flyash brick bplan
TRANSCRIPT
START UP PLAN
Altern flyash brick
DURA BRICKS (P) LTDbuilding greener earth brick by brick
PROMOTERS
ROHIT RAODEEPAKD RAMANNIRRANJENHARIHARANS M ARUN SENTHIL KUMAR
INTRODUCTION
Nearly 73% of India’s total installed power generation capacity is thermal, of which coal-based generation is 90% – the remaining comprising diesel, wind, gas, and steam.
With the rapid rise in thermal generation, environmental pollution as a result of massive fly ash generation, poses a new problem.
It is expected that by the year 2012 fly ash generation in the country by thermal power plants will be reaching nearly 200 million tonnes.
INTRODUCTION
In India, the brick industry comes third after power and steel in coal consumption.
The total carbon dioxide emission is estimated to be 42 million tonnes.
clay brick industry is degrading the fertile topsoil to the extent of 50,000 acres every year in India.
Till date only 14% of the Fly Ash generated is being utilized.
MARKET ANALYSIS
Brick manufacturing falls under the domain of small-scale industries (SSI) sector.
The Indian brick industry is second biggest in the world after China and produces about 140 Billion bricks in a year.
short-fall in the production of bricks – to the tune of 40 billion bricks on an estimated demand of 180 billion bricks per year in India.
6 Billion flyash bricks are produced per year in India.The market penetration of the technology remains low (less
than 2%).
MISSION AND VISION
MISSION:“To provide and promote business and services
that strengthen the brick manufacturing sector for the ultimate benefit of its customers and society.”
VISION:To be in the forefront of creating awareness
about environment, & to be the largest player in the field of fly-ash brick production by 2014.
PRODUCT DESCRIPTION
FLYASH BRICKSSize of block is 290x185x125mm Uniform in size, shapeHigh strengthLight in weightGood resistance to salinity and termiteWater absorption is less
PLANT LOCATION
ENNORENorth ChennaiNear by Thermal power station
BUSINESS MODEL
TECHNOLOGYThe FaL-G technology revolves around fly ash, lime and
gypsum chemistry. FaL-G bricks/blocks are superior in quality compared to
bricks produced from fly ash and lime. In the case of fly ash-lime-gypsum (FaL-G) mixes, the
strengths are imparted by calcium alumino-sulphate hydrates (CASH).
The strengths of FaL-G is in the range of 200-250-350 kg/cm2.
FaL-G technology does not involve any sintering process.
MANUFACTURING PROCESSFly ash, lime sand and gypsum are manually fed into a pan
mixer where water is added in the required proportion for intimate mixing.
The proportion of the raw material is generally in the ratio 60-80% of fly ash 10-20% lime, 10% Gypsum and 10% sand, depending upon the quality of raw materials.
The mixture is shifted to the hydraulic/mechanical presses. The bricks are carried on wooden pellets to the open area where they are dried and water cured for 21 days.
The bricks are tested and sorted before despatch.
COMPARISONFLY ASH BRICK NORMAL CLAY
BRICKUniform pleasing colour like cement Varying colour as per soil
Uniform in shape and smooth in finish Uneven shape as hand made
Dense composition Lightly bonded
No plastering required Plastering required
Lighter in weight Heavier in weight
Compressive strength is around 100 Kg/cm2
Compressive strength is around 35 Kg/cm2
Less porous More porous
Water absorption 6-12% Water absorption 20-25%
PRODUCTION PLAN
300 Working days1 shift per dayFirst operation-50% of Capacity
( 60,00,000 units) Production in batches
One batch of 1000 bricks.Total 6000 batches yearly.
Second year operation- 60% of capacity
PROPOSED PLANT LAYOUT
Office
Production
Drying
Raw material storage
FAL-G PROCESS STEP1
ProcurementOf
RAW MATERIAL
FLY ASHFROM
THERMAL PLANTS
LIME/GYPSUMFROM
CHEMICAL PLANTS
STONE DUSTFROM
STONE CRUSHER
FAL-G PROCESS STEP 2
Storageof
Raw Materials
FLY ASHIn open yard
duly wetted and
covered by Plastic sheet
LIME SLUDGEDumped in open yard
or stored in packets
STONE DUSTIn open yard
duly wetted and
covered by Plastic sheet
GYPSUMIn bags
,stored in godowns.
FAL-G PROCESS STEP 3Batch Mixing of Raw Material
Mechanized transportation
of required quantity Raw Materials to
Roller Mixture
FLY ASH
LIME
SAND
GYPSUM
FAL-G PROCESS STEP 4Wet mixing in Roller Mixer
Raw materials are kneaded under rollers for achieving homogenous mortar
FLY ASH
LIME/GYPSUMSAND
FAL-G PROCESS STEP 5 Mechanized Transfer from Pan Mixer to Automatic Brick Making Machine
ROLLERMIXTURE
VIBRO PRESSHYDRAULIC
COMPRESSION
homogenized m
ortar
homogenized mortar
FAL-G PROCESS STEP 6
The green bricks are dried up under sun
from 24 to 48 hours
DESPATCH TO THE MARKET
Drying & Curing
The dried up bricksare stacked
and subjected for water spray curing
once or twice a day for 7-21 days
depending on ambience
MARKETINGTarget Market
BuildersConsultantsArchitectsGovt.
Positioning Positioned as Environmental friendly
Segmentation Based on the geography
PRICING STRATEGY
Rs 2 per brickOur competitive advantageMarket rate is between Rs 3 to Rs 3.50
PROMOTION STRATEGY
Listing on websites like Indiamart.com, justdial.com, construction.indiabizclub.com, and others.
Discounts on large buyingTrade promotionPublicityLarge volume of institutional sales
BASIS & PRESUMPTIONSAssumed that the unit will operate on single shift basis for 300
working days in a year. The salary and wages for staff and labour has been taken into
consideration on the basis of prevailing market rates.Interest rate at 13% is considered in the project profile for both
recurring and nonrecurring investment. Margin money will vary from 10- 25% depending upon the
location and scheme adopted by the entrepreneur. Operative period of project is around 10 years considering
technology obsolescence rate and period of repayment of loan.
INSTITUTIONAL ASSOCIATIONS
INSWAREB Technology provider
Provide technology know how Provide logistical support for procuring equipment,
machinery and raw materials. Provide guarantee to enterprises against technical failure.
INSTITUTIONAL ASSOCIATIONSECPL Carbon Transaction Coordinator
Enroll micro entreprises under the project Find a potential buyer and negotiate price Coordinate carbon transaction activities with the buyer and
the CDM Executive Board Obtain host country endorsement Undertake monitoring as per the CDM requirements and
requirements of the World bank Pass on the carbon benefits to the micro enterprises as per
the terms mutually agreed
INSTITUTIONAL ASSOCIATIONSCDCF (The World Bank) Purchasing emission
reductions
Coordinate with the CDM executive Board Register the project with CDM Executive Board Make payments to ECPL as per the terms
mutually agreed Monitor the implementation of specific
communication programs by ECPLMonitor the implementation of specific
community development components of the project
COMPANY’S ROLESetting up and operating FaLG plants
Mobilize resources Procure equipment and machinery Market the products Keep data and records as per the monitoring requirements
of CDM Implement the community developments components as
agreed between ECPL and the CDCF Implement environment management plans as agreed
between ECPL and CDCF.
OTHER ISSUESUnited Nations Development Programme’s
Global Environment Facility (UNDP-GEF) is supporting a project on manufacture of energy-efficient bricks.
Quality Control and Standards -The Bureau of Indian Standards has formulated and published the specification for maintaining quality of product and testing purpose. IS 12894:1990.
Though our project is eco friendly, it need clearance from pollution control board.
ROAD MAPSI. NO
ACTIVITY PERIOD STARTING
PERIOD COMPLETION
1 Survey of collection of data in respect of demand, availability of technology, power, land and clearance from State Pollution Control Board
Day 1 2nd month
2 Arrangement for margin money 2nd to 3rd
3 Preparation of project report and registration
2nd to 3rd
4 Finance assistance 2nd to 4th
5 Development of Site and construction of building
5th to 7th
6 Machine purchasing and installation 7th to 8th
7 Trial production 8th month
FINANCIAL ANALYSIS
CAPITAL ASSISTANCE
PROMOTER’S COMBINATION 10 lakh per promoter (60 lakh)
Assistance from Industrial Investment Corporation of TamilNadu
Loan assistance from Industrial Development Bank of India
FIXED CAPITALi) Land and Building (Rs.)
Land 1 Acre @ Rs. 1200000 1200000
Building Area 165 sq. mt. @ Rs. 5000 per sq mt. 825000
Working Shed 150 sq. mt. @ Rs. 4000 per sq. mt. 600000
Boundary Wall, Gate L.S. 112519
Fly Ash Pond and Curring Tank L.S. 200000
Total 2937519
ii)Machinery and equipments
Description Price (Rs.)
Pan mixer (run by 20 HP motor) 200000
Hydraulic Press (30 Tonnes Cap.) 450000
Belt Conveyor (Run by 3 HP motor) 100000
Deep Tube Well 80000
Generator 250000
Steel Plates and Extra Moulds 150000
Trollies 60000
Office, Furniture and Equipments 60000
Installation and Erection charges 70000
TOTAL 1420000
TOTAL FIXED CAPITAL
iii) Pre-operative Expenses 100000
Total Fixed Capital (i+ii+iii) 4345000
WORKING CAPITAL(i) Staff and Labor (per month) Designation Nos. Salary Total Salary (Rs.)
Manager 1 15000 15000
Production Engineer 1 12000 12000
Skilled Workers 5 6000 30000
Un-skilled Workers 10 4000 40000
Chowkidars 3 3000 9000
Peons 2 3000 6000
Cashier-Cum-Clerk 1 4000 4000
Total 116000
Add Perquisites @ 22% 25520
Total 141520
WORKING CAPITALii)raw material (per month)
Description Ind./ Imp. Qty. (Ton.) Rate (P.Ton)
Value (Rs.)
Fly Ash Ind. 1000 120 120000
Lime Ind. 250 1100 275000
Sand Ind. 125 120 15000
Gypsum Ind. 125 1100 137500
Total 547500
iii) Utilities(per month)(iii) Utilities (per month) (Rs.)
Power 30000
Fuel 20000
Total 50000
TOTAL WORKING CAPITAL(iv) Other Contingent Expenses (per month)
(Rs.)
Postage and Stationery 2000
Telephone 4000
Transportation 10000
Insurance 5000
Repair and Maintenance 5000
Advertisement and Publicity 2500
Misc. Expenditure 5000
Total 33500
(v) Total Recurring Expenditure (per month) (i+ii+iii+iv)
772520
(vi) Total Working Capital (for 2 months)
1545040
TOTAL INVESTMENT CAPITALFixed Capital 4345000
Working Capital 1545040
Total 5890040
COST OF PRODUCTION(per year)(1) Cost of Production (per year) (Rs.)
Total Recurring Cost 9270240
Depreciation on Building at 5% 141250
Depreciation on Machinery and Equipment @10%
136000
Depreciation on Office equipment @ 20%
12000
Interest on Total Capital Investment @ 13%
765705.2
Total 10325195.2
TURNOVER (per year)Qty. Rate Value (Rs.)
60 Lakhs Bricks 2 per bricks 12000000
Net Profit (per year) = Turn Over – production Cost
= Rs. 12000000 – 10325195.2
= 1674804.8
NET PROFIT RATIO Net Profit x 100
-------------------- Total Turnover 1674804.8 x 100
--------------------- 12000000 13.96%
RATE OF RETURN Net Profit (per year) x 100
--------------------------- Total Investment 1674804.8x 100
---------------------- 5890040 28.43%
BREAK EVEN POINT Fixed Cost (Rs.)
Depreciation on building @ 5% 141250
Depreciation on Machinery and Equipment @ 10%
136000
Depreciation on Office Equipment @ 20%
12000
Interest on Total Capital Investment @ 13%
765705.2
Insurance 60000
40% of Salary and Wages 679296
40% of Other Contingent Expenses (excluding insurance)
136800
Total 1931051.2
BEP Fixed cost x 100
----------------------- Fixed cost + Profit 1931051.2 x 100
----------------------- 1931051.2 +1674804.8 53.55%
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