Monginis had started out as a small shop in Mumbai. Today via the franchise model of business it has 900+ shops that serve customers across India and Egypt. They aim to deliver quality, presentation and superior service to its customers.
Monginis has a factory in Bhiwandi Mumbai which manufactures various baked products such as cakes, cupcakes, pastries, rusks, biscuits, kharis and supplies them to over 300+ outlets across Maharashtra and Gujarat.
Why was the change needed?
- Moniginis was using Light Diesel Oil (LDO) to fire their baking ovens, which was causing respiratory problems to the employees.
- It would also at times, add a peculiar smell in the products which would have to be disposed off, causing loss in profits.
- Each product requires different baking temperatures. Since diesel takes longer to heat, the ovens would remain idle, causing a delay in supplying the finished products to the customer.
- The aesthetics of the final product would not be homogeneous. Some would have light crust while some would be mildly burnt.
- Maintenance cost was high due to soot and carbon emissions.
- Clean: Burning LPG as a fuel has low combustion emissions. It does not leave carbon deposits in ovens, burners and boilers.
- More Energy: To produce the same amount of heat, around 20% less LPG would be used than LDO. This is due to its high calorific value. (1 litre of LDO is equivalent to approximately 0.796 kg of LPG).
- Cost – Effective: The cost per KW of LDO is INR 4.50 whereas, for LPG it is INR 4.15, resulting in 8% direct saving in fuel cost.
- Workplace Friendly: Due to LPG being a low emitting fuel, the workplace stays cleaner, giving a healthy working environment.
- Better Control: LPG is simpler to control than LDO with instant ON/OFF. It is also much easier to adjust the intensity, thus offering better control over baking temperature.
- Faster Baking: Due to its higher energy content from its higher calorific value, using LPG for baking is much faster than using LDO.
- Environment Friendly: LPG creates the least greenhouse gas emissions. It contains very less amount of other particulate matters that are harmful to the environment. Using LPG can help reduce greenhouse emissions by up to 70%.
- Safe: LPG is much more convenient and safe to use than LDO, if handled and maintained properly.
The Pune Gas Advantage
- Reduction in Baking Time: With LDO, the average process time for baking a batch of goods was around 15 minutes. Since LPG helps to reach the required baking temperature faster, the average process time for baking the same batch of goods is reduced by 4 minutes. This amounts to approximately 16 minutes saved in an hour and more than 3 hours saved in a 12-hour day shift.
- Increase in Production Quantity: Due to time saved from the reduction in baking time, Monginis is now able to utilize that time to produce more without having to add any new baking equipment. Using the same setup of baking ovens and with more time available for production, Monginis is now able to produce an additional week’s quantity of goods every month.
- Enhanced Quality: The product taste has significantly improved as there is no carbon deposition and the products are baked uniformly. This consistently helps deliver homogeneous products to the customers.
- No Maintenance or Breakdown: As LPG is a clean-burning fuel that leaves zero carbon deposits, the need for frequent servicing of the burners and cleaning the inside of the oven chambers is not required anymore, which used to be the case with LDO. The production time lost due to these frequent breakdowns is also gained.
Cost Saving & Payback
- Light Diesel Oil (LDO)
Average Consumption of LDO = 2500 Ltr / Day
Average Price of LDO* = INR 54 / Ltr
Cost of LDO per day = INR 1,36,000
- Liquefied Petroleum Gas (LPG)
Average Consumption of LPG = 1800 Kgs / Day
Average Price of LPG* = INR 55 / kg
Cost of LPG per day = INR 99,000
Savings per day = INR 36,000
Payback period on the total investment of INR 86 Lacs = 239 days or 8 months
(*The average price of LDO & LPG for a 6 month period has been taken into consideration)
NOTE – We would like to extend our gratitude to Bharat Petroleum Corporation Limited for their support in supplying 450 kgs “Hippo” cylinders and investing in the gas bank and pipeline setup.