business plan on fly ash (final)
TRANSCRIPT
Business Plan
On Fly Ash Ambrish
Suvi
Vinayak S.
A GO GREEN PROJECT
ASV FLY ASH BRICKS Co.
NAME QUALIFICATION
AMBARISH : B.com , M.B.A
SUVI SUGATHAN : B.E , M.B.A
VINAYAK : B.E , M.B.A
PROMOTORS
We are introducing the business of manufacturing Fly Ash Bricks
with a view point of eliminating Fly Ash as an Environment
Pollutant which provides the huge benefit to organization as well
as to environment.
What is fly ash brick?
It is a building material, specifically masonry units,
containing class C fly ash and water.
Compressed at 28 MPa (272 atm) and cured for 24 hours in a66
°C steam bath, then toughened with an air entrainment agent,
the bricks last for more than 100 freeze-thaw cycles
Owing to the high concentration of calcium oxide in class C fly
ash, the brick is described as "self-cementing“
INTRODUCTION
The raw materials for fly ash brick are:
Material Mass
Fly ash 62%
Sand/stone dust 23%
Lime 10%
Gypsum 6%
The manufacturing method saves energy, reduces mercury pollution, and costs 20% less than traditional clay brick manufacturing
INTRODUCTION
“ To provide and promote business and services
that strengthen the brick manufacturing sector for
the ultimate benefit of its customers and society
To be in the forefront of creating awareness
about environment, & to be the largest player in
the field of fly-ash brick production.
MISSION & VISION:
For setting up a fly ash brick industry these factors should be adhered:-
land requirement - at least 1.5 acre of land is required to set up a plant
factory location – fly ash generally is found near thermal power plant. Thus setting up a industry within 60 -70 km radius nearby a thermal power plant is an advantage.
Availability of water – ample amount of water is required for running these industry
Environmental issues – setting up a factory nearby an residential township or any other manufacturing industry is prohibited , as it generates huge dust and smoke and pollutes the air.
LOCATION OF THE PLANT
Thus keeping in mind all these factors , we did a lot of research and mapping intensively throughout India for a suitable location.
At last we are setting our plant in the state of Karnataka , in Raichur district.
About the location. The plant is going to be set up at around 1.3acre of land
within Malkapur village , which comes under raichur district. These village is an abundant space of vast land with very
few inhabitants.
Best thing is that it is just 14kms away from the Tungabhadra river
Big advantage of these location is that it is just 59.9 kms away from the raichur thermal power plant.
So by far these is the most relevant place for setting up a fly ash plant as these location meets all the essential criteria's.
Malkapur village lies 60 kms south of raichur
thermal power plant
PROPOSED PLANT LAYOUT
PLANT LAYOUT
The bricks which currently most us aware is made up of the soil of specific quality, but due to which earth erosion takes place and we waste natural resources.
This job is too laborious and involves cost. Natural seasons affect the quality and cost.
This bricks creates environmental pollution.
Helps to reduce the pollution Demand consumption and increasing cost -We come up with FLY ASH BRICKS
The main raw material is fly ash which is available in abundant quantity and free of cost at the thermal power station.
Disposal of fly ash is headache , It is highly polluting material.
OVERVIEW
Nearly 73% of India’s total installed power generationcapacity is thermal, of which coal-based generationis 90% – the remaining comprising diesel, wind, gas,and steam.
The 85 utility thermal power stations, besides theseveral captive power plants, use bituminous andsub-bituminous coal and produce large quantities offly ash.
High ash content (30%–50%) contributes to these largevolumes of fly ash.
SCOPE OF PROJECT
It is a very difficult material to handle in dry state because it is very fine and readily airborne even in mild wind.
It disturbs the ecology of the region, being a source of soil air and water pollution.
Long inhalation of fly ash causes silicosis, fibrosis of lungs, bronchitis, pneumonitis etc.
Flying fine particles of ash create great nuisance for people living near power stations, corrode structural surfaces, and affect horticulture.
Eventual settlement of fly ash particles over many hectares of land in the vicinity of power station brings about perceptible degeneration in soil characteristics.
PROBLEMS OF FLY ASH
With the rapid rise in thermal generation,
environmental pollution as a result of massive fly
ash generation, poses a new problem.
Fly ash is reported to cause ailments like allergic
bronchitis, silicosis, and asthma.
Fly ash contaminates surface water and may also
have an effect on underground water, affects the
aquatic life, is harmful for plants, and corrodes
exposed metallic structures in its vicinity.
NEED FOR UTILIZING /
DISPOSING FLY ASH
At thermal power plants, fly ash is currently collected / disposed off by using wet or dry systems.
In cases, where fly ash collection systems are not very efficient, a portion of it escapes into the atmosphere causing environmental pollution.
In the wet system, fly ash is mixed with water and sluiced to settling ponds or dumping areas near the plant.
Being cheaper than any other manner of fly ash removal, it is the widely used method at present in India
CURRENT FLYASH DISPOSAL
PRACTICES AND EFFECTS
FLY ASH BLOCKS FEATURES:
Size of blocks is 290x185x125mm
Faster construction
Less mortar consumption
Most suitable for boundary walls
Decorative, like stone masonry
Ash content 26%
PRODUCT DESCRIPTION
Ash can be collected in following categories:
DRY FLY ASH: Dry ash is collected from different rows of electrostatic
precipitators
It is available in two different grades of fineness in silos for use as
resource material by different users
BOTTOM ASH: Bottom ash is collected from the bottom of the boiler and
transported to hydro bins and then ash mound for use in road
embankment.
CONDITIONED FLY ASH:
Conditioned fly ash is also available in ash mound for use in land
fills and ash building products.
ASH COLLECTION
OPERATION & HR PLAN
Plant ParametersCapacity, Brick Per Year 24,00,000
Total value 78,00,000
Bricks Per Day 30,000
No. of Shifts Per Day 2
Working Days Per Year 300
Motive Power required 35 HP
Land Area 1 Acer
Financial Aspects
Fixed Capital
A) Land & Building
S.No Description Amount Rs
1. Building (60*40 = 2400 Sq.
feet )
3,00,000
2. Over Head water Tank 50,000
Total 3,50,000
S.No Description Amount Rs
1. Land 5,00,000
2. Building (60*40 = 2400 Sq.
feet )
3,00,000
3. Over Head water Tank 50,000
Total 8,50,000
Financial Aspects
B) Machinery & Equipment
S.N
o
Description QTY Rate Amount
1. Automatic Fly ash Brick making machine hydraulic operated with all accessories and fitting with 18HP Motor
1 12,00,000 12,00,000
2. Pan Mixture 500 KG Capacity with 7.5 HP Motor
1 2,50,000 2,50,000
3. Belt Conveyor with necessary fittings and 2 HP Motor
1 50,000 50,000
Total 15,00,000
VAT 4% 60,000
Grant total 15,60,000
Erecting and Electrification Charges 22,000
5. Office Furniture 20,000
Total 16,02,000
A) Raw Materials Per Month:
Financial Aspects:
Recurring Expenditure PM
S.N
o
Description QTY Rate Amount
1. Fly Ash 420
Mt
250 1,22,500
2. Gypsum Lime 70 1,900 1,33,500
3. Lime 105 1300 1,36,500
4. Sand 35 800 28,000
Total 4,20,000
Financial Aspects: Recurring
Expenditure PM
B) Salaries & wages Per Month
S.N
o
Description QTY Salary Amount
1. Production Manager 1 ------ Self
2. Unskilled Manager 22 3,950 86,900
3. Office Assistant 1 4100 4100
4. WatchMan 2 3,500 7000
Total 25 98,000
Financial Aspects: Recurring
Expenditure PM
C) Utilities Per Month
S.No Description Amount
1. Power 35 HP 3916 units @2 Rs 5. Per Unit 19,583
2. Water 1000
Total 20,583
Financial Aspects:
Recurring Expenditure PM
D) Other Expenses Per Month
S.No Description Amount
1. Postage & Stationary 1000
2. Repairs and Maintenance 3000
3. Traveling and Transportation 2000
4. Insurance 1000
5. Telephone 3000
Total 10000
Financial Aspects: Recurring
Expenditure PM
Total Recurring Expenditure Per Month
S.No Description Amount
1. Raw Material Per Month 4,20,000
2. Salaries & wages Per Month 98000
3. Utilities Per Month 20,583
4. Other expenses Per Month 10,000
Grand Total 5,48,583
WORKING CAPITAL
S.No Description Amount
1. Raw Material
( Req For one week ) 1,17,600
2. Work in progress
( Req For one month ) 1,09,583
3. Finished Goods
( Req For 5 Days ) 1,05,917
4. Bills Receivable
( Req For 2 weeks ) 2,06,900
Total 5,40,000
WORKING CAPITAL ASSESMENT
FINANCIAL ASPECTS:
TOTAL PROJECT COST
S.No Description Rate
1. Land 5,00,000
2. Building 3,50,000
3. Plant Machinery 16,02,000
Total
Total Project Cost
Means Of Finance
S.No Description Rate
1. Land 5,00,000
2. Building 3,50,000
3. Plant Machinery 16,02,000
4. Working Capital 5,40,000
Total 29,92,000
TOTAL PROJECT COST 29,92,000
PROMOTERS CONTRIBUTION 5% 1,49,600
Finanace Required From the Bank 28,42,400
Note * Subsidy applicable under the PMEGP @ 25% 7,48,000
Cost Of production
Per Annum
S.No Description Rate
1. Total recurring cost 5,48,583*12
65,82,996
2. Interest on total investment @12.5% 29,92,000*12.5%
3,74,000
3. Total Depreciation on Building @5% 3,00,000*5%
15,000
4. Total Depreciation on Machinery
equipments @ 10%
15,00,000*10%
1,50,000
5. Total Depreciation on Office &
furniture @ 20%
20,000*20%
4000
Total 71,25,996
Revenue
Generated
TURN OVER PER ANNUM
Excepted sale 24 lakh bricks @ 3.40 per bricks 81,60,000
PROFIT PER ANNUM
Turn Over – Cost Of Production
81,60,000 – 71,25,996
Rs 10,34,004
BEP Analysis
1. Fixed Cost Per Annum S.No Description Rate
a. Total Depreciation 1,69,000
b. Interest On Investment 3,74,000
c. Insurance
d. 40% Of on salary & Wages 4,70,400
e. 40% Of on other expenses &
Utilities excluding Insurance
1,41,998
Total 11,59,398
2. Profit Per Annum = 10,34,004
BEP = 11,59,398*100
21,93,402
= 52.85 %
STRENGTHS Cost advantage
Unlike metals or organic materials fly ash can withstand the onslaught of natural forces
Fly ash brick industry is an labour intensive industry. It has the potential for generating employment .
WEAKNESS
Cost of fly ash are increasing day by day ,which leads to increase in cost of production.
Fly ash industry is an highly messy job with an immense dusty working environment.
Due to lack of modern technology and machinariesto check pollution , fly ash industry does not posses that eagerness in common man eyes
SWOT ANALYSIS
OPPURTUNITIES
Fly ash industries has now replaced brick in infra-structure development
Fly ash is an good raw material for bricks. Thus it can substitute brick during construction period
THREATS
No.of labourers willing to work in fly ash factories are decreasing day by day due to health concerns
Availability of fly ash is scarce
Fly ash generates huge amount of pollution.
SWOT ANALYSIS
Production Plan