The document proposes establishing a business to produce fly ash bricks as an environmentally friendly alternative to traditional clay bricks. Key points: 1) Fly ash, a byproduct of coal combustion in thermal power plants, is currently an environmental pollutant. The business would utilize fly ash to manufacture bricks, eliminating it from the ecosystem. 2) The proposed location is near many coal power plants and industries, ensuring a low-cost supply of fly ash. Government regulations also require fly ash brick use within 100km of power plants. 3) An annual production target of 5.11 million bricks is estimated, requiring 9 acres of land, machinery, 16 employees, and a capital investment of ~Rs. 40 lak

1. FLY ASH BRICK
PRODUCTION
AN ENVIRONMENT FRIENDLY START UP
Arunesh Chand Mankptia
aarunesh@gmail.com

2. EXECUTIVE SUMMARY
INTRODUCTION
We are introducing the business of fly ash brick
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.

3. MISSION AND VISION
• To provide and promote
business as well as
services that strengthen
the brick manufacturing
sector for the ultimate
benefit of it’s customers
and society.
• To be at the forefront in
creating the
environment & to be
the largest players in
the field of Fly Ash Brick
Manufacturing

4. GEOGRAPHICAL ADVANTAGE
• The area is rich with coal content and has a large
number of heavy and small industries using coal fuel.
Hence, large amount of fly ash is produced.
• In a survey, it was found that the total amount of ash
produced in North India alone can support the
demand of fly ash bricks in India
• The govt. has implemented rules which define the
constructions with in a radius of 100 Kms from
thermal power plants are bound to use fly ash brick.

5. 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
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 Delhi and
Haryana and is expected to grow more with the
passage of time.

6. THE NEED FOR SUCH AN INITIATIVE
• The brick we currently use are made of a specific
quality of top soil (Approximately 10000 Hectares of
to 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
some where.

7. 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.

8. SCOPE OF PROJECT
• Nearly 73% of India's total installed power
generations capacity is thermal, which coal based
generation is 90% the remaining comprising of diesel
and gas.
• The 85 utility thermal power plants, beside the
captive power plants, use bituminous and sub
bituminous coal and produce large quantities of fly
ash.
• High ash content (30-50%) contributes to large
volumes of fly ash.

9. PRODUCTION DESCRIPTION
FEATURES
• Size of brick will be 230x110x76mm (as per the
international norms)
• Faster construction
• Less mortar consumptions.
• Most suitable for walls as the bricks are earthquake
and water resistant.
• Decorative like stone masonry.
• Ash content as high as 60%.

10. ACQUIRING THE RAW MATERIALS
• Fly ash is readily available with thermal power plants
and can be acquired from them even without
spending on transportations.
• Lime, gypsum and sand are available in the market
and can purchase as per requirement.

11. OPERATIONAL
FINANCE
& HR PLANNING

12. PLANTS PARAMETERS
• Capacity (Bricks/Year) - 5,11,000 (1,40,000x365)
• Brick /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)

13. MANPOWER REQUIRED
Description Total Nos Nos/shift Salary Total Salary
Manager 4 2 34,000 1,36,000
Production Engineer 16 8 15,000 2,40,000
Skilled Workers 80 40 5,200 4,16,000
Un-skilled Workers 160 80 85/day 13,600/day 4,08,00 (30d)
Chowkidars 8 4 3,000 24,000
Peons 16 8 3,5000 56,000
Cashier-Cum-Clerk 4 2 6,000 24,000
Total 13,04,000

14. FINANCIAL ASPECTS (FIXED CAPITAL)
S no Activity Period
Starting
Period
completion
1 Survey of collection of data in respect of
demand, availability of technology,
power, land and clearance from state
pollution control
Day 1 2nd Month
2 Arrangement for margin money 2nd month 3rd month
3 Preparation of project report and
registrations
2nd month 3rd month
4 Finance assistance 2nd month 4th month
5 Development of site and construction of
building
5th month 7th month
6 Machine purchasing and installation 7th month 8th month
7 Trial production 8th month 8th month
This will include a total cost of 10,50,000 including land acquisitions.

15. FINANCIAL ASPECTS (MACHINERY AND EQUIPMENTS)
Description Qty Total price (Rs)
Pan mixer (run by 20 hp motor) 2 1,50,000
Hydraulic press (30 tones capacity) 2 3,00,000
Belt conveyor (run by 3 hp motor) 1 70,000
Deep tube well 1 35,000
Generator 1 1,25,000
Steel plates and extra moulds 50 85,000
Trolleys 15 30,000
Office furniture and equipments 32,000
Installation and erection charges 28,000
Total 8,55,000
There will be other pre operative expanses at around Rs 70,000

16. WORKING CAPITAL PER MONTH (STAFF & LABOUR)
Description Total nos Nos/shifts Salary Total salary
Manager 2 1 17000 34000
Production engineer 2 1 12500 25000
Skilled worker 10 5 5200 52000
Unskilled workers 20 10 3800 76000
Chowkidars 6 3 3500 21000
Peon 4 2 3500 14000
Cashier cum clerk 2 1 6000 12000
234000
Add pre requisites @ 15% 195600
Total 269100

17. ROW MATERIAL PER MONTH (WC)
Description Qty (ton) Rate (per ton) Total cost ( in Rs)
Fly ash 1000 40 40000
Lime 250 800 200000
Sand 125 100 12500
Gypsum 125 900 112500
Total 365000

18. UTILITIES PER MONTH (WC)
Description Cost (in Rs)
Power 30000
Fuel 8000
Total 38000

19. OTHER CONTINGENT EXPENSES (WC)
Description Cost (in Rs)
Postage and stationary 1200
Telephone 1800
Transportation 2500
Insurance 5000
Repairs and maintenance 2200
Advertisement and publicity 2500
Misc. expenditure 2500
Total 17700

20. SUMMING THE FINANCES
• Total Working Capital Per Month = 6,89,800
• Total Working Capital for Months = 20,70,000
• Fixed Capital = 10,50,00+8,55,000+70,000=19,75,000
• Total Capital Investment = Fixed Capital + Working Capital =
19,75,000+20,70,000= 40,45,000

21. FINANCIAL ANALYSIS
Description Cost (In Rs)
Total Recurring cost of production per year 82,78,000
Depreciation on building @ 5% 36,5000
Depreciation on Machinery & Equipments @ 10% 79,500
Depreciation of Office Equipments @ 20% 6,400
Interest on Total Capital Investment @ 14% 5,66,300
Total 89,66,700

22. ANNUAL TURNOVER
Quantity Rate Value
60,00,00 Rs 1.75 per Brick Rs 1,05,00,000

23. OTHERS IMPORTANT STATS
Net Profit Ratio = (Net Profit x 100)/Total Turnover
= (15,33,300 X100)/1,-5,00,00
= 14.60%
Rate of Return = (Net Profit per year x 100)/Total Investment
=(15,33,300 x 100)/40,45,00
=37.90%

24. BREAK EVEN POINT
Fixed cost In Rupees
Deprecation on building @ 5@ 36500
Deprecation on machinery and equipment @ 10% 79500
Deprecation on office equipment @ 20% 6400
Interest on total capital investment @14% 566300
Insurance 60000
40% of salary and wages 1291680
40% of other contingent expenses (excluding insurance) 7080
Total 2047460 or 202048000

25. PROCUREMENT OF RAW MATERIAL
Lime & gypsum
from chemical
plants
Sand from local
contractors
Fly ash from
thermal power
plants
Procurement

26. 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.

27. BATCH MIXING OF RAW MATERIALS
Fly ash Sand
Lime Gypsum
Transportation of
raw materials to
pan mixer

28. MECHANIZED TRANSFER FROM PAN MIXER TO
AUTOMATIC BRICK MAKING MACHINE
Hydraulic
press
Pan
mixer
Hydraulic
press

29. DRYING AND CURING
The green bricks are dried up
under sun from 24 to 48 hours
The dried up bricks are stacked
and subjected for water spray
curing once or twice a day for
7-21 days depending on
ambience
Dispatch to the market

31. 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.

32. ECONOMIC CONCERNS
• Currently, the demand for brick 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.

33. COMPETITIVE STRENGTHS TO CLAY BRICKS
• Fly ash bricks are 28% lighter than clay bricks
• These bricks have a pleasing color like cement, are uniform in shape and
smooth in finish, also they require no plastering for building works.
• These brick can provide advantages being available several load-bearing
grade, savings in mortar plastering, and giving smart looking brickwork.
• High compressive strength eliminates breakages/ wastages during
transport and handling
• The brick 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

34. 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.

35. MARKETING
STRATEGIES

36. 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.
• 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 in regard to pollution and other concerns

37. 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
neighboring 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

38. TARGETING & POSITIONING
POSITIONING
Positioned as
environmental pollutant
cleaner
TARGETING
Builders
Consultant
Architects
Government

39. THANK YOU
ARUNESH CHAND MANKOTIA
Aarunesh@gmail.com