Fly Ash Bricks

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The document discusses a project profile for manufacturing fly ash bricks using fly ash as the primary raw material. It details the production capacity, raw materials used, manufacturing process, market demand, costs, sales projections and profitability analysis.

The primary raw materials used are fly ash, gypsum, lime, and sand. Fly ash is obtained from thermal power stations, while gypsum, lime and sand can be sourced from local suppliers.

The raw materials are blended and intergraded, then molded into bricks. The bricks are then subjected to curing cycles at different temperatures and pressures.

PROJECT PROFILE ON FLY ASH BRICKS

1. Product 2. Quality Standards 3. Production Capacity quantity Value 4. Prepared by

: : : : :

Fly Ash Bricks IS : 12894 :2002 24 lakh bricks Rs. 78 lakhs Pankaj V. Hotchandani

1. INTRODUCTION : Pulverized fuel ash commonly known as fly ash is a useful by-product from thermal power stations using pulverized coal as fuel and has considerable pozzolonic activity. This national resource has been gainfully utilized for manufacture of pulverized fuel ash-lime bricks as a supplement quality. to common burnt clay buildings bricks leading to conservation of natural resources and improvement in environment

Pulverized fuel ash-lime bricks are obtained from materials consisting of pulverized fuel ash in major quantity, lime and an accelerator acting as a catalyst. Pulverized fuel ash-lime bricks are generally manufactured by intergrading blending various raw materials are then moulded into bricks and subjected to curing cycles at different temperatures and pressures. On occasion as and when required, crushed bottom fuel ash or sand is also used in the composition of the raw material. Crushed bottom fuel ash or sand is also used in the composition as a coarser material to control water absorption in the final product. Pulverized fuel ash reacts with lime in presence of moisture from a calcium hydrate which is a binder material. Thus pulverized fuel ash lime in presence of moisture form a calcium silicate hydrate which is binder material. Thus pulverized fuel ash lime brick is a chemically ended bricks. These bricks are suitable for use in masonry construction just like common burnt clay bricks. Production of pulverized fuel ash-lime bricks has already started in the country and it is expected that this standard would encourage production and use on mass scale. This stand lays down the essential requirements of pulverized fuel ash bricks so as to achieve uniformity in the manufacture of such bricks.

The Proposed unit will be a started by one of the women entrepreneur and she have acquired EM Part I from the District Industries Centre, Kanchipuram, And also obtained all the statuary requirements to run the firm without any technical and managerial problems.

2. MARKET DEMAND: 180 billion tones of common burnt clay bricks are consumed annually approximately 340 billion tones of clay- about 5000 acres of top layer of soil dug out for bricks manufacture, soil erosion, emission from coal burning or fire woods which causes deforestation are the serious problems posed by brick industry. The above problems can be reduced some extent by using fly ash bricks in dwelling units. Demand for dwelling units likely to raise to 80 million units by year 2015 for lower middle and low income groups, involving an estimated investment 0f $670 billion, according to the Associated chamber of commerce and industry. Demand for dwelling units will further grow to 90 million by 2020,which would requires a minimum investment of $890billion. The Indian housing sector at present faces a shortage of 20million dwelling units for its lower middle and low income groups which will witness a spurt of about 22.5million dwelling units by the end of Tenth plan period. There is ample scope for fly ash brick and block units.

3. BASIS AND PRESUMPTION OF THE PROJECT:

i.

The process of manufacture is on the basis of single shift of six hours per day with three working days in a year. hundred

ii. iii. iv. v. vi. vii.

To achieve full plant capacity it requires! year after trial production Labor and wages mentioned in profile are as per prevailing local rates. Interest rate at 12.5% considered in the project However the rate of interest may be varying while implementing project. The Promoter contribution will be 5% of the total project cost which applicable in the PMEGP scheme. The capacity of the unit 8000 bricks per day on the single sift basis.

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others

Weaknesses: characteristics that place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project

STRENGHT
Strengths * Cost advantage * Asset leverage * Effective communication * High R&D * Innovation * Online growth * Loyal customers * Market share leadership * Strong management team * Strong brand equity * Strong financial position * Supply chain * Pricing * Real estate * Reputation management * Unique products

Weaknesses * Bad communication * Diseconomies to scale * Over leveraged fiancial position * Low market share * No online presence * Not innovative * Not diversified * Poor supply chain * Weak management team * Weak real estate

* Weak, damaged brand * Ubiquitiouegory, products, services

Opportunities * Acquisitions * Asset leverage * Financial markets (raise money through debt, etc) * Emerging markets and expansion abroad * Innovation * Online * Product and services expansion * Takeovers

Threats

* Competition * Cheaper technology * Economic slowdown * External changes (government, politics, taxes, etc) * Exchange rate fluctuations * Lower cost competitors or imports * Maturing categories, products, or services * Price wars * Product substitution

SEGMENTATIONSTP Strategy Based on the geographic location. - As the plant is located in Jharkhand, we will first try to capture the local market and then move to the neighbouring states. Based on demographic location. - Demographic factors will help greatly in determining the target customers. Name of Company - FLASH Industries Product Brand Name - FLASH Bricks Targeting & Positioning Positioning Targeting Positioned as Environmental Builders

Pollutant Cleaner Consultants Architects Government

4. RAW MATERIALS Fly Ash s the inorganic mineral residue obtained after burning of coal/lignite in the boilers. Fly Ash is that portion of ash which is collected from the hoppers of ESPs and pond ash is collected from the ash ponds. Bottom ash is that portion of ash which can be collected fro the bottom portion of the boilers. The characteristics of fly ash depend upon the quality of lignite/coal and the efficiency of boilers. India depends upon primarily on coal for the requirement of power and her power generation is likely to go up from 60,000MW in the year 2010. While generation of power from bituminous sources is on increase. The generation of fly ash is also likely to increase. The fly ash generation in India Thermal Stations is likely to shoot up to 170 million tones in 2010 from the present level of 100 million tones. The disposal of fly ash in the present method will be a big challenge to environment, especially when the quantum increases from the present level. The proposed unite will be using both type of fly ash depends upon the availbality 4.a Characteristics of Fly ash

The physical and chemical properties of Fly Ash are tabulated below 4.a. i. Physical Properties Specific Gravity Bulk Density Fineness ii. Chemical Properties 2.54 to 2.65 gm/cc 1.12 gm/cc 350 to 450 M2/Kg

Silica Alumina Calcium Oxide Loss on ignition Sulphur Iron

35-59 % 23-33% 10-16% 1-2% 0.5- 1.5% 0.5- 2.0 %

It may be seen that lignite fly ash is characterized primarily by the presence of silica, alumina, calcium etc. Presence of silica in fine form makes it excellent pozzolanic material. Its abundant availability at practically nil cost gives a very good opportunity for the construction agencies. Characteristics of Lignite and Coal Fly Ash: CONTENTS L.O.I Sio2 A12 o3 Fe2 o3 CaO MgO So3 LIGNITE FLY ASH (%) 1.0 TO 2.0 45.59 23-33 06-4.0 5.0-16.0 1.5-5.0 0-5. 0 COAL FLY ASH (%) 3-15 40-64 15-29 2-11 0.1-1.0 0.2-4.0 0.1-1.7

About 50 to 80% fly ash may be used for the production. Fly ash conform to IS 3812/1981is one of the important aspects.

GUPSUM: Hydrated calcium sulphate are called gypsum. (Caso4 2H2O). Gypsum should have minimum 35% purity and 5 to 15% may be used. 4.d Lime : Quick Lime or hydrated lime or both can be mixed in the composition. Lime should have minimum 40% Cao content. 4.e. Sand River sand should be clean & coarse. About 10 to 20% may used. All the raw materials are indigenous and readily available from the manufacture or traders 5. MANUFACTURING PROCESS: Fly ash (70%)Lime (10%) Gypsum (5%) and sand(15%) are manually feed into a pan mixer where water is added to the required proportion for homogeneous mixing. The proportion of raw material may vary depending upon quality of raw materials. After mixing, the mixture are allowed to belt conveyor through feed in to automatic brick making machine were the bricks are pressed automatically. Than the bricks are placed on wooden pallets and kept as it is for two days there after transported to open area where they are water cured for 10 -15 days. The bricks are sorted and tested before dispatch.

6. FLOW SHEET DIAGRAM

Fly Ash

Gypsum

Lime

Sand

--------------------------------------------------------------------------------Weighing Pan Mixer Conveyor Fly Ash Brick Making Machine (Hydralic (or) Power Press) Transported To Wooden Racks Kept as it is for two days for setting Water Curing (7 to 10 days) Drying (one or two days) Sorting and Testing Dispatch

7. INSPECTION AND QUALITY CONTROL : The Bureau of Indian Standards has formulated and published the specifications for maintaining quality of product and testing purpose. IS : 12894 :2002. Compressive strength achievable: 60-250 Kg/Cm.Sq. Water absorption: 5 12 %; Density: 1.5 gm/cc Co-efficient of softening (depending upon water consistency factor) Unlike conventional clay bricks fly ash bricks have high affinity to cement mortar though it has smooth surface, due to the crystal growth between brick and the cement mortar the joint will become stronger and in due course of time it will become monolithic and the strength will be consistent. PRODUCTION CAPACITY PER ANNUM: Quantity: 24 lakh bricks total value Motive Power required: 35 HP 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 firing process is avoided. There are no emissions and no effluent is discharged. Facial masks and dust control equipment may be provided to the employees to avoid dust pollution more over all the raw materials are kept under covered by polythene sheet to avoid air pollution. ENERGY CONSERVATION: General precautions for saving electricity are followed by the unit by providing energy meter. This products are low energy consumption since no need of fire operation in the production unlike conventional bricks. Thus considerable energy could be saved not only in manufacturing activities but also during the construction. Rs. 78,00,000/

Electrical HP Details: Sl No 1 2 3 4 Automatic Fly Ash Brick making machine Pan Mixer7.5 +7.5 Belt Conveyor Other electrical fittings/ lighting etc Total H.P Connected Name of the Machine No: m/s 1 2 1 -of H.P Connected 12 15 2 6 35

FINANCIAL ASPECTS FIXED CAPITAL : (a)Land & Building: S.N 1 2 3 DESCRIPTION Land Lease hold Building (60 x 40 = 2400 Sq. feet.) Overhead water tank TOTAL (b)Machinery and Equipment : S.N DESCRIPTION 1 Automatic Fly ash Brick making machine hydraulic operated with all accessories and fitting with 18HP Motor 2 Pan Mixture 500 KG Capacity with 7.5 HP Motor 3 Belt Conveyor with necessary fittings and 2 HP Motor TOTAL VAT 4 % GRANT TOTAL Erecting and Electrification Charges 5 Office furniture TOTAL AMOUNT Rs 45,000 Sq.f 3,00,000 50,000 3,50,000

QTY 1

RATE 12,00,000

AMOUNT 12,00,000

1 1

2,00,000 50,000

2,50,000 50,000 15,00,000 60,000 15,60,000 22,000 20,000 16,02,000

RECURRING EXPENDITURE (PER MONTH ): (a) Raw Material Per Month: S.N DESCRIPTION 1 Fly ash 2 Gypsum Lime 3 Lime 4 Sand TOTAL (b) Salaries & Wages Per Month : S.No 1 2 3 4 DESIGNATION Production Manager Un skilled workers Office assistant Watch man Total (c) Utilities Per Month : S.N 1 2 DESCRIPTION Power 35 HP 3916 Units@ Rs.5 per Unit Water

QTY 420 Mt 70 105 35

Rs. RATE AMOUNT 250 1,22,500 1,900 1,33,000 1,300 1,36,500 800 28,000 4,20,000 Rs.

NO 1 22 1 1 25

SALARY -3,750 4,000 3,500

Amount Self 82,500 4,000 3,500 90,000

Rs. AMOUNT 19,583. 1,000 20,583

TOTAL (d) Other Expenses Per Month : S.N 2 3 4 5 6 7 DESCRIPTION Postage and stationery Repairs and maintenance Traveling and transportation POL Insurance Telephone TOTAL RECURRING EXPENDITURE PER MONTH: a + b + c + d = Rs.5, 45,583/- say Rs: 5, 45,600 RECURRING EXPENDITURE FOR 3 MONTHS 5, 45,600 X 3 = 16,36,800 Rs.

AMOUNT 1,000 3,000 2,000 5,000 1,000 3,000 15,000

WORKING CAPITAL ASSESSMENT S.N 1 Raw Material (Required for one week) 2 Work in progress (Required for one month) 3 Finished Good (Required for 5 days) 4 Bill receivable (Required for two weeks) TOTAL 2,06,900 5,40,000 1,05,917 1,09,583 DESCRIPTION AMOUNT 1,17,600

OTHER FINANCIAL ASSISTANCE 17. a. Total Project Cost a. Land b. Building c. Plant & Machinery d. Working capital

Rs.

Lease hold 3, 50,000 16, 02,000 5, 40,000 Total 24,92,000 Rs. 4,92,000 1,24,600 23,67,400

17.b Means of Finance Total Project cost Promoter contribution 5% Finance required from the Bank

Subsidy applicable under the PMEGP @ 35% Cost of Production Per Annum : S.N 1 2 3 4 5 Total recurring cost Interest on total investment @12.5% Total Depreciation on Building @5% DESCRIPTION

8,72,200/

Rs. AMOUNT 65,47,200 3,11,500 15,000 1,48,200 4,000 70,25,900

Total Depreciation on Machinery equipments @ 10% Total Depreciation on Office & furniture @ 20% TOTAL

Turnover Per Annum : Excepted sale 24 lakh bricks @ 3.40 per bricks 81,60,000 Profit Per Annum : Turnover 81,60,000

Cost of Production 70,25,900

= 11,34,100/-

(a) % of profit on sales

Profit/annum X 100 Turnover 11,34,100 X 100 81,60,000 11,34,10,000 81,60,000 13.90%

= b) Rate of Return =

Profit/annum X 100 Total Capital investment

11,34,100 X 100 24,92,300

11,34,10,000 24,92,300

45.50%

Break Even Analysis:

(1) Fixed cost per annum: a. b. c. d. e. Total Depreciation Interest on investment Insurance 40% of salary and wages 40% of other expenses & Utilities excluding Insurance = = = = = 1,67,200 3,11,500 4,800 4,32,000 1,92,398 ======== 11,07,898 ====== ==

(2) Profit per annum = Rs. 11.34,100/

Break Even Point =

Fixed Cost/annum * 100 Fixed cost/annum + Profit/annum

1107898 X 100 2241998

49%

Suppliers Address: A. Raw Materials Suppliers : Fly ash available from the Adani Power Stations

Tirora, Gondia Gyp sum - available from TANFAC SIPCOT Industrial Complex, Cuddalore, Lime stone, river sand and crusher dust are available from the local dealers.

INDEX
1. INTRODUCTION 2. MARKET DEMAND: 3. BASIS AND PRESUMPTION OF THE PROJECT 4. STRENGHT 5. RAW MATERIALS 6. FLOW SHEET DIAGRAM 7. INSPECTION AND QUALITY CONTROL 8. WORKING CAPITAL ASSESSMENT

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