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FLASH INDUSTRIES   An Environment Friendly Start Up                             Presented By:                             ...
Environment Helps us Survive                 Promotors       Name           Qualification       Atikant        B. A. (Hons.)
Executive Summary Introduction:     We are introducing the business of manufacturing Fly Ash Bricks with a view point of ...
Mission:         “ To provide and promote business as well as services thatstrengthen the brick manufacturing sector for t...
Plant Location
Geographical AdvantagesThe area is rich with coal content and has a large number of heavy and small industries using coal...
Continued:The location helps in acquiring of raw materials, which is basically Fly Ash, at a cheaper cost.One of the mai...
The Need for such an InitiativeThe bricks we currently use are made up of a specific quality of Top Soil (Approximately 1...
Continued:For dumping this Fly Ash, they need to acquire land from mining firms, which in turn is provided in the form of...
Scope of the Project Nearly 73% of India’s total installed power generation  capacity is thermal, of which coal based gen...
Product DescriptionFeatures: Size of bricks will be 230 x 110 x 76 mm (as per the  International Norms). Faster construc...
Acquiring the Raw Materials Fly Ash is readily available with thermal power plants  and can be acquired from them even wi...
Operational Finance     &HR Planning
Plant Parameters Capacity (Bricks/Year) – 5,11,000 (1,40,000x365) Bricks/Day             - 1,40,000 No. of Shifts/Day  ...
Manpower RequiredDescription    Total Nos.   Nos./Shift   Salary   Total SalaryManager                4            2    34...
Financial Aspects (Fixed Capital)Sl. Activity                                                   Period           PeriodNo....
Financial Aspects (Machinery and Equipments)            Description                       Qty        Total Price (Rs.)Pan ...
Working Capital Per Month (Staff & Labour)Description    Total Nos.   Nos./Shift   Salary   Total SalaryManager           ...
Raw Materials Per Month (WC) Description   Qty. (Ton.)   Rate (Per Ton.)   Total Cost(In Rs)Fly Ash              1000     ...
Utilities Per Month (WC)        Description           Cost (In Rs.)Power                                         30,000Fue...
Other Contingent Expenses(WC)         Description           Cost (In Rs)Postage and Stationery                         1,2...
Summing the Finances Total Working Capital Per Month = 6,89,800 Total Working Capital for 3 Months = 20,70,000 Fixed Ca...
Financial Analysis                Description                Cost (In Rs)Total Recurring cost of production per         82...
Quantity             Rate              Value  60,00,000       Rs 1.75 per Brick   Rs 1,05,00,000Net Profit per Year(Before...
Others Important Stats Net Profit Ratio = (Net Profit X 100)/Total Turnover                  = (15,33,300 X 100)/1,05,00,...
Break Even Point             Fixed Cost                              In Rupees   Depreciation on building @ 5%            ...
Procurement of Raw Materials                      Lime &                   Gypsum from                     Chemical       ...
Storage of Raw MaterialsFLY ASH, in open yard. Duly wetted and covered with plastic sheet.LIME, dumped in open yard or s...
Batch Mixing of Raw Materials     FLY ASH                        SAND               Transportation of               Raw Ma...
Mechanized Transfer from PanMixer to Automatic Brick MakingMachine              Hydraulic               Press             ...
Drying and Curing
HR CONCERNSScientific Task Planning.Authority and Responsibility.Equity.Unity of Command.Unity of Direction.Stabilit...
Economic Concerns Currently, the demand for bricks is very high from the    supply.   Demand and Supply gap is around 25...
Competitive Strengths to ClayBricks Fly Ash bricks are 28% lighter than clay bricks. These bricks have a pleasing colour...
Contd. The bricks also have a very high tensile strength, which  eliminates the chances of their collapse during  earthqu...
Pricing & Promotional Strategies Penetration price of Rs 1.75 per brick for the first two    years and then concession to...
Marketing Strategies
Current Market Scenario Market is dominated by clay bricks. Fly Ash brick is a new product to the market. The governmen...
Contd. Use of these bricks result savings of almost 37% in the  construction cost. The unit will also require a no objec...
STP Strategy SEGMENTATION    Based on the geographic location.      - As the plant is located in Jharkhand, we will firs...
Targeting & Positioning       Positioning           Targeting           Positioned as          Environmental         Build...
Business plan on fly ash bricks
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Business plan on fly ash bricks

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Flash Industries is basically an environment friendly start up wherein we will be introducing the business of manufacturing Fly Ash Bricks with a view point of eliminating Fly Ash from the ecosystem as an environmental pollutant, which will provide huge benefits to organizations as well as to the environment.

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  • Welcome to Noah Equipment India Inc. We are manufacturing partner of Ningbo Noah Intelligent Equipment Co., China. Specialized in producing various kinds of concrete and fly ash bricks and block forming systems. Backed by relevant experience and profound expertise of this domain. Absorbing advanced technology from Germany and Japan, We develop new style and more practicable Brick machine by ourselves, characterized by high efficiency, advanced technology, stable capability and those with the up to date technology abroad, We have set-up a state-of-the-art infrastructure, which is manned by a team of highly experienced professionals. To ensure hassle-free execution of all the processes, our team of professionals can design our plant at your site and always ready for any barriers in your plant, as well as provide support and training to your operators. we have partitioned it into various departments. Moreover, our logistics personnel make use of road for shipment mode to ensure timely delivery of consignments. Apart from this, we accept payment through various modes, such as cash and cheque to facilitate prompt monetary transactions. Owing to all these attributes, we have carved an inexorable niche for ourselves in this ever-changing market. We, “Noah Equipment India Inc.”, have been working hard to get positioned in the league of topnotch organizations, engrossed in importing and supplying Concrete and fly ash block forming machine. Thus, we supplies varieties of products using premium raw material, procured from the certified market vendors. Post-production, these products are duly tested on certain parameters to minimize the possibility of defect. Owing to their exceptional features, such as high-dimensional accuracy and optimum bonding strength. Company Website http://www.noahindia.in/ You tube channel link https://www.youtube.com/channel/UCuXMZFxIZSwACKLzi3dDgDA https://www.youtube.com/watch?v=aTqR7364wm8 https://www.youtube.com/watch?v=hYfmO_mkw0c Bhopal Contact: Nishant Singh Marketing (M.P.) Noah Equipment Pvt Ltd Contact No.-9755483366/7418700806 Email id - nishantorth@gmail.com nishant.singh@noahindia.co.in
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  • hello sir,what is cost of fly ash brick ... and where is to get Raw material..I want to start fly ash brick business in my area..i am from UP,Distt-Ghazipur
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  • hello i am ravi i want information regarding the machinery cost , i am planning to start the fly ash business for that reason i am asking the complete details my mail -i ravisankar854@yahoo.com
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  • please any one can help me for raw material of fly ash bricks in rajathan.contact number
    09586813373
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  • hey!! hello frendss i'm want to stablish a Fly Ash brick manufacturing plan plz tell me about this...
    My whatsaap no.- 8109366005
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Business plan on fly ash bricks

  1. 1. FLASH INDUSTRIES An Environment Friendly Start Up Presented By: AtikantGalgotias Business School, Greater Noida
  2. 2. Environment Helps us Survive Promotors Name Qualification Atikant B. A. (Hons.)
  3. 3. Executive Summary Introduction: We are introducing the business of manufacturing Fly Ash Bricks with a view point of eliminating Fly Ash from the ecosystem as an environmental pollutant, which will provide huge benefits to organizations as well as to the environment.
  4. 4. Mission: “ To provide and promote business as well as services thatstrengthen the brick manufacturing sector for the ultimate benefitof it’s customers and society.”Vision: To be at the forefront in creating awarenessabout the environment & to be the largest playerin the field of Fly Ash Brick Manufacturing.
  5. 5. Plant Location
  6. 6. Geographical AdvantagesThe area is rich with coal content and has a large number of heavy and small industries using coal as a fuel. Hence, large amount of fly ash is produced.In a survey, it was found that the total amount of fly ash produced in Jharkhand alone can support the demand of Fly Ash bricks in India.The Govt. has implemented rules which define that constructions within a radius of 100 Kms from Thermal Power plants are bound to use Fly Ash bricks.
  7. 7. Continued:The location helps in acquiring of raw materials, which is basically Fly Ash, at a cheaper cost.One of the main advantages is the absence of competitors in the area. The area, as a fact, has no manufacturers of Fly Ash bricks.Land is available in abundance and with the government helping in the acquiring of the land, the task gets easier.The construction business is booming in Jharkhand and is expected to grow more with the passage of time.
  8. 8. The Need for such an InitiativeThe bricks we currently use are made up of a specific quality of Top Soil (Approximately 10,000 Hectares of Top Soil is lost every year for Brick Manufacturing).If the top soil consumption carries on at the same pace, very soon, we will not have enough soil for cultivation.Also, the thermal power plants and the industrial units using coal as a fuel have no use with the Fly Ash left after the combustion and they need to dump it some where.
  9. 9. Continued:For dumping this Fly Ash, they need to acquire land from mining firms, which in turn is provided in the form of used underground mines.But, as result of this, huge amount of pollution takes place.Fly ash is reported to cause ailments like Allergic Bronchitis, Fibrosis of Lungs, Silicosis and Asthama.Also causes water and soil pollution along with air pollution.
  10. 10. Scope of the Project Nearly 73% of India’s total installed power generation capacity is thermal, of which coal based generation is 90%, the remaining comprising of diesel and gas. The 85 utility thermal power plants, besides the captive power plants, use bituminous and sub- bituminous coal and produce large quantities of Fly Ash. High ash content (30-50%) contributes to these large volumes of fly ash.
  11. 11. Product DescriptionFeatures: Size of bricks will be 230 x 110 x 76 mm (as per the International Norms). Faster construction. Less mortar consumption. Most suitable for walls as the bricks are earthquake and water resistant. Decorative like stone masonry. Ash content as high as 60%.
  12. 12. Acquiring the Raw Materials Fly Ash is readily available with thermal power plants and can be acquired from them even without spending on transportation. Lime, Gypsum and Sand are available in the market and can be purchased as per requirement.
  13. 13. Operational Finance &HR Planning
  14. 14. Plant Parameters Capacity (Bricks/Year) – 5,11,000 (1,40,000x365) Bricks/Day - 1,40,000 No. of Shifts/Day -2 Bricks/Shift - 70,000 Working Days/Year - 365 Land Required - 9 Acres (Of which the plant will require only 6 Acres)
  15. 15. Manpower RequiredDescription Total Nos. Nos./Shift Salary Total SalaryManager 4 2 34,000 1,36,000Production 16 8 15,000 2,40,000EngineerSkilled 80 40 5,200 4,16,000WorkersUn-skilled 160 80 85/day 13,600/dayWorkers 4,08,000 (30d)Chowkidars 8 4 3,000 24,000Peons 16 8 3,500 56,000Cashier-Cum- 4 2 6,000 24,000Clerk Total 13,04,000
  16. 16. Financial Aspects (Fixed Capital)Sl. Activity Period PeriodNo. Starting Completion1. Survey of collection of data in respect of Day 1 2nd Month demand, availability of technology, power, land and clearance from State Pollution Control Board2. Arrangement for margin money 2nd Month 3rd Month3. Preparation of project report and registration 2nd Month 3rd Month4. Finance assistance 2nd Month 4th Month5. Development of Site and construction of 5th Month 7th Month building6. Machine purchasing and installation 7th Month 8th Month7. Trial production 8th Month This will include a total cost of 10,50,000 including land acquisitions.
  17. 17. Financial Aspects (Machinery and Equipments) Description Qty Total Price (Rs.)Pan mixer (run by 20 HP motor) 2 1,50,000Hydraulic Press (30 Tones 2 3,00,000capacity)Belt Conveyor (Run 1 70,000by 3 HP motor)Deep Tube Well 1 35,000Generator 1 1,25,000Steel Plates and Extra Moulds 50 85,000Trollies 15 30,000Office, Furniture and Equipments 32,000Installation and Erection charges 28,000 Total 8,55,000 There will be other pre-operative expenses at around Rs 70,000
  18. 18. Working Capital Per Month (Staff & Labour)Description Total Nos. Nos./Shift Salary Total SalaryManager 2 1 17,000 34,000Production 2 1 12,500 25,000EngineerSkilled 10 5 5200 52,000WorkersUn-skilled 20 10 3800 76,000WorkersChowkidars 6 3 3500 21,000Peons 4 2 3500 14,000Cashier-Cum- 2 1 6000 12,000Clerk Total 2,34,000Add Pre- 1,95,600requisites @15% Total 2,69,100
  19. 19. Raw Materials Per Month (WC) Description Qty. (Ton.) Rate (Per Ton.) Total Cost(In Rs)Fly Ash 1000 40 40,000Lime 250 800 2,00,000Sand 125 100 12,500Gypsum 125 900 1,12,500 Total 3,65,000
  20. 20. Utilities Per Month (WC) Description Cost (In Rs.)Power 30,000Fuel 8,000 Total 38,000
  21. 21. Other Contingent Expenses(WC) Description Cost (In Rs)Postage and Stationery 1,200Telephone 1,800Transportation 2,500Insurance 5,000Repair and Maintenance 2,500Advertisement and Publicity 2,200Misc. Expenditure 2,500 Total 17,700
  22. 22. Summing the Finances Total Working Capital Per Month = 6,89,800 Total Working Capital for 3 Months = 20,70,000 Fixed Capital = 10,50,000 + 8,55,000 + 70,000 = 19,75,000 Total Capital Investment = Fixed Capital + Working Capital = 19,75,000 + 20,70,000 = 40,45,000
  23. 23. Financial Analysis Description Cost (In Rs)Total Recurring cost of production per 82,78,000yearDepreciation on building @ 5% 36,500Depreciation on Machinery & Equipment 79,500@ 10%Depreciation on Office Equipments 6,400@ 20%Interest on Total Capital Investment 5,66,300@ 14% TOTAL 89,66,700
  24. 24. Quantity Rate Value 60,00,000 Rs 1.75 per Brick Rs 1,05,00,000Net Profit per Year(Before Tax is Paid) = Turn Over – Production Cost = Rs 1,05,00,000 – 89,66,700 = Rs 15,33,300
  25. 25. Others Important Stats Net Profit Ratio = (Net Profit X 100)/Total Turnover = (15,33,300 X 100)/1,05,00,000 = 14.60% Rate of Return = (Net Profit per year X 100)/Total Investment = (15,33,300 X 100)/40,45,000 = 37.90%
  26. 26. Break Even Point Fixed Cost In Rupees Depreciation on building @ 5% 36,500 Depreciation on Machinery and 79,500 Equipment @ 10% Depreciation on Office Equipment 6,400 @ 20% Interest on Total Capital Investment 5,66,300 @ 14% Insurance 60,000 40% of Salary and Wages 12,91,680 40% of Other Contingent Expenses 7,080 (excluding insurance) TOTAL 20,47,460 or 20,48,000
  27. 27. Procurement of Raw Materials Lime & Gypsum from Chemical Plants Fly Ash from Sand from Thermal local Power Plants contractors Procurement
  28. 28. Storage of Raw MaterialsFLY ASH, in open yard. Duly wetted and covered with plastic sheet.LIME, dumped in open yard or stored in packets.SAND, in open yard. Duly wetted and covered in plastic sheet.GYPSUM, in bags. Stored in godowns.
  29. 29. Batch Mixing of Raw Materials FLY ASH SAND Transportation of Raw Materials to Pan Mixer LIME GYPSUM
  30. 30. Mechanized Transfer from PanMixer to Automatic Brick MakingMachine Hydraulic Press PAN MIXER Hydraulic Press
  31. 31. Drying and Curing
  32. 32. HR CONCERNSScientific Task Planning.Authority and Responsibility.Equity.Unity of Command.Unity of Direction.Stability of Tenure.Following rules for Ethical Decision Making.Corporate Social Responsibility (CSR).Corporate Philanthropy.
  33. 33. Economic Concerns Currently, the demand for bricks is very high from the supply. Demand and Supply gap is around 250 billion bricks per annum. Raw material used for regular red brick is limited. In India, the annual production of Fly Ash can result in manufacturing 780 billion bricks. To reduce the demand and supply gap, we will need to expand in this sector at a larger rate than what is undergoing at the present time.
  34. 34. Competitive Strengths to ClayBricks Fly Ash bricks are 28% lighter than clay bricks. These bricks have a pleasing colour like cement, are uniform in shape and smooth in finish, also, they require no plastering for building work. These bricks can provide advantages being available in several load-bearing grades, savings in mortar plastering, and giving smart looking brickwork. High compressive strength eliminates breakages/wastages during transport and handling.
  35. 35. Contd. The bricks also have a very high tensile strength, which eliminates the chances of their collapse during earthquakes. The bricks are less water absorbent and hence we have less dampening in the bricks.
  36. 36. Pricing & Promotional Strategies Penetration price of Rs 1.75 per brick for the first two years and then concession to high end buyers at a rate of 7.5%. Aggressive Selling. Trade Promotion. Publicity. Large volume of sales to the government. Seeking the help of the government in publicity.
  37. 37. Marketing Strategies
  38. 38. Current Market Scenario Market is dominated by clay bricks. Fly Ash brick is a new product to the market. The government has imposed rules for the use of 100% fly ash bricks in a radius of 100 Kms from thermal power plants. However, the government is itself not implying to the norms. The govt. can be forced to imply to such norms by NGOs and when such a scenario occurs, the demand for the bricks from the side of the govt. will increase many folds.
  39. 39. Contd. Use of these bricks result savings of almost 37% in the construction cost. The unit will also require a no objection certificate from the state government of Jharkhand in regard to pollution and other concerns.
  40. 40. STP Strategy SEGMENTATION  Based on the geographic location. - As the plant is located in Jharkhand, we will first try to capture the local market and then move to the neighbouring states.  Based on demographic location. - Demographic factors will help greatly in determining the target customers.  Name of Company - FLASH Industries  Product Brand Name - FLASH Bricks
  41. 41. Targeting & Positioning Positioning Targeting Positioned as Environmental Builders Pollutant Cleaner Consultants Architects Government

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