BIRLA INSTITUTE OF TECHNOLOGY, MESRA
Assignment on:
Report Writing
Submitted By:
Submitted To:
Shivam Kumar
Mr. Hemant Shrivastav
Roll No- MBA/40050/21
Contact No- 7301919976
TABLE OF CONTENT
1. EXECUITVE SUMMARY
2. MARKET ANALYSIS
3. TECHNICAL ANALYSIS
4. FINANCIAL ANALYSIS
5. ANNEXURE
EXECUTIVE SUMMARY
Pulverized fuel ash commonly known as fly ash is a useful by-product from
thermal power stations using pulverized coal as fuel and has considerable
pozzolanic activity. This national resource has been gainfully utilized for
manufacture of pulverized fuel ash-lime bricks as a supplement to common burnt
clay buildings bricks leading to conservation of natural resources and
improvement in environment quality.
Pulverized fuel ash-lime bricks are obtained from materials consisting of
pulverized fuel ash in major quantity, lime and an accelerator acting as a catalyst.
Pulverized fuel ash-lime bricks are generally manufactured by intergrading blending
various raw materials are then molded into bricks and subjected to curing cycles at
different temperatures and pressures. On occasion as and when required, crushed
bottom fuel ash or sand is also used in the composition of the raw material.
Crushed bottom fuel ash or sand is also used in the composition as a coarser material
to control water absorption in the final product. Pulverized fuel ash reacts with lime
in presence of moisture from a calcium hydrate which is a binder material. Thus
pulverized fuel ash – lime in presence of moisture form a calcium – silicate
hydrate which is binder material. Thus, pulverized fuel ash – lime brick is a
chemically ended bricks.
These bricks are suitable for use in masonry construction just like common
burnt clay bricks. Production of pulverized fuel ash-lime bricks has already
started in the country and it is expected that this standard would encourage
production and use on mass scale. This stand lays down the essential
requirements of pulverized fuel ash bricks so as to achieve uniformity in the
manufacture of such bricks.
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The Proposed unit will be a started by one of the women entrepreneur and she
have acquired EM Part I from the District Industries Centre, Kanchipuram, And
also obtained all the statuary requirements to run the firm without any technical
and managerial problems.
MARKET ANALYSIS
180 billion tones of common burnt clay bricks are consumed annually
approximately 340 billion tones of clay- about 5000 acres of top layer of soil dug
out for bricks manufacture, soil erosion, emission from coal burning or fire
woods which causes deforestation are the serious problems posed by brick
industry. The above problems can be reduced some extent by using fly ash bricks
in dwelling units.
Demand for dwelling units likely to raise to 80 million units by year
2015 for lower middle and low income groups, involving an estimated
investment 0f $670 billion, according to the Associated chamber of commerce
and industry. Demand for dwelling units will further grow to 90 million by
2020,which would requires a minimum investment of $890billion. The Indian
housing sector at present faces a shortage of 20million dwelling units for its
lower middle and low income groups which will witness a spurt of about
22.5million dwelling units by the end of Tenth plan period. There is ample scope
for fly ash brick and block units.
In Chennai alone 1 crore bricks are required for constructional
activities in every day. But good quality of bricks as well as required quantity
are not available moreover during the rainey seasons supply of clay bricks are
very difficult. Therefore, in order to fulfill the required demand there will be a
great chance to start more units in the field of fly ash bricks.
3
At present 20nos units are engaged and 40 lakhs nos of bricks per
month are manufactured in our state. And there will be scope to start near about
100 units, which will be produced more than 2 cores no
of bricks per month in future. Thus marketing of these product are well
shinning.
BASIS AND PRESUMPTION OF THE PROJECT:
i. The process of manufacture is on the basis of single shift of
six hours per day with three hundred working days in a
year.
ii. To achieve full plant capacity it requires! year after trial
production
iii. Labor and wages mentioned in profile are as per prevailing
local rates.
iv. Interest rate at 12.5% considered in the project
v. However the rate of interest may be varying while
implementing project.
vi. The Promoter contribution will be 5% of the total project
cost which applicable in the PMEGP scheme.
vii. The capacity of the unit 8000 bricks per day on the single
sift basis.
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TECHNICAL ANALYSIS
Fly Ash s the inorganic mineral residue obtained after burning of
coal/lignite in the boilers. Fly Ash is that portion of ash which is collected from
the hoppers of ESP’s and pond ash is collected from the ash ponds. Bottom ash
is that portion of ash which can be collected fro the bottom portion of the boilers.
The characteristics of fly ash depend upon the quality of lignite/coal and the
efficiency of boilers.
India depends upon primarily on coal for the requirement of power and her
power generation is likely to go up from 60,000MW in the year 2010. While
generation of power from bituminous sources is on increase. The generation of
fly ash is also likely to increase. The fly ash generation in India Thermal Stations
is likely to shoot up to 170 million tones in 2010 from the present level of 100
million tones. The disposal of fly ash in the present method will be a big
challenge to environment, especially when the quantum increases from the
present level.
The proposed unite will be using both type of fly ash depends upon the
availbality
a Characteristics of Fly ash
The physical and chemical properties of Fly Ash are tabulated
below
a. i. Physical Properties
Specific Gravity 2.54 to 2.65 gm/cc
Bulk Density 1.12 gm/cc
Fineness 350 to 450 M2/Kg
a. ii. Chemical Properties
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Silica 35-59 %
Alumina 23-33%
Calcium Oxide 10-16%
Loss on ignition 1-2%
Sulphur 0.5- 1.5%
Iron 0.5- 2.0 %
It may be seen that lignite fly ash is characterized primarily by the
presence of silica, alumina, calcium etc.
Presence of silica in fine form makes it excellent pozzolanic material. Its
abundant availability at practically nil cost gives a very good opportunity for the
construction agencies.
b. Characteristics of Lignite and Coal Fly Ash:
CONTENTS LIGNITE FLY ASH (%) COAL FLY ASH (%)
L.O.I 1.0 TO 2.0 3-15
Sio2 45.59 40-64
A12 o3 23-33 15-29
Fe2 o3 06-4.0 2-11
CaO 5.0-16.0 0.1-1.0
MgO 1.5-5.0 0.2-4.0
So3 0-5. 0 0.1-1.7
About 50 to 80% fly ash may be used for the production. Fly ash
conform to IS 3812/1981is one of the important aspects.
c. GUPSUM:
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Hydrated calcium sulphate are called gypsum. (Caso4 2H2O).
Gypsum should have minimum 35% purity and 5 to 15% may be used.
d Lime :
Quick Lime or hydrated lime or both can be mixed in the
composition. Lime should have minimum 40% Cao content.
e. Sand
River sand should be clean & coarse. About 10 to 20% may used.
All the raw materials are indigenous and readily available from the manufacture
or traders
• MANUFACTURING PROCESS:
Fly ash (70%)Lime (10%) Gypsum (5%) and sand(15%) are manually feed
into a pan mixer where water is added to the required proportion for
homogeneous mixing. The proportion of raw material may vary depending upon
quality of raw materials. After mixing, the mixture are allowed to belt conveyor
through feed in to automatic brick making machine were the bricks are pressed
automatically. Than the bricks are placed on wooden pallets and kept as it is for
two days there after transported to open area where they are water cured for 10 -
15 days. The bricks are sorted and tested before dispatch.
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➢ FLOW SHEET DIAGRAM
Fly Ash Gypsum Lime Sand
↓ ↓ ↓ ↓
---------------------------------------------------------------------------------
Weighing
↓
Pan Mixer
↓
Conveyor
↓
Fly Ash Brick Making Machine
(Hydralic (or) Power Press)
↓
Transported To Wooden Racks
↓
Kept as it is
for two days for setting
↓
Water Curing
(7 to 10 days)
↓
Drying
(one or two days)
↓
Sorting and Testing
↓
Dispatch
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➢ INSPECTION AND QUALITY CONTROL:
The Bureau of Indian Standards has formulated and published the specifications for
maintaining quality of product and testing purpose. IS: 12894 :2002. Compressive
strength achievable: 60-250 Kg/Cm.Sq. Water absorption: 5 – 12 %; Density: 1.5
gm/cc Co-efficient of softening (depending upon water consistency factor)
Unlike conventional clay bricks fly ash bricks have high affinity to cement mortar
though it has smooth surface, due to the crystal growth between brick and the
cement mortar the joint will become stronger and in due course of time it will
become monolithic and the strength will be consistent.
➢ PRODUCTION CAPACITY PER ANNUM:
Quantity: 24 lakh bricks total value Rs. 78,00,000/
Motive Power required: 35 HP
➢ POLLUTION CONTROL
The technology adopted for making fly ash bricks is eco-friendly. It does
not require steaming or auto-calving as the bricks are cured by water only. Since
firing process is avoided. There are no emissions and no effluent is discharged.
Facial masks and dust control equipment may be provided to the employees to
avoid dust pollution more over all the raw materials are kept under covered by
polythene sheet to avoid air pollution.
➢ ENERGY CONSERVATION:
General precautions for saving electricity are followed by the unit by
providing energy meter. This products are low energy consumption since no need
of fire operation in the production unlike conventional bricks. Thus considerable
energy could be saved not only in manufacturing activities but also during the
construction.
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➢ Electrical HP Details:
Sl Name of the Machine No: of H.P
No m/s Connected
1 Automatic Fly Ash Brick making machine 1 12
2 Pan Mixer7.5 +7.5 2 15
3 Belt Conveyor 1 2
4 Other electrical fittings/ lighting etc -- 6
Total H.P Connected 35
FINANCIAL ANALYSIS
1. FIXED CAPITAL:
(a) Land & Building:
S.N DESCRIPTION AMOUNT Rs
1 Land Lease hold 45,000 Sq.f
2 Building (60 x 40 = 2400 Sq. feet.) 3,00,000
3 Overhead water tank 50,000
TOTAL 3,50,000
(b) Machinery and Equipment :
S.N DESCRIPTION QTY RATE AMOUNT
1 Automatic Fly ash Brick making machine 1 12,00,000 12,00,000
hydraulic operated with all accessories and
fitting with 18HP
Motor
2 Pan Mixture 500 KG Capacity with 7.5 HP 1 2,00,000 2,50,000
Motor
3 Belt Conveyor with necessary fittings and 1 50,000 50,000
2 HP Motor
TOTAL 15,00,000
VAT 4 % 60,000
GRANT TOTAL 15,60,000
Erecting and Electrification Charges 22,000
5 Office furniture 20,000
TOTAL 16,02,000
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➢ RECURRING EXPENDITURE (PER MONTH):
(a) Raw Material Per Month: Rs.
S. N DESCRIPTION QTY RATE AMOUNT
1 Fly ash 420 Mt 250 1,22,500
2 Gypsum Lime 70 1,900 1,33,000
3 Lime 105 1,300 1,36,500
4 Sand 35 800 28,000
TOTAL 4,20,000
(b) Salaries & Wages Per Month: Rs.
S.No DESIGNATION NO SALARY Amount
1 Production Manager 1 -- Self
2 Un skilled workers 22 3,750 82,500
3 Office assistant 1 4,000 4,000
4 Watch man 1 3,500 3,500
Total 25 90,000
(c) Utilities Per Month : Rs.
S.N DESCRIPTION AMOUNT
1 Power 35 HP 3916 Units@ Rs.5 per Unit 19,583.
2 Water 1,000
TOTAL 20,583
(d) Other Expenses Per Month : Rs.
S.N DESCRIPTION AMOUNT
2 Postage and stationery 1,000
3 Repairs and maintenance 3,000
4 Traveling and transportation 2,000
5 POL 5,000
6 Insurance 1,000
7 Telephone 3,000
TOTAL 15,000
➢ RECURRING EXPENDITURE PER MONTH:
a + b + c + d = Rs.5, 45,583/- say Rs: 5, 45,600
➢ RECURRING EXPENDITURE FOR 3 MONTHS
5, 45,600 X 3 = 16,36,800
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➢ WORKING CAPITAL ASSESSMENT
S.N DESCRIPTION AMOUNT
1 Raw Material 1,17,600
(Required for one week)
2 Work in progress 1,09,583
(Required for one month)
3 Finished Good 1,05,917
(Required for 5 days)
4 Bill receivable (Required for two weeks) 2,06,900
TOTAL 5,40,000
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➢ OTHER FINANCIAL ASSISTANCE Rs.
a. Total Project Cost
a. Land Lease hold
b. Building 3, 50,000
c. Plant & Machinery 16, 02,000
d. Working capital 5, 40,000
Total 24,92,000
b. Means of Finance Rs.
Total Project cost 4,92,000
Promoter contribution 5% 1,24,600
Finance required from the Bank 23,67,400
Subsidy applicable under the PMEGP @ 35% 8,72,200/
c. Cost of Production Per Annum : Rs.
S.N DESCRIPTION AMOUNT
1 Total recurring cost 65,47,200
2 Interest on total investment @12.5% 3,11,500
3 Total Depreciation on Building @5% 15,000
4 Total Depreciation on Machinery equipments @ 10% 1,48,200
5 Total Depreciation on Office & furniture @ 20% 4,000
TOTAL 70,25,900
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d. Turnover Per Annum :
Excepted sale 24 lakh bricks @ 3.40 per bricks 81,60,000
e. Profit Per Annum :
Turnover - Cost of Production
81,60,000 - 70,25,900
= 11,34,100/-
a) % of profit on sales = Profit/annum X 100
Turnover
= 11,34,100 X 100
81,60,000
= 11,34,10,000
81,60,000
= 13.90%
b) Rate of Return = Profit/annum X 100
Total Capital investment
= 11,34,100 X 100
24,92,300
= 11,34,10,000
24,92,300
= 45.50%
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➢ Break Even Analysis:
(1) Fixed cost per annum:
a. Total Depreciation = 1,67,200
b. Interest on investment = 3,11,500
c. Insurance = 4,800
d. 40% of salary and wages = 4,32,000
e. 40% of other expenses &
Utilities excluding Insurance = 1,92,398
========
11,07,898
====== ==
(2) Profit per annum = Rs. 11.34,100/
Break Even Point = Fixed Cost/annum * 100
Fixed cost/annum + Profit/annum
= 1107898 X 100
2241998
= 49%
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4. Annexure
A. Raw Materials Supplier’s :
Fly ash - available from the Tamilnadu Power Stations
Chennai, Tuticorin and Mattuor.
Gyp sum - available from TANFAC SIPCOT Industrial
Complex, Cuddalore,
Lime stone, river sand and crusher dust are available from the local
dealers.
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