Project report for Cement block

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Introduction

The project report for Cement bricks/ Hollow bricks is as follows:

From time immemorial, country burned bricks were in use for the construction of civil structures.  Eventually, production of such bricks almost stopped due to many reasons. Mining of clay, the raw material of these bricks, is restricted by the government on environmental concerns and this was one of such major reasons. High production cost, high labour charge on construction using such small bricks, the introduction of cement building blocks, etc. contributed to the extinction of the clay bricks industry. Naturally, a cheap alternative, known as hollow bricks has been evolved which is made out of a mixture of granite chips (baby metal) of 6MM size, a limited quantity of cement, granite fines and sand/granite powder.  The cement to be used is also very limited since the hydraulic pressing is enforced on the concrete mixture, which enables a compact setting of the product. The hollow bricks have holes in it, which retains air cavities inside the walls when constructed with it.  With the presence of air cavities, the temperature inside the room is maintained when constructed with hollow bricks. This advantage of the product is another attractive feature of the hollow bricks. It is cheap, easy to transport and construct, consumes less cement mortar for construction and maintains an even room temperature, which all have enabled hollow bricks to be preferred for construction of civil structures replacing the conventional country burned bricks. The unit satisfies criteria of Pollution Control Board and hence it can function well without much pollution and disturbance to the neighbours. Therefore scope of this project is very high.

 

Product / Services & process

The products proposed to be manufactured are hollow bricks and solid blocks of various dimensions from cement, baby metal chips, and granite powder. the hollow blocks are made with holes in the blocks for making it lightweight and cheaper. Moreover, the hollow blocks have thermal as well as sound proof properties to a certain extent due to the air column within it. Normal size of the blocks are (8" x 4" x 12") and (8" x 6" x 12"). The products have a very good demand in the construction market.

MANUFACTURING PROCESS

Cement concrete is a mixture of Portland cement, aggregates (sand and stone chips) and water. Aggregates passing through 4.7 mm IS sieve are known as fine aggregates and the aggregates retained on this sieve are coarse aggregates.
The process of manufacture of cement concrete paving blocks involves the following steps:

  • Proportioning

  • Mixing

  • Compacting

  • Curing

  • Drying

The raw materials such as cement, baby metal, and rock powder are mixed in a concrete mixer in due proportion. The ratio of cement, sand and stone chips (metal) in the raw material mix determines the properties of hollow concrete blocks. A ratio of 1:3:6 (cement: sand: metal) confers higher strength, while a ratio of 1:5:6 can be employed for normal load-bearing construction.  The water to cement ratio is usually 0:4:1.

The mixture is then collected in tipping barrows and fed into the molds of hydraulic block making machine. This is vibrated for a few minutes at intervals to ensure complete compactness. Now these are pressed in the hydraulic machine and the blocks thus formed are left on the cemented floor and the machine moves forward and the above operations are repeated. Thus rows of concrete bricks are made and arranged in rows on the floor. These blocks are left for 24 hours for initial setting. Then the blocks are collected, stacked in layers of 6 to 8 in numbers and water is sprinkled for 14-20 days for curing. After proper curing, the blocks are ready for marketing.

 

 

Raw materials / Consumables

The raw materials required for manufacture of hollow and solid blocks are:

  1. Cement

  2. Baby metal and

  3. Rock powder/granite dust/sand.

  4. Water for mixing

All the raw materials required by the unit are available throughout the year. The raw material can also be procured from the nearby districts and from other states. Sufficient stock of raw materials will be ensured for an uninterrupted production. The raw material required by the unit is proposed to be arranged through local distributors.

 

 

Plant & Machinery / Equipments

The details of plant and machinery are enlisted in the fixed capital part of the project. They include:

  1. Concrete mixer with/without hooper

  2. Hydraulically operated blocks making machine

  3. Moulds

  4. Trolleys

  5. Electric pump etc.

The proposed machines and tools are procured from reputed machinery suppliers with the utmost care.


 

 

Market potential & Strategy

India is the second largest brick manufacturer in the world after China. Indian brick industry is almost entirely unorganized and characterized by the presence of a large number of small scale manufacturers which compete with one another at the regional level. Bricks industry in India has recorded considerable growth over the past few years, driven by the growth in infrastructure and construction activities. Moreover, India's rising population, increase in per capita income, improved economic growth, industrialization, and rapid urbanization has augmented the growth prospects of blocks and bricks industry.

Solid blocks are commonly used to build load-bearing walls due to its density and compressive strength of 5 Newton/meter square which is much higher than other types of concrete blocks. Whereas, hollow blocks were the second most preferred concrete blocks in India with a market share of 35%. They have better-insulating properties, more durable, easier to install electrical and plumbing fixtures. Hollows blocks are used as outer or inner walls in high rise buildings to reduce the overall dead load of the building. A market study in this regard reveals the high potential of a hollow bricks unit due to the flourishing construction activities in the area. Marketing is the decision making factor of any enterprise and by knowing this, the promoter has taken all possible ways to market his products and services by canvassing works from builders, contractors, and house owners. He can use his wide personal contacts also for grabbing orders. The promoter can easily understand the taste and needs of the customer due to his several years of experience, which will help him in marketing his products and maintain customer satisfaction.

 

 

PROJECT REPORT

Cement block

Address

Introduction

The project report for Cement bricks/ Hollow bricks is as follows:

From time immemorial, country burned bricks were in use for the construction of civil structures.  Eventually, production of such bricks almost stopped due to many reasons. Mining of clay, the raw material of these bricks, is restricted by the government on environmental concerns and this was one of such major reasons. High production cost, high labour charge on construction using such small bricks, the introduction of cement building blocks, etc. contributed to the extinction of the clay bricks industry. Naturally, a cheap alternative, known as hollow bricks has been evolved which is made out of a mixture of granite chips (baby metal) of 6MM size, a limited quantity of cement, granite fines and sand/granite powder.  The cement to be used is also very limited since the hydraulic pressing is enforced on the concrete mixture, which enables a compact setting of the product. The hollow bricks have holes in it, which retains air cavities inside the walls when constructed with it.  With the presence of air cavities, the temperature inside the room is maintained when constructed with hollow bricks. This advantage of the product is another attractive feature of the hollow bricks. It is cheap, easy to transport and construct, consumes less cement mortar for construction and maintains an even room temperature, which all have enabled hollow bricks to be preferred for construction of civil structures replacing the conventional country burned bricks. The unit satisfies criteria of Pollution Control Board and hence it can function well without much pollution and disturbance to the neighbours. Therefore scope of this project is very high.

Product / Services & process

The products proposed to be manufactured are hollow bricks and solid blocks of various dimensions from cement, baby metal chips, and granite powder. the hollow blocks are made with holes in the blocks for making it lightweight and cheaper. Moreover, the hollow blocks have thermal as well as sound proof properties to a certain extent due to the air column within it. Normal size of the blocks are (8" x 4" x 12") and (8" x 6" x 12"). The products have a very good demand in the construction market.

MANUFACTURING PROCESS

Cement concrete is a mixture of Portland cement, aggregates (sand and stone chips) and water. Aggregates passing through 4.7 mm IS sieve are known as fine aggregates and the aggregates retained on this sieve are coarse aggregates.
The process of manufacture of cement concrete paving blocks involves the following steps:

  • Proportioning

  • Mixing

  • Compacting

  • Curing

  • Drying

The raw materials such as cement, baby metal, and rock powder are mixed in a concrete mixer in due proportion. The ratio of cement, sand and stone chips (metal) in the raw material mix determines the properties of hollow concrete blocks. A ratio of 1:3:6 (cement: sand: metal) confers higher strength, while a ratio of 1:5:6 can be employed for normal load-bearing construction.  The water to cement ratio is usually 0:4:1.

The mixture is then collected in tipping barrows and fed into the molds of hydraulic block making machine. This is vibrated for a few minutes at intervals to ensure complete compactness. Now these are pressed in the hydraulic machine and the blocks thus formed are left on the cemented floor and the machine moves forward and the above operations are repeated. Thus rows of concrete bricks are made and arranged in rows on the floor. These blocks are left for 24 hours for initial setting. Then the blocks are collected, stacked in layers of 6 to 8 in numbers and water is sprinkled for 14-20 days for curing. After proper curing, the blocks are ready for marketing.

 

Raw materials / Consumables

The raw materials required for manufacture of hollow and solid blocks are:

  1. Cement

  2. Baby metal and

  3. Rock powder/granite dust/sand.

  4. Water for mixing

All the raw materials required by the unit are available throughout the year. The raw material can also be procured from the nearby districts and from other states. Sufficient stock of raw materials will be ensured for an uninterrupted production. The raw material required by the unit is proposed to be arranged through local distributors.

 

Plant & Machinery / Equipments

The details of plant and machinery are enlisted in the fixed capital part of the project. They include:

  1. Concrete mixer with/without hooper

  2. Hydraulically operated blocks making machine

  3. Moulds

  4. Trolleys

  5. Electric pump etc.

The proposed machines and tools are procured from reputed machinery suppliers with the utmost care.


 

Market potential & Strategy

India is the second largest brick manufacturer in the world after China. Indian brick industry is almost entirely unorganized and characterized by the presence of a large number of small scale manufacturers which compete with one another at the regional level. Bricks industry in India has recorded considerable growth over the past few years, driven by the growth in infrastructure and construction activities. Moreover, India's rising population, increase in per capita income, improved economic growth, industrialization, and rapid urbanization has augmented the growth prospects of blocks and bricks industry.

Solid blocks are commonly used to build load-bearing walls due to its density and compressive strength of 5 Newton/meter square which is much higher than other types of concrete blocks. Whereas, hollow blocks were the second most preferred concrete blocks in India with a market share of 35%. They have better-insulating properties, more durable, easier to install electrical and plumbing fixtures. Hollows blocks are used as outer or inner walls in high rise buildings to reduce the overall dead load of the building. A market study in this regard reveals the high potential of a hollow bricks unit due to the flourishing construction activities in the area. Marketing is the decision making factor of any enterprise and by knowing this, the promoter has taken all possible ways to market his products and services by canvassing works from builders, contractors, and house owners. He can use his wide personal contacts also for grabbing orders. The promoter can easily understand the taste and needs of the customer due to his several years of experience, which will help him in marketing his products and maintain customer satisfaction.

 

Project at a glance

Name & Address of Unit

Concrete Bricks -Hollow Bricks

Address

Details of unit
Email : youremail@gmail.com
Phone : 0000
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 : 0000
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 AND BUILDING *******
2 Mixture Machine *******
3 Making Machine *******
4 Furniture *******
5 Electrification charge *******
6 Preliminary and pre operative expense *******
7 Liscence and paper work *******
8 Advertising charges *******
9 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 12 Month *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Salary *******
2 Repairs *******
3 Electricity charges *******
4 Office Expenses *******
5 Travelling expenses *******
6 Water for mixing *******
7 Sand and metels *******
8 Cement *******
9 Telephone bill *******
10 stationery and other charges *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 LAND AND BUILDING ******* 1 ******* *******
2 Mixture Machine ******* 1 ******* *******
3 Making Machine ******* 1 ******* *******
4 Furniture ******* 1 ******* *******
5 Electrification charge ******* 1 ******* *******
6 Preliminary and pre operative expense ******* 1 ******* *******
7 Liscence and paper work ******* 1 ******* *******
8 Advertising charges ******* 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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