Jiya Eco Products forays into eco-friendly stove for mass cooking

Company claims a 50% cut in operation costs as compared to commercial LPG cylinder

Bhavnagar-based bio fuel and biomass pellet producing company Jiya Eco Products Limited has forayed into eco-friendly cooking stoves for mass cooking. Fueled by briquettes and pellets produced out of agricultural waste, the stoves could be ideal substitute to commercial LPG cylinders.

Targeting hotels and catering businesses, especially on the highways, the company plans to to distribute over 5000 such stoves in near future. The company claims a 50 per cent cut in operation costs as compared to commercial LPG cylinder.

Since last three years, Jiya Eco has been engaged in production of bio fuel and biomass pellet from agriculture and forest waste in Bhavnagar of Gujarat.

"Bio fuel is cheaper than gas and liquid fuels. Looking at the increasing use of it, we have planned to develop eco friendly stoves for those engaged in mass cooking," said Harshad Monpara, managing director of Jiya Eco.

Depending on its size, body materials and cooking capacity, the cost of the stove varies anywhere between Rs 1,000 and Rs 50,000. Considering its cost, Jiya Eco has developed a special business model around it by leasing the product out instead of selling.

"We will not sell it to users but will give the stove on rent with very nominal charges. However, users have to buy pellets for fuel from us," said Bhavesh Kakadiya, chairman and managing director of the company.

Small hotels and caterers in Bhavnagar have already exhibited positive response for the stove that were distributed on trial basis by the company.

Claiming a 50 percent reduction in cost as compared to a commercial gas cylinder, the company has stated that one kg biomass pellet is equivalent to 18 kg of gas. "While cost of a commercial cylinder is about Rs 1,700, that of 1 kg pellet price is Rs 850," Kakadiya added.

Buoyed by the growth in its biomass pellets and briquettes business alone, Jiya Eco is also planning to enter the equity market through an initial public offering (IPO). The company plans to list itself on the BSE SME exchange through the upcoming Rs 4.85 crore IPO.

"The fund that we will raise through the IPO will be spent on production expansion, stove manufacturing and as working capital," Kakadiya added.

Currently, the company has a biomass pellets production capacity of about 50 tonnes per day which it plans to expand to around 90 tonnes a day after listing. The company also produces 150 tonnes per day of biomass briquettes. However, manufacturing of the stove will be demand driven.

As against a turnover of Rs 16 crore in 2013-14, Jiya Eco Products Ltd. is expecting Rs 27 crore worth turnover for the year 2014-15.