START UP PLAN

Altern flyash brick

DURA BRICKS (P) LTDbuilding greener earth brick by brick

PROMOTERS

ROHIT RAODEEPAKD RAMANNIRRANJENHARIHARANS 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 BRICKSSize of block is 290x185x125mm Uniform in size, shapeHigh strengthLight in weightGood resistance to salinity and termiteWater absorption is less

PLANT LOCATION

ENNORENorth ChennaiNear by Thermal power station

BUSINESS MODEL

TECHNOLOGYThe 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 PROCESSFly 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.

COMPARISONFLY ASH BRICK NORMAL CLAY

BRICKUniform 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 Kg/cm2

Compressive strength is around 35 Kg/cm2

Less porous More porous

Water absorption 6-12% Water absorption 20-25%

PRODUCTION PLAN

300 Working days1 shift per dayFirst 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

Office

Production

Drying

Raw material storage

FAL-G PROCESS STEP1

ProcurementOf

RAW MATERIAL

FLY ASHFROM

THERMAL PLANTS

LIME/GYPSUMFROM

CHEMICAL PLANTS

STONE DUSTFROM

STONE CRUSHER

FAL-G PROCESS STEP 2

Storageof

Raw Materials

FLY ASHIn open yard

duly wetted and

covered by Plastic sheet

LIME SLUDGEDumped in open yard

or stored in packets

STONE DUSTIn open yard

duly wetted and

covered by Plastic sheet

GYPSUMIn bags

,stored in godowns.

FAL-G PROCESS STEP 3Batch Mixing of Raw Material

Mechanized transportation

of required quantity Raw Materials to

Roller Mixture

FLY ASH

LIME

SAND

GYPSUM

FAL-G PROCESS STEP 4Wet mixing in Roller Mixer

Raw materials are kneaded under rollers for achieving homogenous mortar

FLY ASH

LIME/GYPSUMSAND

FAL-G PROCESS STEP 5 Mechanized Transfer from Pan Mixer to Automatic Brick Making Machine

ROLLERMIXTURE

VIBRO PRESSHYDRAULIC

COMPRESSION

homogenized m

ortar

homogenized mortar

FAL-G PROCESS STEP 6

The green bricks are dried up under sun

from 24 to 48 hours

DESPATCH TO THE MARKET

Drying & Curing

The dried up bricksare stacked

and subjected for water spray curing

once or twice a day for 7-21 days

depending on ambience

MARKETINGTarget Market

BuildersConsultantsArchitectsGovt.

Positioning Positioned as Environmental friendly

Segmentation Based on the geography

PRICING STRATEGY

Rs 2 per brickOur competitive advantageMarket 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 buyingTrade promotionPublicityLarge volume of institutional sales

BASIS & PRESUMPTIONSAssumed 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 ASSOCIATIONSECPL 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 ASSOCIATIONSCDCF (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 ECPLMonitor the implementation of specific

community development components of the project

COMPANY’S ROLESetting 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 ISSUESUnited 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 MAPSI. 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

Day 1 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

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 CAPITALi) 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 CAPITALii)raw material (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)(iii) Utilities (per month) (Rs.)

Power 30000

Fuel 20000

Total 50000

TOTAL WORKING CAPITAL(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

TOTAL INVESTMENT CAPITALFixed 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 Equipment @10%

136000

Depreciation on Office equipment @ 20%

12000

Interest on Total Capital Investment @ 13%

765705.2

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 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

BEP Fixed cost x 100

----------------------- Fixed cost + Profit   1931051.2 x 100

----------------------- 1931051.2 +1674804.8   53.55%

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