Welcome to Technopreneur

Product Code	:	N.A
Quality and Standards	:	IS 12894:1990
Uploaded on	:	May 2007

Introduction

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.