Fly Ash Bricks Manufacturing Project Report, Business Plan
Introduction
Hello friends, today we are here with a new topic called “Fly ash bricks manufacturing project report and business plan in India”. Pulverized fuel ash popularly known as fly ash is a useful by-product released by thermal power stations which use pulverized coal as fuel and has substantial pozzolanic activity. This national resource has been properly utilized in the manufacturing of pulverized fuel ash-lime bricks as an add-on to common burnt clay building bricks thereby conserving natural resources and upgrading the environment quality.
Pulverized fuel ash-lime bricks are procured from materials containing pulverized fuel ash in major quantity, lime, and an accelerator behaving as a catalyst. Pulverized fuel ash-lime bricks are usually manufactured by blending several raw materials which are then molded into bricks and subjected to curing cycles at various temperatures and pressures. After this, they are crushed and the bottom fuel ash or sand is collected and used in the arrangement of the raw material. Crushed bottom fuel ash or sand is even applied while composition as a coarser material to monitor water absorption in the end product. Hence, pulverized fuel ash – lime when has moisture develops a calcium–silicate hydrate which is binding material. Thus, pulverized fuel ash–lime brick could be chemically ended bricks.
These bricks are appropriate for construction just like they usually burnt clay bricks. In the manufacturing process of these pulverized fuel ash-lime bricks, it is being done in the country, and is estimated that this standard would support production and use on a large scale. This stand lays down the important requirements of pulverized fuel ash bricks to attain consistency in the manufacture of such bricks.
A guide to Fly Ash Bricks Manufacturing Project report, and Business Plan
Implementation schedule
i) Market analysis and information on the scope of business, product demand, power provision, water facility and necessary raw materials, etc. 0-1st month
ii) Preparation of business plan. 1st – 2nd month
iii) Financial support or investment 2nd– 4th month
iv) Selection of location and development of unit 3rd– 4th month
v) Power and water connection facility-
vi) Building Construction and shed development 4th– 6th month
vii) Machinery and equipment purchase 4th– 6th month
viii) Obtain raw materials and recruitment of manpower.7th– 8th month
ix) Trial operations 9th month.
Market potential of Fly Ash Bricks Manufacturing Business
180 billion tones of common burnt clay bricks are used every year and about 340 billion tones of clay- around 5000 acres of the top layer of soil are used in bricks manufacture and lead to soil erosion. The emission from coal-burning or fire woods is responsible for deforestation are a serious threat to the ecosystem by the brick industry. The above threats can be minimized with the use of fly ash bricks in dwelling plants.
Demand for dwelling units is predicted to rise to 80 million units in 2015 for lower-middle- and low-income clusters, which projects an estimated requirement of $670 billion, based on the reports by the Associated chamber of commerce and industry. The need for dwelling units will further grow to 90 million in 2020, which would require about $890billion investment. The Indian housing sector currently facing a shortage of 20million dwelling units that could face a spurt of around a 22.5million dwelling units in the future. Hence, it’s evident that there is great scope for fly ash brick and block units.
Raw materials required for starting Fly Ash Bricks Manufacturing Business
Fly Ash is the inorganic mineral compound released after burning coal/lignite present in the boilers. Fly Ash is that part of ash which is gathered from the hoppers of ESP’s and pond ash is gathered from the ash ponds. Bottom ash is that section of ash that can be gathered from the bottom portion of the boilers. The properties of fly ash will be based on the quality of lignite/coal and the efficiency of boilers.
India has a major need for coal for power generation and it tends to increase gradually to 60,000MW in the year 2010. As the generation of power from bituminous fuels is on the rise. The generation of fly ash will also increase. The fly ash production in Thermal Stations of India is likely to develop to 170 million tonnes in 2010 from the current level of 100 million tonnes. The disposal of fly ash in the current process will be a great problem for the environment, particularly when the volume increases from the current level.
The machinery required for starting Fly Ash Bricks Manufacturing Business
The proposed unit will have both types of fly ash based on availability.
Machinery list for establishing Fly Ash Bricks production unit:
- Automatic Fly Ash Brick making machine
- Belt Conveyor
- Pan Mixer
- Other electrical fittings/ lighting
Manufacturing process of Fly Ash Bricks
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Fly ash (70%) Lime (10%) Gypsum (5%) and sand (15%) are introduced into a pan mixer by workers where water is poured to the required quantity for consistent mixing. The proportion of raw materials may differ based upon raw materials. After mixing, the mixture is allowed to pass through the belt conveyor from the feed into the automatic brick-making machine where the bricks are pressed by the machine. Next, the bricks are kept on wooden pallets and wait for 48 hours later moved to an open area and water cured for around 10 -15 days. The bricks are categorized and tested before sending to market.
Inspection and quality control in Fly Ash Bricks Manufacturing Business
The Bureau of Indian Standards has laid and published the guidelines for maintaining the quality of products and for testing. IS 12894:2002. Compressive strength achievable: 60-250 Kg/Cm.Sq. Water absorption: 5 – 12 %; Density: 1.5 gm/cc Co-efficient of softening (based upon water consistency factor) Unlike conventional clay bricks, fly ash bricks have more affinity to cement mortar despite the smooth surface, due to the crystal development between brick and the cement mortar the joint will get stronger and in a short period it will become monolithic and the toughness will be sustained.
Specifications required for Fly Ash Bricks Manufacturing Business
Bureau of Indian Standards has given specific guidelines for making clay fly ash bricks, lime fly ash bricks, commonly burnt clay bricks, and the making of calcium silicate bricks are popularly known to be associated with the quality and making of Fal-G bricks.
- IS 12894:1990 – is for Fly Ash Lime bricks.
- IS:13757:1976 – is for Burnt clay fly ash building Bricks.
- IS:4137:1989 – is for calcium silicate bricks.
- IS:3102:1976 – is used for the classified burnt clay solid bricks.
- The other important BIS specifications are:
- IS:3812:1981 – is for Fly Ash for use as Pozzolana and admixture.
- IS:712:1984 – is for Building limes.
- IS:3495(Pt. I)1976 – is used for methods of tests of burnt clay building bricks.
Fly Ash Bricks Manufacturing Project Report/ Economics of Fly Ash Bricks Manufacturing Business
Fly Ash Bricks Manufacturing Project Report – Fixed Capital:
Land: 0.5 acre: Rs. 1,25,000
Work Shed: 100 Sq. Mtr. @ Rs. 1500 Per Sq. Mtr.: Rs. 1,50,000
Office & Store: 20 Sq. Mtr. @ Rs.2500 Per Sq. Mtr.: Rs. 50,000
Tube well with over head tank, pipe line and other civil construction including Boundary and Gate etc.: Rs. 60,000
Total: Rs. 2,60,000.
Fly Ash Bricks Manufacturing Project Report – Machinery & Equipment:
Brick press(semi-automatic) with 7.5 H.P. Motor and 500 bricks/hr.cap. and complete with all accessories: Rs. 1,85,000
Pan mixer with 7.5 HP motor, 150 Kg.Cap. & complete with all accessories: Rs. 85,000
Hydraulic Pellet Truck: Rs. 45,000
Wheel barrows: Rs. 10,000
Wooden pellets (3’x2’ size, 6 bricks cap. and 72 bricks / pellet): Rs. 20,000
Installation & electrification: Rs. 30,000
Weighing machine, platform type and of 100 Kgs. Cap.: Rs. 20,000
Office equipment & furniture: Rs. 21,000
Total: Rs. 4,15,000
Pre-operative expenses Rs. 15,000
So, total fixed capital costs: Rs. 8,15,000.
Fly Ash Bricks Manufacturing Project Report – Working Capital
Personnel (P.M.):
Manager 1 (One) @ Rs.3000 p.m.: Rs. 3,000
Supervisor-2 (Two) @ Rs.2500 p.m.: Rs. 5,000
Machine operators 2 (Two) @ Rs.2000 p.m.: Rs. 4,000
Skilled workers 4 (Four) @ Rs.1800 p.m.: Rs. 7,200
Un-skilled workers 10 (Ten) @ Rs.1200 p.m.: Rs 12,000
Watchman-cum-peon 2 (Two) @ Rs.1000 p.m.: Rs. 2,000
Total: Rs. 33,200
Perquisite @ 15%: Rs. 5,000
Total: Rs. 38,200
Raw materials (P.M.):
Fly ash 150 MT @ Rs.120 per MT: Rs.18,000
Sand/Crushed stone dust 200 MT @ Rs.80 MT: Rs. 16,000
Lime (Slaked) 20MT @ Rs.1700 per MT: Rs. 34,000
Lime sludge 20MT @ Rs.800 per MT: Rs. 16,000
Calcined gypsum 10MT @ Rs.2300 per MT: Rs. 23,000
Phospho-gypsum 10MT @ Rs.800 per MT: Rs. 8,000
Total raw material cost: Rs. 1,15,000
Utilities (P.M):
Power: Rs. 7,500
Water: Rs. 300
Total: Rs. 7,800
Other Contingent Expenses (P.M.):
Postage and stationery: Rs. 300
Telephone: Rs. 600
Consumable Stores: Rs. 600
Repair and maintenance: Rs. 1,000
Transport and traveling expenses: Rs. 2,000
Advertisement and publicity: Rs. 1,000
Insurance: Rs. 500
Miscellaneous: Rs. 1,000
Total: Rs. 7,000
Hence, total Recurring Expenses per month: Rs.1,68,000
Fly Ash Bricks Manufacturing Project Report – Total Capital Investment:
Total fixed capital: Rs. 8,15,000
Working Capital (on one month basis): Rs. 1,68,000
Total: Rs. 9,83,000
Financial analysis:
Cost of Production (Per year):
Total recurring expenditure: Rs.20,16,000
Depreciation on bldg./shed @ 5%: Rs. 13,000
Depreciation on machinery & equipt. @10%: Rs. 36,500
Depreciation on fixtures & office equipment & furniture: Rs. 10,000
Interest on total investment @ 17%: Rs. Rs. 1,67,100
Sales turnover per year: Rs. 22,42,600
By sale of 18 lakhs bricks @ Rs.1450/- per1000 bricks: Rs. 26,10,000
Profit in Fly Ash Bricks Making Business in India
Net profit per year: Sales – Production cost = Rs. 26,10,000 – Rs. 22,42,600 = Rs. 22,42,600 = Rs. 3,67,400
Fly Ash Bricks Manufacturing Project Report – Net Profit Ratio:
Profit x 100/Total Cap. Investment = 3,67,400 x 100 / 9,83,000 = 37%
Break Even Point (% of total prod. Envisaged)
Fixed Cost
Total depreciation: Rs. 59,500
Insurance: Rs. 6,000
Int. on investment: Rs. 1,67,100
40% of salary and wages: Rs. 1,83,400
40% of other cont. expenses excluding insurance: Rs. 31,200
Total: Rs. 4,47,200
Net profit per year: Rs.3,67,400.
B.E.P. = FC x 100 / FC + Profit = 447200 x 100 / 447200 + 367400 = 54.9%.
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