PROJECT PROFILE
Product : Fly Ash Bricks
Product Code : 32201004 32091008
Quality Standard. : As per customers specification
Month & Year : December, 2010
Prepared By : MSME Development Institute Okhla, New Delhi-110 020 Phone: 26838118,26838068 Fax : 26838016 INTRODUCTION:
Product and its uses :- The fly ash bricks are not yet well known ,but looking to is superior quality and friendly nature, it is easily acceptable and it is expected to have good demand in near future. Fly ash bricks are made of flyash, lime, gypsum and sand. These can be extensively used in all building constructional activities as similar as that of common burnt clay bricks. The fly ash bricks are comparatively lighter in weight and stronger than common clay bricks. Since fly ash is being accumulated as waste material in large quantity near thermal power plants and creating serious environmental pollution problems, its utilization as main raw material in the manufacture of bricks will not only create ample opportunity for its proper and useful disposal but also help in environmental pollution control to a greater extent in the surrounding areas of power plants.
MARKET POTENTIAL:
The Honourable Supreme Court under an order has banned the manufacturing of bricks from the conventional method in Delhi w.e.f. June, 1997. So all the bricks kilns in Delhi has to stop production resulting shortage of bricks in the State. The requirement of the State is fed by the brick kilns from the nearby states, who are not capable to meet the huge demand for the bricks. However, the Supreme Court in its order has allowed the owners of the existing units of the bricks kilns to manufacture the bricks from the fly ash, manufacturing of which is pollution free. The fly ash bricks are comparatively superior in the quality than the common bricks in all the respects. Therefore, it is expected that there will be good demand for these bricks particularly in metropolitan cities and other places where thermal power plants and existing with abundant quantities of fly ash and available almost free of cost for bricks making units.
BASIS & PRESUMPTIONS: i. It has been taken into consideration that the unit will work on single shift basis for 300 days in a year. ii. The cost of land, construction charges, cost of machinery and equipment, raw materials & Consumables, salaries and wages, other expenses etc. indicated in the profile are based on the prices prevailing at the time of preparation. Therefore, they are subject to necessary changes from time to time based on local conditions. iii. The salary and wages for staff and labour has been taken into consideration on the basis of prevailing market rate in the proposed profile.
iv. To reach the full plant capacity, it requires 1 year after trial production.
v. Interest rate at 12.00% considered in the project profile both for recurring and non- recurring expenditure. vi. Margin money will vary from 10-25% depending upon the location and scheme adopted by the entrepreneur. vii. Operative period of project around 10 years considering technology obsolescence rate and period of repayment of loan.
IMPLEMENTATION SCHEDULE:
Selection of site and construction 3 to 6 months Preparation of project report and provisional registration under SSI 1 to 2 months
Availing of Finances. 3 to 4 Months. Procurement of machinery & equipment, raw materials and 2 to 3 months. consumables etc. Erection and Commissioning of plant & machinery, construction of 4 to 5 months. building, kilns & curing tank etc. Trial runs and Commissioning of regular production. 1 to 2 months.
TECHNICAL ASPECTS:
1. Process of manufacture in brief:
Fly ash, lime sand and gypsum are manually fed in a pan mixer where water is added in require proportion and intimate mixing is done. Mixing proportion is generally 60% -80% of fly ash, 10%- 20% lime, 10% gypsum and 10% sand depending upon the quality of raw materials.
After mixing, the mixed material is pressed in the shape in semidry conditions using hydraulic process, the bricks are carried on wooden plates/bolt conveyer, to the open area where they are dried and water cured for 21 days. After curing the bricks are tested and sorted.
2. Quality Standards & Specifications:
The bureau of Indian Standards has formulated and published the specification for maintaining quality of product and testing purpose.
IS: 12894-1990 .
3. Production Capacity:
The profile envisages setting up a unit for manufacture of 60 lacs of fly ash bricks valued at Rs.84 lacs per annum.
4. Power Requirement: 30 K.W.
5. Pollution Control:
The technology adopted for making fly ash bricks is ecofriendly as it does not require steaming or auto calving as the bricks are cured by water only. Since the burning process is avoided, there are no emissions and also there is no effluents discharged. On the other hand, it solves the problem of fly ash disposal.
6. Energy Conservation:
General precautions for saving energy particularly electricity are required to be followed by the unit by adopting energy conservation techniques not only to conserve the power but also to save considerable expenditure on their consumption in its own interest and also in the interest of the national as a whole.
FINANCIAL ASPECTS:
Fixed capital:
Land & Building:
Land 1 acre Rs 3,00,000/-
Particular Area in Rate per Cost in Rs. Sq.ft. Sq.ft. Working shed. 2400 150/- 3,60,000/- Office & laboratory 900 200/- 1,80,000/- Boundry wall, gate L.S. 70,000/- Fly ash pond and curing tank L.S. 1,20,000/- Total 7,30.000/-
Machinery & equipment:
Plant & machinery consist in Pan mixer (run by 20 1 set 8,00,000/- HP)Hydraulic press(30 ton capacity.) Belt Conveyer (run by 3 H.P.) 1 set. 50,000/- Deep Tube well 1 No. 30,000/- Generator 1 No. 1,10,000/- Steel plates and extra moulds. L.S. 75,000/- Trolleys L.S. 25,000/- Office furniture and equipment L.S. 50,000/- Installation & erection charges ` L.S. 50,000/- ‘Pre operative expenses. 50,000/- Total 12,40,000/ Recurring Expenditure:
Staff & Labour
Manager. 1 No. @ Rs.12,000/- Rs.12,000/-
Production Engineer 1 No. @ Rs.8,000/- Rs.8,000/-
Skilled worker 4 Nos. @ Rs.4,000/- Rs.16,000/-
Chowkidar 2 Nos. @ Rs.3,500/- Rs.7,000/-
Clerk-cum-cashier. 1 No. @ Rs.5000/-- Rs.5000/-
Unskilled worker 5 No. @ Rs3,500/- Rs.17,500/-
Peon 1 Nos. @ Rs.3,500/- Rs.3,500/-
Perquisites 15% Rs.10,350/-
Total Rs79,350/-
Raw material (per month):
Fly ash(available free of cost)Ind. 1000 tons@ Rs. 100/- per 1,00,000/- ton(transportation charges)
Lime, Ind. 250 tons @ Rs. 700/- per ton 1,75,000/-
Sand Ind. 125 tons @ Rs. 100/- per ton 12,500/-
Gypsum Ind. 125 tons @ Rs. 1000/- per ton 1,25,000/-
Total: 4,12,500/-
Utilities (per month):
Power 30x0.8x8x25x3.50 Rs.16,800/- Water. Rs. 5,000/- Rs.21,800/- Other expenses (per month):
Postage & stationery. 1,000/- Transport & conveyance 1,000/- Repair & Maintenance. 2,000/- Telephones 1,500/- Insurance. 4,000/- Advertisement & Publicity 2,000/- Misc. Expenditure 2,000/- Total : 13,500/-
Total recurring expenditure (per month): Rs, 5,27,150/-
Total Capital Investment:
Fixed Capital Rs.22,70,000/-
Recurring Expenditure for 3 months. Rs.15,81,450/- Rs.38,51,450/-
FINANCIAL ANALYSIS:
Cost of Production (per annum):
Total recurring expenditure. 63,31,800/-
Interest on capital investment @ 12.00% p.a. 4,62,174/-
Depreciation on machinery & equipment @ 10% 1,14,000/-
Depreciation on office equipment @ 20% 10,000/- Depreciation on Building @ 5% 36,500/-
Total 69,54,474/-
Total Sales (per annum):
60 lacs bricks @ Rs, 1.40/- per brick Rs.84,00,000/-
Profitability (per annum):
Profit Rs. 14,45,526/-
Profit on sales Net profit (Per year) x 100 = 17.21% = Sales (per year )
Return On Investment = Net profit x 100 = 37.53% Total investment
Break Even Point Analysis:
Fixed Cost a) Depreciation Rs. 1,60,500/- b) Interest on total investment Rs. 4,62,174/- c) Insurance Rs. 48,000/- d) 40% of salary and wages Rs. 3,80,900/- e) 40% of other contingent expenses Rs. 16,800/- Rs. 10,68,374/-
BEP = Fixed cost x 100 Fixed cost + Profit
= 10,68,374/- x 100 = 42.50% 10,68,374 + 14,45,526