BURN Manufacturing Co.

Updated Mar 28, 2019

BURN Manufacturing Co.

Improved Design Cookstoves

http://www.burnstoves.com/

Daniel Baume

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Stage 5: Scaling

Our sales & distribution have historically been focused in Kenya, Somalia & Somaliland. With stable operations in east Africa markets, BURN is poised to expand to new markets and to increase the impact of its revolutionary cookstoves.

Registered as a For-Profit in Kenya.

Focus Areas:

Environment, Health, Economic Growth and Trade and 2 MoreSEE ALL

Implemented In:

Kenya

2,000,000

Lives Impacted to Date

Country Implemented In

580,000

Customers

250

Employee

$3,000,000

Funds Raised to Date

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Problem

Around 550,000 people die annually from respiratory diseases related to indoor cooking in Sub-Saharan Africa (SSA). Nearly half of the deaths are among children under the age of 5. By 2050, 1.8 billion in SSA will cook with biomass. Urban reliance on charcoal will from 162 million to 352 million people in that time. In SSA, approximately 90% of the rural households and 50% of urban households relies on wood and charcoal. 52% of SSA’s forest loss is caused by unsustainable biomass harvesting.

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Solution

Burn Manufacturing Ltd. (“BURN”) is a leading developer, manufacturer, and distributor of clean cookstoves in sub-Saharan Africa. The current cookstove brands are Jikokoa, Jikokoa Xtra, and Kuniokoa, which include both charcoal and wood/biomass cookstoves. The company plans to expand its stove offerings in different fuels, such as sustainable biomass and electric cooking, as well as accessories to our current products.

Target Beneficiaries

Women are the primary beneficiaries of BURN’s stoves. BURN’s stoves decrease indoor air pollution by up to 90% compared to a three stone fire, and reduce time to boil by 60%, improving the health of women users and reducing time spent on cooking tasks. Women also represent half of the manufacturing floor at BURN's solar-powered factory in Ruiru, an exception to the rule in East Africa.

Mission and Vision

BURN’s mission is to save lives and forests through the design, manufacture and distribution of best-in-class clean cooking solutions for the developing world. while creating sustainable jobs. BURN’s goal is to bring its existing industry-leading products and innovative new cooking solutions to Africa’s mass market, leveraging its competitive advantages in low-cost manufacturing & brand building to become Africa’s #1 cookstove company.

Innovation Description

Since 2013, BURN has sold 500,000 modern biomass cookstoves in East Africa. These stoves have transformed the lives of 2.1 million people, helping reduce: 1. Fuel consumption by 56% 2. Household fuel expenditures by $150-$200/yr 3. Total household fuel costs by US$130 million 4. Wood consumption by 2.4 million tons 5. Carbon emissions by 2.5 million tCO2e 6. PM2.5 and CO2 emissions by 65-81% The JikokoaTM meets ISO/IWA Tier ‘4’ ratings, - the highest possible rating for performance and health impacts - in 6 out of 9 categories, including PM2.5 the leading cause of cookstove related fatalities. In November 2014, BURN launched Sub-Saharan Africa’s first and only modern cookstove manufacturing facility in Kenya. BURN employs 230+ people - more than half of whom are women - and produces a stove every 30 seconds. In Q1 2019, BURN will add 20,000 ft^2 to its existing 25,000 ft^2 facility. Burn is also exploring expanding its manufacturing capabilities across the continent.

Competitive Advantage

Manufacturing: BURN invested $US5 million to launch a modern manufacturing facility located 20km north of Nairobi, Kenya. BURN produces stoves for 40% less than our competitors using contract manufacturers & 75% less with current import tariffs. Brand: BURN has built a brand in Kenya with 70% product recognition. In our key expansion markets we will leverage our world class brand building experience to ensure we are the product of choice. Innovation: BURN has produced industry-leading cookstove technology and will continue to invest in R&D to bring life-changing products to market in fuel categories with enormous growth and impact potential. Team: BURN has a dynamic and versatile team with diverse international experience across sectors and disciplines. .

Planned Goals and Milestones

During the next 3 years, BURN will expand into 5 key global markets with its existing product line, as well as a new range of cookstoves. Funding & executing BURN’s strategic plan will drive 2021 targets of: 1. Achieve 2,000,000 total stoves sold since 2013 2. $18M revenue and $2.5 million EBITDA in 2021 3. $540M household savings 4. 24M tCO2e emissions avoided 5. 14M tons wood saved

	New Implemented Countries	Nigeria, India, Zambia

The Team Behind the Innovation

Peter Scott (CEO/Founder): Peter has more than 19 years’ experience in cookstove design and commercialization in the developing world. He has received an Ashden Award and was chosen as a Top 100 Global Thinkers by Foreign Policy Magazine. Boston Nyer (COO/Founder): Boston's role has ranged from business strategy to managing the Jikokoa development & factory launch. Leif Chr. Haerum (CFO): Leif took the Lidl Norway from startup to 1,000 employees with a turnover of $350 million.