Introduction
Headquartered in Punjab, Metlonics is a family owned business, operating since 1969. The company manufactures metal fabricated products used in industries like infrastructure, automotive, agriculture, etc. An otherwise profitable company, began to see a drop in their operating margins. Post the analysis, it was clear that their fuel costs was causing a roadblock, as high speed diesel is an expensive fuel.
Costs with Diesel
- Handling Cost: spillage and storage
- Usage Cost: heating and pumping systems
- Maintenance Cost: carbon emissions and soot
- Manpower Cost: more hands needed while working with diesel
Using diesel was also affecting the efficiency as the work space was often confined and unclean.
Cost Savings & Payback
Fuel Consumption(HSD vs. LPG)
Average Consumption of HSD = 19500 Ltr/Month
Average Consumption of LPG = 17400 Kgs/Month
Cost Comparison(HSD vs. LPG)*
Cost of HSD per month = INR 12.76 Lacs
Cost of LPG per month = INR 7.55 Lacs
Savings and Payback
Total investment = 15 Lacs
Savings per month = INR 5.21 Lacs
Pay back period = 90 days (3 months)
