profit
  6248990 × 100
  6248990+ 3778306
  = 62.32

Addresses of Machinery and Equipment Suppliers

  • M/s. Essential Machine Tools (P) Ltd.
    5, Nyayamurthi, G.N Vaidya Marg,
    Post Box No. 2, Behind State Bank, Fort,
  • M/s. Dutta Engg. Works
    C-162, Mayapuri Indl. Area,
    New Delhi.
  • M/s. JNW Engineers
    Commercial Complex,
    Mayapuri Indl. Area, Phase-I,
    New Delhi.
  • M/s. United Machine Co.
    B-96, Mayapuri Indl. Area,
    New Delhi.
  • M/s. Prem Engg. Works
    20, Okhla Indl. Area,
    New Delhi-110020.
  • M/s. Patel Indl. Corporation
    2-B, DLF Indl. Area,
    Nazafgarh Road,
    New Delhi.
  • M/s. Mahalaxmi Engg. Works
    20, DLF Indl. Area,
    Nazafgarh Road,
    New Delhi.
  • M/s. Simplicity Engineers
    B-99, Mayapuri Indl. Area,
    New Delhi.
  • M/s. Atlas Engg. Works
    G. T. Road,
  • M/s. P. K. Engg. Works
    B-1, Indl. Estate,
  • M/s. S.S. Mechanical Works
    Indl. Estate–B,

Raw Material Suppliers

Raw Material can be purchased fromlocal market, as it is available easily.Moreover, it can also be had from theGovernment Depots and Corporations.

For further information please contact

Information Manager
TIMEIS Project