PRE-INVESTMENT FEASIBILITY STUDY REPORT

(Fully Automatic Brick Plant with

Tunnel Kiln & Tunnel Dryer)

Project Analysis

Fully Automatic Machine Made Clay Brick

Manufacturing Factory Based on Tunnel Kiln
Firing System Production Capacity-150,000 Pcs/Day
per day (45 Million per/Annum).

Annual 30 million common bricks production line

 PROJECT SUMMERY

4. Product-mix and production Capacity:

The project envisages setting up of a Auto Bricks Production Project at Mouza- Purbo
Panch khati. JL no- 13 & 59, Goshairhat, Shariatepur, Bangladesh. After implementation
of the project the product mix and the production capacity of the project based on the
basis of 24 hours per day for kiln & Dryer operation and raw bricks production of 10
hours shift basis and 300 working days in a year at 100% capacity utilization will be as
follows:

Sl. Items/products Production Per Price Per Total Qnty Per Amount
No. Day Pcs Year Pcs “000”
01 Standard Hollow
Bricks (Pcs)
Size 10’’x 5’’x 3’’ 150000 9/= 45,000,000 405,000
Total 405,000

Section II

Technical Aspect

The project is for setting up a forming machine, tunnel dryer and Tunnel kiln brick
factory with a new imported system machine. In this case, this factory has more
competitive power with the operation has convenient and production lines design is
simple and clean working conditions. The project has been designed to produce
1,50,000 PCs/day (raw material + forming machine + tunnel dryer + Tunnel kiln) with
modern technology at Shariatepur district in Bangladesh. Quality of product meets
Bangladesh’s standards. It is expected that the project will go into commercial
operation after Twelve months from the day of designing technology equipment
supplying contract.

Additional Advantage of Machine made Bricks

01. Machine made bricks:

Fully automatic machine made bricks are more durable, stranger and good
looking. These are uniformly burnt. Machine made bricks are getting favorite day
by day in and around all municipal areas as this manufacturing plant is
environment friendly. It is found that the demand of such bricks are growing
faster for housing and industrial use.

02. Tunnel Dryer and Tunnel Kiln:

Tunnel Dryer and Tunnel Kiln are using for burnt and drying in ceramic tiles
& sanitary ware factory. For uniformly & absolute burnt of bricks tunnel kiln and
dryer are using in the machine made bricks plant to get 100% efficiency in bricks
production at stimulated time. Tunnel kiln and dryer will be used for various
types of bricks & tiles drying and burning. It’s ensure durable stranger and good

Annual 30 million common bricks production line

looking bricks and there will be no wastage of bricks that with cost effective and
environment friendly.

Recently formed Government’s industrial policy – to facilitate local industries

Shariatepur will be the strategic location for any kind of industries and brick is
one of the most essential items to build any kind of building either industries as
well as residence and boundaries.

2.00 The proposal:

The proposal envisages setting up of Auto Bricks Production Project at Mouza- Purbo

Panch Khati. Jl no- 13 & 59, Goshairhat, Shariatepur, Bangladesh. under the
name and style of SELF AUTO BRICKS LTD . Total fixed cost of the project has been
estimated at Tk. 4088.99 lac. The project has been equipped with brand new China
Origin machinery and equipment with some local machinery. The value of Foreign
machinery is USD 23,71,989 equivalent to taka taka 1992.47 lac and the value of local
machinery is taka 348.00 lac.

Technical knowhow:
The technical knowhow required for the smooth operation of the project is locally
available. Crash training and orientation program for both semi-skilled and unskilled
persons will be conducted by a qualified and well experience production manager with a
view to trained them into skilled hand as well as increase production efficiency.

Characteristic of Production Technology.

Generally production of brick and tiles is not very complicated. Howover, for producing
the high-quality product as varioustypesof tiles, it requires skill of workers,especially
when there are still a lot of manual production sections. Because this is a new
production domain for the company, the factory expects to produce only constructing
brick for local market in the first stage. In the second stage ( from the third year on
words). when the worker’s professional skill has been raised, the project will be
investedin more ternacotta products. Thare fore we design of convenient factory
systems here as most easy producing.

Production Line
Description of production tecnology:

Annual 30 million common bricks production line

The clay exploited from the mine will be stored in the open air yard to be continuously
weathered are reserved for the production at least in three months and it is better form
3 to 9 months ( Because Bangladesh has low terrain flooded during the monsoon rainy
season)tare for the clayraw materials should be excauated and spread outon the groung
for same time. The proess is known a weathering and has an important effect on the
viscosily and strenght of the clay. the clay should be kept under open sky during the
initial period. this weathering process is intensitied thanks to such measures as watering
kneeding by means of machines like pay-roads and bulldozer.
The weathered clay will be transported trailer.Wich is pulled by tractors from the
reservation yard to the clay- containing house where the box feeder is installed. Here
the clay is stoved for at least one wheek. The clay will be supplied to box feeder by the
pay loader.
Mixed raw materials after quantitalively determined in the box feeder will be transfered
to rulling section by conveyar beside it a coat crusher will be installed and it is equipped
with belt conveyar to delivery required quantity coat to box feeder.
Than the clay will be passed through the roll crusher.
the roll crusher has the slit betwen the two rollers around 3-5mm. than the clay will be
moved to the double shaft mixer. Here the clay will be pugged and moisturs to reach
the moisture of forming. This section also aims to sperate such esetraneous matter as
grass, tree roots left inthe clay. She will mixed clay will come to pug sealer and de-airing
extrusion. Here the clay pugged one more time. Watering if the moisture dose not reach
the required level and comes to vacum chamber to such out the remained air
bubbles.The forming mosture fluctuates with in the interval 18-21%. After that the clay
will be extruded through the forming mould to get the desined shape and move to the
auto cutting machine to cut the brick in to intended lenght. When changing the
produced product, it is just needed to change the appropriate mould.
The semi product of the green brick after cutting will be transferred by a horizantal type
loading conveyar. Workers stay here will pick up the green brick and land on the kiln
cart. The cart after being fully loaded will be moved to the drying chamber. The carts
are pushed into the tunnel dryer thanks to the transfer car with pusher.
The heat supplied to drying chamber is withdrawn party from the colling zone of tunnel
kiln. The drying time is from 24 to 30 hours depending on product type. The dry cart
with green products in the drying tunnel after finising drying will be moved to the
loading line for kiln car where the dried green products will trunsfer loaded kiln cart. this
kiln carts waiting move to sub-dryer and the kiln carts to pass enter the tunnel kiln
thruogh a transfer line.

Annual 30 million common bricks production line

After going out of the dryer the cart, the carts holding dried products with the moisture
of 10% will be move to the loading line for the kiln cart of tunnle kiln for arrangement.
And dried brick loading conveyar section. The kiln car carried dried brick with moisture
10% and will be move to sub-dryer and pass here when this moisture are reduce about
6 – 7% and will be moved to tunnel kiln by kiln transfer car and pushed in to tunnel kiln
by kiln hydraulic presher.
this tunnel kiln is 140-150m of lanth with top firing or cool firing system and
contonuously producing clay by kiln car with rail and running system. It can contain 52
kiln car, it composed three parts connection togather the pre-heating zone, firing zone
and cooling zone. As to cooling zone, it was devided in to rapid cooling zone and cooling
zone. highest firing temperature is 1000 C. firing time is 33 hours. the kiln car carrying
27,000 pcs /car after going out of the kiln will be moved to the rail road in order to wait
for the brick to be cooled off and unload. the products should be classified and be bound
and gather to the ware house or to storege yard so that delivering to customer.

Annual 30 million common bricks production line

Diagram Chart of Production line
Raw materials from out side storage yard

Box Feeder

1st – 2nd Roll Crusher

Extrusion, Mixer / Double Shaft Filter Pug Mill

De – Airing Extruder

Slug Cutter, Colum Cutter

Green Brick Loading Seperator

Kiln Cart Loading Conveyar Belt

Drying Cart in to the Tunnel Dryer

Manual Unloading Dried Bricks

Dried Brick Loading to Tunnel Kiln

Tunnel Kiln

Manual Product Selection & Paking Warehouse

Annual 30 million common bricks production line

III. Auxiliary units : Including Mechanic and electric reparing workshops. Duties of
the workshop : Small repairs for equipments, regular maintance and other repair on
electricity and plumbing. Major repair will be implemented by the companys electro-
mechanical workshop or by other factories workshop will be equipped with essential
equipment and instrument.

IV. Selection of technology equipment

Base of technology equipment selection:
· process of balance the material of the factory.
· Type of raw material will be used.
· Product structure
· Quality level of the product. According to offer of suppliers, analysis of
parameters, the tecnology equipment of this project is selected as follow as per
the enclosed table “List of equipment”

Annual 30 million common bricks production line

 METHOD OF TECHNOLOGY
Brick making is a very crucial and significant economic activity in Bangladesh since it is
a developing country with a high construction sector growth. Despite being a crucial
sector for the country, this sector is not formally recognized as an industry (Ministry of
Industry'2010). The country's overwhelming dependence on bricks is due to scarcity of
suitable alternative building materials to local climate at complete cost. Table 1.1
summarizes the main characteristics is tics of the brick sector in Bangladesh.

Table 1.1 Snashot of Bangladesh's Brick sector 20122

Parameter Value
d
Estimated total number of coal-fried kilns 4,860
Number of natural gas fired kilns 20
Annual brick production 17.24 billion
Value of output Tk. 94.82 billion (US$ 1.35 billion)
Coal Consumption 4.03 million tons
Value of Coal Imported Tk. 26.18 billion (US$ 374 million)
Fire Wood Consumption 1.9 million tons
Emission CO2 9.81 million tons
Clay Consumption 58.38 million tons
Total Employment 1 million people
Growth rate of the Construction Industry 5.6%
Estimated growth rate next ten year 2-3%
Contribution & GDP 1%

In Bangladesh uses four main types of kiln technologies as presented as FCK (Fixed
Chimney Kilns), Bull's Trench Kilns (BTKS). Which nearly 95 percent of the Kilns, are
very Polluting and relatively inefficient. The substantially cleaner gas-based Hoffmann
Kiln and the slightly better coal-based zigzag kilns are already available, but represent
just a few percent of the total. Substantially cleaner technologies like VSBK, H.H.K. and
most advanced TUNNEL KILN technology has just entered in to the Brick market.

Existing Bricks Kiln Technologies in Bangladesh (2009)

Kiln type Number Percent of Brick Production 24 Percent of

Total Kiln (Bricks Billion) Production
FCK ≤ 4500 92.21% 15.75 91.36%
BTK N/A 0.00% - -
Zigzag ≤ 150 3.07% 0.60 0.00%
Hofmann ≤ 20 0.41% 0.24 3.48%
(gas)
H.H.K. ≤ 10 0.20% 0.15 1.39%
Others < 200 4.10% 0.50 0.87%
Total ≤ 4880 100% 17.24 100%

Annual 30 million common bricks production line

Some Brick Manufacturing Technologies in Bangladesh:

1. Fixed Chimney Kiln (FCK)

The chimney in a fixed chimney kiln (FCK) as the name suggest is fixed and is
approximately 130 ft. high. This tall chimney creates a stronger draft improving the
combustion process and releases the flue gas at a height 130 ft. above the ground thus
providing faster and better dispersion. The kiln has under grounded piping to divert the
flue gas from anywhere in the kiln to the fixed chimney. The length of the kiln is same as
that of the BTK but its width is greater to accommodate the underground piping. The
FCK also has better in solution in the side walls, which reduces heat loss to the
surroundings. The cost of constructing the chimney is Taka 12,00,000 (US$ 20,700)
which is nearly 50% of the local cost of FCK.

Bull's Trench Kiln (BTK)

The Bull's Trench Kiln is essentially an ellipetical shaped dug out area in as opened field.
The kiln is about 250 ft. long and 57ft. wide and has two 32ft. high moveable chimneys.
The bottom and the side walls of the kiln are bined with bricks with the top open. San
dried bricks are stacked in the kiln in an orderly fasion learing enough room for fuel
stoking and air circulation. After arranging the bricks in the kiln is covered with fired
bricks and pebbles. The bricks are fired from the top and the fine moves forward-towards
the chimney. The air entrance opening (air hole) and the chimney are located at the two
ends in such a way that combustion air is preheated by taking heat from the fired bricks
and the green bricks to be fired are preheated by the flue gas on its way out of the
chimney. The bricks are fined all around the kiln, which means the chimney and the air
hole must be progressively moved forward, until at bricks in the trench are fired. The
chimney are made of iron sheets and during a typical season of five months these need to
be replaced two to three times because the corrosive the gases eat away the kiln every
year because of which BTK's need to be constructed almost from scratch every year.

Hebla or ZigZag:
The hebla or zigzag kiln is rectangular in shape and measures 250 ft. by 80 ft. It has a 55
ft. high fixed chimney located on one side of the kiln. At the bottom of the chimney these
is a flower, which draws the flue gas from the kiln and discharges in to the atmosphere.
The kiln is divided in to 44 to 52 chambers, which are at separated from each other in
such a way that the hot gaseo move in a zigzag path through the kiln. The zigzag kiln is
reported to be 10-15% more fuel-efficient than the FCK. This kiln is expensive to
construct and cost approximately the same as a FCK. There are about 30 such kiln in
operation mainly in the comilla region. Present FCK owners are keen to convert to the
zigzag technology if the department approve it as an acceptable technology. The
construction is not easily available and expertise has to be procured from neighboring
states on India.

Hoffman Kiln: H.H.K.

A Hoffman kiln is rectangular in shape and measures 300-400 ft by 60ft. Its construction
and operation is very similar to the FCK. The pre dominant difference between the
Hoffman kiln and the kiln described above is the fixed roof, which enables bricks to be
fired throughout the year although during the rainy season, which is called off-season.
The production decreases significantly because of rainy season; high humidity areas
overproduce green bricks during the dry season and store them for the rainy season but to
Annual 30 million common bricks production line
ad that adequate storage facility must be made available. Also for off-season production
clay has to be stored, as harvesting of clay becomes impossible due to wide spread during
the rainy season.
The inside roof of the kiln is arched and has a fire brick lining on the inside surface. The
thick walls of the kiln and good insulation heat loss to the surrounding. The chimney is
76 ft. high with a blower at the bottom. Green bricks are stacked in the kiln in more or
loss the same fashion as that in the FCK. The bricks are fired from the top by introducing
the fuel (Natural gas) in to the combustion zone through pipe-type burners. The burners
are shifted for ward from section to section as the five progresses-fired bricks are
unloaded at the back while greeb bricks are stacked in front of the firing zone. The flue
gas is conveyed towards the chimney through a network of channels gust below the kiln.
Five is controlled without the aid of any instrumentation or controllers by merely
adjusting the gas flow rate and the opening and closing of dampers brated at selected
point in the flue gas network. Opening and closing of dampers located at selected points
in the flue gas network. Controlling the fine is the trickiest part of the whole operation.
Since there is no in situational arrangement to learn the fining technique, several years of
on the job training as an apprentice is needed to master the technique.

Vertical Shaft Brick Kiln (VSBK)

The vertical shaft kiln (VSBK) was first developed in china (November 1992, November
1994). The VSBK is fuel-efficient consuming 20 to 30% less fuel in comparison to the
BTK and FCK. In addition the kiln is simple to construct and operate, making it ideal for
rural areas. The VSBK regnies has been tested and proven to be successful in china. In
India and Nepal it has enjoyed limited success. There was one effort to construct a VSBK
in Bangladesh, but that was unsuccessful due to the lack of adequate technical and
financial support and poor brick quality considering the incremental investment. In a
VSBK, Bricks are stacked in a shaft measuring 1X1 m3 up to a height of 6.0 m. Green
bricks are loaded from the top in batcheo of unloaded every 1.5 hours. The fining occures
around the middle of the shaft. The kiln uses pulverized coal, which is loaded from the
top along with the green bricks. The combustion air gets preheated to about 750 oC by
taking up heat from the fired bricks. After combustion the hot flue gases move up through
the unfired bricks and in the process preheat the bricks to be fired. The VSBK is a
permanent structure and can produce bricks throughout the year. It has a life of 8 to 10
years with minimum maintenance. One VSBK can have multiple shefts and can be very
economical in utilizing space. A VSBK with six shafts can have the capacity as that of a
FCK but needs only 13% of the space of a FCK.

Annual 30 million common bricks production line

TUNNEL KILN (B)

Tunnel kiln technology was invented in Germany. This technology is most common in
developed countries, since treit inventing tunnel kilns have now become highly
automated and are for large production. Bricks move mechanically through a long
stationary fine zone. They have minimal labour requirements but a very high capacity
cost. They must be operated in continuous mode and require a guaranteed power supply
through electricity or generator.

Power supply through electricity or generator:

Tunnel kiln is a long structure in which only the control portion is directly heated. Form
the cool entrance. Brick is slowly transported through the kiln and its temperature is
increased steadily as it approaches the control, hottest part of the kiln. From there, its
transportation continues and the temperature is reduced until it exits the kiln at near room
temperature. A continuous kiln is the most energy-efficient; beacous heat given off
during cooling is recycled to pre-heat the incoming bricks.

The Technology has the following advantages:

1. Continuous production, short production cycle
2. High jicled and superior quality brick production
3. Using counter-current principle of work, the high thermal efficiency, economical fuel
consumption, it can save about 50%-60% energy compared to the old type kilns
4. The firing lime is relative by shorter. In other type kiln it require 3-5 days to complete
the working cycle, while the tunnel kiln it takes about 30 hours to complete the working
cycle
5. Save labour 50% - 60% less labour is required
6. The most of loading and unloading operation are outside the kiln with very convenient
working was
7. Improved working condition and reduce labour intensity
8. Improve quality: The temperature of preheating zone, firing zone and cooling with
three parts used to maintain a certain range, easy to grasp the firing rules, so the quality
is better, less breakages.
9. Kilns and kiln structural are durable. It usually takes 5-7 years before repair. However
the tunnel kiln construction materials and equipment needs a large investment
10. Generally applicable only to large volume production and the firing system which
requires the same basic products, poor flexibility.

Annual 30 million common bricks production line

 ( Production Capacity 3 lac per day

Annual 30 million common bricks production line

Annual 30 million common bricks production line
COMPARATIVE ANALYSIS OF CLEANER BRICK TECHNOLOGIES
A comprehensive Comparative Analysis on Alternative cleaner brick Kiln technologies in
Bangladesh has been presented in Table 7.1. The comparative analysis was categorized based on
the following key parameters:
1. 2. 3. 4. 5.
Investment, Capital, Profitability

Production, Raw material and Output quality Energy Consumption

GHG and particulate Emission Social Cost Benefit
Table 7.1 : Comparative Analysis on cleaner brick kiln technologies in
Bangladesh12
Baseline Alternatives
VSBK Tunnel
Parameter Fixed Improved HHK`
(two shaft Kiln
Chimney Zigzag (50,000
and (200,000
Kiln (SD+GM)' bricks/day)
Mechanized) bricks/day)
A. Investment, Capital, Profitability

2.5 acres,
2.5 acres, of
of which I
which I acre ,
1 Land acre used 3.96 Acre 3 acre
used round 1.32 Acre
round the
the year
year

Initial
(in Tk
2 Investment 5 5.5 10-15 146 400
million)
Outlay
3 IRR (%) 40% 40% 30% 25% 25%

Pay back 2
4 Years 2 2 4 4
period

B. Production, Raw material and Output u alit

Rated
Annual (Million
5 4 4 4 15 60+
Production brick/year)
Capacity
Production November November Round the Round the Round the
6
Period to A ril to April year year car
Baseline Alternatives
Tunnel
Parameter Fixed Improved HHK
VSBK Kiln
Chimney Zigzag (50,000
(two shaft) (200,000
Kiln (SD+GM) bricks/day)
bricks/day
100,000 100,000 100,000 100,000
Raw
7 a) Clay cft/million pelt/million cft/million cft/million
Material
bricks bricks Bricks bricks
150 (15% 150 (15% 75(20% 85 (27%
skilled, skilled, skilled skilled,
b) Labor 25
15% semi- 15% Iabor,20%, 26°%
skilled) semiskilled) semi skilled) semiskilled)
Not Needed for 250-350
c) Electricity Not essential 180-250 kw
essential the ID fan kw

12 Unless referenced otherwise data has to be considered taken

from BUET (2007)
13
SD means Standard Design and GM means Good Management
14 HHK data has been sourced from Investment Feasibility Study, Investment Comparison
Analysis 2010-2011, HHK CDM Project and from HHK entrepreneurs during Monitoring of the
project.
15 Land requirements for different technologies: For a 2 shaft-VSBK 4 Bigha land is required.
For HHK (50000 bricks/day) 12 bigha land is required and for HHK (100000 bricks/day) 15
Bigha land is required. 1 Acre=3.03 Bigha.

Annual 30 million common bricks production line

 Baseline Alternatives Tunnel
VSBK HHK
Fixed Improved Kiln
Parameter (two (50,000
Chimney Zigzag (200,000
shaft) bricks/day)
Kiln (SD+GM) bricks/day)

Pulverized Pulverized Pulverized Pulverized

d) Fuel Coal
Coal Coal Coal Coal
1" class: 1st class : 1st class : 1" class: 1s' class
50%-55% 60%-65% 80%% 90% 95%
8 Brick types
Wastage: Wastage: Wastage: Wastage: Wastage:
3%-4% 3%-4% 3%-4% 0% 0%
less than less than
9 Strength PSI 4260 4500-6000' 4500-6000
2500 2500
10 Weight Kg 2.9 2.9 2.9 3.5 3.5
10 cubic 10 cubic 12.5 cubic 12.5 cubic
11 Volume 10 cubic cm
cm cm cm cm
C. Energy Consumption
Ton
Fuel
Per 100-120
12 consumptio 240 160-180 3 120-130 100-120
million
n (Coal)
Bricks

Specific
MJ/kg-
13 energy 2.125 1.42' 1.06° 0.954 0.807
brick
consumption

D. GHG and particulate Emission

10-50% less
than FCK
Severe Least Least Least
14 Pollution depending
Pollution pollution pollution pollution
on
management
Particulate 500-
15 1000+ 270-3 007 20.3" < 50
(mg/m3) 800
17 Equivalentto 300 Kg/ cm2 as stated in the website: http://w-u-w.vsbkindia.org//faq,htm is
Based on BRTC, BUET Test report
19 Based on one pilot project in Savar, Dhaka and may not be representative of all VSBKs. z°

Calculated by the Authors

21 SEC for Zigzag is reported as 0.8-1.10 MJ/kg- bricks in Maithel (2003). More improved
technology can be imported from Vietnam.
22 SEC for VSBK is reported as 0.7- 1.00 MJ/kg- bricks in Maithel (2003)
23 Maithel et al. (2002) for high draft kilns in India

24 Energy and Stack Emission Monitoring in Hybrid Hoffman Kiln (HHK) Type, December, 2008

Annual 30 million common bricks production line

 Baseline Alternatives
Fixed HHK Tunnel
Parameter Improved
Chimne VSBK (50,000 Kiln
Zigzag
y (two shaft) bricks/da (200,000
(SD+GM)
Kiln y) bricks/day)

tco,
emission
16 582 388 291 315 291
per million
bricks

Emission
Reduction
17 in tCO, per 180 291 372 421
million
bricks''
E. Social Cost Benefit Analysis
No of
18 workers 150 150 753 85 15-25
employed
Round the Round the Round the
Nature of
19 Seasonal Seasonal
employment
year year year
Working Very Highly Highly
21 Very poor Satisfactory
Condition poor Satisfactory Satisfactory

25 Only emission due to coal consumption is considered. Calculation is

made by the Authors
25
Calculated by the Authors
27
21 labors are directly employed in kiln production and rest of the
labors are employed in green brick production through middlemen/labor
contractors. Source: VSBK demonstration project in Sariatpur

Annual 30 million common bricks production line

Training work

After signing the technology equipment contract, local and foreign specialist will teach
some qualified workers to establish the technology process of production and machinery
operation. Mechanical and electric engineers will taught by specialists both theory and
practice before commodity delivery so that they can get basic knowledge on equipment
installation, maintenance and operation.
During the time putting the factory into operation, local and foreign specialists will guide
and train the cadres and workers on production sections until they manipulate skillfully
and can operate themselves.

SCHEDULE OF CONTRACT EXECUTION

Description Months
1 2 3 4 5 6 7 8 9 10 11 12
Dispatch of drawing
Construction of Tunnel kiln
Construction of drying chamber
Factory building and foundation
Forming machine delivery
Packing, inspection and shipment
Ocean transportation and C & F
Foundation for machinery
Installation
Commissioning and test-run
Making to utility
Trial Production

+ “0” stands for the date of the contract come into force.
+ Drawings:
- General layout
- Machine foundation
- Electricity, water, compressed air network
- Drawings of gangways, support...under Buyer’s supply with cost estimate.

Annual 30 million common bricks production line

 TECHNICAL SPECIFICATION AND CAPACITY

2.1 Capacity:

z 30,000,000 pieces of clay bricks based on brick size 240 x 120 X 70 mm.
z Base product of the contract: 240 x 120 x 70 mm, void 30%.

2.2 Product range:

Item Dimension, mm Description Fired W. kg Void

01 240×120×70 Hollow brick 2.6 30%
02 240×120×70 Solid brick 3.7 0%
03 240X120X240 Hollow block 6.2 50%
04 Other products to be defined.

The Supplier’s scope of supply does include also an unit (for beautifying the bricks
unit please refer to Appendix 1.) which makes the decoration on three surfaces of
chamfering treatment

2.3 Raw materials

z Clay laboratory tests are to be carried out.

z Project data and supply can vary according to the test results.
z In the case if another type of clay or sand is needed, the Purchaser has to check
and solve the problem.

2.4 Electric voltage

z 380 Volts - 50 Hz

2.5 Fuel used

z Natural gas with P.C.I. 8,500 Kcal/m3.

z Coal with P.C.I. 6,500 Kcal/kg, size of the coal has to be less than 50 mm.
z The project is designed to adopt by coal which is to be mixed together with clay
or natural gas
z The quantity of the supply of the burner system for natural gas shall be enough in
the case that if the kiln has to be arranged 100% by natural gas.
2.6 Work organization

Annual 30 million common bricks production line

 Description Preparation Production Drying Firing
Working days a year 330 330 330 330
Working days a week 7 7 7 7
Working shift/day 1 1 3 3
Working hours/shift 10 10 8 8
Working hours/day 10 10 24 24

2.7 Compressed air: Pressure: 0.7 Mpa

2.8 Main economic data

Item Description Unit Index

01 Production capacity Piece/year 30,000,000
02 Clay consumption Cft/year Max. 2,100,000
03 Installed power KW about 1000
04 Production manpower Total about 55

2.9 Technological calculation

Please kindly refer to attached Appendix.2.1 for detail, final data and supply can be
adjusted at the final design.

2.10 List of installed power of the plant equipment

Please kindly refer to attached Appendix.2.2 for detail, final data can be adjusted at
the final design.

Annual 30 million common bricks production line

 TECHNICAL SERVICE

1. In order to realize the smooth installation, commissioning and normal operation of

the Contract equipment, the Supplier shall send their skilled, healthy and
competent technical personnel and installation team to the Purchaser’s site for the
technical service.

2. The Supplier’s personnel shall be responsible for technical instruction of the

equipment’s installation, commissioning, operation and maintenance, etc. The
Supplier’s technical personnel shall also explain in detail to the Purchaser’s
personnel of the equipment’s speciality, operation rules, maintenance ways and
other points concerned, explain and solve the technical problems raised by the
Purchaser’s personnel.

3. The Purchaser shall provide the Supplier’s technical personnel with convenient
working conditions and skilled workers to assist the site works. The Purchaser
shall, before the arrival of the Supplier’s technical personnel, make all
arrangement ready.

4. The starting date of the technical service by the Supplier’s technical personnel
shall be fixed by both sides through consultation according to the actual situation
of the project.

5. The working time of the Supplier’s technical personnel shall be 48 hours, per man,
per week, i.e. 6 days per week and 8 hours per day.

6. The Purchaser shall bear all expenses for round trip air tickets for Supplier’s
personnel; the Purchaser shall bear also lodging, food and local transportation for
all the Supplier’s technical personnel during their stay at the project site.

7. The Supplier’s technical personnel shall observe the laws of Bangladesh and the
regulations of the Purchaser.

8. The Purchaser shall prepare 2 competent Chinese/English interpreters for

finishing the cooperative work with the project-site technicians from supplier.

9. The Purchaser shall arrange 30 days in advance all qualified invitations to the
Supplier’s personnel and make sure that with the above mentioned invitation the
Supplier shall have no problem to get the visa; and in case of prolongation of visa
is needed, it will be the Purchaser’s expenses and responsibility.

10. Extra works and overtime works at the site will be charged, detailed standard are
to be agreed by both parties. When overtime work is needed, the Purchaser shall
make accordingly his people and means to follow and coordinate.

Annual 30 million common bricks production line

 NSTALLATION, COMMISSIONING AND ACCEPTANCE

1. Installation

Installation means t h e i n s t a l l a t i o n w o r k s , i n c l u d i n g a s s e m b l y , i n s t a l l a t i o n a n d
connection of all equipment and materials of the Contracted Equipment.

2. Test-run

Test-run means to check the readiness for operation, adjustment, trial operation without load
and with load on the individual units and the whole system after completion of the installation
of the Contracted Equipment.

3. Acceptance Test

Acceptance Test means to examine if the performance of the Contracted Machines can reach
90% of the guaranteed parameters as stipulated in APPENDIX 2 to the Contract. If the results of
the test show that 90% of the guaranteed parameters can be reached, the machinery shall then be
accepted by the Purchaser.

If all the guaranteed figures specified in Appendix 2 to the Contract are fulfilled, a certificate of
acceptance shall be signed by the representatives of both parties after the test in 4 (four) copies, 2
(two) copies per each party.

During the acceptance test the working log shall be made and signed by representatives of
both parties. This record shall be part of the evidences used for the acceptance. The content of this
record should include the following:

- Type of products
- Quantity of the shift production
- Quality data of the products

The acceptance test will last for 4 continuous working days i.e. it will work 48 + 48 hour for each
product. At the work start the MACHINES has to be ready and full of good materials. Any stop not
due to the reason caused by the Supplier’s machines, the time of stoppage will be deducted and the
quantity of production will be reduced in proportion.

In detail, the type A) of product 240X120X70 mm (Void: 30%) to be tested for 48 hours
(two working days, 2 shifts per workday for preparation and production);

In detail, the type B) of product 240X120X70 mm (Void: 0%) to be tested for 48 hours
(two working days, 2 shifts per workday for preparation and production);

After completion of above procedure and the signing of the acceptance certificate, the product of
hollow block with size 240X120X240 mm (Void: 50%) could be tested.

In the case that for delays due to the Purchaser for more than 3 months, then the plant equipment
shall be regarded as has already been accepted by the Purchaser.

21
 MARKETING ASPECTS

An Overview :

Modern development process has come to produce rapid urban growth. Hence one of the objectives of
planned development is to improve the physical conditioning of living such as housing and water
supply. But as people aspire for comfort, rural community also needs to have access to such basic
facilities of life. In fact poor countries have come to be regarded as rural slums and the rural urban
migration is as attempt to escape it. The program of development of physical infrastructure covers both
urban and rural communities in public and private sectors. The program consists of development of
housing, office and commercial buildings, site development for private housing, office & commercial
buildings, city roads etc.

In the middle of the second plan rather a comprehensive approach was for the first time taken to bring
development to the door of people and steam urban migration. This consisted of the Government
policy decentralization of administration and acceleration of development activities at upzilla level. This
policy will require creation of necessary physical infrastructures there within the framework of national
physical plan and the demand for construction materials like bricks etc.

02. The Project:

The Products of the project will be automatic bricks to be produced from local day. Automatic bricks
have comparative advantage over hand made bricks in respect of unit price, size/ specification, quality
etc. Automatic bricks having standard in size, smoothness in surface, bright in colour, hardness in
strength and cheaper as compared to hand made bricks being produced by the brick fields situated in
the rural areas. The initial cost of the type of the project, though high but the overhead working cost is
less. As such, this type of project can supply bricks at relatively cheaper price. Furthermore, it can
cater to the large volume of demand for bricks at a time when various government/private institutions/
organizations place orders. It may be mentioned here that some times various public works are
interrupted due to shortage of bricks. This type of project of implemented may be able to solve this
problem.

03. Uses and User of Bricks :

Bricks are mainly used in constructing houses, roads and bridges. Bangladesh is a developing economy
and from 1976 onwards the economy is striving forwards, in both public and private sectors, with the
development of trade and industry and overall expansion of the economy, construction sector has also
exhibition considerable growth. It has already been mentioned here that bricks are mostly used in the
construction of houses apartments, roads and bridges, beside the private housing sector, the major
users of bricks are the various Government, Semi-Government and autonomous organization of which
the following deserve special mention.
a) Public Work Department;
b) Roads and Highways;
c) Water and Power Development;
d) Public Health Engineering;
e) Rural Electrification Board;
f) Pourashavas and Others;
g) Zilla Parlshad (1) Thanas
h) Titas Gas etc.

22
 04. Demand analysis at Micro Level:
Bricks are heavy in weight and cannot be transported easily and cheaply to any long distance;
therefore, bricks are mostly locally produced and locally used. Only special bricks, like designed ceramic
bricks are sometimes brought in from distant place.

The Plant under consideration will be located at Goshairhat, Shariatepur, Bangladesh and is expected
t o supply bricks to various parts of Dhaka, Barisal, Faridpur, Narayangonj, Shariatepur District. The
demand for bricks depends on the number on additional brick built houses and the requirement of
bricks in each additional brick built house. As per census 1991 total household in Dhaka Division Stood
at 1404,054 of which about 50% has been assumed to be pucca houses. On the basis of the growth
rate of 50% per annum, The projected number of pucca houses has been estimated and is shown in
table - 1

Statistical YearBook of Bangladesh, 1998, Page - 45.

TABLE - 1

Year No. of House

1999 1017942
2000 1053043
2001 1088144
2002 1123245
2003 1158346
2004 1193447
2005 1228548

It appears from Table-1 that the additional number of pucca houses in Dhaka Divbision will raise from
35101 Nos. on an average per annum. Assuming that each pucca house requires about 40,000 bricks
on as average, that total number of bricks to be required for the additional pucca houses has been
worked out 140.40 crore.

In additional to that demand for bricks in the private sector, huge demand for bricks come from that
real estate developers for construction of multistoried apartment/commercial complexes. The
apartment project was started in late 70's in Dhaka City. But in yearly 80's with the inception of Eastern
Housing Ltd. the business started flourishing. Now this is a booming sector of the economy. A good
number of real estate developers are now active in this business. During the last decade apartment
project has got tremendous progress. World Bank estimated the demand for housing in urban areas of
Dhaka,Chittagong, Rajshahi, Rangpur and Khulna for the period 1980 and 2000 as detailed in Table-11

Items 1980 2000 Demand of Housing

Population No.of Housing Population No.of Housing
Dhaka 35 08 93 17 12
Chittagong 14 02 40 07 05
Khulna 07 01 23 04 03
Total 56 08 156 28 20

Bangladesh Urban Sector Memorandum, May, 1981, World Bank.

23
The Study shows that annually the number of houses required to be built in Dhaka comes to 60,000
units which is likely to be 12 items higher than the number of actual unit constituted per year,
Assuming 40,000 Nos of Bricks per house the total number of bricks to be required for apartment
project comes to 800.00 crore PCS.

In additional to the residential household, various Government departments and agencies are using
bricks Empirical observation reveals that their requirement for bricks would not exceed 10% of the
bricks required by household. Hence the total requirement for bricks in both public and private sector
would be as shown in Table -111

TABLE -111
Total Requirement of Bricks
Category Demand in Million Nos.

Household 1404
Apartment 8000
Government 940
Total 10344
It appears from Table-111 that the annual requirement of bricks would be about 130,44 million Nos.

05. Existing Supply:

At present the supply of bricks mostly comes from a bricks fields which produce bricks of inferior
quality which are being sold at higher price. Due to non-existence of adequate number of automatic
brick manufacturing plant in the area, the household users and the government and private
institutional users are to use mostly this grade of brick to meet their demand. As such the brick fields
will not be the competitor of automatic brick plant rather the automatic brick plant will have
comparative advantage over fields in respect of quality and price.

06. Market Share:

To what extent the proposed project will be able to win over the users by way of creating a market
share for the product will depend on the efficiency of the sponsors to handle appropriate marketing
strategies in the from of determination of product pricing, procurement of raw materials, maintenance
of product quality, adoption of promotional measures etc. So long as the sponsors of the project will be
able to adopt suitable and appropriate marketing strategies, it will create effective demand for the
product.

07. Quality:
Maintenance of quality of bricks is considered to be one of the determinants for the successful
marketing of the product. To have better market, the quality of the product must be ensured;
otherwise it may not be able to compete in the local market.
The users/consumers for brick generally look forward to the following properties in bricks:
● proper size and thickness ;
● Bright Colour;
● Smoothness of surface ;
● Strength
To maintain the above qualities, the project is required to be equipped with automatic machinery to
be handled with.

24
 The proposed side located Goshairhat under Shariatpur district. Spot/Project has connected by road
to upozilla road and the well river communication which road the year all necessary carrying can be
done.
Presently in shariatpur district near about 50 FCK Bricks fields are oprating and 25 Core Bricks (app)
Produced all the production are consumed and big demand of adjacent districs can not full fil. If the
Padma Bridge work starts then heavy demand of bricks will go up. beside presently all the
production can be market by river with low cost carrying to Chadpur, Noakhali, Barishal, Khulna,
Dhaka, Narrayanganj, Keranigonj, greates faridpur Dristrict.

25
 FINANCIAL ASPECT

A statement showing the forecast of earning which includes sales established cost of product and other
cost is given the next page. The main assumptions are:-

a) The project will work 300 days in a year on the basis of 8 hours 3 (three)-shift operation per day in
kiln operation and 10 hours one shift for raw bricks production.

b) The price of raw materials and finished goods has been calculated on the current price basis.

c) Store and spares for the project has been calculated at 0.50%, 1.00% & 1.50% for the 1st, 2nd &
subsequent year on the machinery.

d) The cost of repair & maintenance for the project has been calculated at 0.50%, 1.00% & 1.50%
for the 1st and 2nd & subsequent year on the machinery.

e) Rent, Tax, Insurance etc. for the project has been calculated 0.5% every year on the fixed cost.

f) In wage & salaries increment will be at 5% per year.

g) The capacity utilization has been assumed at 70%, 75% & 80% in the 1st, 2nd & subsequent year.

h) Depreciation has been calculated at the following rates:

- Building 5%
- Machinery 10%
- Furniture 20%
- Transport 20%
- Intangible assets 19%
- Other items 20%

26