Draft of Diagnostic Study Report

Laxmi Concrete Products Pvt. Ltd.

RCC Cement Products Cluster
Manufacturing process
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Kinds of
manufacturing
process.
Primitive, manual process
with single die systems.
Modern automatic
technologies using
multiple die block
systems.
2. Steps in
manufacturing
process.
Manual mixing, storing in
the respected die,
retrieving manually with
water and drying on a
open land under natural
heat.
Fully automated
concrete mixing plant
with conveyor system
and accurate die blocks
with automated water
sprinkler systems will be
utilized with automatic
temperature control
system.
3. Cost incurred in each
step
Enclosed (Annex 1) The processes will be
more cost effective.
4. Products Bricks, pipes, man holes,
electric pipes, water tanks
Same products with
more variants and more
durability.
5. Technology required
for process.
Indigenous raw
technology.
Imported and modern
technology with more
accuracy.
6. Cost of technology. Rs.2,00,000 Rs. 1,00,00,000 (Approx)
7. Raw materials used for
the process.
Cement, steel, chemicals,
solvents base water.
Same, with higher
grades and better
standards.
8. Kind of raw materials. Cement, steel, chemicals,
solvents base water.
Stones, jelly stones, steel
mesh, rods, platted steel,
solvents with base water
ingredients and non
polluting chemicals.
9. Quantity of raw
materials.
Low to medium quality of
raw materials which are
Backward integration
for purchase of the raw
available locally with poor
to average backward
integration from supplier
for lack of financial support
and availability of funds.
material like jelly stones
will be extracted from
quarry located in the
cluster itself and the
availability of funds will
enhance the backward
integration of purchase
of raw materials like
cement and steel with
bulk purchase and cost
effective inventories.
10. Cost of raw materials. Cost on raw materials are
on retail prices with high
taxation, transportation
and transshipment charges
for lower quantity of raw
materials because of
absence of financial
facilities to the micro units.
Raw materials will be
purchased in bulk with
price consciousness with
better logistics and
transportation and also
for discounted prices.
11. End product
manufactured
Bricks, pipes, man holes,
electric pipes, water tanks,
RCC bricks, RCC pipes,
RCC manholes, electrical
poles, railway rippers.
Precasted RCC cement
products, culverts,
precasted cement walls
and other RCC cement
products with better
quality and durability.
12. Cost of end product. Enclosed as per the list
(Annex 2)
As per the quality and
the quantity.
13. Usage of end product. Infrastructure projects,
railway lines, roads,
commercial utilities, water
and sewage pipelines,
agriculture, industrial
usage.
Bigger market for both
local and other parts of
India and can tap export
market for specific
infrastructure projects.






Technology


Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Technologys cost Rs. 2,00,000 Rs. 60,00,000 (Approx)
2. Usage of technology Cast iron, aluminium with
average accuracy levels
and durability of the die
making with poor hinges
and openings.
Dies made of pure steel,
aluminium and other
high quality imported
metals and the cluster
will have in house die
making for RCC
products.
3. Technology viability Age old indigenous
technology with less
accuracy levels and
wastage of raw materials
with less durability of the
products and poor testing
facility.
Modern and imported
technology with high
accuracy levels and the
cluster will have an in
house R&D which will
help in making the
products more durable
and accurate.
4. Technical aspects of
the products
End usage not upto the
desired levels.
End usage upto the
desired level and with
more accuracy.
5. Machinery used &
their specification
Manually operated, chain,
pulley and dies with
manual water sprinklers
which are seasonal.
Automatic machinery,
all season high end
automatic water
sprinklers with
conveyor systems.
6. Cost of machinery
(break up)
Per micro unit Rs.
2,00,000
Die Rs.125000
Chain pulley and lift Rs.
55000
Water spray Rs. 28000
Motor Rs. 15000
As per list enclosed.
Marketing
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Marketing strategies As per orders sourced
from small contractors
and firms.
Both direct and indirect
marketing will be
adopted
2. Marketing Absence of marketing
tools.
Latest versions of the
marketing software and
other upgraded tools to
be used.
3. Marketing team Absence of marketing
tools.
The cluster would form a
marketing team which
will formulate marketing
strategies to tap the
modern markets.
4. Cost incurred on
marketing
Rs. 2000 per unit. As per the size of the
team.
5. Type of marketing Door to door or through
SME portals and
networks.
Modern marketing
techniques like
collaborating with
different marketing
agencies local, national
and international, online
marketing through their
own website and E
tendering.
6. Target customers Infrastructure contractors,
builders, SMEs, PWD,
Govt organizations
Infrastructure
contractors, builders,
SMEs, PWD,
Government
organizations on a
bigger scale.
7. Market focused Karnataka and other
southern states
National markets on a
wider range with
overseas sales and
services.


Quality Control
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. TOOLS FOR QUALITY
CONTROL
Not available. The services
are outsourced.
The cluster will import
tools and equipments
for testing and quality
control.
2. PROCESS FOR
QUALITY CONTROL
Test certificates are
available with services
outsourced.
Modern processes with
in-house R&D lab.
3. AREA COVERED
UNDER QUALITY
CONTROL
Only partial products are
covered as per
specifications of the
buyers.
All products will be
covered under the new
testing process with
compliance to national
and international testing
processes.
4. IMPLEMENTAION OF
QUALITY CONTROL
As per the specifications
and customer
requirements
Norms and standards
according to
International and
National standards.
5. CERTIFICATIONS AND
TECHNOLOGY USED
Indigenous certificates
from testing agencies
outsourced.
The cluster will apply
for various quality and
standard certificates and
can validate and certify
the certificates.

Testing
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Area under testing Out sourced Will be done in the
cluster.
2. Technology used for
testing
Enclosed Imported technology will
be used for testing in the
cluster with international
standards.
3. People employed for
testing
Out sourced to
Government organizations
Human resource will be
employed in the testing
department to carry on
the testing processes.
4. Tools for testing Out sourced to Modern tools,
Government organizations equipments and
technology.
5. Cost incurred for
testing
As per the product
specifications and quotes
As per the product
specifications and quotes.
6. Procedure of testing Outsourced. Modern technology for
testing will be imported
by the cluster.
7. R & D involved in
testing
No R&D. absence of R&D The cluster will have an
in built R&D.

Purchases
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Cost incurred on
purchase
As per production activity
and process of production
Raw materials will be
purchased in bulk which
will reduce the cost.
2. Major vendors for
purchase
Small time civil contractors
and for domestic usages.
Local vendors and also
international vendors for
a few raw materials
3. Credit period availed Credit period cannot be
availed by these micro
units.
30-45 days.
4. Kinds of raw
materials
Cement, steel, crushed
stones, dies(aluminum and
steel)
Same, but of better
quality.
5. Quantity of raw
materials
As per the quantity and
quality of production.
The raw materials will be
purchased in bulk and
stored in the cluster.
6. Process involved in
purchase
Direct or through
marketing agents
Direct from the
manufacturers, C&F
units.
7. People involved in
purchase
Middlemen, SMEs, small
time civil and
infrastructure contractors.
Middlemen, SMEs, small
time civil and
infrastructure contractors
and also E portals.



Outsourcing
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Cost incurred on
outsourcing
Enclosed as per demands
and needs.
Most of the activities will
be carried on in house.
2. Quantum of
outsourcing
As per orders and
demands.
Very low, as per the
requirement
4. Kinds of outsourcing Die making, testing and
R&D
All the outsourcing will be
reduced to the minimum
as the cluster will have in-
house R&D, quality
control and testing
facilities with tool and die
making.
5. Process involved in
purchase
Cash Cash and credit.

Sales
Sl.
No.
Particulars Present Scenario After the Cluster is
formed
1. Cost incurred on
sales
As per line of production As per line of production
2. Major products for
sales
Bricks, pipes, man holes,
electric pipes, water tanks
Same with more variants
and of better quality and
more durability.
3. Quantum of sales Rs. 2,00,000 per unit per
annum
The cluster is expected to
make a sale of Rs. 15
Crores in the first year.
4. Kinds of sales Cash and credit Cash and credit
5. Process involved in
sales
Direct Direct.
6. Market covered
under sales
Local markets and Small
scales in Karnataka
Local and national
markets.
7. Kind of Market for
sales
Local and neighboring
districts.
Local and national
markets in a wider scale.