Start a Fly Ash Bricks Making Unit


      
(231). Start a Fly Ash Bricks Making Unit


Fly Ash bricks are made of fly ash, lime, gypsum and sand. These can be extensively used in all building constructional activities similar to 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 utilisation as main raw material in the manufacture of bricks will not only create ample opportunities for its proper and useful disposal but also help in environmental pollution control to a greater extent in the surrounding areas of power plants. In view of superior quality and eco-friendly nature, and government support the demand for Fly Ash Bricks has picked up. 


Market Potential 

The country consumes about 180 billion tonnes bricks, exhausting approximately 340 billion tonnes of clay every year and about 5000 acres of top soil land is made unfertile for a long period. The Government is seriously concerned over soil erosion for production of massive quantities of bricks, in the background of enormous housing needs.

The excellent engineering property and durability of fly ash brick enlarges its scope for application in building construction and development of infrastructure, construction of pavements, dams, tanks, under water works, canal lining and irrigation work etc. Enormous quantities of fly ash is available in and around thermal power stations in all the states. The demand of bricks could be met by establishing small units near thermal power stations and to meet the local demand with less transportation costs.

Basis and Presumptions

i. It is assumed that the unit will operate on single shift basis for 300 working days in a year.

ii. The salary and wages for staff and labour has been taken into consideration on the basis of prevailing market rates.

iii. To reach the full plant capacity, it requires 1 year after trial production.


iv. Interest rate at 13% is considered in the project profile for both recurring and nonrecurring investment.

v. Margin money will vary from 10- 25% depending upon the location and scheme adopted by the entrepreneur.

vi. Operative period of project is around 10 years considering technology obsolescence rate and period of repayment of loan.

vii. The costs of land, construction charges, machinery and equipment, raw materials, and consumables, other contingent expenses etc. indicated in the scheme are based on the prices, prevailing at the time of project preparation. Therefore, these are subject to necessary changes from time to time based on the local conditions.

Implementation Schedule

Sl. 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
1day to 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


Technical Aspects
Process of Manufacture 

Fly 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.

After mixing, 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.

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.

Production Capacity (Per year)

Quantity (Nos.) : 60 Lakhs bricks
Value


Motive Power 30 KW.


Pollution Control

The technology adopted for making fly ash bricks is eco-friendly. It does not require steaming or auto calving as the bricks are cured by water only. Since the firing process is avoided, there are no emissions and no effluent is discharged. On the other hand, it solves the problem of fly ash disposal.


Energy Conservation

General precautions for saving 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 in their own and also in the interest of the nation as a whole.

Financial Aspects
A Fixed Capital

(i) 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 Ind./ Imp. . Qty. Price (Rs.)
Pan mixer (run by 20 HP motor) Ind. 2 200000
Hydraulic Press (30 Tonnes Cap.) Ind. 2 450000
Belt Conveyor (Run by 3 HP motor) Ind. 1 100000
Deep Tube Well Ind. 1 80000
Generator - 1 250000
Steel Plates and Extra Moulds - L.S. 150000
Trollies - L.S. 60000
Office, Furniture and Equipments - L.S. 60000
Installation and Erection charges - L.S. 70000
Total
1420000


(iii) Pre-operative Expenses 100000
Total Fixed Capital (i+ii+iii) 4345000

B. Working Capital (per month)

(i) Staff and Labour (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

(ii) Raw Materials (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) (Rs.)
Power 30000
Fuel 20000
Total
50000


(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

C. Total Capital Investment

Fixed Capital
4345000
Working Capital
1545040
Total
5890040

Financial Analysis

(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

(2) Turnover (per year)

Qty. Rate Value (Rs.)
60 Lakhs Bricks
2 per bricks
12000000


(3) Net Profit (per year) =
Turn Over – Production Cost
  =
Rs. 12000000 – 10325195.2
  =
1674804.8
     
(4) Net Profit Ratio =
Net Profit x 100
--------------------
   
Total Turnover
     
  =
1674804.8 x 100
---------------------
   
12000000
     
  =
13.96%
     
(5) Rate of Return =
Net Profit (per year) x 100
---------------------------
   
Total Investment
     
  =
1674804.8x 100
----------------------
   
5890040
     
  =
28.43%

(6) Break-even Point

(i) 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


B.E.P =
Fixed cost x 100
-----------------------
   
Fixed cost + Profit
     
  =
1931051.2 x 100
-----------------------
   
1931051.2 +1674804.8
     
  =
53.55%

Addresses of Plant and Machinery Suppliers

1. M/s. Jindal Hydraulics
D-203, Sector-10,
Noida (UP)

Raw Material Suppliers

1. NTPC's and Thermal Power Plants for Fly Ash.

2. M/s. Stark and Co.

17, Najafgarh Road,
Near Jakhira Chowk,
New Delhi - 110015

Technology

3. Central Building Research Institute
Roorkee - 247 667 (U.P.)

4. National Council for Cement and

Building Materials
KM Stone, Delhi - Mathura Road,
Ballabhgarh - 121 004
Distt. Faridabad (Haryana)

5. Institute for Solid Waste

Research and Ecological
Balance, Vishakhapatnam.

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

Comments

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