PROJECT REPORT

ON

Manufacture of FAL-G BRICKS

Office &Works:

SY NO 15/2, PATHAJAGADDHEVAPURAM (V),

GARUDAKHANDI (P),
PALASA MANDAL,
SRIKAKULAM DIST.
 1. PROJECT AT A GLANCE

01. Name of the Unit : M/s. SURYODAYA BRICK INDUSTRY

02. Location of the Unit : Sy No 15/2, Pathajagaddhevapuram Village, Garudakhandi

Panchayat, Palasa Mandal, Srikakulam Dist. .

03. Constitution : Proprietary

04. Sector : Small Scale

05. Line of Activity : Manufacture of Fal-G.Bricks

06. Name of the Proprietary : Sri Ronanki Ramana Rao

07. Project Cost :
(Rs.in
lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land LEASE Promoter Contribution

Civil Works 6.00 Promoter Capital 1.25
Plant & Machinery 10.00 Term Loan 15.20
Working Capital 9.00 Working Capital Loan 8.55
TOTAL 25.00 TOTAL 25.00

08. Promoter Contribution : 5%

09. Power : 20 HP

10. Employment : 16

11. Installed Capacity : 3000 Bricks/day

12. Operating Capacity : 65%

 2. INTRODUCTION

Housing is one of the main problems in India rural Poor an economically weather sections
in urban are suffering for acute shortage of dealing place. Traditionally in rural areas, ten people are
accustomed for living in that and mud roofing houses. They are not safe for fire and rain but due to
financial constraints to give some sort of shelters people will constrict their houses with mud walls
treated and mud roofing. Many people are unable to have shelter cheep shelter.

So the government of India as well as state government has drawn up several plans to
construct cheap houses for the poor people in rule area as well as urban area. Lot of research has been
done in developing several type of building material especially for poor people.

In the list of building material, ten brick will be the major item along with cement, iron
sand etc. Normally for ages alone, ten bricks will manufacture with mud and burn in killers to
strengthen in the process is labour oriented and seasonal. In rainy season, then brick manufacturing with
be very difficult. In summer it is practical No labour charges are very high, with cost of labour an fine
wood, the manufacture of bricks are not economical. So the oriented brick industries facing main
probes.
The scientists an economist have developed low cost brick suitable for building
construction almost all the raw materials used in the process are only waste product. Machines are local
and materializing like few mixtures for time mixing block making machine trolleys block making
moulds with minimum labour more bricks of high quality can manufacture the production cost is very
much lower then the conventional mud bricks.
 03. CONSTITUTION AND SECTOR

Constitution: A unit name and style SURYODAYA BRICK INDUSTRY , is a Propriety

firm, the main object of the unit is to process of all variety of FAL-G bricks. The promoter of
the unit is Sri Ronanki Ramana Rao

Sector: The unit comes under Micro sector and has obtained industry registration from
D.I.C. Srikakulam.

04. BACKGROUNG OF THE PRAMOTER

Sri Ronanki Ramana Rao , S/o Sri R Vaikunta Rao aged about 38 years is residing at
5-3-96, Pesarapadu, Kasibugga, Palasa, Srikakulan Dist. He is a SSC. He is having experience
in the same line of activity for the past 3 years. He owns property in and around Srikakulam
Dist. He is a sole proprietary of the business. He can raise necessary funds as and when
necessary.
 05. SCOPE OF THE PROJECT

The project envisages setting up a unit for manufacture of FAL-G Brick. The total cost of
the project is estimated At 25.00 lacks . The installed Capacity of the plant is 3000 Bricks per day on
270 days working in 3 shifts Operations. The capacity utilization is assumed to be at 75%, 85% in the
First, Second and Third year respectively.

O6. ADVANTAGES OF FAL-G BRICKS.

The size of the FAL-G bricks is big surface is plain wall construction in simple and easy
plastering of walls can be done with negligible thickness i.e. less than 6mm thick. The consumption of
cements is not ever 25% of the local brick types of material. Easy to carry and there will not be any
damage in transits or usage. The construction is very quick with minimum labour.
 07. BRIEF PROCESS

The raw material are (a.) Sand/ Crusher Dust, (b) fly ash (c) Zipsum will mix on
platform in powder form. The ratio of the mix will be as following

a. Fly ash 60%

b. Limestone 20%
c. Zipsum 10%
d. Sand/crusher dust 10%

The powder mixture will be load into pan mixture while adding the required water and
then powder will be conversion into paste. The paste material will be transferred to block
making machine fitted with desired sizes of blocks the block making with the hydraulic system
retained to it, will make into brick blocks the bricks are carried on wooden pellets to the open
area where they are dried and water cured for 21 days. The bricks are tested and sorted before
dispatch.
 08. AVAILABILITY OF RAW MATERIAL.

The main raw materials are:

1. Crusher dust: It is wash product the crusher orders will be happy to remove
their dust from their unit. One big crusher is working near to the unit so it is easy to get this
dust at fee of cost. We have to bear only nominal chargers.

2. Fly ash: The fly ash is another important raw material remaining sizable preparation.
Fly ash is available near the proposed unit. Simhadari Power plant which 10 kms from the
unit. Now the lorry owners are supporting the fly ash at the site on fixed Contract basis. It is
available in plenty.

3. Lime: It is a waste product available from Steel plant Visakhapatnamit. Lime is

available in plenty and can be bought easily.

4. Zipsum: Zipsum is available from fertilizer plants. But they are not good quality. Only
Saravara Fertilizer, Kadalur, Tamilnadu is supplying the Zipsum after processing.
 09. MARKATING

Market Potential

The country consumes about 180 billion tones bricks, exhausting approximately 340 billion
tones of clay every year and about 5000 acres of top soil land is made unfertile for a long period. The
government is seriously concerned over soil erosion for production of massive quantities of bricks, in
the background of enormous housing needs.

The excellent engineering property and durability of fly ash brick enlarges its scope for
application in building constriction and development of infrastructure, construction of pavements,
dams, tanks, under water works, canal lining and irrigation works etc. Enormous quantities of fly ash
are available in and around thermal power stations in all the states. The demands of bricks could be
met by establishing small units near thermal power station and to meet the local demand with less
transportation costs.
 10. LOCATION AND ITS ADVANTAGES

Land: The Proposed location of the Unit is at Sy No 15/2, Pathajagaddhevapuram Village,

Garudakhandi Panchayat, Palasa Mandal, Srikakulam Dist. . The location of the unit has
considerable influence on the techno-economical facility of the project. There are various
factors contributing to the functioning of a plant and following are the primary factors taken into
consideration.

Reasons for the Selection of the site:

1. Adequate of Raw Materials.
2. Adequate of labour at economically rate.
3. Adequate supply of water through out the year.
4. The site is well connected with road facility.
5. Banking facilities and Government supports
6. Adequate Transport facilities for economical transportation of finished product and spare
parts.
7. Nearness to the Market.
 11. NOTES ON INDIVIDUAL HEADS OF MEANS OF FINANCE

(Rs.in lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land LEASE Promoter Contribution

Civil Works 6.00 Promoter Capital 1.25
Plant & Machinery 10.00 Term Loan 15.20
Working Capital 9.00 Working Capital Loan 8.55
TOTAL 25.00 TOTAL 25.00

DETAILED NOTES ON PROJECT COST

(a) Land: The Promoter has own land for lease at Sy No 15/2, Pathajagaddhevapuram Village,
Garudakhandi Panchayat, Palasa Mandal, Srikakulam Dist. . The Proposed location is very ideal
for the proposed unit. .

(b) Buildings & Civil Construction:

On the above said land, the proprietor will construct Office room, Workers Shed, Drying yard,
which works out of Rs.6.00 Lac.
The details of cost of construction are given below:
(Rs in Lacs)
S.No DESCRIPTION AMOUNT
1. Office Room 1,00,000
2. Workers Shed. 2,50,000
3. Drying yard. 1,50,000
4. Bore well 1,00,000
Total 6,00,000
(c) Machinery: A list of machinery proposed to be acquired is given hereunder. The suppliers
have been identified. The Promoter is proposed to purchase the machinery from local market.

Description Qty. Price (Rs.) H.P

Pan mixer 1 2,45,000 7.5
Hydraulic Block Making Machine 1 4,25,000 7.5
Mould 1 90,000
Trolleys 1 90,000
Diesel engine with accessory 1 75,000
Electrical L.S. 75,000 5
Total 8,00,000
Taxes, Transport & Erection 2,00,000
Grand Total 10,00,000

DETAILD NOTES ON MEANS OF FINANCE

Capital: The proposed capital of the unit is Rs.1.25 lacs, which will be contributed by the
proprietor.

Term Loan: The Promoter desire to avail term loan from Financial Institute / Banks. The term
loan required is Rs.15.20 lacs. The term loan will be paid in 28 quarterly installments with
moratorium period of 6 months. However the interest on the term loan would be payable as and
when it is applied on the account.

KVIC Margin money

The unit is eligible for KVIC margin money @ 5% on buildings and machinery for OBC.

12. UTILITES AND SERVICES

Power: The unit requires 20 HP power under LT connection. The unit is being located near
Regidi and will get the required power without any problem.
Employment: The unit will employ 16 persons and will recruit locally.

Water: The unit requires water of 5000 liters and domestic water is requiring for drinking and
sanitation, Bore well is provided under civil works head.

Pollution: No harmful effluents age generated in the manufacturing process. However, the unit
will get NOC from Pollution control board.

Transport: No problems are anticipated for transportation of the Raw materials and the
finished goods.

13. SWOT ANALYSIS

STRENGTH:

The unit is proposed at Sy No 15/2, Pathajagaddhevapuram Village, Garudakhandi Panchayat,

Palasa Mandal, Srikakulam Dist. The unit is eligible for Sales Tax exemption and other Govt.
concessions. The promoters are having vast experience in Industries.

WEAKNESS :

The firm has competition from the existing units as the proposed unit is having latest technology
and by the government encouragements to start new industry the units can competent with the old
industries.

OPPORTUNITY:

The firm’s opportunity to diversify into production of Pavement Bricks, Inter locking Bricks etc.
the market demand for the future expansion is good for the proposed unit.

14. Assumptions underlying for preparation of cost of production and profitability statement

Installed capacity : 3000 FAL-G Bricks

No. of shifts : One Shift
No of days in a year : 250 days
 Installed capacity/annul : 3000 x 300 = 9,00,000 in 2018-19

Operating capacity is assumed as under.

1st year 2nd year 3rd year
Capacity utilization 65% 75% 85%
Production (lacs) 5.85 7.65 8.67

Raw materials (for 3000 bricks)

S.N Description % Qty Amount

Rate/ tone
1. Fly ash 60 5.850 500 2925
2. Lime stone 15 1.463 1500 2195
3. Calico Zymsum 10 975 1500 1463
4. Sand/Crusher Dust 15 1.463 100 146
Total 9750 7629

7629 x 5,85,000 = 14,87,655

3000

Parameter

9”x 4”x 3 size of brick weight is 3.25 kgs

Average: 3000 x 3.25 kgs = 9750

Power & Fuel is estimated as under:

20 x 8 x .746 x 250 x .80 x .65 x 6.50= 100859.2

Or say 1.01 Lacs/-

WAGES

1. Pan mixer operation 1x6000= 6000

2. Charges to Pan Mixer 2x1500= 3000
3. Brick machine operator 2x4500= 9000
 4. Charges to brick machine 2x1500= 3000
5. Mould handling 1x1500= 1500
6. Drying yard labour 2x3000= 6000
7. Curing yard labour 2x2500= 5000
------------------------------------
12 33500
33500x12=4,02,000
Other manufacture expenses are estimated of Rs.60,000 per annuam
Repairs and maintenance is estimated of Rs.60,000 per annuam
Salaries are estimated as under
Clerk 1x6000 = 6000
Sales man 1x5000 = 5000
Watch Man 2x2000 =4000
---------
15,000 x 12 = 1,80,000.
ADMINISTRATIVE EXPENSES: are estimated as a lumsum of Rs. 0.60 lacs P.A

INTEREST: The interest is calculated as per the effective rates

On Term Loan 13.5%

On Working Capital 13.5%

DEPRECIATION: - Depreciation is worked out as per Income Tax Act.

Buildings. 10%

Plant & Machinery. 25%

Sale income:

5,85,000 x 5.20 /brick= 3042000 Or say 30.42 lacs