Business plan on fly ash

1. Business Plan
On Fly Ash
Ambrish
Suvi
Vinayak S.
A GO GREEN PROJECT
ASV
FLY ASH BRICKS Co.

2. NAME QUALIFICATION
 AMBARISH : B.com , M.B.A
 SUVI SUGATHAN : B.E , M.B.A
 VINAYAK : B.E , M.B.A
PROMOTORS

3.  We are introducing the business of manufacturing Fly Ash Bricks
with a view point of eliminating Fly Ash as an Environment
Pollutant which provides the huge benefit to organization as well
as to environment.
 What is fly ash brick?
 It is a building material, specifically masonry units,
containing class C fly ash and water.
 Compressed at 28 MPa (272 atm) and cured for 24 hours in a66
°C steam bath, then toughened with an air entrainment agent,
the bricks last for more than 100 freeze-thaw cycles
 Owing to the high concentration of calcium oxide in class C fly
ash, the brick is described as "self-cementing“
INTRODUCTION

4.  The raw materials for fly ash brick are:
Material Mass
 Fly ash 62%
 Sand/stone dust 23%
 Lime 10%
 Gypsum 6%
 The manufacturing method saves energy, reduces mercury
pollution, and costs 20% less than traditional clay brick
manufacturing
INTRODUCTION

5.  “ To provide and promote business and services
that strengthen the brick manufacturing sector for
the ultimate benefit of its customers and society
 To be in the forefront of creating awareness
about environment, & to be the largest player in
the field of fly-ash brick production.
MISSION & VISION:

6. For setting up a fly ash brick industry these factors
should be adhered:-
 land requirement - at least 1.5 acre of land is
required to set up a plant
 factory location – fly ash generally is found near
thermal power plant. Thus setting up a industry
within 60 -70 km radius nearby a thermal power
plant is an advantage.
 Availability of water – ample amount of water is
required for running these industry
 Environmental issues – setting up a factory nearby
an residential township or any other
manufacturing industry is prohibited , as it
generates huge dust and smoke and pollutes the
air.
LOCATION OF THE PLANT

7. Thus keeping in mind all these factors , we did a lot of
research and mapping intensively throughout India for a
suitable location.
At last we are setting our plant in the state of Karnataka , in
Raichur district.
About the location.
 The plant is going to be set up at around 1.3acre of land
within Malkapur village , which comes under raichur district.
 These village is an abundant space of vast land with very
few inhabitants.
 Best thing is that it is just 14kms away from the Tungabhadra
river
 Big advantage of these location is that it is just 59.9 kms
away from the raichur thermal power plant.
So by far these is the most relevant place for setting up a fly
ash plant as these location meets all the essential criteria's.

8.  Malkapur village lies 60 kms south of raichur
thermal power plant

9. PROPOSED PLANT LAYOUT
PLANT LAYOUT

10.  The bricks which currently most us aware is made up
of the soil of specific quality, but due to which earth
erosion takes place and we waste natural resources.
 This job is too laborious and involves cost. Natural
seasons affect the quality and cost.
 This bricks creates environmental pollution.
 Helps to reduce the pollution Demand consumption
and increasing cost -We come up with FLY ASH
BRICKS
 The main raw material is fly ash which is available in
abundant quantity and free of cost at the thermal
power station.
 Disposal of fly ash is headache , It is highly polluting
material.
OVERVIEW

11.  Nearly 73% of India’s total installed power generation
capacity is thermal, of which coal-based generation
is 90% – the remaining comprising diesel, wind, gas,
and steam.
 The 85 utility thermal power stations, besides the
several 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.
SCOPE OF PROJECT

12.  It is a very difficult material to handle in dry state
because it is very fine and readily airborne even in
mild wind.
 It disturbs the ecology of the region, being a source
of soil air and water pollution.
 Long inhalation of fly ash causes silicosis, fibrosis of
lungs, bronchitis, pneumonitis etc.
 Flying fine particles of ash create great nuisance for
people living near power stations, corrode structural
surfaces, and affect horticulture.
 Eventual settlement of fly ash particles over many
hectares of land in the vicinity of power station brings
about perceptible degeneration in soil
characteristics.
PROBLEMS OF FLY ASH

13.  With the rapid rise in thermal generation,
environmental pollution as a result of massive fly
ash generation, poses a new problem.
 Fly ash is reported to cause ailments like allergic
bronchitis, silicosis, and asthma.
 Fly ash contaminates surface water and may also
have an effect on underground water, affects the
aquatic life, is harmful for plants, and corrodes
exposed metallic structures in its vicinity.
NEED FOR UTILIZING /
DISPOSING FLY ASH

14.  At thermal power plants, fly ash is currently
collected / disposed off by using wet or dry
systems.
 In cases, where fly ash collection systems are not
very efficient, a portion of it escapes into the
atmosphere causing environmental pollution.
 In the wet system, fly ash is mixed with water and
sluiced to settling ponds or dumping areas near
the plant.
 Being cheaper than any other manner of fly ash
removal, it is the widely used method at present in
India
CURRENT FLYASH DISPOSAL
PRACTICES AND EFFECTS

15.  FLY ASH BLOCKS FEATURES:
Size of blocks is 290x185x125mm
Faster construction
 Less mortar consumption
Most suitable for boundary walls
Decorative, like stone masonry
Ash content 26%
PRODUCT DESCRIPTION

16. Ash can be collected in following categories:
 DRY FLY ASH:
 Dry ash is collected from different rows of electrostatic
precipitators
 It is available in two different grades of fineness in silos for use as
resource material by different users
 BOTTOM ASH:
 Bottom ash is collected from the bottom of the boiler and
transported to hydro bins and then ash mound for use in road
embankment.
 CONDITIONED FLY ASH:
 Conditioned fly ash is also available in ash mound for use in land
fills and ash building products.
ASH COLLECTION

17. OPERATION & HR PLAN
Plant Parameters
Capacity, Brick Per Year 24,00,000
Total value 78,00,000
Bricks Per Day 30,000
No. of Shifts Per Day 2
Working Days Per Year 300
Motive Power required 35 HP
Land Area 1 Acer

18. Financial Aspects
Fixed Capital
A) Land & Building
S.No Description Amount Rs
1. Building (60*40 = 2400 Sq.
feet )
3,00,000
2. Over Head water Tank 50,000
Total 3,50,000
S.No Description Amount Rs
1. Land 5,00,000
2. Building (60*40 = 2400 Sq.
feet )
3,00,000
3. Over Head water Tank 50,000
Total 8,50,000

19. Financial Aspects
B) Machinery & Equipment
S.N
o
Description QTY Rate Amount
1. Automatic Fly ash Brick making
machine hydraulic operated with all
accessories and fitting with 18HP
Motor
1 12,00,000 12,00,000
2. Pan Mixture 500 KG Capacity with 7.5
HP Motor
1 2,50,000 2,50,000
3. Belt Conveyor with necessary fittings
and 2 HP Motor
1 50,000 50,000
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

20. A) Raw Materials Per Month:
Financial Aspects:
Recurring Expenditure PM
S.N
o
Description QTY Rate Amount
1. Fly Ash 420
Mt
250 1,22,500
2. Gypsum Lime 70 1,900 1,33,500
3. Lime 105 1300 1,36,500
4. Sand 35 800 28,000
Total 4,20,000

21. Financial Aspects: Recurring
Expenditure PM
B) Salaries & wages Per Month
S.N
o
Description QTY Salary Amount
1. Production Manager 1 ------ Self
2. Unskilled Manager 22 3,950 86,900
3. Office Assistant 1 4100 4100
4. WatchMan 2 3,500 7000
Total 25 98,000

22. Financial Aspects: Recurring
Expenditure PM
C) Utilities Per Month
S.No Description Amount
1. Power 35 HP 3916 units @2 Rs 5. Per Unit 19,583
2. Water 1000
Total 20,583

23. Financial Aspects:
Recurring Expenditure PM
D) Other Expenses Per Month
S.No Description Amount
1. Postage & Stationary 1000
2. Repairs and Maintenance 3000
3. Traveling and Transportation 2000
4. Insurance 1000
5. Telephone 3000
Total 10000

24. Financial Aspects: Recurring
Expenditure PM
Total Recurring Expenditure Per Month
S.No Description Amount
1. Raw Material Per Month 4,20,000
2. Salaries & wages Per Month 98000
3. Utilities Per Month 20,583
4. Other expenses Per Month 10,000
Grand Total 5,48,583

25. WORKING CAPITAL
S.No Description Amount
1. Raw Material
( Req For one week ) 1,17,600
2. Work in progress
( Req For one month ) 1,09,583
3. Finished Goods
( Req For 5 Days ) 1,05,917
4. Bills Receivable
( Req For 2 weeks ) 2,06,900
Total 5,40,000
WORKING CAPITAL ASSESMENT

26. FINANCIAL ASPECTS:
TOTAL PROJECT COST
S.No Description Rate
1. Land 5,00,000
2. Building 3,50,000
3. Plant Machinery 16,02,000
Total
Total Project Cost
Means Of Finance
S.No Description Rate
1. Land 5,00,000
2. Building 3,50,000
3. Plant Machinery 16,02,000
4. Working Capital 5,40,000
Total 29,92,000
TOTAL PROJECT COST 29,92,000
PROMOTERS CONTRIBUTION 5% 1,49,600
Finanace Required From the Bank 28,42,400
Note * Subsidy applicable under the PMEGP @ 25% 7,48,000

27. Cost Of production
Per Annum
S.No Description Rate
1. Total recurring cost 5,48,583*12
65,82,996
2. Interest on total investment @12.5% 29,92,000*12.5%
3,74,000
3. Total Depreciation on Building @5% 3,00,000*5%
15,000
4. Total Depreciation on Machinery
equipments @ 10%
15,00,000*10%
1,50,000
5. Total Depreciation on Office &
furniture @ 20%
20,000*20%
4000
Total 71,25,996

28. Revenue
Generated
TURN OVER PER ANNUM
Excepted sale 24 lakh bricks @ 3.40 per bricks 81,60,000
PROFIT PER ANNUM
Turn Over – Cost Of Production
81,60,000 – 71,25,996
Rs 10,34,004

29. BEP Analysis
1. Fixed Cost Per Annum
S.No Description Rate
a. Total Depreciation 1,69,000
b. Interest On Investment 3,74,000
c. Insurance
d. 40% Of on salary & Wages 4,70,400
e. 40% Of on other expenses &
Utilities excluding Insurance
1,41,998
Total 11,59,398
2. Profit Per Annum = 10,34,004
BEP = 11,59,398*100
21,93,402
= 52.85 %

30. STRENGTHS
 Cost advantage
 Unlike metals or organic materials fly ash can
withstand the onslaught of natural forces
 Fly ash brick industry is an labour intensive industry. It
has the potential for generating employment .
WEAKNESS
 Cost of fly ash are increasing day by day ,which
leads to increase in cost of production.
 Fly ash industry is an highly messy job with an
immense dusty working environment.
 Due to lack of modern technology and machinaries
to check pollution , fly ash industry does not posses
that eagerness in common man eyes
SWOT ANALYSIS

31. OPPURTUNITIES
 Fly ash industries has now replaced brick in
infra-structure development
 Fly ash is an good raw material for bricks. Thus
it can substitute brick during construction
period
THREATS
 No.of labourers willing to work in fly ash
factories are decreasing day by day due to
health concerns
 Availability of fly ash is scarce
 Fly ash generates huge amount of pollution.
SWOT ANALYSIS

32. Production Plan