ASSIGNMENT

FLY ASH BRICKS

Name Somen Acharjee

Name Wasim Imtaz Ul Hoque

Roll No -10
Roll No 09

Name Partha Pratim Bharadwaj

Roll No -08

Name Bondita Saikia

Roll No- 07

Fly Ash Bricks

Introduction of the Product
Fly Ash bricks can be extensively used in all building constructional activities similar to that of common
burnt clay bricks. These bricks are comparatively lighter in weight and stronger than common clay bricks.
The main raw materials fly ash is generated by thermal power stations in big quantity.

MARKET ANALYSIS
Market & Demand Aspects
There is good demand for fly ash bricks. The awareness among the people is required and also same time
the government has to give some special incentives for these types of activities.

The technologies are eco friendly, reduces solid waste and dust in the nature.
Compared to hollow brick and clay brick the cost is reasonable.
Construction of wall with these bricks is very easy and cost effective.
Technology is indigenously available.
Better water resistant & non-water absorbing. So better suitable for heavy monsoon prone Assam
& neighboring NE states.

The open mining & rat mining have been banned in Meghalaya district resulting in shortage of coal in
Clay Brick Industries. As a result the demand of Fly ash brick has risen. Industry experts estimate a
possibility of complete replacement of clay bricks by fly ash bricks in near future thus the market is
bound to grow. So the plant can benefit from positive demand-supply gap.

Proposed Geographical Location:- Kamrup-Goalpara Border

The location has been considered on the basis of demand analysis, raw materials availability and cheap
labour. Further detailed analysis is given in Technical analysis section.

Raw materials: - Fly ash, gypsum, lime and stone dust.

Manufacturing Process and Source of Technology
Required raw material like Fly ash, Gypsum, lime and stone dust have to be mixed as per the ratio. The
mixed product can be placed into automatic locking machine. This to be kept in moulds for
manufacturing of automatic locking fly ash bricks. After the processing the bricks have to be dried after
applying required water on the bricks. After two days drying the bricks can be sold. It is simple
manufacturing process.

This technology can be availed from Central Building Research Institute, Roorke (UP).

Price:- The general retail price for selling Fly Ash brick per piece is Rs. 8. So this will be selling price
and people are willing to pay which can be said on the base of demand. Thus, it is a high return project.

Method of Distribution & Sales promotion: - Distribution will be through direct sale on the basis of
order and retail selling through third-party vendors.
Sales promotion for this type of project is generally through word-of-mouth publicity (as non-branded
product); although all conscious effort will be made for promotion to third-party vendors through ground
agents & distributors.

Competition: - Competition is nearly non-existent in the location chosen and project can strive because
of high local demand.

But Cement Manufacturers compete for the same raw material i.e. fly ash. Cement
manufacturers have installed Giant Silos at their own cost in Thermal Power Plants to collect the
fly ash accumulated, obviously they get the major share of fly ash from Thermal Power Plants,
the fly ash bricks manufacturers often fight for their share judicially.
Some Cement manufactures are said to mix 15% of fly ash to their cement. So, it is clearly
evident that one should have fly ash quota from EB to run the factory without any interruption.
Government policies:- Government have not made any specific policies for the product but
organizations like MSME, SIDBI, NEDFI etc are helping the entrepreneurs with seed fund and subsidized
loans for fly ash units.

Benefits:1. High strength, practically no breakage during transport and use.

2. Due to uniform size of bricks the mortar usage costs required for joints and plastering reduces by
almost 50%.
3. Seepage of water through fly ash bricks reduced because of low water penetration character.
4. Bricks not required to be soaked in water like clay bricks; simply sprinkling of water is enough.
So they are easy to use and time saving in nature.
5. Plaster of Paris can be directly applied on this kind of bricks with backing coat of plaster.
6. The industry is over all pollution free rather reduces waste matter by recycling them and also
requires less manpower.

Profit Factor: In this business the profit factor differs from place to place, but we can guarantee
that you could make minimum Rs.1/brick as profit for sure.
Availability of labor, Raw materials at low cost and sufficient power supply from grid these are
the factors directly impact the profit margin of fly ash bricks manufacturing business.

Total Project worth: The total worth of this project including plant, machinery and
working capital is estimated to be Rs.30, 00,000/- approximately. This estimation is
based on machineries with production capacity of 12,000 Bricks/ shift. (The
estimation does not includes the cost of diesel power generator)

DEMAND FORECASTING USING TREND PROJECTION METHOD

Demand Data

PERIOD

SALES (Y) [in millions]

2009

4000

2010

4240

2011

4495

2012

4764

2013

5050

Source:Indian Bricks Association website

Calculation in the Least Square Method

Period

Sales (Y)

TY

T2

2009

4000

2010

4240

4240

2011

4495

8990

2012

4764

14292

2013

5050

20200

16

T = 10

Y = 22549

TY = 47721

T2 = 30

Y = 1 / N ( Y) = 4509.8
T = 1 / N ( T) = 2

b = (T Y n T Y) ( T2

n T2 )

= [ 47721 ( 5 4509.8 2) ] [ 30 (52) ]

= 2623.88 20 = 131.19
a = Y bT = 4509.67 131.19 2
= 4247.28 million
Y2014 = 4247.28 + 131.195 = 4903.23
Therefore, Projected Demand of Bricks in North Eastern Region (NER) = 4903.23 million units

Total Import from outside states in NER= 400 million (approx)

Total Domestic production in NER = 3000 million units
Therefore total shortfall of bricks in NER = 4903.23 million + 400 million 3000 million units
= 2303.23 million units

Out of total shortfall in brick industry in NER, 70% shortfall is in Assam. So, total shortfall in Assam
= 23% in 2303.23 million units
= 483.678 million units
The whole shortfall segment can be assumed as target market for Fly Ash Brick industry and
particularly for our plant. It is because the people are shifting to Fly Ash Brick from the Clay Brick
Industry.
At present 27% is only constituted of Fly Ash Brick Industry in Assam. So here also we can assume
roughly 27% share of the total shortfall.
Therefore total scope for Fly Ash Bricks in Assam is 27% of 483.678 million units.
=130.593 million units
TECHNICAL ANALYSIS
1) MANUFACTURING PROCESS AND SOURCE OF TECHNOLOGY

Required raw material like Fly ash, Gypsum, lime and stone dust have to be mixed as per the ratio. The
mixed product can be placed into automatic locking machine. This to be kept in moulds for
manufacturing of automatic locking fly ash bricks. After the processing the bricks have to be dried after
applying required water on the bricks. After two days drying the bricks can be sold. It is simple
manufacturing process.
This technology can be availed from Central Building Research Institute, Roorke (UP).
2) PLANT CAPACITY PER YEAR: 1.0 crore bricks. This capacity is decided by analyzing demand from secondary data studies and
production of competitors in the nearby districts.
3) RAW MATERIALS

Fly ash : Available at thermal power stations (Haldia Power Plant)

Gypsum : Availability in the neighboring country (Bhutan)
Hydrated Lime & Sand : Locally available
Fly ash availability: Success in this business is subject to availability of fly ash from Thermal
power plants.
One should do a thorough market research for availability of fly ash before you get in to this
business. Though fly ash is available through black market dealers, it is wise decision to get fly
ash quota as soon as possible to continue to survive in the market.
Resource Centre of Technology:
This technology can be availed from MSME-DI, Guwahati at free of cost.
4) TECHNICAL ARRANGEMENTS and PLANT & MACHINERIES
The Fly ash brick making plant has been designed to manufacture fly ash with FAL-G Technology. The
heart of the plant - BRICK MAN- is an indigenously designed, a relatively low cost and high productivity
machine. The plant consists of the following equipment:
BRICK MAN
1. It is a hydraulically operated, automatic and controlled by electronic circuits. The electronic circuit is
self diagnosing. It has an optional alpha-numeric display, computer connection and modem that can be
connected to the computer through telephone lines to detect local faults in advance.
2. Brick making machine develops 30 T of compressive force over the bricks uniformly to hold pressure
for the required time allowing the material to flow and form

3. The compressive force can be varied by turn of a knob

4. The machine structure is designed to take up heavy cyclic loads
5. The compressive ratio (1:1.6- brick height: filling height) can be varied infinitely within the limits of
the moulds
6. Different size of moulds can be fitted with maximum size of 230x 200x 100mm
7. Monogram on the brick can be embossed
8. Efficient water cooling system to ensure the continuous running of the machine
PAN MIXER
1. A sturdily constructed machine with heavy rollers to grind and mix material thoroughly
2. Drive through quality worm reducing gear box
3. Changeable bottom gear plates with scrappers fitted with TC tips
4. Easy bottom loading mechanism with rap pinion door arrangement
CONVEYOR
1. Frames and intermittent bins are fabricated sturdily
2. The fly ash mix can be regulated according to the speed of the brick making machine
3. Nylon with rubber top conveyor belts
4. Friction-less idlers
PALLET TRUCKS
Novel and ergo metric design has been installed to handle the bricks with pallets for effortless and easy
transportation of fly ash bricks.

List of Suppliers Address

Plant & Machineries
M/s. Susanji Udyog (P) Ltd, C-47, Indl. Estate, Sanat Nagar, Hyderabad 18
M/s. Bharat Boilers, Indl. Estate, Eluru, Dist. West Godavari, Andra Pradesh
M/s. Pratap Industries, P.O. Enkipadu, Vijayawada 521108(AP)
M/s.Jayem Manufacturing Company, C-99, Sector 4, Noida 201 301 (UP)

5) MATERIAL MIX
FAL-G MIX: FLYASH LIME AND GYPSUM MIX

The FAL-G mix is a slow setting pozzalona cement mix. Clay and limestone are burnt with coal, gypsum
is mixed and ground to make cement. Flyash with burnt clay particles (Oxidizes of Clay) obtained from
burning of coal are mixed.
6) LOCATION AND SITE

Proposed Location:- Kamrup-Goalpara Border

Geographical location has been selected keeping in mind the procurement of chief raw material - Fly Ash.
Fly ash is a residual material available at Thermal Power Plants. The nearest such big plant is at Haldia,
West Bengal. The material can be procured free of cost; the only cost incurred for procurement will be
labor cost and transportation cost.
Also it will be suitable import raw material from the 750 MW Bongaigaon Thermal Power Plant which is
in line for operation in 2015.
Transportation will be done from Haldia port to Jogighopa port by cargo vessels and from there can be
transported using trucks.
The location also provides advantage in terms of cheap land & labor availability. Further the location is in
close proximity to Kamrup & Kamrup metro where there is huge demand for bricks for construction
purpose. Nalbari, Barpeta & Goalpara are particular hot spots for manual labour works. Factories &
plants are also coming up in the vicinities. So the location is a natural demand hot-spot.
Availability of labor is a big problem now in growing India. Since the Production process includes some
labor intensive works and dusty wok environment, it is hard to find suitable laborers for this industry. Any
ways, we can convince the workers by offering high pay and some incentives
7) STRUCTURE AND CIVIL WORKS

I.

Land Requirement: One should have minimum half acres of factory campus to start this
business (though half acre is OK, 1 acre is preferred to stock and curing the bricks)

II.

Factory Location: Factory Premises to be set up within 100 KM radius to any of

Thermal Power plants nearby for the sake of fly ash quota approval from EB.

III.

Availability of Water: Obviously you need plenty of water to facilitate the fly ash brick
manufacturing process (preferably soft water), so its better you setup your factory where
you have easy availability of water.

8) ENVIRONMENTAL ISSUES

Unloading Fly ash and storing it in open space generates huge air pollution to the environment.
So, make sure that your factory campus is not surrounded by residential area or any other
factories that manufacture sensitive products that are prone to damage with accumulation of
micro dust particles.
Some Big shots in this business use Silos to store the fly ash to avoid such complications.

FINANCIAL ANALYSIS
Fixed Capital
Land and Building
Items

(Rs.)
1200000
825000
600000
112519
200000
2937519

Land 1 Acre @ Rs. 1200000

Building Area 165 sq. mt. @ Rs. 5000 per sq mt.
Working Shed 150 sq. mt. @ Rs. 4000 per sq. mt.
Boundary Wall, Gate L.S.
Fly Ash Pond and Curring Tank L.S.
Total

Machinery and Equipments

Description
Pan mixer (run by 20 HP motor)
Gauge winding machine
Belt Conveyor (Run by 3 HP motor)
Deep Tube Well
Generator
Steel Plates and Extra Moulds
Trollies
Office, Furniture and Equipments
Installation and Erection charges
Total

Working Capital (Per Month)

Ind./ Imp.
Ind.
Ind.
Ind.
Ind.
-

Qty.
2
2
1
1
1
L.S.
L.S.
L.S.
L.S.

Price (Rs.)
200000
450000
100000
80000
250000
150000
60000
60000
70000
1420000

Staff and Labour (per month)

Designation

Nos.

Salary

Manager
Production Engineer
Skilled workers
Un-skilled workers
Chowkidars
Peons
Cashier-Cum-Clerk
Total
Add Perquisites @ 22%
Total

1
1
5
10
3
2
1

15000
12000
6000
4000
3000
3000
6000

Total
Salary
(Rs.)
15000
12000
30000
40000
9000
6000
4000
116000
25520
141520

Raw Materials (per month)

Description
Fly Ash
Lime
Sand
Gypsum
Total

Ind./
Imp.
Ind.
Ind.
Ind.
Ind.

Qty. (Ton.)
1000
1100
120
1100

Rate
(P.Ton)
120
112000
35000
40000

Value (Rs.)
120000
275000
15000
137500
547500

Utilities (per month)

Power
Fuel
Total

(Rs.)
30000
20000
50000

Other Contingent Expenses (per month)

Particulars
Postage and Stationery
Telephone
Transportation
Insurance
Repair and Maintenance
Advertisement and Publicity
Misc. Expenditure
Total
Total Recurring Expenditure (per month) (i+ii+iii+iv)
Total Working Capital (for 2 months)

(Rs.)
2000
4000
10000
5000
5000
2500
5000
33500
772520
1545040

Total Capital Investment

Fixed Capital
Working Capital
Total

4345000
1545040
5890040

Financial Analysis
Cost of Production (per year)
Description
Total Recurring Cost
Depreciation on Building at 5%
Depreciation on Machinery and Equipment @10%
Depreciation on Office equipment @ 20%
Interest on Total Capital Investment @ 13%
Total

Value (Rs.)
9270240
141250
136000
12000
765705.2
10325195.2

Turnover (per year)

Qty.
60 Lakhs Bricks

Rate
2 per bricks

Net Profit (per year) = Turn Over Production Cost

= Rs. 12000000 10325195.2
= 1674804.8

Net Profit Ratio = (Net profit

= 1674804.8 x 100 12000000
= 13.96%

x 100) Total Turnover

Value (Rs.)
12000000

Rate of Return = [Net

= (1674804.8 x 100 )

Profit (per year) x 100 ] Total Investment

5890040

= 28.43%

Break-even Point
Description
Depreciation on building @ 5%
Depreciation on Machinery and Equipment @ 10%
Depreciation on Office Equipment @ 20%
Interest on Total Capital Investment @ 13%
Insurance
40% of Salary and Wages
40% of Other Contingent Expenses (excluding
insurance)
Total

BEP = (Fixed cost x 100) (Fixed cost +

= (1931051.2 x 100) 1931051.2 +1674804.8
= 53.55%

Profit)

(Rs)
141250
136000
12000
765705.2
60000
679296
136800
1931051.2