PROJECT PROFILE ON CEMENT CONCRETE HOLLOW

BLOCKS

PRODUCT : Cement Concrete Hollow Blocks

NIC CODE : 23959

(based on NIC 2008)

PRODUCT CODE : 94489

(based on ASICC – 2009)

PRODUCTION CAPACITY :

Quantity : 6,00,000 Nos. per annum

Value : Rs 159 Lakhs per annum

QUALITY STANDARD : IS 2185 (Part 1): 2005

(Reaffirmed Year: 2015)

MONTH & YEAR : February 2021 (updated)

of Preparation

PREPARED BY : MSME - Development Institute

(Br. DI)
Ministry of MSME
Government of India
386, Patel Road, Ramnagar
Coimbatore – 641009
Tamil Nadu (India)
Email id:
[email protected]
Tel: 0422-2230426, 2233956
INTRODUCTION OF THE PRODUCT

Cement concrete hollow blocks have an important place in modern building

industry. They are cost effective and better alternative to burnt clay bricks by
virtue of their good durability, fire resistance, partial resistance to sound,
thermal insulation, small dead load and high speed of construction. Concrete
hollow blocks being usually larger in size than the normal clay building bricks
and less mortar is required, faster of construction is achieved.

Also building construction with cement concrete hollow blocks provides facility
for concealing electrical conduit, water and sewer pipes wherever so desired and
requires less plastering.

MARKET & DEMAND ASPECTS

Cement concrete hollow blocks are modern construction materials and as such
are used in all the constructions viz. residential, commercial and industrial
building constructions. Construction industry is a growing a sector. The demand
for this product is always high in all cities and other urban centres due to
construction of residential apartments, commercial buildings and industrial
buildings.

Growing public awareness of the advantages of the product coupled with

increase in the government and financial institutions support for housing which
is a basic human necessity would ensure a healthy growth in the demand.

IMPLEMENTATION SCHEDULE

Sl. Description of the activity Time (approx.)

no.
1 Selection of the product
2 Preparation of the project report 1 month
3 Selection of the location
4 Registration of enterprise with DIC
5 Mobilising finance for the project
4 Purchase of land
5 Construction of building 4 months
6 Procurement of machinery and equipment
7 Obtaining EB connection
8 Erection and commissioning of machinery and equipment
9 Recruitment of manpower 1 month
10 Trial run and commencement of production
Total project implementation period 6 months
 PRESUMPTION

(1) Interest rate: 15% per annum on total capital investment is taken into
consideration
(2) Margin money: The promoter may bring in one-third of both fixed capital and
working capital requirements.
(3) Efficiency: 75% utilisation of machinery and manpower has been considered.
(4) Labour wages: Minimum wages applicable for semi-skilled and unskilled
workers were taken into consideration.
(5) Working shifts per day: It is envisaged that the enterprise will be in operation on
single shift of 8 hours per day basis for 300 working days in year.
(6) Implementation period: Project implementation period of 6 months is envisaged

RAW ATERIALS

Concrete is a mixture of ordinary Portland cement, mineral aggregate (sand and

stone chips) and water. The water used in preparing the concrete serves two
purposes:
(1) It combines with the cement to form a hardened paste
(2) It lubricates the aggregates to form a plastic and workable mass

The water that combines with the cement varies from about 22 to 28% of the
total amount of mixing water in concrete.

Mineral aggregates (sand and stone chips) are normally divided into two fractions
based on their particle size. Aggregate particles passing through the No.4 or 4.7
mm Indian Standard sieve are known as fine aggregate. The particles retained on
this sieve are designated as coarse aggregate. Natural sand is often used as fine
aggregate in cement concrete mixture. Coarse aggregate are crushed stone chips.
Crushed stone chips broken into particle sizes passing through the 4.7 mm
sieve may also be used as fine aggregate. The maximum size of the coarse
aggregate that may be used in cement concrete hollow blocks is 12.5 mm.
However, the particle size of the coarse aggregate should not exceed one third
thickness of the thinnest web of the hollow blocks.

Ordinary Portland cement is the cementing material used in cement concrete

hollow blocks. Cement is the highest priced material per unit weight of the
concrete. Hence, the fine and coarse aggregates are combined in such
proportions that the resulting concrete is workable and has minimum cement
content for the desired quality.
MANUFACTURING PROCESS

The process of manufacture of cement concrete hollow blocks involves the

following 5 stages;
(1) Proportioning
(2) Mixing
(3) Compacting
(4) Curing
(5) Drying

(1) Proportioning:

The determination of suitable amounts of raw materials needed to produce

concrete of desired quality under given conditions of mixing, placing and curing is
known as proportioning. As per Indian Standard specifications, the combined
aggregate content in the concrete mix used for making hollow blocks should not
be more than 6 parts to 1 part by volume of Portland cement. If this ratio is
taken in terms of weight basis this may average approximately at 1:7 (cement:
aggregate). However, there have been instances of employing a lean mix of as
high as 1:9 by manufacturers where hollow blocks are compacted by power
operated vibrating machines. The water cement ratio of 0.62 by weight basis
can be used for concrete hollow blocks.

(2) Mixing

The objective of thorough mixing of aggregates, cement and water is to ensure

that the cement-water paste completely covers the surface of the aggregates. All
the raw materials including water are collected in a concrete mixer, which is
rotated for about 1 ½ minutes. The prepared mix is discharged from the mixer
and consumed within 30 minutes.

(3) Compacting

The purpose of compacting is to fill all air pockets with concrete as a whole
without movement of free water through the concrete. Excessive compaction
would result in formation of water pockets or layers with higher water content
and poor quality of the product.

Semi-automatic vibrating table type machines are widely used for making cement
concrete hollow blocks. The machine consists of an automatic vibrating unit, a
lever operated up and down metallic mould box and a stripper head contained
in a frame work.
Wooden pallet is kept on the vibrating platform of the machine. The mould box is
lowered on to the pallet. Concrete mix is poured into the mould and evenly
leveled. The motorised vibrating causes the concrete to settle down the mould by
approximately 1 ½ to 1 ¾ inches. More of concrete is then raked across the
mould level. The stripper head is placed over the mould to bear on the leveled
material. Vibration causes the concrete come down to its limit position. Then
the mould box is lifted by the lever. The moulded hollow blocks resting on the
pallet is removed and a new pallet is placed and the process repeated. The
machine can accommodate interchangeable mould for producing blocks of
different sizes of hollow or solid blocks.

(1) Curing

Hollow blocks removed from the mould are protected until they are sufficiently
hardened to permit handling without damage. This may take about 24 hours in a
shelter away from sun and winds. The hollow blocks thus hardened are cured in a
curing yard to permit complete moisturisation for at least 21 days. When the
hollow blocks are cured by immersing them in a water tank, water should be
changed at least every four days.

The greatest strength benefits occur during the first three days and valuable
effects are secured up to 10 or 14 days. The longer the curing time permitted the
better the product.

(2) Drying

Concrete shrinks slightly with loss of moisture. It is therefore essential that after
curing is over, the blocks should be allowed to dry out gradually in shade so that
the initial drying shrinkage of the blocks is completed before they are used in
the construction work. Hollow blocks are stacked with their cavities horizontal to
facilitate thorough passage of air.

Generally a period of 7 to 15 days of drying will bring the blocks to the desired
degree of dryness to complete their initial shrinkage. After this the blocks are
ready for use in construction work.

QUALITY SPECIFICATIONS

IS 2185 (Part 1): 2005 Indian Standard: Concrete Masonry Units – Specification
(Part 1) Hollow and Solid Concrete Blocks (Reaffirmed Year : 2015)

The above standard specifies requirements for these parameters: dimensions, grades
of hollow blocks, blocks density, compressive strength, water absorption, drying
shrinkage, and moisture movement etc.
PRODUCTION CAPACITY

The plant and machinery proposed in the project has a production capacity of
800000 Nos. of cement concrete hollow blocks of size 100X200X400 mm. At
75% utilisation of the capacity, productions of 600000 Nos. of blocks have been
taken into consideration.

Cement concrete hollow blocks are usually of the following three dimensions:
100X200X400 mm, 150X200X400 mm and 200X200X400 mm. Although
hollow blocks of all the three sizes could be made using the same machinery
and equipment proposed in the project, for computation purpose only one size
viz 100X200X400 mm is considered in the sales turnover.

Hollow blocks of other sizes could also be made depending on the user
requirement. With the given set of machinery and equipment used in making the
hollow blocks, solid blocks could also be made with the help of additional
mould sets only.

UTILITIES

Electrical Power requirement: 25 HP power for industrial purpose is required.

Water: water used in making concrete should be free from acids, alkalis, oil,
dissolved carbon dioxide and decayed vegetable matter. Generally, water
suitable for human consumption is considered adequate for concrete mixing.

FINANCIAL ASPECTS

FIXED CAPITAL

(1) LAND & BUILDING

Sl. Description Quantity Units Rate per Amount

no. unit (Rs) (Rs)
1 Land 1000 Sq. meters 1000 10,00,000
2 Covered area 50 Sq. meters 5000 2,50,000
3 Concrete platform 250 Sq. meters 2000 5,00,000
4 Bore well with pump 1,00,000
TOTAL 18,50,000
(1) MACHINERY & EQUIPMENT

Sl. Description Quantity Units Rate per Amount

no. unit (Rs) (Rs)
1 Hydraulically operated 1 Set No. 475000 4,75,000
concrete block making
machine with Triple
(3) vibrators:
hydraulic system – 10 HP
Mould vibrators – 5 HP
Ram vibrators – 3 HP
(1.5 HP – 2 Nos.)
Travel motor – 1 HP
2 Concrete mixer: 10/7 cft 1 No. 125000 1,25,000
with 5 HP motor, hydraulic
hopper and road wheels

3 Platform electronic 1 No. 60000 60,000

weighing scale 500 kgs
capacity
4 Water dosing pump 1 No. 40000 40,000
5 Electrical and EB charges for 1,00,000
25 HP power connection
Total 8,00,000
6 Erection and commission- 80,000
ing charges @ 10%
7 Ram and mould for 4 Sets 45000 1,80,000
hollow blocks
8 Wheel borrows with 4 Nos. 15000 60,000
pneumatic wheels
9 Office equipment LS 1,20,000
10 Wooden palettes LS 1,00,000
TOTAL 13,40,000

(2) PREOPERATIVE EXPENSES Rs 1,10,000

(3) TOTAL FIXED CAPITAL Rs 33,00,000

WORKING CAPITAL (PER MONTH)

(1) SALARY & WAGES (PER MONTH)

Sl. Description No. Salary Amount

no. (Rs) (Rs)
1 Skilled or semi-skilled workers 2 18000 36,000
2 Unskilled workers 8 12000 96,000
3 Watch and ward 1 12000 12,000
4 Manager/Supervisor 1 30000 30,000
Total 1,74,000
Perquisites @ 15% 26,100
TOTAL 2,00,100

(2) RAW MATERIALS (PER MONTH)

Sl. Description Quantity Units Rate per Amount

no. unit (Rs) (Rs)
1 Cement 50 Tons 8000 4,00,000
2 Sand or crushed stone sand 200 Tons 1000 2,00,000
3 Crushed stone chips 300 Tons 700 2,10,000
TOTAL 8,10,000

(3) UTILITIES (PER MONTH)

Sl. Description Quantity Units Rate per Amount

no. unit (Rs) (Rs)
1 Power 1500 kWh 6 9,000
2 Water 250 KL 20 5,000
TOTAL 14,000

(4) MISCELLANEOUS EXPENSES (PER MONTH)

Sl.no.Description Amount (Rs)

1 Office expenses 4,000
2 Consumables 6,000
3 Repairs and maintenance 10,000
4 Sales expenses 10,000
TOTAL 30,000
(5) TOTAL WORKING CAPITAL (PER MONTH) Rs 10,54,100
(6) WORKING CAPITAL FOR THREE MONTHS Rs 31,62,300
(7) TOTAL CAPITAL INVESTMENT Rs 64,62,300
 FINANCIAL ANALYSIS

(8) COST OF PRODUCTION (PER ANNUM)

Sl.no. Description Amount (Rs)

1 Total recurring cost 1,26,49,200
2 Depreciation on building @ 5% 42,500
3 Depreciation on machinery and equipment @ 10% 88,000
4 Depreciation on moulds, wheel borrows, etc. @20% 92,000
5 Amortization of pre-operative expenses @ 10% 11,000
6 Interest on capital investment @ 15% 9,69,345
TOTAL 1,38,52,045

(9) SALES TURNOVER (PER YEAR)

Sl. no. Product item Quantity Rate Value

1 Cement concrete hollow 600000 Nos. Rs 26.50 Rs 1,59,00,000

blocks each

(10) NET PROFIT (PER YEAR) Rs 20,47,955

(11) PROFIT RATIO ON SALES 12.88 %

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 20,47,955
Profit Ratio on Sales = x 100 x100 =12.88%
𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛 𝑂𝑣𝑒𝑟 𝑃𝑒𝑟 𝑌𝑒𝑎𝑟 1,59,00,000

(12) RATE OF RETURN 31.69%

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑃𝑒𝑟 𝑌𝑒𝑎𝑟 20,47,955

Rate of Return = x 100 x 100 = 31.44%
𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 64,62,300

BREAK EVEN ANALYSIS

1. FIXED COST PER YEAR

Sl.no. Description Amount (Rs)

1 Interest on capital investment 9,69,345
2 Depreciations 2,22,500
3 40% of salaries and wages 9,60,480
4 40% of miscellaneous expenses 1,44,000
TOTAL 22,96,325
 2. BREAK EVEN POINT (B.E.P.) 52.86%

Fixed Cost Per Year

B.E.P = x 100
Year Per Cost Fixed + 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑃𝑒𝑟 𝑌𝑒𝑎𝑟

22,96,325
𝑥 100 = 52.86%
22,96,325 + 20,47,955

LIST OF SUPPLIER ADDRESS FOR PLANT & MACHINERY

(1) Everon Impex, No. 105, Sanganur Main Road, Ganapathy Post,
Ganapathypudur, Coimbatore - 641006, Tamil Nadu, India

(2) K Tech Machines, S. F. No. 315/1D, Muthusamy Industrial Estate,

Sanganoor Road, (Ganesh Theater Opposite) Jayaprakash Nagar, Via
Ganapathy, Coimbatore - 641006, Tamil Nadu, India

(3) KOVAI ENGINEERING, 37A, Nethaji Nagar, Sanganoor,

Rathinapuri(po), Coimbatore-641 027.

(4) Engineers Enterprises, No.189, Bharathiyar Road,

Maniyakaranpalayam Road, Ganapathy, Coimbatore – 641 006

(5) BTEC Concrete Block Machines, No.466, Kamarajar Road,

Lakshmipuram, Peelamedu, Coimbatore – 641 004

(6) Little Block Enterprises, No 9/77,AK Complex, Tagore Road, Ganapathy,

Coimbatore - 641006, (Near Honda Service Station)

LIST OF SUPPLIER FOR RAW MATERIAL

Local stockist and dealers in the location of the project.