Profile No.: 17 NIC Code: ……….

FLYASH BRICKS

1. INTRODUCTION

Fly Ash Bricks are manufactured using Major percentage of fly ash generated from
Thermal Power stations. Other raw materials used along with Fly Ash are lime and
calcined gypsum.

Fly ash is a fine, glass-like powder recovered from coal-fired electric power generation.
They consist mostly of silicon dioxide (SiO2), aluminum oxide (Al2O3) and iron oxide
(Fe2O3).

2. PRODUCTS AND ITS APPLICATION

Fly ash lime bricks are chemically bonded bricks manufactured by utilizing 80- 82% of
fly ash, which is a major waste bye-product of pulverized coal fired in Thermal Power
Stations, 9-10% of lime, 9-10% of sand and accelerator. The process know-how has
been developed by Central Fuel Research Institute. Various special features of fly ash
lime bricks are:

a) Being machine finished these are uniform in size and shape. b) Consumes 20-25
percent less cement mortar. c) Stronger than Class-I, burnt clay building bricks. d)
Outside wall plastering is not essential as these bricks have cement gray color, smooth
surface and low water absorption capacity. e) Resistance to salinity. f) Being lighter in
weight in comparison to the conventional red bricks, the dead building load and the
transportation cost will be less. g) Adoption of this process helps to conserve invaluable
top soil of agricultural land. h) By consuming 80-82% fly ash, the cause of
environmental pollution and hazards due to disposal is minimized. i) As firing of the
bricks is not needed thus pollution due to firing is eliminated.
3. DESIRED QUALIFICATION FOR PROMOTER

The promoter may be diploma in civil engineering or graduate in any discipline with
experience in marketing of fly ash bricks or building materials. The communication and
creating awareness are important key elements for success in this business.

4. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

180 billion tons of common burnt clay bricks are consumed annually. Approximately 340
billion tons of clay- about 5000 acres of top layer of soil dug out for brick manufacture.
Demand for dwelling units likely to rise to 80 million units by year 2018 for lower middle
and low income groups. Demand for dwelling units will further grow to 90 million by
2020. 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. There is ample scope for fly ash brick and block units as
government has ambitious plan of providing house for all by 2022. This will increase the
demand for fly ash bricks substantially in the coming years.

5. RAW MATERIAL REQUIREMENTS

Fly ash forms the major component of the raw materials for Fly ash bricks. Therefore it
controls to a large extent the properties of the finished product. As the ash is non-
plastic, a binder must be added either plastic clay or Portland cement. Fly ash content
ranges from 60 to 80%.

Lime is another raw material required for the production of fly ash bricks. It is generally
desirable to use a high calcium lime of reasonable purity as it is the most important
constituent which reacts with silica and alumina etc. present in the fly ash to form the
binder under hydrothermal conditions. Lime content range from 20 to 30%.
6. MANUFACTURING PROCESS

It is proposed to have plant capacity of 30,000 fly ash bricks per day. Considering 300
working days, total production of bricks per annum would be 90, 00,000.

Lime is finely ground in a ball mill. Fly ash, finely ground quick line and sand in requisite
proportions are fed in double roll paddle mixer or U-shaft mixer (Double shaft mixer) by
means of a feeder. Then 4% water is added and intimate mixing is done. The mixing
proportion is generally 40-50% Fly Ash, 50-40% Sand 10% lime and 4% water. Fly ash
reacts with lime in the presence of moisture to form calcium silicate hydrate which is the
binder material. The raw mix is molded in the molding press/machine, pressed under a
pressure into bricks. The bricks are then with drawn from the molding machine and they
are air dried under the sun and kept for 1 day. The bricks are autoclaved in which curing
is done by steam at normal pressure and cured for 6 - 8 hours.

The final products are sorted out and inspected for quality and stacked in the go-down
or loaded on trucks for marketing for use in construction.

7. MANPOWER REQUIREMENT

For the production of Fly Ash Bricks following category of manpower will be required for
day to day production. Annual wages are also worked out.
Man-power requirement
Sr. No. Designation of Employees Monthly Number of Value
Salary ₹ employees Rs. in
required lacs
1 Skilled Workers 6,000 16 11.52
2 Unskilled Workers 4,000 24 11.52
3 Manager 15,000 1 1.80
4 Asst. Manager Production 9,000 1 1.08
5 Shift Supervisor 8,000 2 1.92
6 Marketing Personnel 8,000 2 1.92
7 Accountant 3,500 1 0.42
 Sr. No. Designation of Employees Monthly Number of Value
Salary ₹ employees Rs. in
required lacs
8 Clerk/Typist 3,000 1 0.36
9 Electrician-cum-Mechanic 6,000 2 1.44
10 Machine Operators 21,000 6 15.12
11 Peon/Security Guard 8,000 4 3.84
Total 60 50.94

8. IMPLEMENTATION SCHEDULE

The implementation time required for setting up the facilities for the manufacture of fly
ash bricks will be about 10 months from the date of tying up of finance. The main time
required is for fabrication of equipment, erection, installation and commissioning.
Moreover, training of technical manpower will also need about one month.

9. COST OF PROJECT

The cost of project as per market rate of factory building, machinery, miscellaneous
items, working capital margin and preliminary and pre-operative expenses works out as
under:

Cost of Project

Sr. No. Particulars ₹ in Lacs

1 Land 150.00
2 Building 24.50
3 Plant & Machinery 66.00
4 Furniture, Electrical Installations 0.50
5 Other Assets 26.00
6 Margin for Working Capital 16.18

Total 283.18
10. MEANS OF FINANCE

Based on the present norms of the bank, means of finance is worked out as under.

Means of Finance

Sr. No. Particulars ₹ in Lacs

1 Promoter's contribution 99.11

2 Bank Finance 184.07

Total 283.18

11. WORKING CAPITAL CALCULATION

Working capital required for storage of raw materials and finished goods, monthly
overheads, goods in process, receivables and trade credit is worked out based on the
present norms of the bank as under.

Working Capital Calculations

Sr. No. Particulars Gross Amt. Margin % Margin Amt. Bank Finance

1 Inventories - 40% - -
2 Receivables 184.07 40% - 184.07
3 Overheads - 50% - -
4 Creditors 283.18 40% - 283.18

Total 467.25 - 467.25

12. LIST OF MACHINERY REQUIRED

For the production of fly ash bricks, main machinery required are as under:
1. Skip hoist including feed hopper.
2. U-Shaped mixer/double-shaft mixer/ counter-current mixer.
3. Belt conveyor
4. Press feed hopper with vibrator
5. Rotary table press.
 6. Transfer & Curing cars.
7. Curing chamber/autoclave
8. Boiler, capacity 500 Kg/
9. Pollution control equipment.
10. Weighing balance & testing equipment’s.
Above machinery can also be used for the production of Blocks.

13. PROFITABILITY CALCULATIONS

The profitability is worked out as under after taking into account all variable and fixed
expenses as under.
Profitability Calculations

Sr. No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Sales 236.25 270 303.75 303.75 303.75
Raw Materials & Other direct
2
inputs 126.252 144.288 162.324 162.324 162.324
3 Gross Margin 109.998 125.712 141.426 141.426 141.426
4 Overheads except interest 22.505 25.72 28.935 28.935 28.935
5 Interest 14.175 16.2 18.225 18.225 18.225
6 Depreciation 7.35 8.4 9.45 9.45 9.45
7 Profit before tax 65.968 75.392 84.816 84.816 84.816
8 Income Tax 19.789 22.616 25.443 25.443 25.443
9 Net Profit After tax 46.179 52.776 59.373 59.373 59.373

14. Breakeven analysis

The Break-Even point as percentage of targeted sales works out as under.

Cash Break-Even (as % of Targeted sales)

Sr. No. Particulars Value

Year-1
1 Sales Realization Rs. Lacs 337.50
2 Variable costs Rs. Lacs 180.36
3 Fixed costs incl. interest Rs. Lacs 32.15
4 BEP = FC/SR-VC x 100 = 20.46%