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BABA
BAIDYANATH DETAILED PROJECT REPORT
ENTERPRISES
FLY ASH BRICK & PAVER BLOCK MANUFACTURING UNIT | Neeraj Singh
BABA BAIDYANATH ENTERPRISES – DPR – FLY ASH BRICK INDL. AREA, JASIDIH
Table of Contents
EXECUTIVE SUMMARY ............................................................................................................................ 2
BACKGROUND ......................................................................................................................................... 4
LAND /SHED DETAILS & LOGISTICS ......................................................................................................... 9
PROCUREMENT STRATEGY OF RAW MATERIAL & OTHER INPUTS ....................................................... 10
TECHNO-COMMERCIAL VIABILITY ASSESSMENT .................................................................................. 14
PROCESS FLOW DIAGRAM .................................................................................................................... 18
INFRASTRUCTURE SOURCE ................................................................................................................... 21
MARKETING STRATEGY ......................................................................................................................... 22
SWOT ANALYSIS .................................................................................................................................... 23
FINANCIAL ANALYSIS ............................................................................................................................. 24
EXECUTIVE SUMMARY
1. Executive Summary
a) COMPANY NAME M/S BABA BAIDYANATH ENTERPRISES
b) CONSTITUTION PARTNERSHIP
c) YEAR OF INCORPORATION 2017
d) REGISTERED OFFICE C/O SS SINGH, SINGH VILLA, GROUND FLOOR, B
N JHA PATH, POKHNA TILLA, DEOGHAR,
JHARKHAND, 814112
e) PARTNERS PRIYA LATH W/O ASHISH KUMAR DALMIYAN
+91-94315-54049
+91-93347-55852
ASHISH 40%
KUMAR
DALMIYAN
₹ 2,00,000
CONTINGENCY FUND
₹ 35,28,887
WORKING CAPITAL LESS MARGIN
FOR WORKING CAPITAL
TOTAL ₹ 1,20,42,173
BACKGROUND
2. Background
2.1. Sector Background —
The construction industry contributes to about 10 % of the Gross Domestic
Product (GDP), registering an annual growth of about 9 %. Clay fired bricks form
the backbone of the construction industry which is valued at approximately US$
70.8 billion. The brick sector in India, although unorganised, is tremendous in size
and spread. India is the second largest brick producer (China dominates with 54
% share) in the world. It is continuously expanding on account of a rapid increase
in demand for bricks in infrastructure and housing industries. In order to meet
this demand, over 150,000 brick units provide direct employment to more than 8
million workers. During the Ninth Five-year Plan period (1997-2002), the annual
demand of 170 billion bricks per year was estimated to be generating revenues
of over US$ 4.8 billion.
Construction sector is a crucial component of India's development path. It
contributed to 8.2% of the Gross Domestic Product (GDP), in 2011-12 .
Clay fired bricks form the backbone of the construction industry. India is
estimated to have over 1,50,000 brick kilns producing the annual
demand 200 billion bricks per year . It is the second largest producer in the world
after China. The production is slated to increase in the future due to increasing
urbanization, housing shortage and reconstruction due to climatic events.
Brick production in India takes place using century old production methods,
involving manual and inefficient methods of clay preparation, hand moulding and
firing. About 70% of brick production takes place in the Indo-Gangetic plains
using Fixed Chimney Bull’s Trench Kiln (FC-BTK) technology. In peninsular India,
the majority of brick production is through clamp kilns and BTKs. The main fuel
used is coal and biomass.
Fertile top soil is used for the production of bricks. It is estimated that the brick
industry consumes around 350 million tonnes of good quality soil every year.
Increased urbanisation leading to an excessive exploitation of top soil for
(1) No person shall within a radius of fifty kilometers from coal or lignite
based thermal power plants, manufacture clay bricks or tiles or blocks for
use in construction activities without mixing at least 25 per cent of ash
(fly ash, bottom ash or pond ash) with soil on weight to weight basis.
2. Specifications for use of ash-based products.-
(1) Manufacture of ash-based products such as cement, concrete blocks,
bricks, panels or any other material or the use of ash in construction
activity such as in road laying, embankments or use as landfill to reclaim
low lying areas including back filling in abandoned mines or pitheads or
for any other use shall be carried out in accordance with specifications
and guidelines laid down by the Bureau of Indian Standards, Indian
Bureau of Mines, Indian Road Congress, Central Building Research
institute, Roorkee, Central Road Research Institute, New Delhi, Building
Materials and Technology Promotion Council, New Delhi, Central Public
Works Department, State Public Works Departments and other Central
and State Government agencies.
(2) The Central Public Works Department, Public Works Departments in e
State/Union Territory Governments, Development Authorities, Housing
Boards, National Highway Authority of India and other construction
agencies including those in the private sector shall also prescribe the use
of ash and ash-based products in their respective schedules of
specifications and construction applications, including appropriate
standards and codes of practice, within a period of four months from the
publication of this notification.
(3) All local authorities shall specify in their respective building bye-laws and
regulations the use of ash and ash-based products and construction
techniques in building materials, roads, embankments or for any other
use within a period of four months from the date of publication of this
notification. [F. No. 16-2/95-HSMD]
received cabinet clearance on 13th October 2016. The foundation stone of the
bridge was laid by the Prime Minister of India on 06th April 2017.
The project, will help expedite improvement of infrastructure in Bihar and
Jharkhand and also reduce the time and cost of travel in these states. The
development of this stretch will also be expected to help uplift socio-economic
conditions of people of Santhal Pargana region of the State.
Development of AIIMS like institute at Deoghar.
Proposed Airport at Deoghar.
Proposed Adani Mega Power Project at Godda.
All round development like above provide ample opportunities for the Fly ash
Brick manufacturing unit at Deoghar that presents stable industry development
environs.
2.3. Promoter's Background
Ashish Kumar Dalmiya has worked as Manager at MP Mining & Energy Ltd for 4
years at Jasidih Industrial Area. He has been an asset in market development &
production at MP Mining. He brings sharp marketing acumen and association
with various business promoters in Deoghar and strong financial support base
from family and inheritance.
Priya Lath is a commerce graduate and she has been undertaking account
management and financial resource development since 2013. She brings her
sharp management skills to the partnership.
The Husband – Wife team jointly proposes to develop the business for their
common interests and future.
C
A
tied back from sites the following recommendations are made for use of Gypsum in
ash brick making.
1. Gypsum should be free of lumps. Lumps, if any, should be screened and remainder
over the screen should be crushed and re-screened before use.
2. Gypsum should be tested for its purity as per IS 1288- 1f82. Its purity should be
above 80%. However, in case of variation in purity, percentage of Gypsum in the mix
should be adjusted to obtain desired quality of finished bricks.
(D) SAND:
Sand is used as an economizer and to increase the strength of brick to some extent.
Any locally available cheap sand can be used in making the bricks. Any coloring
material can be added to give desired color but the cost will be high and it can be
stored as a premium brick.
(E) CEMENT: Many Pilot plants faced difficulty in regular supply of consistent quality
sludge lime. Some NTPC projects have switched over to cement as the binding
material in place of sludge lime. When cement is used, used of gypsum can be
avoided. Ordinary Portland cement conforming to IS-269, IS-8112 or IS-12269 (latest
revision) should be used.
(F) Water requirement is about 500 – 1000 m3 per million of bricks in case of using
FaL-G unit. In most of the cases, the source is ground water. The magnitude of the
impact depends on the water balance on the region
4.1. Raw Material Availability –
Generally, dry fly ash available from power plants meets the properties specified
in IS: 3812 and is suitable for manufacture of Fly Ash – lime bricks in accordance
with the requirements of IS: 12894.
Soluble salts or organic matter in water should not exceed 0.25%. Water is an
essential but temporary constituent of fly ash bricks. If is needed to form them
but is subsequently eliminated during drying.
Fly Ash Production & Utilisation Report of GoI 2014-15 states and we quote
herewith as below;
NAME OF POWER STATE DIST. FROM INSTALLED FLY ASH % AGE OF IN MAKING OF
THERMAL POWER UTILITY DEOGHAR CAPCITY GENERATION UTILISATION FLY ASH BASED
STATION BRICKS/
BLOCKS/ TILES
ETC.
KMS MW MILLION TON % AGE MILLION TON
BARH SUPER NTPC BIHAR 192 1320 0.274 3.65% 0.002
THERMAL POWER
STATION
KAHALGAON NTPC BIHAR 145 2340 5.648 29.87% 0.242
MUZAFFARPUR KBUNL BIHAR 273 220 0.290 18.99% -
TPS
BARAUNI BSPGCL BIHAR 175 220 - 0.00% -
BOKARO 'B' DVC JHARKHAND 175 630 0.663 65.15% -
CHANDRAPURA DVC JHARKHAND 160 890 1.671 86.09% 0.007
JOJOBERA TPCO JHARKHAND 275 547.5 1.194 99.03% 0.001
KODARMA DVC JHARKHAND 145 1000 0.667 96.18% 0.017
MAITHON RBTPP MPL JHARKHAND 115 1050 1.649 161.01% 0.019
PATRATU JUUNL JHARKHAND 255 770 0.282 10.24% 0.007
TENUGHAT TVNL JHARKHAND 182 420 0.748 95.80% -
BUDGE BUDGE CESC W BENGAL 352 750 1.377 100.00% 0.032
GENERATING
STATION
BAKRESWAR WBPDCL W BENGAL 146 1050 2.277 67.03% 0.051
BANDEL WBPDCL W BENGAL 297 450 0.327 171.64% 0.002
CHINAKURI DPSCL W BENGAL 115 30 - 0.00% -
DISHERGARH DPSCL W BENGAL 115 12 0.031 100.00% -
POWER STATION
DURGAPUR DVC W BENGAL 147 350 0.512 89.81% -
DURGAPUR DPL W BENGAL 150 891 0.456 88.50% 0.003
PROJECTS POWER
STAION
DURGAPUR STEEL DVC W BENGAL 150 1000 1.281 62.55% 0.018
FARAKKA NTPC W BENGAL 180 2100 3.618 27.83% 0.015
HALDIA ENERGY HALDIA W BENGAL 435 600 0.070 100.00% -
LIMITTED (W.B) ENERGY
LIMITTED
KOLAGHAT WBPDCL W BENGAL 373 1260 2.485 90.01% 0.093
MEJIA DVC W BENGAL 156 2340 3.825 118.30% 0.024
NEW COSSIPORE CESC W BENGAL 323 160 0.022 100.00% -
SOUTHERN CESC W BENGAL 336 135 0.272 100.00% 0.010
GENERATING
STATION
SAGARDIGHI WBPDCL W BENGAL 179 600 1.015 62.68% 0.071
SANTALDIH WBPDCL W BENGAL 160 500 1.099 40.67% 0.008
TITAGARH CESC W BENGAL 327 240 0.422 100.00% 0.082
GENERATING
STATION
Durgapur, Asansol, Giridih & Jamshedpur being major producing cities of Steel
are big consumers of Lime. Hence, the availability of lime is abundant and can be
obtained from any trader or may even be bought from Katni which is a famous
lime producing region.
Other raw materials are locally available.
4.2. Sources of Procurement
4.2.1. N K Enterprises
Chowk Bazar, Jugsalai, Jamshedpur, Jharkhand, 831006, India
Key Personnel : Mr. Alok Lodha (Proprietor)
Mobile : +919431139541
4.2.2. Ravindra Lime Works
Madan Mohan Choubey Ward, Bhatta Mohalla , Katni , MP
Surendra Sharma, +91-94254-65803, +91-7387208252, +91-
9039385601, surendralime@gmail.comM/s.
4.2.3. Hindustan Chemical & Lime Industries
Ram Manohar Lohiya Ward, NH7, Nadipar,, Katni, Madhya Pradesh
483501 +91- 94243 94844
4.3. Process of Procurement
The procurement shall be done on long term quantity contract basis whereby the
prevailing market rates shall be applicable.
by-product from Thermal Power Stations. Fly ash is being accumulated as waste
material in large quantities near thermal power plants. Energy requirements for
the developing countries in particular are met from coal-based thermal power
plants. The disposal of the increasing amounts of solid waste from coal-fired
thermal power plants is becoming a serious concern to the environmentalists.
Coal ash, 80% of which is very fine in nature and is thus known as fly ash is
collected by electrostatic precipitators in stacks. In India, nearly 175 million
tonnes (as per data from NV centre on Fly Ash) of fly ash is generated per annum
at present and is largely responsible for environmental pollution. As the power
requirements of the country goes up, the amount of waste produced will also
increase enormously creating problems for its safe disposal due to lack of
adequate disposal facilities. Its use in manufacture of bricks will be helpful in its
disposal and also help in controlling pollution. To overcome this huge
environment loss the concept of making Fly Ash Bricks, Blocks, Pavers and other
Construction materials has developed.
The Fly ash brick making plant has been designed to manufacture fly ash with
FAL-G Technology. The plant consists of the following equipment
a) It is a hydraulically operated, automatic and controlled by electronic circuits.
The electronic circuit is self-diagnosing. It has an optional alpha-numeric
6.1.10. Balance area shall cater to drying of green bricks & blocks and storage of
cured bricks & blocks for dispatch.
INFRASTRUCTURE SOURCE
7. Infrastructure Source
7.1. Power
Total Power consumption of the Brick Plant is 42.5 HP, 3 Phase whereas the
power consumption of the Paver Block unit is 10 HP, the lighting requirement will
be another 7 KW. Thus a total power demand shall be demand 50 KW at peak.
The power situation with the supply substation of Industrial Area Jasidih is
sufficient to meet the requirement.
7.2. Water
As discussed the Power requirement shall be about ½ ltr per brick at the least
and at the max it will be about 1 ltr per brick.
7.3. Manpower
Job Description Skilled Semi-Skilled Un-Skilled
Plant Operator 2 0 0
Raw Material Handling 0 1 2
Green Brick Carriage 0 0 2
Semi Dried Bricks to Curing Tank & Retrieval 0 0 2
Paver Plant Operator 1 0 0
Paver Blocks Making 0 0 3
Paver Raw Material Handling 0 0 2
Paver Shifter 0 0 1
3 1 12
MARKETING STRATEGY
8. Marketing Strategy
8.1. Market Opportunities
Huge development activities in Deoghar including Airport, AIIMS, Stadium &
Sports Complex, Development at the Industrial Area, and Smart City related
development avenues under Public domain opens tremendous opportunities for
a Fly ash Brick making unit in Deoghar.
8.2. Approach
Through Government Tenders & Direct industrial Marketing to the Construction
Agencies.
SWOT ANALYSIS
9. SWOT Analysis
SWOT ANALYSIS OF THE INDUSTRY
The strengths, weaknesses, opportunities and threats for the Indian Fly Ash Brick
industry have been listed below:
Strengths:
The location is better placed in terms of logistics, raw material sourcing, and
closeness to demand pockets, manpower availability and social infrastructure
Availability of unhindered Electric Power
Low labour wage rates
Well-qualified and experienced management and technical team.
Mature production base & technology
Technology used is contemporary and stabilised which is easy to understand.
Weaknesses:
Small Scale of operations
Low productivity
Low R&D investments
High cost of debt
Inadequate infrastructure
Opportunities:
Nascent market in Santhal
Pargana region & North Bihar
Growing domestic demand
Boom in Housing & infrastructure Industry.
Increasing Governmental spending on urban amenities & telecom.
Threats:
Blockages in supply of Fly Ash due to government intervention or plant
breakdown.
Market price fluctuations of raw materials and finished goods
FINANCIAL ANALYSIS
MEANS OF FINANCE
A TOTAL FUND REQUIREMENT
CAPITAL INVESTMENT 83,13,286
CONTINGENCY FUND 2,00,000
WORKING CAPITAL LESS MARGIN FOR WORKING CAPITAL 35,28,887
1,20,42,173
B FINANCE RESOURCING
SHARE CAPITAL 20,42,173
TERM LOAN 64,71,113
CASH CREDIT LIMIT TO MEET WORKING CAPITAL REQUIREMENT 35,28,887
*** TERM LOAN + CC LIMIT = 1 CR 1,20,42,173
Efficiency
Efficiency
Full Efficiency production 2,525 Pcs/Shift 100%
FAL-G Brick 2,400 Pcs/ Hour
Concrete Paver Blocks 125 Pcs/ Hour
Initial Operational Efficiency 1,768 Ltr/ Shift 70%
FAL-G Brick 1,680 Pcs/ Hour
Concrete Paver Blocks 88 Pcs/ Hour
Depreciation on civil structures 10% p.a. on WDV method for civil structures
Depreciaption on plant and machinery and electricals 10% p.a. on WDV method for plant and machinery and
electricals
Depreciaption on Moulds 25% p.a. on WDV method for Moulds
Depreciation on miscellaneous fixed assets 20% p.a. on WDV method for miscellaneous fixed assets
Assumption
PLANT & MACHINERY
1 MACHINERY & EQUIPMENTS : (In Rs.) (In Rs.)
FLYASH BRICKS MAKING MACHINE MODEL 10 KVT [Ex-works Bhuj, Gujarat unpacked] 17,42,152
PAN MIXER 4,83,800
CONVEYOR BELT 1,93,107
GREEN BRCIKS SHIFTING TROLLEY 16,352
2Vibrator table (2.5 HP motor, 11 * 3 feet 1,60,000
Color Drum (2 HP Motor) 50,000
Mixer 1,50,000
Rubber Mould 2000 Nos 3,00,000
Packing & Forwarding charges 1% 30,954.11
Transportation 2 Trucks @ Rs. 50,000/- per truck 1,00,000
Transit Insurance 0.50% 16,131.83
Total cost of RPVC Plant Model KTS-200/200V 32,42,497
2 ANCILLIARY EQUIPMENTS :
a) Hydraulic shifting truck 1 No. 50,000
b) MOULD 1 No. 85,845
1,35,845
3 UTILITIES REQUIRED :
a) Weighing Machine - 75 KG capacity 1 No. 10,000
b) Weighing Machine - 5 KG capacity 1 No. 7,500
c) Water Pump (3 H.P. - 1no.) 1 No. 15,000
32,500
4 ELECTRICAL SECTION:
a) Electrical Cables & Conduits 1 Lot 2,00,000
b) Earthing Materials 1 Lot 50,000
c) H.T. Panel 1 no. 50,000
d) Distribution Board 1 no. 1,25,000
e) Security Deposit for 50 KW load 87,500
f) Deposit for electricity connection 63 KW line 11 KV line 94,500
6,07,000
5 OTHERS:
a) Water distribution system with total water pipe line system 5,000
b) Water Storage Tank (Overhead Tank and under ground hot & cold sump) -
c) Office & Laboratory furnitures 50,000
55,000
6 OTHER CHARGES ON MACHINERY :
a) Transport charges for other machinery 50,000
b) Pre-installation expenses 50,000
c) Foundation & Installation of all equipments 50,000
1,50,000
7 LAND AND BUILDING :
a) Land & Land Development 35,000.00 SqFt 12,84,148
b) Building-70*20+30*20+40*20*2 square ft. @ Rs. 300.00 per Sq Ft. 3,600.00 SqFt 10,80,000
23,64,148
P&M
SALARY AND WAGES PER MONTH :
S&W
ELECTRICITY PER MONTH : KW HP
1 Total Fly Ash Brick Plant Load 31.79 KW 31.79 42.50
2 Total Paver Block Plant Load 7.11 KW 7.11 9.50
3 Lights & Fan & A.C. 2.99 KW 2.99 4.00
4 Laboratory Equipments 3.74 KW 3.74 5.00
5 Total connected load = 45.63 KW 45.63
6 # Considering running load is 55% of the total connected load = 25.10 KW 25.10
7 # Considering Rs. 5.50 per unit cost 5.50
8 Total Units Consumed per Month 10,038.16 10,038.16
9 Total electricity charges per month 55,209.88 55,209.88
10 Surcharge applicable on Total Electricity Bill per month @ 6,073.09 11% -
11 Total electricity charges per month 61,282.97 55,209.88
12 Total Units Consumed per Day 401.53
13 Production per Day 26,880.00
14 Total Units Consumed per Kg 0.01
Elect
OTHER OVERHEAD PER MONTH :
a) Maintenance & Stores approx. on machinery cost 0.50% 2,005
b) Telephone, Postage and Stationary 5,000
c) Insurance on fixed assets Rs. 5/- per Rs.1000 on item no. 1,2,3 & 4 (Excluding the deposit) 2,005
d) Travelling & Conveyance 50,000
e) Legal & Provisional charges 10,000
69,010
OH
COST ANALYSIS OF RAW MATERIALS PER MONTH
RM
WORKING CAPITAL :
1 Raw material for 15 days 14,61,654
2 Finished goods for One month ( 15 days stock and 15 days in credit) 29,23,308
3 Salary & Wages for one month 1,96,000
4 Electricity for one month 55,210
5 Other overhead for one month 69,010
WORKING CAPITAL: 47,05,183
WC
TOTAL CAPITAL INVESTMENT :
(In Rs.)
A. Fixed cost 65,86,990
MEANS OF FINANCE
A TOTAL FUND REQUIREMENT
CAPITAL INVESTMENT 83,13,286
CONTINGENCY FUND 2,00,000
WORKING CAPITAL LESS MARGIN FOR WORKING CAPITAL 35,28,887
1,20,42,173
B MEANS OF FINANCE
SHARE CAPITAL 20,42,173
TERM LOAN 64,71,113
CASH CREDIT LIMIT TO MEET WORKING CAPITAL REQUIREMENT 35,28,887
*** TERM LOAN + CC LIMIT = 1 CR 1,20,42,173
CapitStruc
SALES PER MONTH :
Sales
TOTAL VARIABLE EXPENSES PER MONTH
Rs. Per Month
1 Raw Material 29,23,308
2 Salary & Wages 1,96,000
3 Electricity charges 55,210
4 Advertisement Expenses 30,000
5 Other overheads 69,010
6 Interest on Working Capital @ 12.5% p.a. 36,759
33,10,288
VarExp
GROSS PROFIT EARNED PER MONTH 2,20,512
Less : Depreciation per month 48,597
Profit
Depreciation
Deprcn
RE-PAYMENT SCHEDULE MONTHWISE
1 2 3 4 5 6 7 8
RypmtMthlySchedule
REPAYMENT SCHEDULE YEARLY
RypmtYrly
CASH FLOW - STATEMENT
Revenue
1 Sales 1,05,92,400 4,53,96,000 4,84,22,400 5,14,48,800 5,44,75,200 5,75,01,600 6,05,28,000
2 Cumulative 1,05,92,400 5,59,88,400 10,44,10,800 15,58,59,600 21,03,34,800 26,78,36,400 32,83,64,400
3 Gross Profit -1,13,80,637 -85,45,482 -55,21,317 -23,08,141 10,94,044 46,85,241 84,65,447
CashFlow
PROFITABILITY STATEMENT
8 Interest on Term Loan 4,38,148 7,85,296 6,40,371 4,78,593 3,16,815 1,55,037 16,852
9 Profit after depreciation and interest but before tax (PADIBT) -3,38,312 15,26,473 19,25,490 23,30,562 27,27,360 31,17,669 34,79,182
Profitability
INCOME EXPENSE STATEMENT
Expenses
1 Raw Material 87,69,925 3,75,85,395 4,00,91,088 4,25,96,781 4,51,02,474 4,76,08,167 5,01,13,860
2 Operating Expenses 11,60,938 49,75,450 53,07,147 56,38,844 59,70,540 63,02,237 66,33,934
3 Total 99,30,864 4,25,60,845 4,53,98,235 4,82,35,625 5,10,73,014 5,39,10,404 5,67,47,794
4 Cumulative 99,30,864 5,24,91,709 9,78,89,944 14,61,25,568 19,71,98,583 25,11,08,987 30,78,56,780
Net
1 Gross Surplus 6,61,536 28,35,155 30,24,165 32,13,175 34,02,186 35,91,196 37,80,206
2 Cumulative GS 6,61,536 34,96,691 65,20,856 97,34,032 1,31,36,217 1,67,27,413 2,05,07,620
IncomeExp
IRR & BCR STATEMENT
IRR