Project report for Concrete mixing

Introduction

The project report for Ready mix concrete is as follows:

The Ready Mix Concrete (RMC) industry in India is in its early stages with cement consumption of just 2-3 per cent of total production. This is evident from the fact that in the West, the RMC consumes 60 per cent of total cement production. However, since the demand for RMC is expected to grow exponentially, cement manufacturers in India such as Ultratech, ACC, Madras Cements, India Cements, Ambuja Cements, among others, have forayed into the business. As the industry grows, it will make aggregate distribution and production more organized as large players are likely to venture into the aggregates business themselves or have a long-term relationship with commercial aggregate companies. The cement companies are able to leverage the RMC market in a better way since cement is one of the essential ingredients in the manufacture of RMC. Of course, acquiring and operating suitable aggregate quarries in India is a difficult task, but since cement companies possess sufficient experience in limestone quarrying will have technical competency of running such captive operations too...

Product / Services & process

Ready  Mix  Concrete  (RMC)  is  a  special  material  in  which  the  cement  aggregates  and  other ingredients are weigh-batched at the plant in a central mixer or truck mixer, before delivery to the construction site in a condition ready for placing at the site

Market potential & Strategy

Ready  mix  concrete  has  gained  acceptance  in  Indian  industry  due  to  several  advantages including  quality  control  and  overall  economy.  RMC  plants  are  proliferating,  especially  in urban regions, not only because of the space restrictions around construction site but also due to the realisation of the advantages by engineers and construction industryThe word  ?potential‘ is a much over used phrase when looking at India. As  we  have  seen earlier  the  infrastructure  statistics  are  of  such  mind –boggling  proportions  that  it  could  be said  that  there  is  a  massive  potential  for  the  growth  of  ready  mixed  concrete  industry. However  realising  that  potential  will  take  a  considerabletime  as  companies  come  to  terms with the unique obstacles presented in the Indian market.he only realistic view that the ready mixed concrete industry can take should be based on long term strategy...

PROJECT REPORT

Concrete mixing

Address

Introduction

The project report for Ready mix concrete is as follows:

The Ready Mix Concrete (RMC) industry in India is in its early stages with cement consumption of just 2-3 per cent of total production. This is evident from the fact that in the West, the RMC consumes 60 per cent of total cement production. However, since the demand for RMC is expected to grow exponentially, cement manufacturers in India such as Ultratech, ACC, Madras Cements, India Cements, Ambuja Cements, among others, have forayed into the business. As the industry grows, it will make aggregate distribution and production more organized as large players are likely to venture into the aggregates business themselves or have a long-term relationship with commercial aggregate companies. The cement companies are able to leverage the RMC market in a better way since cement is one of the essential ingredients in the manufacture of RMC. Of course, acquiring and operating suitable aggregate quarries in India is a difficult task, but since cement companies possess sufficient experience in limestone quarrying will have technical competency of running such captive operations too. ndia  is  the  2ndlargest  cement  producer  in  the  world.  With  an  annual  production  of  around 248 million tonnes (mnt), it ranks only behind China as shown in Fig1.Per capita cement consumption is 156 kg (2008) as against world average of 396 kg. (2006). Cement   technology   and   production   cost   comparable   with   the   best   in   the   world

 

Product / Services & process

Ready  Mix  Concrete  (RMC)  is  a  special  material  in  which  the  cement  aggregates  and  other ingredients are weigh-batched at the plant in a central mixer or truck mixer, before delivery to the construction site in a condition ready for placing at the site

Market potential & Strategy

Ready  mix  concrete  has  gained  acceptance  in  Indian  industry  due  to  several  advantages including  quality  control  and  overall  economy.  RMC  plants  are  proliferating,  especially  in urban regions, not only because of the space restrictions around construction site but also due to the realisation of the advantages by engineers and construction industryThe word  ?potential‘ is a much over used phrase when looking at India. As  we  have  seen earlier  the  infrastructure  statistics  are  of  such  mind –boggling  proportions  that  it  could  be said  that  there  is  a  massive  potential  for  the  growth  of  ready  mixed  concrete  industry. However  realising  that  potential  will  take  a  considerabletime  as  companies  come  to  terms with the unique obstacles presented in the Indian market.he only realistic view that the ready mixed concrete industry can take should be based on long term strategy. The main aim has to be the development of the awareness of the product.  Presently  that  level  of  awareness  is  only  present  in  a  few  isolated  pockets  and  this position  is  not  expected  to  change  drastically  in  the  foreseeable  future.  This  is  partly  due  to the fact that there is no real focus for the industry, in that the few players that exist are located in disparate markets and those that exist in the same markets have differing ideological viewsregarding  The  product  and  the  business.

Project at a glance

Name & Address of Unit

Ready mix concrete

Address

Details of unit
Email : youremail@gmail.com
Phone : 0000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 00000
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Land development *******
2 Loading unit *******
3 Mixer *******
4 Vehicle for distribution *******
5 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from Sales ******* X 312 Day *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Salary *******
2 Fuel cost *******
3 Raw material purchase *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Land development ******* 1 ******* *******
2 Loading unit ******* 1 ******* *******
3 Mixer ******* 1 ******* *******
4 Vehicle for distribution ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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