Professional Documents
Culture Documents
For
BRICK MADNUFACTURING PROJECT
BY
GRP BRICKS
LOCATED AT
Kaliyur
AT SURVEY NO =====
VILLAGE: Kaliyur,
TALUKA – T. Narasipura,
DIST: Mysore
Also building construction with cement concrete hollow blocks provides facility for
concealing electrical conduit, water and sewer pipes wherever so desired and requires
less plastering.
Growing public awareness of the advantages of the product coupled with increase in
the government and financial institutions support for housing which is a basic human
necessity would ensure a healthy growth in the demand.
IMPLEMENTATION SCHEDULE
Sl Description of the activity Time (approx.)
1. Selection of the product 1 month
2. Preparation of the project report
8. Recruitment of manpower
PRESUMPTIONS
(4) Labour wages: Minimum wages applicable for semi-skilled and unskilled workers
were taken into consideration.
(5) Working shifts per day: It is envisaged that the enterprise will be in operation on
single shift of 8 hours per day basis for 300 working days in year.
(6) Implementation period: Project implementation period of 6 months is envisaged
RAW MATERIALS
Concrete is a mixture of ordinary Portland cement, mineral aggregate (sand and stone
chips) and water. The water used in preparing the concrete serves two purposes:
(1) It combines with the cement to form a hardened paste
(2) It lubricates the aggregates to form a plastic and workable mass
The water that combines with the cement varies from about 22 to 28% of the total
amount of mixing water in concrete.
Mineral aggregates (sand and stone chips) are normally divided into two fractions
based on their particle size. Aggregate particles passing through the No.4 or 4.7 mm
Indian Standard sieve are known as fine aggregate. The particles retained on this sieve
are designated as coarse aggregate. Natural sand is often used as fine aggregate in
cement concrete mixture. Coarse aggregate are crushed stone chips. Crushed stone
chips broken into particle sizes passing through the 4.7 mm sieve may also be used as
fine aggregate. The maximum size of the coarse aggregate that may be used in cement
concrete hollow blocks is 12.5 mm. However, the particle size of the coarse aggregate
should not exceed one third thickness of the thinnest web of the hollow blocks.
Ordinary Portland cement is the cementing material used in cement concrete hollow
blocks. Cement is the highest priced material per unit weight of the concrete. Hence, the
fine and coarse aggregates are combined in such proportions that the resulting concrete
is workable and has minimum cement content for the desired quality.
MANUFACTURING PROCESS
The process of manufacture of cement concrete hollow blocks involves the following 5
stages;
(1) Proportioning
(2) Mixing
(3) Compacting
(4) Curing
(5) Drying
(1) Proportioning:
The determination of suitable amounts of raw materials needed to produce concrete of
desired quality under given conditions of mixing, placing and curing is known as
proportioning. As per Indian Standard specifications, the combined aggregate content
in the concrete mix used for making hollow blocks should not be more than 6 parts to 1
part by volume of Portland cement. If this ratio is taken in terms of weight basis this
may average approximately at 1:7 (cement : aggregate). However, there have been
instances of employing a lean mix of as high as 1:9 by manufacturers where hollow
blocks are compacted by power operated vibrating machines. The water cement ratio of
0.62 by weight basis can be used for concrete hollow blocks.
(2) Mixing
The objective of thorough mixing of aggregates, cement and water is to ensure that the
cement-water paste completely covers the surface of the aggregates. All the raw
materials including water are collected in a concrete mixer, which is rotated for about 1
½ minutes. The prepared mix is discharged from the mixer and consumed within 30
minutes.
(3) Compacting
The purpose of compacting is to fill all air pockets with concrete as a whole without
movement of free water through the concrete. Excessive compaction would result in
formation of water pockets or layers with higher water content and poor quality of the
product.
Semi-automatic vibrating table type machines are widely used for making cement
concrete hollow blocks. The machine consists of an automatic vibrating unit, a lever
operated up and down metallic mould box and a stripper head contained in a frame
work.
Wooden pallet is kept on the vibrating platform of the machine. The mould box is
lowered on to the pallet. Concrete mix is poured into the mould and evenly leveled. The
motorized vibrating causes the concrete to settle down the mould by approximately 1 ½
to 1 ¾ inches. More of concrete is then raked across the mould level. The stripper head
is placed over the mould to bear on the leveled material. Vibration causes the concrete
come down to its limit position. Then the mould box is lifted by the lever. The moulded
hollow blocks resting on the pallet is removed and a new pallet is placed and the
process repeated. The machine can accommodate interchangeable mould for producing
blocks of different sizes of hollow or solid blocks.
(4) Curing
Hollow blocks removed from the mould are protected until they are sufficiently
hardened to permit handling without damage. This may take about 24 hours in a
shelter away from sun and winds. The hollow blocks thus hardened are cured in a
curing yard to permit complete moisturisation for atleast 21 days. When the hollow
blocks are cured by immersing them in a water tank, water should be changed atleast
every four days.
The greatest strength benefits occur during the first three days and valuable effects are
secured up to 10 or 14 days. The longer the curing time permitted the better the
product.
(5) Drying
Concrete shrinks slightly with loss of moisture. It is therefore essential that after curing
is over, the blocks should be allowed to dry out gradually in shade so that the initial
drying shrinkage of the blocks is completed before they are used in the construction
work. Hollow blocks are stacked with their cavities horizontal to facilitate thorough
passage of air.
Generally a period of 7 to 15 days of drying will bring the blocks to the desired degree
of dryness to complete their initial shrinkage. After this the blocks are ready for use in
construction work.
QUALITY SPECIFICATIONS
The standard specifies requirements for these parameters: dimensions, grades of hollow
blocks, blocks density, compressive strength, water absorption, drying shrinkage, and
moisture movement
PRODUCTION CAPACITY
The plant and machinery proposed in the project has a production capacity of 800000
Nos. of cement concrete hollow blocks of size 100X200X400 mm. At 75% utilisation of
the capacity, productions of 600000 Nos. of blocks have been taken into consideration.
Cement concrete hollow blocks are usually of the following three dimensions:
100X200X400 mm, 150X200X400 mm and 200X200X400 mm. Although hollow blocks of
all the three sizes could be made using the same machinery and equipment proposed in
the project, for computation purpose only one size viz 100X200X400 mm is considered
in the sales turnover.
Hollow blocks of other sizes could also be made depending on the user requirement.
With the given set of machinery and equipment used in making the hollow blocks, solid
blocks could also be made with the help of additional mould sets only.
UTILITIES
Electrical Power requirement: 25 HP power for industrial purpose is required.
Water: water used in making concrete should be free from acids, alkalis, oil, dissolved
carbon dioxide and decayed vegetable matter. Generally, water suitable for human
consumption is considered adequate for concrete mixing.
FINANCIAL ASPECTS
FIXED CAPITAL
(1) LAND & BUILDING
TOTAL 370000
TOTAL 12500
Consumables 5000
20000
FINANCIAL ANALYSIS
Profit ration on sales = net profit per year/Sales turnover per year*100=906600/7200000*100=12.60%
Hollow Size mm nominal approx concrete density kg/m3 no. per pack
The hollow block sizes in the Philippines would be the subsequent: 40cm (length) X 20 cm (width) X 4
in (thickness) 40cm (length) X 20 cm (width) X 5 in (thickness) 40cm
Hollow Blocks. Concrete masonry Hollow Blocks are manufactured with 2150 Kg/m3 concrete
density for normal weight blocks and 1100 Kg/m3 concrete density for light-weight concrete
blocks. Hollow blocks are the most commonly used masonry unit.
ENTREPRENEUR
KERALA-----portal
for entreprenures
PREPARES PROJECT REPORTS/ MARKET
RESEARCH & FEASIBILITY STUDIES SUITED TO THE
INDUSTRIAL/ ENTREPRENEURIAL NEEDS
PROJECT REPORT
1.0 Introduction:
This proposal evaluates the technical feasibility and financial viability in setting up of
a small-scale enterprise to do the activity on manufacturing and sale of Hollow bricks in Kottayam district
and all over Kerala. Unit has been filed memorandum Part-1 with the district Industries center, Kottayam
and also applied for permission from Local body for the construction of building and for the installation of
plant and machinery.
4 0 0 0 0 0
Electrification and
machinery
installation cost
5 50000 0 50000 50000 17500
6 Office Furniture 6000 6000 6000 2100
Brochure, advt and
7 web site 2000 2000 2000 700
Prelim & Pre-
operative expenses
8 20000 0 20000 20000 7000
Working Capital
Depreciation: Depreciation on Building, Machinery and Equipment are evaluated on WDV basis and is tabulated as below
sl
No Particulars I year 2 year 43year 4 year 5 year
SHEDULE OF IMPLIMENTATION
14.0 Conclusion:
The net profits after taxation in the first year of operation is estimated
as RS 600917 /. The break-even point is 35 % of installed capacity. The
return on investment is obtained as 42 % in the 2nd year of operation. The cost of
production and profitability statement for the first 5 years, break-even analysis,
repayment schedule for term loan, cash flow statement and the projected balance sheet
are given in Annexure. Based on the analysis made above it is found that the scheme is
technically feasible and economically viable.
Submitted by:
ASHA XAVIER
KARUKULATHEL
MANJOOR P.O
KURUPPANTHURA
KOTTAYAM
ANNEXURE 1
(as per quotation)
PLANT & MACHINERY
Sl.No. Item Nos Rate Rs Amount Rs
1 Egg laying type Concrete
130000
block machine with die 01 130000
2 Trolley for brick and mix
30000
handling 04 7500
3 Solid die set 4”,6” 02 14000 28000
4 Hollow die set 4”,6” 02 18000 36000
5 Concrete mixer 01 130000 130000
6 Vat total @4%+ cess 1% 01 17700 17700
372000
Total
ANNEXURE 2
B Cost of Production
Raw materials 5460000 6240000 6630000 7020000 7020000
Wages 264000 301714 320571 339429 339429
Power, and Fuel charges 120000 137143 145714 154286 154286
Repair & maintenance 5000 5000 5000 5000 5313
Insurance 5000 5000 5000 5000 1063
Depreciation 58750 48975 44754 40922 37441
Total 5912750 6737832 7151040 7564636 7557530
ANNEXURE-3
BREAK EVEN ANALYSIS
Particulars 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR
FIXED COST
Salaries 264000 301714 320571 339429 339429
Repair & Maintenance 5000 5000 5000 5000 5313
Insurance 5000 5000 5000 5000 1063
Administrative expenses 204000 233143 247714 262286 262286
Depreciation 58750 48975 44754 40922 37441
Interest on MM loan 9038 9038 9038 9038 6778
Interest on Term loan 82834 47014 29104 11194 4478
Total 628621 649883 661181 672868 656786
VARIABLE
COST
Raw Materials 5460000 6240000 6630000 7020000 7020000
Power Charges 120000 137143 145714 154286 154286
Selling expenses 69300 79200 84150 89100 89100
Interest on WC loan 36000 36000 36000 36000 36000
Total 5685300 6492343 6895864 7299386 7299386
ANNEXURE-4
DEBT SERVICE COVERAGE RATIO (DSCR)
Particulars 1 Year 2 Year 3 Year 4 Year 5 Year
A Cash generated
1 Net Profit 616079 777774 857954 937747 953829
2 Depreciation 58750 48975 44754 40922 37441
3 Interest on term loan 82834 47014 29104 11194 4478
4 Interest on mm loan 9038 9038 9038 9038 6778
5 Interest on wc loan 36000 36000 36000 36000 36000
Total (A) 802700 918800 976850 1034900 1038525
B Debt Service Requirement
1 Repayment of term loan 80000 80000 80000 80000 80000
2 Repayment of interest on term loan 82834 47014 29104 11194 4478
3 Repayment of interest on mm loan 9038 9038 9038 9038 6778
Repayment of interest on wc loan 36000 36000 36000 36000 36000
Total (B) 207871 172051 154141 136231 127256
C Debt service coverage ratio 3.86 5.34 6.34 7.60 8.16
Average DSCR 7.03
ANNEXURE-5
REPAYMENT OF TERM LOAN
repayment
Year Instalment Number Principal Interest Balance per month
1 1 746250 22388 708938 19900
2 708938 21268 671625 19527
3 671625 20149 634313 19154
4 634313 19029 597000 18781
82834 54278
2 5 597000 17910 559688 18408
6 559688 16791 522375 18034
7 522375 15671 485063 17661
8 485063 14552 447750 17288
64924 48308
3 9 447750 13433 410438 16915
10 410438 12313 373125 16542
11 373125 11194 335813 16169
12 335813 10074 298500 15796
47014 42338
4 13 298500 8955 261188 15423
14 261188 7836 223875 15049
15 223875 6716 186563 14676
16 186563 5597 149250 14303
29104 36368
5 17 149250 4478 111938 13930
18 111938 3358 74625 13557
19 74625 2239 37313 13184
20 37313 1119 0 12811
ANNEXURE- 6
CASH FLOW STATEMENT
Construction
A Source of Funds period 2 year 3 year 4 year 5 year
Cash accruals(profit before income
1 tax) 0 807125 869825 932096 993978
2 Increase in capital equity 150625
3 Depreciation 53625 48975 44754 40922
4 Investment allowance
5 Increase in long term loan 746250
6 Increase in MM loan 150625
7 Increase in unsecured loans
8 Increase in WC loan 0 -300000 300000 0 0
9 Sales of fixed assets/invests 0 0 0 0 0
10 Others( investment subsidy) 0 0 0 0 0
Total 1047500 560750 1218800 976850 1034900
B Disposition of Funds
Prelim & Pre-op expenses 125000 0 0 0 0
Increase in capital expenditure 862500 0 0 0 0
Increase in current assets 21797 21804 21809 21815
Decrease in long term loans 80000 80000 80000 80000
Decrease in unsecured loans
Decrease in MM loan 0 0 0 37656
Decrease in WC loan 0 0 0 0
Interest on term loan to bank 64924 47014 29104 11194
Interest on WC loan 0 36000 36000 36000
Interest on MM loan 9038 9038 9038 9038
Taxation 87962 93315 102937 112512
Divident on equity 0 0 0 0
Other expenses
Total 987500 263720 287170 278887 308214
C Opening balance 0 573881 870910 1802541 2500503
D Net surplus 60000 297030 931630 697963 726686
E Closing balance 60000 870910 1802541 2500503 3227190
ANNEXURE-7
PROJECTED BALANCE SHEET
Construction
A Liabilities period 2 year 3 year 4 year 5 year
Equity share capital 150625 150625 150625 150625 150625
Reserve & Surplus 0 1187369 1871828 2626846 3452081
Term loan 746250 586250 506250 426250 346250
Margin Money loan 150625 150625 150625 150625 112969
Working capital loan 0 300000 300000 300000
Other liabilities(towards subsidy) 0 0 0 0 0
Total Liabilities 1047500 2074869 2979328 3654346 4361925
Construction
B Assets period 2 year 3 year 4 year 5 year
Gross block 862500 803750 750125 701150 656396
Depreciation 0 53625 48975 44754 40922
Net block 862500 750125 701150 656396 615474
InvestmenT(Prilim. Expences) 125000 125000 125000 125000 125000
Current assets 328834 350638 372447 394262
Reserved Stock accumulated to
be added to current assets
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