DURA BRICKS (P) LTD

building greener earth brick by brick

START UP PLAN

Altern flyash brick

PROMOTERS
 ROHIT RAO
 DEEPAK
 D RAMAN
 NIRRANJEN
 HARIHARAN
 S M ARUN SENTHIL KUMAR
INTRODUCTION
 Nearly 73% of India’s total installed power generation
capacity is thermal, of which coal-based generation is 90%
– the remaining comprising diesel, wind, gas, and steam.
 With the rapid rise in thermal generation, environmental
pollution as a result of massive fly ash generation, poses a
new problem.
 It is expected that by the year 2012 fly ash generation in the
country by thermal power plants will be reaching nearly
200 million tonnes.
INTRODUCTION
 In India, the brick industry comes third after power and
steel in coal consumption.
 The total carbon dioxide emission is estimated to be 42
million tonnes.
 clay brick industry is degrading the fertile topsoil to the
extent of 50,000 acres every year in India.
 Till date only 14% of the Fly Ash generated is being
utilized.
MARKET ANALYSIS
 Brick manufacturing falls under the domain of small-scale
industries (SSI) sector.
 The Indian brick industry is second biggest in the world
after China and produces about 140 Billion bricks in a year.
 short-fall in the production of bricks – to the tune of 40
billion bricks on an estimated demand of 180 billion bricks
per year in India.
 6 Billion flyash bricks are produced per year in India.
 The market penetration of the technology remains low (less
than 2%).
MISSION AND VISION

MISSION:
“To provide and promote business and services
that strengthen the brick manufacturing sector for the
ultimate benefit of its customers and society.”

VISION:
To be in the forefront of creating awareness about
environment, & to be the largest player in the field of
fly-ash brick production by 2014.
PRODUCT DESCRIPTION
 FLYASH BRICKS
 Size of block is 290x185x125mm
 Uniform in size, shape
 High strength
 Light in weight
 Good resistance to salinity and termite
 Water absorption is less
PLANT LOCATION
ENNORE
North Chennai
Near by Thermal power station
BUSINESS MODEL
TECHNOLOGY
 The FaL-G technology revolves around fly ash, lime and
gypsum chemistry.
 FaL-G bricks/blocks are superior in quality compared to
bricks produced from fly ash and lime.
 In the case of fly ash-lime-gypsum (FaL-G) mixes, the
strengths are imparted by calcium alumino-sulphate
hydrates (CASH).
 The strengths of FaL-G is in the range of 200-250-350
kg/cm2.
 FaL-G technology does not involve any sintering process.
MANUFACTURING PROCESS
 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.
 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.
COMPARISON
FLY ASH BRICK NORMAL CLAY
BRICK
Uniform pleasing colour like cement Varying colour as per soil

Uniform in shape and smooth in finish Uneven shape as hand made

Dense composition Lightly bonded

No plastering required Plastering required
Lighter in weight Heavier in weight
Compressive strength is around 100 Compressive strength is around 35
Kg/cm2 Kg/cm2
Less porous More porous
Water absorption 6-12% Water absorption 20-25%
PRODUCTION PLAN
 300 Working days
 1 shift per day
 First operation-50% of Capacity
( 60,00,000 units)
 Production in batches
One batch of 1000 bricks.
Total 6000 batches yearly.

 Second year operation- 60% of capacity

PROPOSED PLANT LAYOUT
Raw material
Office storage

Drying

Production
 FAL-G PROCESS STEP1

Procurement
Of
RAW MATERIAL

FLY ASH LIME/GYPSUM STONE DUST

FROM FROM FROM
THERMAL PLANTS CHEMICAL PLANTS STONE CRUSHER
 FAL-G PROCESS STEP 2

Storage
of
Raw Materials

GYPSUM
In bags
FLY ASH LIME SLUDGE STONE DUST .stored in godowns ,
In open yard In open yard
Dumped in open yard
duly wetted duly wetted
or
and and
stored in packets
covered by Plastic sheet covered by Plastic sheet
FAL-G PROCESS STEP 3
 Batch Mixing of Raw Material

Mechanized
transportation
of required quantity
FLY ASH Raw Materials to SAND
Roller Mixture

LIME GYPSUM
FAL-G PROCESS STEP 4
 Wet mixing in Roller Mixer

Raw materials are kneaded under rollers for achieving

homogenous mortar

FLY ASH

SAND LIME/GYPSUM
 FAL-G PROCESS STEP 5
 Mechanized Transfer from Pan Mixer to Automatic Brick Making Machine

ho
r mo
tr a ROLLER ge
o niz
e dm MIXTURE e dm
n iz or
e tar
og
m
ho

HYDRAULIC
VIBRO PRESS
COMPRESSION
 FAL-G PROCESS STEP 6
Drying & Curing

The green bricks The dried up bricks

are dried up under sun are stacked
from 24 to 48 hours and subjected for water spray
curing
once or twice a day
for 7-21 days
depending on ambience

DESPATCH TO THE MARKET

MARKETING
 Target Market
Builders
Consultants
Architects
Govt.
 Positioning
Positioned as Environmental friendly
 Segmentation
Based on the geography
PRICING STRATEGY
 Rs 2 per brick
 Our competitive advantage
 Market rate is between Rs 3 to Rs 3.50
PROMOTION STRATEGY
Listing on websites like Indiamart.com, justdial.com,
construction.indiabizclub.com, and others.
Discounts on large buying
Trade promotion
Publicity
Large volume of institutional sales
BASIS & PRESUMPTIONS
 Assumed that the unit will operate on single shift basis for 300
working days in a year.
 The salary and wages for staff and labour has been taken into
consideration on the basis of prevailing market rates.
 Interest rate at 13% is considered in the project profile for both
recurring and nonrecurring investment.
 Margin money will vary from 10- 25% depending upon the
location and scheme adopted by the entrepreneur.
 Operative period of project is around 10 years considering
technology obsolescence rate and period of repayment of loan.
INSTITUTIONAL
ASSOCIATIONS
 INSWAREB Technology provider

 Provide technology know how

 Provide logistical support for procuring equipment,
machinery and raw materials.
 Provide guarantee to enterprises against technical failure.
INSTITUTIONAL
ASSOCIATIONS
 ECPL Carbon Transaction Coordinator

 Enroll micro entreprises under the project

 Find a potential buyer and negotiate price
 Coordinate carbon transaction activities with the buyer and
the CDM Executive Board
 Obtain host country endorsement
 Undertake monitoring as per the CDM requirements and
requirements of the World bank
 Pass on the carbon benefits to the micro enterprises as per
the terms mutually agreed
INSTITUTIONAL
ASSOCIATIONS
CDCF (The World Bank) Purchasing emission reductions

 Coordinate with the CDM executive Board

 Register the project with CDM Executive Board
 Make payments to ECPL as per the terms mutually
agreed
 Monitor the implementation of specific communication
programs by ECPL
Monitor the implementation of specific community
development components of the project
COMPANY’S ROLE
 Setting up and operating FaLG plants

 Mobilize resources
 Procure equipment and machinery
 Market the products
 Keep data and records as per the monitoring requirements
of CDM
 Implement the community developments components as
agreed between ECPL and the CDCF
 Implement environment management plans as agreed
between ECPL and CDCF.
OTHER ISSUES
United Nations Development Programme’s Global
Environment Facility (UNDP-GEF) is supporting a
project on manufacture of energy-efficient bricks.
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.
Though our project is eco friendly, it need clearance
from pollution control board.
ROAD MAP
SI. ACTIVITY PERIOD PERIOD
NO STARTING COMPLETIO
N
1 Survey of collection of data in respect of Day 1 2nd month
demand, availability of technology,
power, land
and clearance from State Pollution Control
Board
2 Arrangement for margin money 2nd to 3rd
3 Preparation of project report and 2nd to 3rd
registration
4 Finance assistance 2nd to 4th
5 Development of Site and construction of 5th to 7th
building
6 Machine purchasing and installation 7th to 8th
7 Trial production 8th month
FINANCIAL ANALYSIS
CAPITAL ASSISTANCE
PROMOTER’S COMBINATION
10 lakh per promoter (60 lakh)

Assistance from Industrial Investment Corporation of

TamilNadu

Loan assistance from Industrial Development Bank of

India
 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 Price (Rs.)
Pan mixer (run by 20 HP motor) 200000
Hydraulic Press (30 Tonnes Cap.) 450000
Belt Conveyor (Run by 3 HP motor) 100000
Deep Tube Well 80000
Generator 250000
Steel Plates and Extra Moulds 150000
Trollies 60000
Office, Furniture and Equipments 60000
Installation and Erection charges 70000
TOTAL 1420000
TOTAL FIXED CAPITAL

iii) Pre-operative Expenses 100000

Total Fixed Capital (i+ii+iii) 4345000

WORKING CAPITAL
(i) Staff and Labor (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
 WORKING CAPITAL
ii)raw material (per month)

Rate
Description Ind./ Imp. Qty. (Ton.) Value (Rs.)
(P.Ton)
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)
(iii) Utilities (per month) (Rs.)
Power 30000
Fuel 20000
Total 50000
TOTAL WORKING CAPITAL
(iv) Other Contingent Expenses
(Rs.)
(per month)
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
772520
month) (i+ii+iii+iv)
(vi) Total Working Capital (for 2
1545040
months)
TOTAL INVESTMENT CAPITAL
Fixed Capital 4345000
Working Capital 1545040
Total 5890040
COST OF PRODUCTION(per year)
(1) Cost of Production (per year) (Rs.)
Total Recurring Cost 9270240
Depreciation on Building at 5% 141250
Depreciation on Machinery and
136000
Equipment @10%
Depreciation on Office equipment @
12000
20%
Interest on Total Capital Investment
765705.2
@ 13%
Total 10325195.2
TURNOVER (per year)
Qty. Rate Value (Rs.)
60 Lakhs Bricks 2 per bricks 12000000

Net Profit (per year) = Turn Over – production Cost

  = Rs. 12000000 – 10325195.2

  = 1674804.8
NET PROFIT RATIO
Net Profit x 100
--------------------
Total Turnover
 
1674804.8 x 100
---------------------
12000000

  13.96%
RATE OF RETURN
Net Profit (per year) x 100
---------------------------
Total Investment
 
1674804.8x 100
----------------------
5890040

28.43%
BREAK EVEN POINT
Fixed Cost (Rs.)
Depreciation on building @ 5% 141250
Depreciation on Machinery and
136000
Equipment @ 10%
Depreciation on Office Equipment
12000
@ 20%
Interest on Total Capital Investment
765705.2
@ 13%
Insurance 60000
40% of Salary and Wages 679296
40% of Other Contingent Expenses
136800
(excluding insurance)
Total 1931051.2
BEP
Fixed cost x 100
-----------------------
Fixed cost + Profit
 
1931051.2 x 100
-----------------------
1931051.2 +1674804.8
 
53.55%
THANK YOU