INTR common clay bricks.

Since fly ash is being accumulated as waste

material in large quantity near thermal power plants and creating
ODU serious environmental pollution problems, its utilization as main
CTIO raw material in the manufacture of bricks will not only create
N ample opportunities for its proper and useful disposal but also help
in environmental pollution control to a greater extent in the
Fly surrounding areas of power plants. In view of superior quality and
Ash eco-friendly nature, and government support the demand for Fly
bricks Ash Bricks has picked up.
are
made MARKET DEMAND:
of fly 180 billion tons of common burnt clay bricks are
ash, consumed annually approximately 340 billion tons of clay- about
lime, 5000 acres of top layer of soil dug out for bricks manufacture, soil
gypsu erosion, emission from coal burning or fire woods which causes
m and deforestation are the serious problems posed by brick industry.
sand. The above problems can be reduced some extent by using fly ash
These bricks in dwelling units. Demand for dwelling units likely to raise
can be to 80 million units by year 2015 for lower middle and low income
extensi groups, involving an estimated investment 0f $670 billion,
vely according to the associated chamber of commerce and industry.
used in Demand for dwelling units will further grow to 90 million by
all 2020, which would require a minimum investment of $890billion.
buildin The Indian housing sector at present faces a shortage of 20million
g dwelling units for its lower middle and low income groups which
constru will witness a spurt of about 22.5million dwelling units by the end
ctional of Tenth plan period. There is ample scope for fly ash brick and
activiti block units... But good quality of bricks as well as required
es quantity is not available moreover during the Rainey seasons
similar supply of clay bricks are very difficult. Therefore, in order to
to that fulfill the required demand there will be a great chance to start
of more units in the field of fly ash bricks. At present 20nos units are
commo engaged and 40 lakhs no’s of bricks per month are manufactured
n burnt in our state. And there will be scope to start near about 100 units,
clay which will be produced more than 2 cores no of bricks per month
bricks. in future. Thus marketing of these product are well shinning.
The fly
ash Why fly ash bricks?
bricks
are Fly ash bricks are can be used as an alternative to burnt
compar clay bricks. These are environment friendly cost saving building
atively products. These are 3 times stronger than conventional bricks with
lighter consistent strength. These are ideally suited for internal, external,
in load bearing and non-load bearing walls. These bricks with higher
weight strength /weight ratio (about 3 to 4 times that of burnt clay bricks)
aid in designing stronger yet more economic structures. Fly ash
and
bricks are durable, have low water absorption, less consumption
stronge of mortar, economical &ecofriendly, low energy consumption and
r than no emission of greenhouse gases. These bricks are not affected by
enviro economical / cost effective.
nmenta
l Technical Specifications
conditi
ons and
 Sizes available :230x110x70 mm
remain
static  Raw Material Used : fly ash, sand, grit, cement
thus  Uses : constructions of walls
ensurin  Colors & packaging available : light grey, minimum 1 load truck can
g be delivered
longer
Supply status:
life of
the Raw materials required for making of fly ash bricks are
buildin fly ash, lime and gypsum. Fly ash can be procured from thermal
g. Also power plants. Lime and gypsum are available in the market and
the
can be bought as per the requirement
savings
with
regard The need for clay ash bricks:
to
wastag 1) The bricks we currently use made up of specific quality
es in of top soil( app 10000 hc of top soil is lost every year for
fly ash brick manufacturing)
bricks 2) If the top soil consumption carries on at the same pace,
are very soon, we will not have enough soil for the
consid cultivation.
erable 3) The thermal power plants and the industrial units using
during coal as a fuel have no use with the fly ash left after the
unloadi combustion
ng and
constru Scope of the project:
ction
due to
1) Nearly 75 % of India’s total installed power generation
true
capacity is thermal, of which coal based generation is
shape
90%, the remaining comprising of diesel and gas.
and
2) The 85 utility thermal power plants use coal and producing large
size,
quantities of fly ash.
consist
ency in Features:
quality
and the 1) Size of the bricks will be 230 x 110 x 76 mm
workab 2) Less mortar consumption
ility of 3) Ash content as high as 60%
the fly 4) Faster construction
ash Acquiring the raw materials:
bricks
unlike
traditio 1) Fly ash is readily available with thermal power plants and
nal can be acquired from them even without spending on
clay transportation
bricks. 2) Lime, gypsum and sand are available in the market and
These can be purchased as per the requirement.
bricks
are Economic concerns:
very
 1) Currently of fly ash can result in manufacturing 790 billion
the bricks
demand 4) To reduce the demand and supply gap we will need to
for bricks expand in this sector at a larger rate than what is
is very undergoing at the present time.
high from
the supply Product pricing
2) Demand
and
1) Penetration price of Rs.5.00 per brick for the first two
supply
years and then concession to high end buyers at a rate of
gap is
5%
around
270 Promotional plans:
billion
bricks
per 1. Discounts on large buying
annum 2. Large volume of institutional sales
3) I 3. Aggressive selling
n 4. Trade promotion
I 5. Publicity
n
d Marketing plans
i
a
1) The government has imposed rules for the use of 100%
t
fly ash bricks in a radius of 100 mms from thermal
h
power plants. However, the government is itself not
e
implying to the norms. The govt. can be forced to imply
a
to such norms by NGOs and when such a scenario
n
occurs, the demand for the bricks from the side of the
n
govt. will increase many folds.
u
2) Use of these bricks result savings of almost 37% in the construction
a
cost.
l
p STP:
r
o
d Segmentation: We will first try to capture the local markets
u and then we will move to the neighboring states.
c
t Positioning: It can be positioned as environmental pollutant cleaner.
i
o Targeting: Builders, consultants, architects, government
n
TECHNICAL REQUIREMENTS
9) Inspection and sorting of
Bricks according to
1) Collection of Different clay and Flash. grades.
2) Mixing and preparation of clay-flash mix. 10) Dispatch.
3) Preparation of Bricks through moulds.
4) Drying of Bricks.
5) Filling of Kiln. Equipment Suppliers
6) Burning of Bhatta. B
7) Cooling of Bhatta. e
8) Empty & Refilling of Bhatta. n
ny
Enter Location &
prise Infrastructure
,
Coi
Technical
mbat ly advanced
ore, manufacturing
Tami unit with modern
l technology. The
Nadu manufacturing
Shri unit is well
Engi equipped with
neeri high end latest
ng machinery,
Enter Computerized
prise Design Unit,
s, Laboratory,
Pune Conference Hall
Shree for arranging
Hari
business meet,
Engine
technology based
ering,
meet to promote
Ahmed
and/or training
abad,
for ecofriendly
Gujarat
product. Highly
Columb
experienced and
ia-
diligent team of
Pakona
experts who
Engine
assists offer high
ering
Pvt. quality products.
Ltd., Research and
Mumba Development
i team is remain
connect with
Concept Tech-Know Equipment Pvt. Ltd., Maharashtra, Pune global market.
The products are
continuous
Raw Materials & Utilities update with
->From Thermal power station & local suppliers of lime innovative latest
etc technologies.
->Fly ash, Lime, Gypsum, Sand and down metal Professionals
have expertise in
all areas and can
fully support our
Manpower Requirements equipment,
->12-14 people/shift
Reasons for Selecting
 Fly Ash Bricks
1. The total score is high i.e. 3.9. (Amount in Rupees)
2. Change in Govt. is supporting make in India which
encourages infrastructure.
3. It is environment friendly.
4. High demand for bricks.
5. High availability of labor.

LIST OF ASSUMPTIONS

ESTIMATION OF INSTALLED CAPACITY

1 production Unit 1000 /Hr.
2 No of hrs. per day 8 /Hr.
3 No. Of working Days per year 300 /Day
4 No of Shift 1
production per year 2,400,000 units
RAW MATERIALS FOR PRODUCT 1
Details of Raw material Quantity (MT) Rate(5% increase
every year)
1 Fly Ash 420 500
2 Gypsum Lime 70 2000
3 Lime 105 1500
4 Sand 35 1000
Total 630 5000
PRODUCTION AND SALES RELIASATION
Details
Name of the products Demand(UNITS) selling price per
unit(5% Increase YoY)
Fly ash brick 2,000,000 Rs 5.00
Annual sales 10,000,000.00
SALARY AND WAGES
Designation Number Salary/Month
1 Production manager 1 25,000
2 Un Skilled Workers(8000*25) 25 200,000
3 office assistant 1 12,000
4 Watch man 1 8,000
Total 53,000
MISCELLANEOUS FIXED ASSETS
S.No Amount
Office Equipment’s 30000
 Telephone Etc. 1200
Furniture 35000
Computer 20000
Printers 5000
Fire Fighting Equipment’s 2000
Total 93200
PRELIMINARY AND PREOPERATIVE
EXPENSES
Details Amount
1 Project report preparation 30,000
2 Sal. During construction % Age of Sal. 120,000

11
3 Trial runs (2 Days) 5,000
4 Travelling 5,000
5 Deposits 20,000
6 Application processing Fees 5,000
7 Misc.…….
Total 185,000
DEPRECIATION (SLM)
1 20% ON BUILDING
2 20% ON PLANT & MACHINERY
3 10% ON FIXED ASSETS
ASSUMPTION FOR ESTIMATING COST OF
PRODUCTION
Details Basis
1 Consumables 1% of sales 84000
2 Repairs and maintenance 2%, 3%, 4% of 36400
P/M
3 Rent, rates and taxes Rs. Per month 1000
4 Interest on term loan 12% of term loan 480000

5 Interest on working capital loan

6 selling & Administration exp. 1% of sales 100000
7 Misc. Expenses 1% of sales 100000
8 Rate of taxation 30% of Net Profit

FEASIBILITY STUDY

Estimation of Installed Capacity

Sr. No Estimation of installed

capacity
1 production Unit 1000 /Hr.
2 No of hrs. per day 8 /Hr.
3 No. Of working Days per 300 /Day
year
4 No of Shift 1
production per year 2,400,000 units

12
 Raw Materials for Product 1

Rate(5%
Details increase
of raw Quantity every
Sr. No material (MT) year) 1st 2nd 3rd 4th 5th

1 Fly Ash 420 500 210,000 220500 231525 243101 255256

Gypsum
2 Lime 70 2000 140,000 147000 154350 162068 170171

3 Lime 105 1500 157,500 165375 173643.75 182326 191442

4 Sand 35 1000 35,000 36750 38587.5 40517 42543

Total 630 542,500 569,625 598,106 628012 659412

Production and Sales Realization

Sales
Details realization
Name of selling
the Demand price per
products (UNITS) unit 1 year 2 year 3 year 4 year 5 year
Fly ash
brick 2,000,000 Rs 5.00 5 5.25 5.775 6.3525 6.98775
Annual
sales 10,000,000 10,500,000 11,550,000 12,127,500 12,733,875

Salary and Wages

Salaries and Wages increases
5% from 3rd year
Salary Annual
Designation Number /Month Sal 1 year 2 year 3 year 4 year 5 year
Production
manager 1 25,000 300,000 300,000 300,000 315,000 330,750 347,288
Un Skilled
Workers 25 8,000 2,400,000 2,400,000 2,400,000 2,520,000 2,646,000 2,778,300
office
assistant 1 12,000 144,000 144,000 144,000 151,200 158,760 166,698

Watch man 1 8,000 96,000 96,000 96,000 100,800 105,840 111,132

Total 53,000 2,940,000 2,940,000 2,940,000 3,087,000 3,241,350 3,403,418

13
S.No Final Salaries Year 1 Year 2 Year 3 Year 4 Year 5
1 Total Salary 2,940,000 2,940,000 3087000 3241350 3403418
2 % annual increase 5% 0 0 147,000 154,350 162,068

Miscellaneous Fixed Assets

Miscellaneous Fixed Assets

S.No Amount
Office Equipment’s 30000
Telephone Etc. 1200
Furniture 35000
Computer 20000
Printers 5000
Fire Fighting Equipment’s 2000
Total 93200

Preliminary and Preoperative Expenses

Preliminary and preoperative Expenses
S.No Details Amount
1 Project report preparation 30,000
2 Sal. During construction % Age of Sal 120,000
3 Trial runs (2 Days) 5,000
4 Travelling 5,000
5 Deposits 20,000
6 Application processing Fees 5,000
7 Misc.…….
Total 185,000

Depreciation

Calculation for
Depreciation 1 2 3 4 5
Building
opening Balance - 800,000 600,000 400,000 200,000
Original cost of Acquisition 1,000,000
Dep@20% 200,000 200,000 200,000 200,000 200,000
SLM 800,000 600,000 400,000 200,000 -

14
Calculation for
Depreciation 1 2 3 4 5
Plant & machinery
opening Balance - 1,456,000 1,092,000 1,928,000 1,264,000
Original cost of Acquisition 1,820,000 1,500,000
Dep@20% 364,000 364,000 664,000 664,000 664,000
SLM 1,456,000 1,092,000 1,928,000 1,264,000 600,000

Calculation for Depreciation 1 2 3 4 5

Misc. Fixed Assets
opening Balance - 83,880 74,560 65,240 55,920
Original cost of Acquisition 93200
Dep@10% 9,320 9,320 9,320 9,320 9,320
SLM 83,880 74,560 65,240 55,920 46,600
Total 573,320 573,320 873,320 873,320 873,320

Assumption for Estimated Cost of Production

Details Basis 1 2 3 4 5
Consumables 1% of sales 84000 107100 249480 274428 301871
2%, 3%, 4% of
Repairs and maintenance P/M 36400 54600 72800 72800 72800
Rent, rates and taxes Rs. Per month 1000 1100 1210 1331 1464
Interest on term loan 12% of term loan 480000 384000 288000 192000 96000
Interest on working capital
loan 12% of W C Loan 45383 53180 104132 113471 123707
selling & Administration exp. 1% of sales 100000 107100 249480 274428 301871
Misc. Expenses 1% of sales 100000 105000 115500 121275 127339
Rate of taxation 30% of Net Profit 763643 1252225 4117353 4614714 5161737

Project Cost Estimation

ESTIMATED
Assets Project Cost 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR

Land 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

Building 1,000,000 800000 600000 400000 200000 0
Plant & Machinery 1,820,000 1456000 1092000 1928000 1264000 600000
working Capital
25% margin 126,063 126063 147723 289255 315197 343630
Misc. Fixed assets 93,200 83880 74560 65240 55920 46600
504,254 590,892 1,157,022 1,260,788 1,374,522
Pre & Preoperative
Expenses 185,000 185,000

15
 Cash 275,737 3,268,471 4,812,076 12,652,758 14,332,065 16,171,930

Total 6,000,000 8,923,668 9,817,251 18,992,275 19,927,971 21,036,682

Liability
Promoters
contribution 2,000,000.00 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Reserves and
surplus 2545478 4174082 13724509 15382379 17205791

Term loan 4,000,000.00 4,000,000 3,200,000 2,400,000 1,600,000 800,000

Working Capital
loan 378,190 443,169 867,766 945,591 1,030,891
Balancing figure

TOTAL 6,000,000 8,923,668 9,817,251 18,992,275 19,927,971 21,036,682

Profitability Statement

Sr.
No. Unit 1 year 2 year 3 year 4 year 5 year

1 Installed capacity 2,400,000 2,400,000 4,800,000 4,800,000 4,800,000

2 Capacity utilization 70% 85% 90% 90% 90%

3 Actual production 1,680,000 2,040,000 4,320,000 4,320,000 4,320,000

4 Selling price 5 5.25 5.78 6.35 6.99

5 Total Sales 8,400,000 10,710,000 24,948,000 27,442,800 30,187,080

COST OF
PRODUCTION
A Production cost 1 year 2 year 3 year 4 year 5 year

1 Raw Materials 542,500 569,625 598,106 628,012 659,412

Supplies &
2 consumables 84,000 107,100 249,480 274,428 301,871

3 Fuel & Power 30,000 30,000 30,000 30,000 30,000

Repair &
4 Maintenance 36,400 54,600 72,800 72,800 72,800

5 Wages & Salaries 2,940,000 2,940,000 3,087,000 3,241,350 3,403,418

6 Rent, rates and taxes 12,000 13,200 14,520 15,972 17,569

7 Depreciation 573,320 573,320 873,320 873,320 873,320

TOTAL 4,218,220 4,287,845 4,925,226 5,135,882 5,358,390

16
B Financial Exp.
Int. on term loan
8 (12%) 480,000 384,000 288,000 192,000 96,000
Int. on working
9 capital (12%) 45,383 53,180 104,132 113,471 123,707
Selling &
C Administration exp. 20000 22000 24200 26620 29282

TOTAL COST OF
PRODUCTION 4,763,603 4,747,025 5,341,558 5,467,973 5,607,379

SR.
NO

1 Operating profit 4,755,100 6,995,475 20,896,094 23,180,238 25,702,010

Operating profit after
2 Dep. 4,181,780 6,422,155 20,022,774 22,306,918 24,828,690

3 Taxable income 3,636,397 5,962,975 19,606,442 21,974,827 24,579,701

4 Income tax (30%) 1,090,919 1,788,892 5,881,933 6,592,448 7,373,910

5 net profit 2,545,478 4,174,082 13,724,509 15,382,379 17,205,791

operating profit /
6 Sales %age 57% 65% 84% 84% 85%
net profit / Sales
7 %age 30% 39% 55% 56% 57%

Break Even Point

1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR

1 Sales 8,400,000 10,710,000 24,948,000 27,442,800 30,187,080

2 Variables expenses

Raw materials 542,500 569,625 598,106 628,012 659,412

Consumables 84,000 107,100 249,480 274,428 301,871

Salaries & wages 2,940,000 2,940,000 3,087,000 3,241,350 3,403,418

Interest on WC loan 45,383 53,180 104,132 113,471 123,707

Selling exp. 20,000 22,000 24,200 26,620 29,282

TOTAL 3,631,883 3,691,905 4,062,918 4,283,881 4,517,689

3 Contribution 4,768,117 7,018,095 20,885,082 23,158,919 25,669,391

17
 Fixed
4 cost/Expenses
Repair &
Maintenance 36,400 54,600 72,800 72,800 72,800

Wages & Salaries 2,940,000 2,940,000 3,087,000 3,241,350 3,403,418

Rent, rates and taxes 12,000 13,200 14,520 15,972 17,569

Depreciation 573,320 573,320 873,320 873,320 873,320

Int. on term loan 480,000 384,000 288,000 192,000 96,000

Int. on working
capital 45,383 53,180 104,132 113,471 123,707
Selling &
Administration exp. 20,000 22,000 24,200 26,620 29,282

GROSS PROFIT 661,014 2,977,794 16,421,110 18,623,387 21,053,295

P/V Ratio 57% 66% 84% 84% 85%

BEP 1,164,510 4,544,279 19,615,620.99 22,068,295 24,758,574

BEP % of Sales 14% 42% 79% 80% 82%

Working Capital Calculation

1.CURRENT ASSETS 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR

Raw materials 1.5months 67,813 71,203 74,763 78,501 82,427

Work-in-progress 1/2 week 40,560 41,229 47,358 49,383 51,523

1/2
Finished Goods months 175,759 178,660 205,218 213,995 223,266

Sundry Debtors 15 days 345,205 440,137 1,025,260 1,127,786 1,240,565

TOTAL CURRENT
ASSETS 629,337 731,230 1,352,599 1,469,666 1,597,781

2. CURRENT
LIABLITIES

Creditors 2 month 104,417 112,788 141,264 150,407 160,214

Fuel & Power 2% 600 600 600 600 600

Repair & Maintenance 2 months 6,067 9,100 12,133 12,133 12,133

Supplies & consumables 2 month 14,000 17,850 41,580 45,738 50,312

18
TOTAL CURRENT
LIABILITIES 125,083 140,338 195,578 208,878 223,259
3. WORKING
CAPITAL GAP 504,254 590,892 1,157,022 1,260,788 1,374,522
4. MARGIN ON
WORKING CAPITAL
(25% OF 3.) 126,063 147,723 289,255 315,197 343,630
5. BANK
BORROWINGS (3. - 4.) 378,190 443,169 867,766 945,591 1,030,891

Debt Service Coverage Ratio

SR.
NO. Particulars 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR

1 Net profit after tax 2,545,478 4,174,082 13,724,509 15,382,379 17,205,791

2 Interest 525,383 437,180 392,132 305,471 219,707

3 Income tax (30%) 1,090,919 1,788,892 5,881,933 6,592,448 7,373,910

TOTAL 4,161,780 6,400,155 19,998,574 22,280,298 24,799,408

INTEREST +
INSTALLMENTS 4,000,000 3,200,000 2,400,000 1,600,000 800,000

1 Installment 800,000 800,000 800,000 800,000 800,000

2 Interest 480,000 384,000 288,000 192,000 96,000

3 Working cap. Int. 45,383 53,180 104,132 113,471 123,707

TOTAL 1,325,383 1,237,180 1,192,132 1,105,471 1,019,707

ANNUAL D S C R 3.1 5.2 16.8 20.2 24.3

AVERAGE D S C R 1.6 2.6 8.4 10.1 12.2