Manufacturing of Cement

A Project in partial fulfillment of the requirements for award of the

degree

BACHLOR OF ENGINEERING
In

CHEMICAL ENGINEERING
Of

SAVITRIBAI PHULE PUNE UNIVERSITY

By

DALAVI SHRIYASH NAVNATH

Under the guidance of

PROF. V.S. ASHTEKAR

Department of Chemical
Engineering Sinhgad College of
Engineering,
Vadgaon (Bk.), Pune-411041
2023-24
 CERTIFICATE
This is to certify that the Project Phase I report entitled

Techno-Economical Feasibility of Green hydrogen

Submitted by

DALAVI SHRIYASH NAVNATH

is a bonafide work carried out under the supervision of Prof.V.S. Ashtekar for the partial
fulfillment of Bachelor of Engineering in Chemical Engineering of Savitribai Phule Pune
University. This work has not been submitted elsewhere for any degree.

Prof.V.S. Ashtekar Dr. S. R. Shirsath

Guide Head of Department

Dr. S. D. Lokhande
External Examiner Principal

ii SCOE BE (Chemical)
Pune.
 DECLARATION

We declare that this written submission represents our ideas in our own words
and where others’ ideas have been included; We have adequately cited and
referenced the original sources. We also declare that We have adhered to all
principles of academic honesty and integrity and have not misrepresented or
fabricated or falsified any idea/data/fact/source in my submission. We
understand that any violation of the above will be cause for disciplinary action
by the Institute and can also evoke penal action from the sources which have
thus not been properly cited or from whom proper permission has not been
taken when needed.

Signature

Dalavi Shriyash

Navnath

Date:

Place: Pune

iii SCOE BE (Chemical)

Pune.
 ACKNOWLEDGEMENT

We hereby acknowledge all the help and guidance we received throughout the course of the
preparation of this seminar from various quarters. We cannot overstate the importance of the
guidance received from our guide Prof. V.S. Ashtekar & Head of the Chemical Engineering
Department Dr. S. R. Shirsath. Not only did they guided us in the choice of the topic but
also went out of their way to provide the background study material for the same. For all this
and more, we thank them.
Our sincere gratitude goes also to Dr. S. D. Lokhande, Principal, Sinhgad College of
Engineering, for the support and encouragement he provided to everyone in this department.
A word of thanks also for all the staff, teaching and non-teaching, because whether it be a
seminar or any other student activity, there’s always a contribution from them.
Lastly, we would like to thank all our classmates for their support during this seminar.

Dalavi Shriyash Navnath

iv SCOE BE (Chemical)
Pune.
LIST OF TABLES

v SCOE BE (Chemical)
Pune.
 ABSTRACT

Cement is the basic material for buildings and Civil Engineering constructions.
Portland cement, the most widely used cement in concrete construction, was
patented in 1824. Cement is a fine powdery material untwining silicates of
calcium, formed out of raw materials consisting calcium oxide, silica, aluminum
oxide and iron oxide. India has an installed capacity of 234 million tons per
year, making this is the second highest Cement producer in the whole world. As
is the case in the United States, several multinational Cement producers have
built up a larger share of India’s Cement production industry. Among many
countries India is the second highest producer of cement in the world, with 130
large cement plants and an installed capacity of 234 million ton per annum
(94% of which is from large cement plants). During 2006-2007 cement
production grew at a rate of 9.1% compared to the same period the previous
year. However, despite this growth, India’s per capita.

A production is 115 kg per annum, well under the world average of 250 kg
(World Cement 2007). The Cement manufacturing sector plays a vital role in
the nation’s economic development since cement is the most versatile and
widely used construction material. The cement industry has made phenomenal
progress in terms of volume, technology and product up gradation in recent
years.

Keywords: Cement, civil engineering, concrete construction, calcium oxide, silica,

aluminum oxide, iron oxide, up gradation etc.

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CHAPTER-1
INTRODUCTION

Cement Manufacturing
Cement manufacturing uses energy to process raw materials consisting of mainly limestone
(calcium carbonate, CaCO3), clay (aluminum silicates), sand (silica oxide), and iron ore to produce
clinker, which is ground with gypsum, limestone, etc to produce cement. After an initial
preblending stage, the raw materials are mixed together and ground to form a homogeneous blend
with the required chemical composition (the raw meal). The fineness and particle size distribution
of the raw meal are important characteristics for the burning process. Following mixing, the
production process continues in a rotary kiln by calcining the raw meal (e.g. decomposing CaCO3
at about 900 °C), releasing carbon dioxide (CO2) and leaving CaO. This is followed by the
clinkering process, in which CaO reacts at a high temperature (1,400 °C to 1,500 °C) with silica,
alumina, and ferrous oxides. Other constituents may be added in the raw material mix to meet the
required composition (e.g. silica sand, foundry sand, iron oxide, alumina residues, blast furnace
slag, and gypsum residues).
The temperature of the flame and produced gases is close to 2,000 °C. The hot clinker falls
from the kiln onto the cooler, where it must be cooled as quickly as possible to improve the clinker
quality and to recover energy by heating secondary air. Grate coolers are typically employed for this
purpose (as opposed to the use of satellite coolers). The cooled clinker is then ground with gypsum
and limestone to produce Portland cement and ground with other additional constituents to produce
composite or blended cements. Cement is then stored in silos or bags. The blending constituents are
materials with hydraulic properties (e.g. natural pozzolane, fly ash, blast furnace slag, and
occasionally bottom ash). In fly and bottom ashes, carbon residues (typically from coal-fired power
plants) should not be present. CaCO3 is sometimes added in small quantities as filler. Calcium is
found in limestone, which is one of the most common natural resources in the world. Limestone is
usually quarried in the vicinity of cement factories, where it is extracted through blasting
techniques. Step by step, these blasted stones are crushed to gravel before they are transported to the
cement factory and mixed with the two other basic ingredients of cement, clay and sand. At that
point, there are two different manufacturing processes, the dry and wet process.
In the dry process, the raw materials are ground, mixed and fed into a cement kiln, a
horizontal rotating cylinder. In the wet process, water is added to the raw materials before being fed
into the kiln, to create slurry. The dry process is more environmentally friendly and emits less CO2,
due to the additional use of fuel needed in the wet process. The cement kiln is heated to a
temperature of approximately 1450°C, and uses a variety of fuels, ranging from coal and biomass to
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waste materials such as old rubber tires. Only at these high temperatures do the chemical and
physical characteristics of the raw materials change. These changes create so-called ’Clinker’ that
come out of the kiln in small marble size pieces. After cooling, these clinkers are further ground to
create Portland cement.
Contents of Portland cement
Cement is a mixture of Calcium oxide (CaO) (62.66%), Silicon oxide (SiO2) (19-22%),
Aluminum tri-oxide (Al2O3 )(4-8%), Ferric oxide (Fe2O3)(2-5%), Magnesium oxide (MgO) (1-
2%).
Types of cement
The cement industry has been producing a range of six main varieties of cement like PSC (Portland
Blast Furnace Slag Cement), SRC (Sulphate Resisting Cement), PPC (Portland Pozzolana Cement),
OPC (Ordinary Portland Cement) Oil Well Cement and White Cement, besides 53S-43S(earlier
IRS-T40) for railway sleepers. Cement produced in India compulsorily conforms to Indian
Standards specification issued by the Bureau of Indian Standards (BIS). These are five certified
types of cement- Portland Cement, Portland blast furnace Cement, Sulphate-resisting Portland
Cement, Masonry Cement and Portland pulverized fuel ash Cement (BIS, 2005).

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CHAPTER-2
LITERATURE REVIEW

2.1 Types of Cement Process

The cement manufacturing process involves mining, crushing, grinding of raw materials
(principally limestone and clay), blending of raw meal, calcining the materials in a rotary
kiln, cooling the resulting clinker, mixing the clinker with gypsum, and milling, storing, and
bagging the finished cement. The raw materials used to make cement may be divided into
four basic components: lime (calcareous), silica (siliceous), alumina (argillaceous), and iron
(ferriferous).
Approximately 1450 kilograms (kg) of dry raw materials are required to produce one tonne
of cement. Approximately 35% of the raw material weight is removed as carbon dioxide
(CO2) and water vapour. The basic chemistry of cement manufacturing process begins with
the decomposition of clay minerals into SiO2 and Al2O3 on the one hand, and of calcium
carbonate (CaCO3) at about 900 °C to leave calcium oxide (CaO, lime) liberating CO2, on
the other hand.
The latter process is known as calcination. This is followed by the clinkering process, in
which the CaO reacts at high temperature (typically 1450 °C) with silica, alumina, and
ferrous oxide to form the silicates, aluminates, and ferrites of calcium. The resultant clinker
is then ground together with gypsum and other additives to produce cement. Naturally
occurring calcarrous deposits such as limestone, marl or chalk provide calcium carbonate
(CaCO3) and extracted from quarries, often located close to the cement plants.
Very small amounts of "corrective" additives such as re ores or clay can
be required to compensate Fe2O3, Al2O3 & SiO2 to ensure chemical composition. Raw
limestone is transported to crushers for breaching down into smaller pieces. Mixing of
different raw materials in fixed proportion to attain specific chemical composition and the
crushed pieces are then milled together to produce "raw meal" the quality of cement depends
on the chemistry of raw meal, which is monitored & controlled carefully. A pre heater is
series of vertical mounted cyclone from where feed is passed coming into contact with wet
gases moving antidirectional swirling hot kiln exhaust gases moving in the opposite
direction. In these cyclones, thermal energy is recovered from the hot flue gases and the raw
meal is preheated before it enters the kiln, so the necessary chemical reaction occurs faster
and more efficiently. The precalciner meal then enters the kiln. Fuel is fired directly into the
kiln to reach temperature of up to 1450 0C as the kiln rotates, at 3-5 RPM, times per minute,

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the meal slides & vemes in hotter zone at other and the vigorous heat account to various
physical & chemical reactions producting clinker as product. Stored clinker is mixed with
gypsum & grounded into grey power. Earlier, inj cement mills; ball mills have been used as drinding
media, but in modern days efficient technology. The final product is homogenized and stored in
cement silos and dispatched from there to packing plant for getting packed.

Pre-Heater

Pre-Calciner

Raw material
processing Rotary kiln

Clinker Cooler

Fuel preparation
Final grinding

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Chapter-3
Manufacturing Process
The process of cement making Cement is produced from suitable raw materials in six
stages (Figure 1). Mining limestone/raw materials; grinding, homogenisation, and blending
various raw mix components; the preheater phase; processing and pyro processing in the kiln;
clinkerizing; and grinding, packing, and transporting materials (Hewlett 2003; Peray and
Waddell 1986). In stage one, the essential raw materials-limestone, laterite, bauxite, kaolinite,
clay, iron ore, sandstone, etc-are mined. Limestone is a source of calcium, while bauxite and
kaolinite meet the requirement for aluminium. Laterite, red ochre, and iron ore fulfill the need
for iron and, to some extent, silica. Quartz-phyllite and sandstone provide a source for silica.
Because the requirement for limestone greatly outweighs that of other components, cement
kilns are usually located close to plentiful limestone supplies, with other raw materials being
transported to the plant. Erecting cement kilns near limestone mines allows easy handling of
the primary raw material, thereby saving energy and making cement production more
economical. In recent years, computer-aided mining plans have been widely adopted to assist
with quality limestone production. The extracted limestone boulders are crushed in crushers
for size reduction, with the advanced technology of modern crushers resulting in optimal
crushing. Piles of various raw materials stacked in stockpiles also receive further processing
as part of the mining process.
Stage two involves the characterisation of various raw materials. This quality control
process establishes the composition of the raw materials. Then, with the help of various
quality control tests, suitable raw mix designs are prepared. The raw materials are then
ground in suitable ball mills/vertical roller mills (VRMs), both of which are common
grinding mills, in order to achieve the targeted fine powder, which is stored in pre-
homogenisation silos (Aïtcin and Flatt 2015; Hewlett 2003). In stage three, the raw mix is fed
into a preheating chamber. This chamber consists of 5–6 vertical cyclones, through which
the raw material passes and undergoes decarbonation. The preheating chamber utilises
the hot gases emitted from the kiln, thus saving energy depending on the number of stages.
This approach makes the cement plant more environmentally friendly by reducing fuel
consumption by 30–50% (Wasilewski and Duda 2012). In stage four, the pre-heated
decarbonised raw mix is fed into the rotary kiln for clinkerization. The retention time of the
kiln feed also varies from plant to plant, taking into consideration the reactivity of the raw
mix and defining the production capacity, which is generally calculated as tons per day. The
kiln inlet temperature is usually maintained at around 900 °C, and the final temperature is
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around 1450 °C (Deolalkar 2016; Hewlett 2003; Peray and Waddell 1986). During heating, a
series of chemical reactions occurs between calcium, silicon, aluminium, iron, etc. resulting
in phase formation. Kilns are typically heated from the exit side, with fuel type depending on
availability and suitability. In stage five, the clinker exiting the kiln is rapidly cooled by
forced air. The resulting hot air is circulated back into the kiln or the pre-heater, thus reducing
energy demand. The cooled clinker is then ground in a suitable grinding mill with about 5%
gypsum or another calcium sulphate source and other trace components such as limestone and
stannous or ferrous sulphate. In the final stage, the ground cement is conveyed to storage silos
using a suitable transport system. The silos need to prevent contamination and hydration, for
example. Stored cement is then either packaged in waterproof bags of 20–50 kg or
transported in bulk.

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Figure 1. Cement production process with waste utilization areas.

Raw materials chemistry

Cement manufacture requires a source of calcium, such as CaCO3 or CaMg (CO3)2, which
comprises almost 80–90% of the total and the rest is iron oxide (Fe2O3, Fe3O4), quartz (SiO2), and
clay/bauxite (Al-silicates) (Aïtcin and Flatt 2015; Hewlett 2003; Peray and Waddell 1986). Traces
of Na2O, K2O, TiO2, and MnO2 are also present in the various raw materials used for cement
making (Gineys, Aouad, and Damidot 2010; Vollpracht and Brameshuber 2016). Some of these
trace elements can be beneficial to the clinkering process while others are not.
Besides chemical composition, the dissociation of CaCO3 in carbonate rocks depends on the rock’s
textural and microstructural features. Holocrystalline calcite (CaCO3) dissociates at higher
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temperatures than fine-grained calcite (Treiman and Essene 1984).

It is known that MgO in limestone can be present in various forms, including magnesium silicates,
dolomite, and magnesite; each has different dissociation characteristics because of thermal stability
and the break-down temperature of the lattice structure of magnesium compounds, such as for
dolomite (Ca Mg (CO3)2), is 700–750 °C, and ankerite (Ca (Mg, Fe) (CO3)2) is 580 °C.
The presence of Al2O3, SiO2, Fe2O3, Fe3O4, etc., further influences these dissociation
characteristics (Kääntee et al. 2004; Madlool et al. 2011 The mineralogical nature and dispersion
characteristics. silica have a strong bearing on the reactivity of the cement raw mix. Experiments
have shown that a slight increase in silica content in the raw mix may profoundly reduce phase
formation in the clinker. Silicates react more readily than free silica or uncombined silica such as
quartz (Herfort et al. 2010; Ludwig and Zhang 2015).
Clay minerals used in cement making are essentially hydrous aluminosilicates and provide a
combined source of silica and alumina (Hewlett 2003; Ludwig and Zhang 2015). Clays vary
incredibly in composition and hence show hugely variable thermal behaviours. However, all clays
show a similar pattern of change: dehydration then dihydroxylation followed by the breakdown of
crystal structures. Through this process, the clay releases Al2O3 and SiO2 in a reactive form.
The presence of this reactive state is then exploited in cement production. The presence of iron
oxide in the ferrous state favours raw material reactivity. The appearance of FeO depends upon the
breakdown temperature of the parent phase, and the temperature ranges of the occurrence of FeO
and its oxidation are goethite at 300 °C, glauconitic at 450–500 °C, ferriferous chlorite at 500 °C,
siderite/biotite/hornblende at 500–900 °C, and phlogopite at 1050–1250 °C (Herfort et al. 2010;
Peray and Waddell 1986). Fe3O4 may contain more iron than FeO, but it only becomes reactive at
temperatures above 900 °C.
Limonite (FeO, OH.H2O) often presents in laterite, and it generally contains amorphous silica and
is more reactive (Snellings, Salze, and Scrivener 2014). From a chemical viewpoint, the reactivity
of a raw mix is strongly dependent on the availability of reactive components. As such, it is
favourable that raw mix components become reactive at similar temperatures to the carbonate
decomposition temperature. It is evident that highly reactive fine carbonates combine poorly with
low reactive clays containing silica, iron, magnesium, potassium, and so on.
Environmental impact
The environmental impact of the cement industry Every production industry impacts the
environment in both minor and major ways. This phenomenon is true for the cement industry also
(Hendriks et al. 1998; Kajaste and Hurme 2016). Wet process cement plants impact their
surroundings by slurry disposal while dry and semi-dry plants also create solid waste, which is an

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environmental concern (Deolalkar 2016; Uwasu, Hara, and Yabar 2014). Today, however, very few
wet process plants remain. Appropriate environmental protection laws, and norms and emission
limits are formulated by every country, and the adoption of a proper environmental management
plan (EMP) can minimise ecological degradation. Most cement plants worldwide take adequate
steps to protect the environment, and assessments of environmental norms are improved and
modified annually

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Figure 3 Simplified flow sheet of clinker and cement manufacture. The heart of the process is the
pyro processing line, where most of the raw materials and fossil fuels are consumed. Electricity
consumption is dominated by the raw material crushing and, particularly,

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Manufacturing of Cement

CHAPTER
MASS AND ENERGY BALANCE

Material out = Material in + Generation - Consumption - Accumulation

Accumulation = 0 (Steady State)
Generation & Consumption = 0 (No Chemical Reaction) Material out = Material in
Dry Basis 100 kg /day

CLAY

L/S 85% 85 kg /day

Clay 15% 15

5% 0.05
M2 Loss

M1 CLAY M3

IN = LOSS + OUT
M1 = M2 + M3
15 = 15*0.05 + M3
M3=14.25 Kg/day

Componen SiO2 Al2O3 CaCO3 Fe2O3 MgCO3 Inert

t
% 70.69 14.91 4.5 6 1.5 2.4

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Manufacturing of Cement

CRUSHER

5% 0.05
M2 Loss

M4 CRUSHER M6

IN = LOSS + OUT
M4 = M5 + M6
85 = 85*0.05 + M6
M6=85.75 Kg/day

Componen SiO2 Al2O3 CaCO3 Fe2O3 MgCO3 Inert

t
% 1.88 1.2 94.45 0.57 1.95 0

RAW MILL
5% 0.05
M8

M3 RAW MILL M7
M6
LOSS

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Manufacturing of Cement

IN = OUT + LOSS
M3+M6 = M8 + M7
14.25+80.75 = M8 + 0.475
M8=94.525 Kg/day

Composition of M7 & M8

Component SiO2 Al2O3 CaCO3 Fe2O3 MgCO3 Inert

kg/day 11.591425 3.093675 76.909625 1.315275 1.788375 0.342

Concentration of Composition in Mixture

Component SiO2 Al2O3 CaCO3 Fe2O3 MgCO3 Inert

% 12.20 3.2565 80.96 1.38 1.88 0.36

KILN
EXHAUST GASES
5% 0.05

KILN
M8
M9

IN = OUT + Exhaust Gases

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Manufacturing of Cement

M8= M9+ Exhaust Gases

94.525 Kg/day=94.525 Kg/day
M9=94.525 Kg/day

Analysis of M8

Component SiO2 Al2O3 CaCO3 Fe2O3 MgCO3 Inert

kg/day 11.5 3.08 76.53 1.31 1.78 0.34

M wt of Component

Component SiO2 Al2O3 CaCO3 Fe2O3 MgCO3

Mwt 60.06 101.94 100.09 159.68 84.31

Moles of Component

Component SiO2 Al2O3 CaCO3 Fe2O3 MgCO3

kmol/day 0.192032 0.030196 0.764563 0.008196 0.021106

Analysis of M9

Component C2S C3S C3A C4AF

% 20 60 12 8

Component C2S C3S C3A C4AF

Mwt 172.22 228.30 270.18 485.95

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Manufacturing of Cement

REACTION IN KILN

CaCO3 -------------- CaO + CO2 1

MgCO3 ------------- MgO + CO2 2
CaO + Al2O3---------------CaO.Al2O3 3
4CaO + 2Al2O3 + CaO.Al2O3--------------------5CaO.3Al2O3 4
5CaO + 3Al2O3------------------5CaO.3Al2O3 5
2CaO + SiO2----------------2CaO.SiO2 6
4CaO + 5CaO.3Al2O3----------------3(3CaO.Al2O3) 7
CaO + 2CaO.SiO2----------------3CaO.SiO2 8
4CaO + Al2O3 + Fe2O3----------------4CaO.Al2O3.Fe2O3 9

3 + 4 ------------- 5

Moles of Components By the Reaction

CaCO3 ---------------------- CaO + CO2

1 1 1
0.764563 X1 Y1

X1 = Y1 = 0.764563 kmol/day

MgCO3 ---------------------- MgO + CO2

1 1 1
0.021106 X2 Y2

X2 = Y2 = 0.021106 kmol/day

CO2 = Y1 + Y2 = 0.785668 kmol/day

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Manufacturing of Cement

Weigh of CO2 = kmol/day * Mwt = 34.577271 kg/day

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Manufacturing of Cement

2CaO + SiO2 ---------------------- 2Ca.SiO2

2 1 1
Y3 0.192032 X3

Y3 = 0.384065 kmol/day
X3 = 0.192032 kmol/day

4CaO + Al2O3 + Fe2O3 ---------- 4CaO.Al2O3.Fe2O3

4 1 1 1
Z4 Y4 0.008196 X4

Z4 = 0.032783 kmol/day
Y4 = 0.008196 kmol/day
X4 = 0.008196 kmol/day

5CaO + 3Al2O3 ---------------------- 5CaO.3Al2O3

5 3 1
Z5 Y5 X5

Y5 = Total moles of Al2O3 - Y4

Y5 = 0.022001 kmol/day
X5 = 0.007334 kmol/day
Z5 = 0.036668 kmol/day

4CaO + 5CaO.3Al2O3 ----------- 3(3CaO.3Al2O3)

4 3
Y6 X5 = 0.007334 X6
1
Y6 = 0.029334 kmol/day
X6 = 0.022001 kmol/day

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CaO + 2CaO.SiO2 ----------- 3CaO.SiO2

1 1 1
Z7 Y7 X7

From outlet % Analysis

C3S C2S
3CaO.SiO2 2CaO.SiO2
60% 20%
Weigh Ratio 3 1
Mwt 228.3 172.22
Mole Ratio 0.013141 0.005807 weigh ratio / mwt
2.263 1 Divided by 0.005806

X7 = SiO2 kmol/day *2.263 /

(2.263+1) X7 = 0.133181 kmol/day
X7 = Y7 = Z7 = 0.133181

2CaO.SiO2 Excess = SiO2 kmol/day*

(1/2.263+1) 2CaO.SiO2 Excess = 0.058851 kmol/day

The amount of CaO excess = Outlet - Reactant

The amount of CaO excess = CaCo3 - Y3+Z4+Z5+Y6+Z7
The amount of CaO excess = 0.148532 kmol/day

Amount of Inerts = Inert in + MgO + CaO Excess

Inerts in ---------- Analysis of inlet Moles of

MgO ---------- component * Mwt
CaO Excess ---------- CaO Excess * Mwt

Amount of Inerts = 0.340290 + 0.8509874 + 8.329693

= 9.520970 kg/day

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% Analysis of the clinker

kg/day
Component kmol/day Mwt kmol/day * Mwt %
C2S 0.058851 177.22 10.429662 17.3
C3S 0.133181 228.3 30.405208 50.4
C3A 0.022001 270.3 5.946735 10
C4AF 0.008196 485.95 3.982729 6.6
Inert - - 9.520970 15.8
Sum - - 60.285304 100.0

Check
M8 = M9 + Exhaust Gases
94.525 = 60.285304 + 34.577271
94.525 = 94.862575

CEMENT MILL
M9

CEMENT MILL
M10
M11
5% 0.05

From the Mill

Balance:
M9 + M10 = M11
M.B of CaSO4:
0.0*M9 + M10 = 0.05M11
M.B of Clinker:
0.0 + M9 = 0.95M11 = 60.285304 kg/day

M11 = M9 / 0.95 = 60.285304 / 0.95

M11 = 63.458215 kg/day

M10 = 3.17291 kg/day

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Real Quantities

Converted Balance
Annual Production 1000000 ton/year
Working Days 300 day/year

Basis

1000000 ton/year = 3333333.3 kg/day

100 kg/day ------------- 63.1 kg/day

X kg/day ------------- 3333333.3 kg/day

X = 5282620.2 kg/day

M`` = X*M / 100

M`` : Real quantities

X : the amount of clay and lime stone which produce 1000000 ton/day

CLAY
M2 Loss
5% 0.05
0.75

M1 = 15 CLAY M3=14.25

M`` = X*M / 100

M1`` = 792393 kg/day

M2`` = 39619.65 kg/day
M3`` = 752773.4 kg/day

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CRUSHER
M2 Loss
5% 0.05
4.25

M4=85 M6=80.75
CRUSHER

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Chapter-7
Cost Estimation
In the project management lifecycle, the pre-design stage plays a crucial role in shaping the
project’s success. During this phase, detailed equipment specifications and plant facility information
are not yet available. However, it is essential to estimate costs accurately even before these specifics
are finalized. At this point, the project design is complete, and critical decisions have been made.
With detailed information on equipment and facility requirements, we can now proceed to cost
estimation.
Manufacturers can provide direct price quotations based on these detailed specifications.
 Cost Estimation Throughout Early Stages:
o Waiting until the final stages to estimate costs is not advisable. Instead, cost evaluation
should occur throughout the early design phases.

o Pre-Design Cost Estimation:

 During preliminary design, when complete specifications are not yet available, we
perform pre-design cost estimation.
 This estimation serves as a foundation for decision-making by company management.
 It helps determine whether further capital investment in the project is warranted.
2. Fixed Capital Investment:
 Definition: Fixed capital investment refers to the initial capital required to establish an
industrial plant or facility. It encompasses various components:
 Machinery and Equipment: The cost of purchasing and installing machinery, tools, and
equipment necessary for production.
 Land and Infrastructure: Expenses related to acquiring land, constructing buildings, and
setting up utilities (such as water, electricity, and gas).
 Plant Construction: The cost of erecting the entire plant, including structural
components, pipelines, and control systems.
 Fixed capital investment ensures that the plant is fully operational and equipped to
produce goods or services.
3. Working Capital Investment
 Definition: Working capital investment refers to the funds needed for day-to-day operations
once the plant is up and running. It covers ongoing expenses:
Working Capital involves
 Raw Materials: Procuring materials required for production.
 Labor Costs: Salaries, wages, and benefits for employees.

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 Utilities and Maintenance: Regular expenses for utilities (electricity, water, etc.) and
maintenance of machinery.
 Inventory: Maintaining stock levels of finished goods.
 Other Operational Costs: Administrative expenses, marketing, and distribution costs.

4. Fixed Capital Investment

1.Direct cost
2.Indirect Cost

1. Direct Costs:

Direct costs are expenses directly tied to the production of specific goods or services. They can
be traced to a specific cost object, which could be a product, service, or department.
 Purchased Equipment: Includes items like columns, heat exchangers, pumps, and
tanks.
 Equipment Installation: The cost of installing machinery and tools.
 Piping (Including Insulation): Expenses related to piping systems.
 Instruments and Control: Costs associated with control systems and instrumentation.
 Electrical Equipment: Expenses for electrical components.
 Buildings: Covers process buildings, administration buildings, and maintenance shops.
 Site Preparation: Costs for preparing the site (e.g., levelling, excavation).
 Service Facilities: Includes utilities (steam, water, air, fuel), waste treatment, fire
control, and office spaces.
 Land: The cost of acquiring land for the plant.

2.Indirect Costs

Indirect costs are fixed expenses incurred to keep the company running, regardless of the
activity level. They are more challenging to assign to a specific product. They are generally
related to the business Operations.
 Engineering and Supervision: Administrative and design expenses, supervision, and
inspection.
 Construction Expenses: Costs related to the construction process.
 Contractor’s Fee and Contingency: Additional fees and allowances for unforeseen
events.
 Start-Up Expenses: Necessary for initiating plant operations.

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METHODS OF CAPITAL INVESTMENT

Various methods are employed for estimating capital investment. Following factors determines the
which method to use
1.Amount of data available
2.Accuracy Desired
1. Detailed Item Estimate:

o This method involves creating a detailed list of all items required for the project, including
equipment, materials, and labour costs.

o High accuracy, but it requires comprehensive design details.

2. Unit Estimate:

o In this approach, costs are estimated based on a standard unit (e.g., cost per square meter of
construction, cost per machine, etc.).

o Moderate accuracy, suitable for early-stage estimates.

3. Percentage of Delivered Equipment Cost:

o A percentage (often around 30-40%) of the total equipment cost is added to account for
installation, commissioning, and other related expenses.

o Moderate accuracy, commonly used in industry.

4. “Lang” Factor Approximation of Capacity Ratio:

o Lang’s factor method estimates total project cost based on the capacity (size) of the facility.
Factors are derived from historical data.

o Moderate accuracy, useful for quick estimates.

5. Investment Cost per Capacity:

o This method calculates the total investment cost per unit of capacity (e.g., cost per megawatt
for power plants).

o Moderate accuracy, especially for large-scale projects.

The accuracy of an estimate depends on the amount of design detail available; and the ac curacy of
the cost data available; and the time spent on preparing the estimate. In the early stages of a project

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only an approximate estimate will be required an justied by the amount of information by then
developed
Here for costing of our Plant we will use Percentage of delivered Equipment cost to calculate the
overall costing of Plant. This method does not require the detailed design of the Equipment We can
estimate the overall cost of the plant by roughly estimating the Equipment cost before the detailed
design of equipment is made.
BASIS AND PRESUMPTION

1. It may be assumed that the unit will be working on single shift basis for 300 days in a year with a
production capacity of 3,00,000 sq ft cement jallies per annum.
2. The basis for calculation of production capacity is on single shift basis, working of 25 days per
month on 75% efficiency. The time required for achieving envisaged capacity utilization is assumed
as one year.
3. BEP for the scheme has been calculated on full capacity utilization.
4. Rate of interest has been taken as 16% on an average. This however, is likely to vary depending
upon the financial outlay and location of the unit.
5. The cost of machinery & equipment as indicated in the scheme are approximate to those ruling at
the time of preparation of the scheme. The entrepreneur may check up the exact price for specific
make and model of the machine selected.
6. Non-refundable deposits, cost of preparation of projec profile, etc. may be considered under pre
operative expenses.
7. The provisions may in other respects vice-versa raw materials, labour wages, utilities, overheads,
etc. are drawn on the basis of standard variation and output. The cost indicated against each are
approximate based on local market conditions and observation. The entrepreneur may find out the
exact cost from the concerned sources.

FINANCIAL ASPECTS
1. FIXED CAPITAL:

(a) Land & Building:

S. NO DESCRIPTION AMOUNT (Rs.)

1 Land – 400 Sq. mtrs. OWN
2 Built-up area office & store 50 Sq. 2,00,000/-
mtrs @ Rs.4000/- per sq. mtr.
3 Workshed – 100 Sq. mtrs. @ 2,50,000/
Rs.2500/- per sq. mtr.
TOTAL 4,50,000/-

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(b) Machinery and Equipment:

SR. DESCRIPTION QTY RATE AMOUNT

NO (Rs.) (Rs.)
01. Moulds/frames (iron) - Ind. 60 650/- 39,000/-
02. Wooden planks – Ind 60 50/- 3,000/-
03. Concrete hand mixer – Ind 01 20,000/- 20,000/-
04. Vibrator with 1 Hp motor and starter 01 18,000/- 18,000/-
05. curing tank 10'x5'x3' 02 10,000/- 20,000/-
06. Misc tools & equipments LS LS 10,000/-
07. Office Furniture & Equipments LS LS 20,000/-
08. Electrification & instllation LS LS 5,000/-
09. Pollution control equipment LS LS 5,000/-

TOTAL 1,40,000/-

Total Fixed Capital (a+b) = Rs. 5,90,000/-

2. WORKING CAPITAL PER MONTH

a) Raw Material Per Month :

SR. NO DESCRIPTIO QTY RATE AMOUNT

N (Rs.) (Rs.)
01. Portland cement 24 Mt. 6,000/- 1,44,000/-
02. Sand 3000 cu.ft. 13/- 39,000/-
03. M S rod & wire 04 Mt. 44,000/- 1,76,000/-

TOTAL 3,59,000/-

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b) Machinery and Equipment:

S. DESCRIPTION QTY RATE AMOU

NO. (Rs.) NT
(Rs.)

01. Moulds/frames (iron) - Ind. 60 650/- 39,000/-

02. Wooden planks – Ind 60 50/- 3,000/-

03. Concrete hand mixer – Ind 01 20,000/- 20,000/-

04. Vibrator with 1 Hp motor and 01 18,000/- 18,000/-

starter
05. curing tank 10'x5'x3' 02 10,000/- 20,000/-

06. Misc tools & equipments LS LS 10,000/-

07. Office Furniture & Equipments LS LS 20,000/-

08. Electrification & instllation LS LS 5,000/-

09. Pollution control equipment LS LS 5,000/-

TOTAL 1,40,000/-

Total Fixed Capital (a+b) = Rs. 5,90,000/-

WORKING CAPITAL PER MONTH :

(a) Raw Material Per Month :
S. DESCRIPTION QTY RATE AMOUNT
NO. (Rs.) (Rs.)
01. Portland cement 24 Mt. 6,000/- 1,44,000/-
02. Sand 3000 cu.ft. 13/- 39,000/-
03. M S rod & wire 04 Mt. 44,000/- 1,76,000/-
TOTAL 3,59,000/-

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b)Salaries & Wages Per Month :

S. DESIGNATION NO. SALARY TOTAL

NO. (Rs.) (Rs.)
01. Manager & Accountant 01 6,500/- 6,500/-
02. Typist cum clerk/store keeper 01 5,000/- 5,000/-
03. Skilled worker 04 4,000/- 16,000/-
04. Unskilled worker 08 3,000/- 24,000/-
05. Peon/watchman 01 3,000/- 3,000/-
Total 54,500/-
Perquisites @ 15% 8,175/-
Total 62,675/-

a) Utilities Per Month:

S. DESCRIPTION QTY. RATE AMOUNT

NO. (Rs.)
01. Power 500 Rs.5/- 2,500/-
KW per KW
02. Water - - 1,500/-
TOTAL 4,000/-

a) Other Expenses Per Month:

S. DESCRIPTION QTY. RAT AMOUNT

NO. E (Rs.)
01. Advt. & Publicity - - 2,000/-
02. Insurnance - - 2,500/-
03. Misc.expenses like telephone - - 1,500/-
04. Oil &Lubricant consumable - - 1,500/-
05. Postage & stationery - - 1,000/-
06. Repair & replacement - - 1,000/-
07. Transport charges - - 2,000/-
TOTAL 11,500/-

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RECURRING EXPENDITURE PER MONTH (Rs.):

= 3,59,000 + 62,675 + 4,000 + 11,500
= Rs.4,37,175/-

WORKING CAPITAL FOR 3 MONTHS

= Rs. 4,37,175/- X 3
= Rs. 13,11,525/-

3.TOTAL CAPITAL INVESTMENT :

Rs.

FIXED CAPITAL 5,90,000/-

WORKING CAPITAL FOR 3 MONTHS 13,11,525/-
==========
Total 19,01,525/-
==========
Say 19,00,000/-

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FINANCIAL ANALYSIS

a) Cost of Production Per Annum:

S. DESCRIPTION AMOUNT (Rs.)

NO.
01. Depreciation on building 5% 23,500/-
02. Depreciation on furniture @ 20% 5,000/-
03. Depreciation on machinery @ 10% 4,300/-
04. Depreciation on moulds, tools & equipments @ 13,000/-
25%
05. Recurring expenditure 52,46,100/-
06. Interest on capital investment @ 16 % 3,04,000/-
TOTAL 55,95,900/-
OR Say 55,96,000/-

b)Turn Over (Per Annum) :

It is envisaged that the unit can achieve production capacity of 300000 sq ft cement jallies per
annum valued at Rs. 63,00,000/-

ITEM QUANTITY RATE (Rs.) VALUE (Rs.)

Cement Jallies (Sq. Ft.) 3,00,000 @ 21/- 63,00,000/-

a)Profit Per Annum :

Sales Per annum 63,00,000/-

Cost of Production per annum 55,96,000/-
===========
Profit 7,04,000/-
===========
(d) Profitability Analysis :

Profit/annum * 100
Net Profit Ratio = ---------------------------
Sales/annum

7,04,000 * 100
=
63,00,000

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= 11.17%
Profit/annum * 100
(e) Rate of Return
= --------------------------
Total Capital
investment
7,04,000 * 100
= 19,00,000
= 37.05%

(f) Break Even Point :

(i) Fixed cost per annum :

S. NO. DESCRIPTION AMOUNT

(Rs.)

01. Depreciation 45,800/-

02. Interest on investment 3,04,000/-
03. Insurance 30,000/-
04. 40% of salary and wages 3,00,840/-
05. 40% of other expenses & Utilities excluding 43,200/-
insurence

TOTAL 7,23,840/-

Profit per annum = Rs. 7,04,000

Fixed Cost/annum * 100

Break Even Point =
Fixed cost/annum + profit/annum

7,23,840 * 100
=
7,23,840 +

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7,04,000

= 50.69%

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REFERENCES

 Alsop, P. A. 2001. The cement plant operations handbook. Third edition. Surrey, UK:
Tradeship Publications
 Abbass, R. A., P. Kumar, and A. El-Gendy. 2018. “An Overview of Monitoring and
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atmosenv.2017.11.061.
 Abdul-Wahab, S. A., G. A. Al-Rawas, S. Ali, and H. Al-Dhamri. 2016. “Impact of the
Addition of Oil-Based Mud on Carbon Dioxide Emissions in a Cement Plant.” Journal of
Cleaner Production 112: 4214–4225. doi:10.1016/j.jclepro.2015.06.062.
 Shi, C.; Jimenez, A.F.; Palomo, A. New cements for the 21st century: The pursuit of an
alternative to Portland cement. Cem. Concr. Res. 2011, 41, 750–763. [CrossRef]
 Patil, K.K.; Allouche, E.N. Impact of alkali silica reaction on fly ash-based geopolymer
concrete. J. Mater. Civ. Eng. 2013, 25, 131–139. [CrossRef]
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doi:10.1016/j.rser.2011.02.014.
 Allahverdi, A., and S. Ahmadnezhad. 2014. “Mechanical Activation of Silicomanganese
Slag and Its Influence on the Properties of Portland Slag Cement.” Powder Technology 251:
41–51. doi:10.1016/j. powtec.2013.10.023
 Hasanbeigi A, Christoph M, Pichit T. The use of conservation supply curves in energy
policy and economic analysis: the case studies of Thai cement industry. Energy Policy
2010;38(1):392–405.
 Cembureau. Alternative fuels in cement manufacture; 2010. Online available at:
http://www.groundwork.org.za/Cement/Alternative Fuels in Cement Manufacture
CEMBUREAU Brochure EN.pdf [accessed 2nd September 2010].
 Cement, Cement industry; 2010. Online at:
http://www.emtindia.net/process/cement/pdf/industry%20overview%20-%20Cement.pdf
[accessed 10 August 2010].

39 SCOE BE (Chemical) Pune.