fly ash business plan
DESCRIPTION
Business plan about fly ash brick productionTRANSCRIPT
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FASTEC FASTEC INDUSTRIALINDUSTRIAL
“An Environment Friendly Project”“An Environment Friendly Project”
Presentation by:Presentation by:
Gagan Jangale. Gagan Jangale. (584)(584)
Harish Nargundkar. Harish Nargundkar. (589)(589)
Kiran Ambekar. Kiran Ambekar. (592)(592)
Kiran Kitturkar.Kiran Kitturkar. (593) (593)
BUSSINESS PLAN BUSSINESS PLAN ONON
K.L.S INSTITUTE OF MANAGEMENT EDUCATION & RESEARCH
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PROMOTORSPROMOTORS
Name Name QualificationQualification
KIRAN AMBEKARKIRAN AMBEKAR BSc, MBA (Marketing)BSc, MBA (Marketing)
HARISH NARGUNDKARHARISH NARGUNDKARBcom, MBA (Marketing)Bcom, MBA (Marketing)
GAGAN JANGALEGAGAN JANGALE B.E., MBAB.E., MBA( HR & Marketing)( HR & Marketing)
KIRAN KITTURKARKIRAN KITTURKAR Bcom, MBA (Finance)Bcom, MBA (Finance)
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EXECUTIVE SUMMARYEXECUTIVE SUMMARY
INTRODUCTION:INTRODUCTION:
We are introducing the business of We are introducing the business of manufacturing Fly Ash Bricks with a view manufacturing Fly Ash Bricks with a view point of eliminating Fly Ash as an point of eliminating Fly Ash as an Environment Pollutant which provides the Environment Pollutant which provides the huge benefit to organization as well as to huge benefit to organization as well as to environment.environment.
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MISSION:MISSION:
““To provide and promote business and To provide and promote business and services that strengthen the brick manufacturing services that strengthen the brick manufacturing sector for the ultimate benefit of its customers and sector for the ultimate benefit of its customers and society." society."
VISION:VISION:
To be in the forefront of creating awareness To be in the forefront of creating awareness about environment, & to be the largest player in about environment, & to be the largest player in the field of fly-ash brick production.the field of fly-ash brick production.
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Plant locationPlant location
Andhra PradeshAndhra Pradesh
Anantapur Anantapur
(INDIA)(INDIA)
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Proposed Plant layoutProposed Plant layout
Office
Production
Drying
Raw material storage
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OVERVIEWOVERVIEW
The bricks which currently most us aware is The bricks which currently most us aware is made up of the soil of specific quality, but due made up of the soil of specific quality, but due to which earth erosion takes place and we to which earth erosion takes place and we waste natural resources.waste natural resources.
This job is too laborious and involves cost.This job is too laborious and involves cost.
Natural seasons affect the quality and cost.Natural seasons affect the quality and cost.
This bricks creates environmental pollution.This bricks creates environmental pollution.
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OVERVIEWOVERVIEW
Helps to reduce the pollutionHelps to reduce the pollution
Demand consumption and increasing cost Demand consumption and increasing cost We come up with FLY ASH BRICKS We come up with FLY ASH BRICKS
The main raw material is fly ashThe main raw material is fly ash
which is available in abundant quantity and which is available in abundant quantity and free of cost at the thermal power station.free of cost at the thermal power station.
Disposal of fly ash is headache.Disposal of fly ash is headache.
It is highly polluting material.It is highly polluting material.
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Scope of projectScope of projectNearly 73% of India’s total installed power Nearly 73% of India’s total installed power generation capacity is thermal, of which coal-based generation capacity is thermal, of which coal-based generation is 90% – the remaining comprising diesel, generation is 90% – the remaining comprising diesel, wind, gas, and steam. wind, gas, and steam.
The 85 utility thermal power stations, besides the The 85 utility thermal power stations, besides the several captive power plants, use bituminous and sub-several captive power plants, use bituminous and sub-bituminous coal and produce large quantities of fly bituminous coal and produce large quantities of fly ash. ash.
High ash content (30%–50%) contributes to these High ash content (30%–50%) contributes to these large volumes of fly ash.large volumes of fly ash.
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PROBLEMS OF FLY ASHPROBLEMS OF FLY ASHIt is a very difficult material to handle in dry state It is a very difficult material to handle in dry state because it is very fine and readily airborne even in because it is very fine and readily airborne even in mild wind.mild wind.
It disturbs the ecology of the region, being a It disturbs the ecology of the region, being a source of soil air and water pollution.source of soil air and water pollution.
Long inhalation of fly ash causes silicosis, fibrosis Long inhalation of fly ash causes silicosis, fibrosis of lungs, bronchitis, pneumonitis etc.of lungs, bronchitis, pneumonitis etc.
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PROBLEMS OF FLY ASHPROBLEMS OF FLY ASH
Flying fine particles of ash create great nuisance Flying fine particles of ash create great nuisance for people living near power stations, corrode for people living near power stations, corrode structural surfaces, and affect horticulture. structural surfaces, and affect horticulture.
Eventual settlement of fly ash particles over many Eventual settlement of fly ash particles over many hectares of land in the vicinity of power station hectares of land in the vicinity of power station brings about perceptible degeneration in soil brings about perceptible degeneration in soil characteristics.characteristics.
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NEED FOR UTILIZING / DISPOSING NEED FOR UTILIZING / DISPOSING FLY ASHFLY ASH
With the rapid rise in thermal generation, With the rapid rise in thermal generation, environmental pollution as a result of massive fly environmental pollution as a result of massive fly ash generation, poses a new problem.ash generation, poses a new problem.
Fly ash is reported to cause ailments like allergic Fly ash is reported to cause ailments like allergic bronchitis, silicosis, and asthma.bronchitis, silicosis, and asthma.
Fly ash contaminates surface water and may also Fly ash contaminates surface water and may also have an effect on underground water, affects the have an effect on underground water, affects the aquatic life, is harmful for plants, and corrodes aquatic life, is harmful for plants, and corrodes exposed metallic structures in its vicinity.exposed metallic structures in its vicinity.
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CURRENT FLYASH DISPOSAL CURRENT FLYASH DISPOSAL PRACTICES AND EFFECTSPRACTICES AND EFFECTS
At thermal power plants, fly ash is currently collected / At thermal power plants, fly ash is currently collected / disposed off by using wet or dry systems. In cases, disposed off by using wet or dry systems. In cases, where fly ash collection systems are not very efficient, where fly ash collection systems are not very efficient, a portion of it escapes into the atmosphere causing a portion of it escapes into the atmosphere causing environmental pollution.environmental pollution.
In the wet system, fly ash is mixed with water and In the wet system, fly ash is mixed with water and sluiced to settling ponds or dumping areas near the sluiced to settling ponds or dumping areas near the plant. Being cheaper than any other manner of fly ash plant. Being cheaper than any other manner of fly ash removal, it is the widely used method at present in removal, it is the widely used method at present in IndiaIndia
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Product Description:Product Description: FLY ASH BLOCKS FLY ASH BLOCKS
Features:Features: Size of blocks is 290x185x125mm Size of blocks is 290x185x125mm Faster construction Faster construction Less mortar consumption Less mortar consumption Most suitable for boundary walls Most suitable for boundary walls Plastering not required Plastering not required Decorative, like stone masonryDecorative, like stone masonryAsh content 26% Ash content 26%
PLAIN AND CHEQUERED TILESPLAIN AND CHEQUERED TILES
Plain and chequered tiles 22mm thick are manufactured in Plain and chequered tiles 22mm thick are manufactured in different sizes and colors as per requirement. different sizes and colors as per requirement.
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ASH COLLECTIONASH COLLECTIONAsh can be collected in following categories: Ash can be collected in following categories:
DRY FLY ASH:DRY FLY ASH:Dry ash is collected from different rows of electrostatic Dry ash is collected from different rows of electrostatic precipitators. It is available in two different grades of fineness precipitators. It is available in two different grades of fineness in silos for use as resource material by different users.in silos for use as resource material by different users.
BOTTOM ASH:BOTTOM ASH:Bottom ash is collected from the bottom of the boiler and Bottom ash is collected from the bottom of the boiler and transported to hydro bins and then ash mound for use in road transported to hydro bins and then ash mound for use in road embankment. embankment.
CONDITIONED FLY ASH:CONDITIONED FLY ASH:Conditioned fly ash is also available in ash mound for use in Conditioned fly ash is also available in ash mound for use in land fills and ash building products. land fills and ash building products.
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Operational Operational Plan Plan
& & HR Plan HR Plan
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Operational Plan & HR Plan Operational Plan & HR Plan
PLANT PARAMETERS PLANT PARAMETERS
Capacity, Bricks /Yr. Capacity, Bricks /Yr. 1,26,00,000 1,26,00,000
Bricks / dayBricks / day 30,000 30,000
No. of Shifts / dayNo. of Shifts / day 2 2
Working days / Yr.Working days / Yr. 300 300
Land Area,Land Area, 2 Acer 2 Acer
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Production PlanProduction Plan
First operation-50% of Capacity First operation-50% of Capacity
( 60,00,000 units)( 60,00,000 units)
Production in batchesProduction in batches– One batch of 1000 bricks.One batch of 1000 bricks.– Total 6000 batches yearly.Total 6000 batches yearly.
Second year operation- 60% of capacitySecond year operation- 60% of capacity
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RESOURCESRESOURCESMANPOWERMANPOWER
Managerial Managerial 88
Skilled Skilled 3232
Unskilled Unskilled 1212
RAW MATERIALRAW MATERIAL
(Tonne per 1000 bricks) (Tonne per 1000 bricks)
Fly ashFly ash 2.5 2.5
SandSand 0.40.4
LimeLime 0.350.35
Chemical acceleratorChemical accelerator 0.010.01
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RESOURCESRESOURCESUTILITIESUTILITIES
(Per 1000 bricks)(Per 1000 bricks)
Power, KWHPower, KWH 10.33 10.33
Water, KLWater, KL 4 4
Coal , TCoal , T 0.180.18
PLANT & MACHINERYPLANT & MACHINERY
Hydraulic Press Hoists Hydraulic Press Hoists
Pulveriser BoilersPulveriser Boilers
Autoclave Curing chambersAutoclave Curing chambers
ECONOMICSECONOMICS
Plant & MachineryPlant & Machinery 42,00,00042,00,000
Licence FeesLicence Fees 4,00,000 4,00,000
Licence PeriodLicence Period 10 Years10 Years
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MANUFACTURING MANUFACTURING PROCESSPROCESS
The process involves wet mixing of fly ash, sand, lime The process involves wet mixing of fly ash, sand, lime and an accelerating agent. and an accelerating agent.
The mixture is shaped into the standard size of bricks in a The mixture is shaped into the standard size of bricks in a hydraulic press to pressures varying between 100 to 200 hydraulic press to pressures varying between 100 to 200 kg/cm², as against below 50 kg/cm2 for conventional kg/cm², as against below 50 kg/cm2 for conventional bricks. bricks.
The moulded bricks are dried in two stages, i.e., The moulded bricks are dried in two stages, i.e., atmospheric drying for a period of 24 hrs., followed by atmospheric drying for a period of 24 hrs., followed by curing with steam in a steam chamber.curing with steam in a steam chamber.
Depending upon the temperature of steam available the Depending upon the temperature of steam available the curing time is scheduled as 6 hrs. between 95 to 105 curing time is scheduled as 6 hrs. between 95 to 105 ooc.c.
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TECHNOLOGYTECHNOLOGY
Technology for the project may be obtained Technology for the project may be obtained from either the Central Fuel Research Institute, from either the Central Fuel Research Institute, APSEB's Consulting Cell Or from the APSEB's Consulting Cell Or from the equipment suppliers.equipment suppliers.
Technology agreements would preferably be Technology agreements would preferably be entered into that guarantee the performance of entered into that guarantee the performance of the equipment, with equipment suppliers. the equipment, with equipment suppliers.
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STRATEGIC STRATEGIC PLANPLAN
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Demand And SupplyDemand And Supply
Currently the demand for bricks is very high Currently the demand for bricks is very high than the supply.than the supply.
D & S gap is 250 billion bricks per annumD & S gap is 250 billion bricks per annum
Raw material used for regular red bricks is Raw material used for regular red bricks is limited.limited.
Strategic step:Strategic step:– Introducing Fly Ash Bricks to reduce demand and Introducing Fly Ash Bricks to reduce demand and
supply gap.supply gap.– Subsidies and orders from govt. Subsidies and orders from govt.
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Competitive strategiesCompetitive strategies
Colouring the bricks redColouring the bricks red
Uniform in size, shapeUniform in size, shape
High strengthHigh strength
Light in weightLight in weight
Good resistance to salinity and termiteGood resistance to salinity and termite
Water absorption is lessWater absorption is less
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Pricing StrategiesPricing Strategies
PenetrationPenetration– Initially Rs. 1000 per 1000 bricks.Initially Rs. 1000 per 1000 bricks.– Later concession for large quantity buying.Later concession for large quantity buying.
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Promotional StrategiesPromotional Strategies
– Discounts on large buyingDiscounts on large buying– Aggressive SellingAggressive Selling– Trade promotionTrade promotion– PublicityPublicity– Large volume of institutional salesLarge volume of institutional sales
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MARKETING MARKETING PLANPLAN
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Existing Market ScenarioExisting Market Scenario
Market is dominated by red bricks.Market is dominated by red bricks.
Current estimates show the gap between Current estimates show the gap between demand and supply of bricks to be of the order demand and supply of bricks to be of the order of 250 billion bricks per annumof 250 billion bricks per annum
It is new product to the market.It is new product to the market.
This project helps to reduce environment This project helps to reduce environment pollution. pollution.
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Existing Market ScenarioExisting Market Scenario
Use of this bricks results in savings in Use of this bricks results in savings in construction cost by 25% construction cost by 25%
These bricks are already getting popular with These bricks are already getting popular with reputed Govt. agencies and builders. reputed Govt. agencies and builders.
This unit too requires a No Objection This unit too requires a No Objection certificate from the AP Pollution Control certificate from the AP Pollution Control Board.Board.
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Sales Target Sales Target
We are going to sale 60,00,000 units of bricks We are going to sale 60,00,000 units of bricks first year.first year.
In second year the sales target will be In second year the sales target will be 72,00,000 units of bricks.72,00,000 units of bricks.
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Existing UsersExisting Users
Gujarat Electricity BoardGujarat Electricity Board
Ahmedabad Urban Development AuthorityAhmedabad Urban Development Authority
Ahmedabad Municipal Corporation etcAhmedabad Municipal Corporation etc
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STP Strategy STP Strategy
Target MarketTarget Market– BuildersBuilders
– ConsultantsConsultants
– ArchitectsArchitects
– Govt.Govt.
Positioning Positioning – Positioned as Environmental ClearancePositioned as Environmental Clearance
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STP Strategy STP Strategy Segmentation Segmentation – Based on the geographicBased on the geographic
As our plant will be located in AP area, firstly going to capture As our plant will be located in AP area, firstly going to capture this area.this area.
– Based on the DemographicBased on the Demographic
Name of Company:Name of Company:– Fastec IndustrialFastec Industrial
Product Brand Name:Product Brand Name:– Flytec BricksFlytec Bricks
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Financial Financial PlanPlan
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Sources of fundsSources of fundsPARTICULARS AMT
Promoter's contribution
Rs. 40 lacs
Borrowed fund Rs. 60 lacs
Total fund Rs.100 lacs
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Uses of fund (INVESTMENT)Uses of fund (INVESTMENT)
Land & Building 24,00,000
Plant & Machinery 42,00,000
License and Deposit 4,00,000
Furniture and Fixtures 3,00,000
Miscellaneous 9,00,000
Cash/ Bank 18,00,000
TOTAL 1,00,00,000
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SUMMARY:SUMMARY:INCOME AND EXPENDITUREINCOME AND EXPENDITURE
Annual Sales60,00,000
Less : Cost of goods sold 5137600
GROSS PROFIT 8,62,400
Less : Tax @ 35% 3,01,840
NET PROFIT 5,60,560
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Financial RatiosFinancial Ratios
ROI 5.61%ROI 5.61%
Profit Margin 9.34%Profit Margin 9.34%
B.E.P. 2nd year.B.E.P. 2nd year.
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platesplatesDrying process of Bricks
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Our productOur product
Raw bricks
Finished Product
Designer bricks
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autoclaveautoclave
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pulverizerpulverizer
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Hydraulic pressHydraulic press
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CONCLUSIONCONCLUSION
FASTEC with its dedicated efforts is trying to FASTEC with its dedicated efforts is trying to emerge as an organization, which can emerge as an organization, which can empower its fellowmen to eliminate empower its fellowmen to eliminate environmental pollutants. environmental pollutants.
FASTEC in the long run will try its best FASTEC in the long run will try its best to generate an environment a pollution free to generate an environment a pollution free environment.environment.
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THANK THANK YOUYOU