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EENT
STRATEGIC BUSINESS PROPOSAL
The project was developed for the worlds first structured Fly Ash
Industrial area & Research Centre in India. All the financial calculations &
quotations are in accordance to FY-2014-15.
All Rights reserved -Arunesh Chand Mankotia
aarunesh@gmail.com
All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com
CONTENT
1. INTRODUCTION
(1.1) EENT
(1.2) THE END OF TRADITIONAL RED BRICK INDUSTRY
(1.3) FLY ASH BRICKS
(1.4) FLY ASH BRICK INDUSTRY
(1.5) FLY ASH TECHNICAL & PRODUCTION SPECIFICATION
2. EENT PROPOSED PROJECT OVERVIEW
(2.1) INFRASTUCTURE
(2.2) MACHINERY
(2.3) RAW MATERIAL
(2.4) POWER SUPPORT
(2.5) ADMINISTRATION
(2.6) SALES & MARKETING
3. CENTRAL INDUSTRIAL SUPPORT
(3.1) RAW MATERIAL & STORAGE
(3.2) CENTRAL LOGISTIC MANAGEMENT
(3.3) MAINTENANCE
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(3.4) TRAINING & TECHNICAL SUPPORT
(3.5) INDUSTRIAL & UNIT LEVEL SYNERGIES
4. FINANCE
5. PROJECT ESTIMATION
6. MARKET DEMAND ANALYSIS
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1. INTRODUCTION
The aim of this proposal is to present futuristic modernization based on following -
KEY BUSINESS OPPORTUNITY INDICATORS
(A) Modernization in traditional Red brick Industry with transforming them to Green
bricks demand.
(B) Acting before its late as Red bricks are on extinction.
(C) Developing one brand with mass production and mass consumption at low costs.
(D) Strategic Green brick enabling competitive project to capture markets across major
construction hubs.
(E) Development of an Industrial Synergy making it self sufficient zone with internal
structure creating cost effective expense V/S profits.
(F) Maintaining Industrial social responsibility with modernizing Non-eco friendly
production ways to Green technology, consuming Fly Ash & minimize Ecology Damage.
The concept involves in developing the identified area to Green Brick Industrial set up with
common area of operations, central production technology along with in-house raw
material, logistic, Power management, Sales & Marketing & other support services. The
core strategy is to build a hub for supply to all major projects across national &
international demand. The core forte of the project is in continuous increase in production
which enables us to capture market with centralized approach.
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1.1
EENT. The Organization
EENT Mission
To Revolutionise the Green building material industry with transitioning the traditional red
clay brick to Green brick with one brand.
EENT Vision
Complete brick Industry modernization with strategic approach on continuous excellence &
growth.
EENT is a futuristic movement aiming to restructure & develop green building products. Our
strength is one brand with vast reach. We also aim to specialize and develop Regional
Industrial park streamlining the operations with centralized manufacturing zone making us one
stop shop for market.
EENT is planning the proposed project technology widely in accordance to standards set by
Technology Mission, Ministry of Science & Technology, Building Materials & Technology
Promotion Council, Ministry of Urban Development, UNIDO, ESCAP, NTPC, HUDCO etc and
various parties from India and abroad have approached to procure turn-key plants.
Proposed Quality Policy for Production
With centralised quality policy for production’ high quality is ensured, Certification and
Product manufacturing standards. Total Quality through the entire product manufacturing and
delivery cycle will be achieved by following the compliance policy.
1. Compliance to IS: 12894–2002 for production of Fly Ash bricks.
2. Compliance to ISO 9001 and 14001.
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1.2
THE END OF TRADITIONAL RED BRICK INDUSTRY
Central Pollution Control Board (CPCB) has recognized the brick production industry as a highly
resource and energy intensive and polluting industry owing to prevalence of obsolete
production technologies. While, the clusters are the source of local air pollution affecting local
population, agriculture and vegetation; at a global scale they also contribute to climate
change.
The brick industry competes for resources with other sectors, which poses a significant
challenge to the sector. Coal is one such resource that is required for the power, steel and
other crucial sectors. Also, top soil or land which could be used for agriculture. The traditional
kiln unit itself occupies considerable land area and is subjected to high temperature making it
unfit for agricultural activities (after the site is abandoned). The fast depletion of arable land
thus caused due to brick making is a matter of concern to India regarding food security.
With an average consumption of 18 tonnes of coal per 100,000 bricks, the brick sector
consumes about 24 million tonnes of coal per year which is about 8 % of the total coal
consumption of the country (third largest consumer after power and steel sector). In
addition, it also consumes several million tonnes of biomass fuels. The share of energy in
total cost of brick production is 35-50 %.
The large coal consumption of the brick industry is the cause of significant air pollution in
terms of carbon dioxide (CO2), carbon monoxide (CO), sulphur dioxide (SO2), nitrogen oxides
(NOx) and suspended particulate matter (SPM). The large amounts of coal used for brick firing
also leave behind bottom ash as residue. The air pollution and bottom ash generated cause
considerable health problems, especially related to respiratory health, while also causing
damage to property and crops.
The Supreme Court of India issued a directive for discontinuing the movable chimney kilns and
for all brick kilns to conform to new environmental norms. While this signalled a move in the
right direction, due to lax monitoring mechanisms such kilns continue to function and flout
environmental regulations. Additionally, while kilns with higher production levels and capital
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have the option to changeover to fixed chimney type BTKs, the small and medium scale brick
entrepreneurs are confronted with environmental Regulation without having financially viable
options to switch and thus continue to run polluting kilns.
Socio-Economic Issues
The workers in the brick industry are subjected to extreme working conditions and poor
remuneration. Currently in India, brick manufacturing is a labour-intensive sector, with crude
techniques causing considerable worker drudgery.
They are also exposed to high concentrations of Respirable Suspended Particulate Matter
(RSPM), during monitoring and regulating the fire, as the furnace chamber is covered with ash
(ash acts as insulator). As well as during the manual mixing of fly ash and clay and due to the
open dumping and storage of fly ash.
Transportation of green and red bricks is done by a head load of 9 to 12 kgs causing health
problems, especially in women. Even though the brick workers are exposed to these
occupational hazards, coverage under any sort of insurance or medical facilities is virtually
unheard of.
In the brick sector, labour is brought in through a contractor (from distant places). Since they
are not on the payrolls of the kiln owner, they are not covered under the current labour laws,
e.g. Minimum Wages Act. The work force is paid on basis of quantum of work and against
completion of certain tasks such as moldings of 1000 bricks, transportation of 1000 bricks etc.
The seasonal nature of brick production generates employment for a limited period of six -
seven months in a year. Majority of the workforce has no option, but to engage as labourers
(generally as agricultural labourers) for the rest of the year.
The nature of the work requires skilled labour especially for molding and firing. There is large
scale migration towards the major brick production clusters every season due to this. These
tasks are traditionally handed down from father to son in the communities.
The last few years have seen a labour shortage as the newer generation does not want to be
associated with the brick sector any longer. A phenomenon observed in certain clusters due to
this shortage is the hoodwinking of entrepreneurs by labour by promising their services to
multiple owners, taking advances and not turning up. Labour rates have also gone up driving
down margins for kiln owners.
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1.3
FLY ASH BRICKS
Pulverized ash brick (PAB) technology is a process of converting industrial waste materials into
quality building materials. At present, the technology is well established in converting thermal
power plant waste into quality bricks.
PAB technology uses dry ash (fly ash collected from ESP or silos of thermal power plants); filler
materials (usually coarse sand or stone crusher dust); and additives (lime, gypsum or cement).
The strength of the bricks can be engineered by varying compositions.
Equipment used can be manual or mechanized. Mechanized machines deploy hydraulic
compaction to produce a variety of bricks and can be operated through electric or diesel
power.
Pulverized coal ash (PCA) is one of the major residues generated during the combustion of coal
in thermal power plants. Though PCA is a waste product for the power sector, it's used as a
raw material, primarily, in construction.
PCA is generally classified into three types depending upon its particle size and zone of
collection.
‘FLY ASH’ is the extremely fine ash ‘flying’ along with flue gases is trapped in electro-static
precipitators (ESP) and is collected. The relatively coarser ash generated at the bottom of the
boilers is mixed with water, made into slurry and pumped into fill sites called ‘ash ponds’. This
ash forms the bulk of the ash generated and is termed as ‘POND ASH’.
Depending upon the boiler design and efficiency, the ratio of fly ash to pond ash varies
between 70:30 and 80:20. In some older and relatively inefficient thermal power plants, a
coarser variety of ash is generated called ‘BOTTOM ASH’.
This has appreciable carbon content but cannot be collected separately. This is also mixed with
pond ash and pumped to ash fill sites.
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1.4
FLY ASH BRICK INDUSTRY
The construction industry contributes to about 10 % of the Gross Domestic Product (GDP),
registering an annual growth of about 9 %. Clay fired bricks form the backbone of the
construction industry which is valued at approximately US$ 70.8 billion. The brick sector in
India, although unorganized, is tremendous in size and spread. India is the second largest brick
producer (China dominates with 54 % share) in the world. It is continuously expanding on
account of a rapid increase in demand for bricks in infrastructure and housing industries. In
order to meet this demand, over 150,000 brick units provide direct employment to more than
8 million workers. During the Ninth Five-year Plan period (1997-2002), the annual demand of
170 million bricks per year was estimated to be generating revenues of over US$ 4.8 billion.
GLOBAL BRICK CAPIBILITY INDIAN REGIONAL BRICK CAPIBILITY
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According to the report published by the census in March, 2011, the total population of the
country was 1,210,193,422. A total of 181 billion people increased from the previous census of
2001. Presently mostly populated states of India are
➢ Uttar Pradesh,
➢ Bihar,
➢ Maharashtra,
➢ West Bengal,
➢ Tamil Nadu and Madhya Pradesh.
BIHAR & WEST BENGAL
BIHAR needs over 7500 million bricks over the next five years just to meet the rural housing
gap of 1.1 million dwellings per year. Potential savings of 2.8 million tonnes of CO2e are
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possible while creating livelihoods for 0.35 million people by introducing cleaner production
systems.
BIHAR Industrial incentive policy (2011) Bricks units are not eligible for subsidy except for
mechanized units engaged in manufacturing refractory bricks and bricks from fly ash, red
earth, raw industrial waste material which can qualify for incentives. The older Industries
Incentive Policy, 2006 of Bihar excluded all brick manufacturing units from any incentives.
BIHAR state government has mooted an incentive policy to encourage the brick kiln owners to
produce bricks by using fly ash to prevent degradation of environment and infertility of land in
Bihar. The greater use of coal in production of bricks caused pollution and degrade
environment, besides damaging underground soil due to heat at and around brick kiln units,
he said.
Countries like China has banned brick production at coal-based units as a measure to protect
environment and encourage use of fly ash as an alternative raw material, The fly ash will be
available in abundance near the thermal power plants in the state in time to come and the
brick kiln owners will be encouraged to use raw materials for production of bricks.
The state government has developed policies also because Bihar has high Fly Ash because if
major thermal plant availability & sand for production of bricks as the natural material was
available in large quantity at the river beds in Bihar. The state government will prepare a new
sand policy for use and marketing of the raw material for revenue.
WEST BENGAL, The current yearly production of fly ash based bricks is 10 crores approx. The
Central and State Governments are greatly concerned about top soil erosion for the
production of massive quantities of clay bricks for enormous housing needs. The Ministry of
Power, Government of India, issued circulars to all concerned department and organizations
to promote the use of Fly-Ash in the production of building materials.
In West Bengal, presently has 65 major, fly ash based brick units are running. There are more
16 units up coming in 2013. With a single machine 20,000 bricks making are possible in two
shifts/ day. WEST BENGAL coastal area salinity level is very high. Mostly Fly Ash based bricks
are salinity free bricks. With the support of Govt, if supply of bricks in those areas may done in
West Bengal then the building strengths of those areas will increase and brick will also get the
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popularity. BIHAR, is capable of capturing this market as cost of production other supporting
production capability is high.
West Bengal Pollution Control Board had submitted a project proposal on “Capacity Building
for Efficient Utilization of Coal based Thermal Power Plants ash in the State of West Bengal” to
the Fly Ash Unit, Department of Science & Technology, and Government of India. Objective of
this project is to transfer the Knowledge for effective utilization of Fly Ash in Constructions
among the target groups.
Ministry of Rural Development through Indira Awas Yojana(IAY) undertake the project of
housing for rural poor with Centrally sponsored scheme where the cost shared between the
Centre and States on a 75:25 basis. In this kind of schemes or Yojana WEST BENGAL & BIHAR
state Govt. may use Fly Ash based bricks for housing to reduce the cost.
FLY ASH PROJECT SCALIBILITY
India generated 145,000 MW of power in 2008. 63% of it was from coal-based thermal power
plants. During generation of the above, approximately 150 million tonne of pulverized ash
was generated in 2008 alone. In India, low-ash high-grade coal is reserved for the
metallurgical industry. Thermal power plants, therefore, are compelled to use high-ash low-
grade coal with ash content that is often as high as 40% or more. This is the major source of
generation of vast amounts of PCA. As the power requirement goes up in coming years and
more power plants are built, the amount of PCA generated will increase and create more
problems for safe disposal. It is estimated that by 2012, India will generate around 175 million
Tonnes of PCA every year.
MINISTRY NOTIFICATION
The Ministry of Environment and Forests (through its notification published in the Gazette of
India, Part II, Section 3, sub section (ii), vide S.O. 763(E) dated 14th September, 1999) issued
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directives for proper utilization of fly ash discharged from coal or lignite-based thermal power
plants. The importance for restricting the excavation of top soil for manufacture of bricks and
promoting the utilization of fly ash in the manufacture of building materials and in
construction activity was recognized. It was notified that within a radius of 100 km from a coal
or lignite-based thermal power plant, all brick making units must compulsorily utilize 25% of
fly ash (by weight) This notification was supported by the High Court of Delhi in its order
dated 25th August, 1999 in Centre for Public Interest Litigation, Delhi v/s Union of India (CWP
No. 2145/99).
The highlights of the notification was
1. Use of fly ash, bottom ash or pond ash in the manufacture of bricks and other
construction activities.
a) Within a radius of 100 km from coal or lignite based thermal power plants, no person
shall manufacture clay bricks, tiles or blocks (for use in construction activities) without
mixing at least 25% of ash with soil on weight basis.
b) The authority for ensuring the use of specified quantity of ash shall be the concerned
Regional Officer of the State Pollution Control Board.
c) In case of non-compliance, the authority (in addition to cancellation of consent order
issued to establish the brick kiln) shall move the district administration for cancellation
of the mining lease. To enable the authority to verify the actual use of ash, the thermal
power plant shall maintain monthly records of ash made available to each brick kiln.
2. Availability of fly ash for brick making
a) Every thermal power plant shall make available ash, for at least ten years without any
payment or any other consideration for the purpose of manufacturing ash-based
products.
b) Central and State Government Agencies, State Electricity Boards, NTPC and the
management of the thermal power plants shall facilitate in making available land,
electricity and water for manufacturing activities and also provide access to the ash
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lifting area. This will promote and encourage setting up of ash-based production units
proximate to the area where ash is generated by the power plant.
3. Specifications for use of ash based products
a) Every construction agency engaged in the construction of buildings within a radius of
100 km from thermal power plants shall use fly ash bricks in construction projects. It
shall be the responsibility of the construction agencies (either undertaking the
construction or approving the design or both) to ensure compliance.
Concluding the study snapshot If Fly Ash bricks can replace 50% of clay bricks then it will
reduce emission of green house gas by 435,000 tons each year. Fly Ash based Bricks industries
needs fragmented market that are serviced by plants located in the local area. The present
utilization of Fly Ash in the country is nominal as compared to other advanced countries.
Continuous effort is needed to increase the utilization of the Fly Ash in our country. There is a
necessity in future for all Thermal Power Stations to utilize as much quantity of ash as possible
to reduce the disposal problems. Bricks consumption has recorded a three- fold increase in last
decade mainly due to step increase in demand from the housing segment Infrastructure and
industrial construction from the other major consumer of the brick industry.
(1.5)
FLY ASH TECHNICAL & PRODUCTION SPECIFICATION
TECHNICAL SPECIFICATION
Sl.
No.
Items Conventional clay burnt
bricks
Fly Ash based bricks
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1. Dimension in
mm(LXWXH)
250mmX125mmX75mm 190mmX90mmX90mm 230mmX110mmX75
2. Colour Red Grey Grey
3. Basic
Ingredient
earth or clay fly ash fly ash
4. Density
(gm/cc)
1.60-1.70 1.80-1.90 1.80-1.90
5. Dry weight(in
kgs)
3.75-4.00 2.80-2.90 3.3- 3.5
6. Common
building bricks
compressive
strength
(kg/cm2)
50-65 70-90 75-100
7. Water
absorption (in
%)
15-25 10-15 10-15
8. Breakage 5-7 1/2
percent Less than 1% Less than 1%
9. Efflorescence present negligible negligible
10. Eco-friendly NO YES YES
11. Mortar saving:
During laying
During plastering
N.A
N.A.
10-15%
25-30%
10-15%
25-30%
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12. Carpet area savings per %
rmt
N.A.
N.A.
6.8m2
2.80m2
13. Brick requirement per %
sqm
Per % cum
4951
38,900
5065
50,000
4951
40,600
14. Labour Cost 20 – 30% 15 – 20% 15 – 20%
15. Quality Control Less possible 100% 100%
16. Outside plastering must May be avoided,
ruled pointing may
be applied
May be avoided,
ruled pointing may
be applied
17. Water treatment: Dipping
in water before use prior
brick work
Labour cost
involved(24 hours
must)
Labour cost nil Labour cost nil
18. Whether qualifies for
CMD in terms of Kyoto
Protocol
NO YES YES
FLY ASH BRICK PRODUCTION PROCESS FLOW
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Production Process Checks Centrally:
➢ Constant monitoring of moisture content in the mix.
➢ Observation of texture, dimension and height.
➢ Evaluation of curing time.
➢ Routine plant checks as per manual.
➢ Regular maintenance with qualified technicians.
(1.6)
FLY ASH BRICKS ADVANTAGES & COMPARISION
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ADVANTAGES
➢ Environment Friendly: GREEN brick uses unfired Fly Ash technology hence the CO2
emissions in the manufacturing process are limited & helps in conservation of precious
top-soil.
➢ High Compressive Strength: Bricks composition, ensure that we achieve compressive
strengths of 75-100 kg/sq.cm and above, which is 2-3 times the products in the market.
➢ Excellent Thermal Insulation: The buildings using fly ash bricks are cool in summers and
warm in winters. The high insulating property, with low embodied energy, of our
products reduces the energy consumption of the buildings significantly by as much as
40-50%.
➢ Excellent Sound Insulation: Fly ash bricks are sound absorbent and restrict sound
transmission keeping the interiors very pleasant and quiet.
➢ Fire Resistance: Fire resistance of fly ash bricks is very high as these bricks are
composed of fly ash as its major constituents, which is the un-burnt residue of the coal
fired in a thermal power plant.
➢ Nil Efflorescence: Fly ash bricks resist salt and other sulphates attack, ensuring no
efflorescence in the structure.
➢ More than 75% (by weight) post-industrial recycled materials are used in the
manufacture of bricks. Fly-ash is a thermal power plant waste product and the Lime
used in our bricks is also considered an industrial waste.
COMPARISION
.No Properties Puzzolana Flyash Bricks Conventional Clay Bricks
1 Basic Raw Material Pozzolan – Flyash Clay
2 Size & Quality Uniform ( Factory made) Uneven
3 Number of Joints in construction Less (uniform size) More (uneven size)
4 Mortar requirement Less More
5 Platering Less More
6 Direct Gypsum Plaster Possible Not Viable
7 Compressive strength More Less
8 Standards IS:12894 – 2002 IS:3495(Pt.I)1976
2. EENT PROPOSED PROJECT OVERVIEW
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Our core focus is to modernize the Brick industry with developing a team of traditional brick
producers and create a brand which aims in developing industry, market & regional growth.
EENT as a facilitator, coordinator & developer will evolve its strengths to have mass
production with cost & quality effective support system.
The demand is high and the current market & EENT market reach assures mass order which
aims mass production, our reason to initiate this project is based on the principle of
supporting the production, the key features are –
EENT role will focus on specific functions divided in three stages
Responsibilities EENT & Individual Manufacturers.
START UP
OPERATIONS
OF GREEN
BRICKS,
TRAINING,
IMPLIMENTATI
ON &
PRODUCTION
MANAGE
OVERALL
PRODUCTION,
OPERATIONS,
& COST
EFFECTIVE
MEASURES
FOCUS ON POST
START UP
DEVELOPMENT
AROUND THE
CONCEPT
EENT FACILITATES DEVELOPMENT OF
LAND, PRODUCTION AND PROJECT
FINANCING
PLAN, SUPPORT FOR RAW
MATERIAL, LOGISTIC,
ADMINISTRATIVE, MARKETING
& TECHNICAL SUPPORT
MANAGE PROCUREMENT, R&D,
CONTINUOUS DEVELOPMENT, LABOR
& OTHER AREA OF POLICIES &
REFORMS
THE UNITS UNDERTAKE PRE &
POSTPRODUCTION SOP,S & START ON
TARGET PRODUCTION
THE MANUFACTURER WILL
MAINTAIN MAX PRODUCTION
TARGETS WITH EQUAL
STANDARDS OF QUALITY IN
ACCORDENCE TO THE NORMS
DEVELOP MARKETING CHANNEL
& CAPTURE ALL MAJOR
PROJECTS GOVERMENT/PRIVA
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2.1
INFRASTUCTURE
EENT propose to develop 250 Acres (11250000 SFT) of land at acquired coordinates into Fly
Ash Brick production zone. This development will be into two stages
(a) In the primary stage overall land development will be primary focus this would include –
➢ 250 Acres demarcated leveled land with defined boundary & commercial norms in
accordance to the Bihar State Land Act.
➢ Structured Road connecting the internal layout within boundaries built for
production & non production area.
➢ To start with CENTRAL production units with dedicated area of 50 Acre Area in first
phase, with internal road, water pipeline fittings, power point connection & carpet
area leveled to standards required for Fly Ash production area.
➢ 150 Acres of continuous development & 50 Acres, land dedicated to Raw Material
Storage, Central & Support function along with allotted Land for future development.
(b) Non production Area which is dedicated to support & Administrative and other
development activities.
➢ The 200 Acres of area will be analyzed in accordance to the stage wise structural &
on ground developments and the utilization aim is to create 360* support with cost
effective institutions around.
➢ Raw material storage will be a central effort where in EENT, will have in house mass
storage facility which will support in production efficiency along with cost margins
increase since transport cuts down & large scale procurement EENT, can assure
competitive price for production.
➢ Other allied facilities will be developed around the production minimizing the
production burden & productivity.
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MASTER LAYOUT DUMMY MAP (Not on scale)
(Production Area)
Administrative
&
Support Zone
Central
Storage Area
EENT FLY ASH PROJECT
PROPOSED LAND Total 250
Acres
Developmental
Land for Future Project Growth
FUTURE GROWTH
Total Area – 250 Acres
Total FUTURE Production Area -150 Acres
PHASE 1 – 50 ACRES PRODUCTION AREA
Total Area for Non production wing – 50 Acres
*MASTER LAY OUT IS IMAGINATIVE ONLY FOR CONCEPT UNDERSTANDING
STAGE (I) DEVELOPMENT KEY FEATURES
➢ Developed Roads connecting the internal infrastructure & multiple entries & exists in
accordance to convenience of transport.
➢ Defined Boundaries for all internal structure along with outer wall.
➢ 50 Acres of phase 1 production area developed.
➢ Water connections for all structures fitted, pipelines, reservoir, tanks.
➢ Power lines in accordance to the basic lighting & other appliances, ready further to
be connected to single line generator systems.
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SINGLE UNIT
Single unit operations will be contained with all operational facilities required –
➢ Land Built up area in accordance to the Machine, with specific pits for sub parts and
both cemented & dry floor within the facility.
➢ Shed for the machinery & equipments along with separate input & output existence.
➢ Central Storage of Fly Ash, in accordance to the eco norms the ash should not mix
with the air therefore compound where in fly ash will be kept safe & wet.
➢ CENTRAL Storage for Sand, Lime & Gypsum.
➢ Administrative Office will be central
➢ Worker Shed
➢ Generator & Power will be central
➢ Mics Shed for tools, equipment ect.
2.2
MACHINERY
The Standard machines after analysis of multiple manufacturers the standard brick production
unit in accordance to the Area, costing & production is 100 brick production plant with
following technical specifications & parts –
➢ Standard block (230mmx110mmx75mm) making automatic mechanism (4 blocks
per cycle)
➢ Automatic sliding mould filling hopper assembly
➢ Electronically operated hydraulic power-pack driven by 5HP, 3 phase induction
motor, hydraulic oil
➢ Mix feeding conveyor powered by 3HP, 3 phase geared induction motor with
input & output hoppers
➢ 2 separate pan mixer of capacity 300 kgs powered by 7.5 HP, 3 phase induction
geared motor
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➢ 1 part hydraulic brick shifting pallet truck
➢ 4 wheel barrows
Machinery Technical Specifications
Machine type Automatic
Electrical power connection 23HP, 3 Phase(2 pan mixer-7.5HP,Conveyor-3
HP, MX-5HP)
Rated production capacity 1000 blocks per hour
No. of Bricks per stroke 4 bricks( 230x110x75mm)
Weight(approx.) 610kgs
Machine Process Automatic system
Materials mixing Automatic in pan mixer
ADDITIONAL EQUIPMENT
ITEM Quantity Specification
Wooden Pallets 300 Brick placement material
Helmets 10 2 Skilled + 8 Unskilled Labor
Industrial Gloves 8 8 Unskilled Labor
Transferring of mix Conveyor
Feeding of mix automatic
Block formation and ejection Automatic controlled electro hydraulic system
Bloke transfer Pallets on hydraulic truck
Manpower 8
Total area required 950mseq
Semi covered 90-110mseq
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MACHINE LAYOUT MAP
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2.3
RAW MATERIAL
The Raw materials are the most important aspects of brick quality & strength makes the
product sellable, in accordance to the basic availability Fly Ash is mixed with gypsum, lime,
sand & lastly Construction cement in some special case as it increases the costs.
Mixing Formula
(a) Fly Ash (70%) + Sand (15%) + Gypsum (10%) + Lime (5%)
(b) Fly Ash (70%) + Sand (20%) + Gypsum (10%)
NOTE: The configuration is designed tailor made in accordance to physical properties of all the
material like strength ECT, the overall average deviation in the mixture component is 5 to 10
%.
Single Brick Analysis
➢ Standard brick size - 230x110x70 mm
➢ Standard weight – 3 Kgs
➢ Single brick weight division – Fly Ash (2.1 KGS) + Sand (0.45 KGS) + Gypsum (.30 kgs) +
Lime (0.15 Kgs).
Raw material production analysis
RAW MATERIAL PER HOUR (1000
Bricks)
PER DAY (20
HRS)
PER MONTH (29
Days)
PER YEAR (29*12
= 348 Days)
FLY ASH 2100 Kgs 42000 Kgs 121800 Kgs 1461600 Kgs
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SAND 450 Kgs 9000 Kgs 261000 Kgs 3132000 Kgs
GYPSUM 300 6000 Kgs 174000 Kgs 2088000 Kgs
SAND 150 Kgs 3000 Kgs 87000 Kgs 1044000 Kgs
Total KGS
Total Bricks
3000 KGS
1000 Bricks
60000 Kgs
20000 Bricks
643800 Kgs
580000 Bricks
7725600 Kgs
6960000 Bricks
2.4
POWER SUPPORT
The power is lifeline to this unit as being eco friendly no smoke production primary concern &
area of continuous up gradation. The entire Power management is divided into need base
analysis.
(a) Stage (I). The Immediate power consumption has been computed with overall
expenditure & it is still economical to work on Diesel powered generator for single units
for smooth & fast upward race to reach breakeven point to profits.
(b) Stage (II). Will carry out detailed study & implementation where in primary targets are
➢ Subsidised power under green projects after we have completed one financial circle.
➢ Solar based projects with secondary project which EENT is already in talks with
concerned authority.
➢ Private players will be brought in for power supply which is Stage (III).
The idea is to have all possible sources over a period of time will be introduced in the
operations and the cost effectiveness will be the key.
Calculations
FORMULA – 1.36 HP – 1 Kw. FORMULA – 25 HP Generator
0.746xHPXTime in hrs = unit. At full Load – 2.1 Ltr/per hour
Consumption Power Diesel consumption
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Single Unit 23 HP 25 KWA Generator At full load
Per Day (20Hours) 224 Units (Approx) 42 Ltr
Per month (29 Days) 6477 Units (Approx) 1218 Ltr
Per Year (348 Days) 2253880 Units 14616 Ltr
100 Unit Consumption (25 HP 100 Units) LOAD Litres per
Day
Month
Consumption
Year
Consumption
2500 HP Full 420 Ltr 12180 Ltr 146160 Ltr
2.5
ADMINISTRATION
EENT will be managing administration of following divisions –
➢ Non production area with built up area, EENT monitored employees & property.
➢ Procurement operations
➢ Raw material storage facilities
➢ Other Institutions involved in the project coordination
➢ Other Vendors stationed inside the premises
➢ Management of Logistic, transport central arrangement
➢ Training, maintenance, technical support services
➢ Government Authorities common policies and compliance.
2.6
SALES & MARKETING
Sales & Marketing will be a prime function of EENT, as a one brand approach to the market
core focus is to target –
➢ Large scale projects as our production capacity of average 1200000 bricks per day from
100 units will bring huge difference.
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➢ Market monopoly of quality as the procedures, machines & raw material is sourced on
common ground which in current market is impossible.
➢ Target specific Government projects where in we can avail subsidies on supply.
➢ Competitive edge over other players as we have cheaper bricks with better quality at far
places like Delhi with huge demand and fluctuating rates.
➢ Target market within Bihar, West Bengal is huge as soil excavation is on to its end in
these areas. A big fact that West Bengal only produces 15 Cr Bricks average in on year
whereas EENT yearly production would be approx 36 CR.
➢ Strong NCR region with demand from Delhi & 300 km radius has huge demand,
Meerrut, Agra, Jaipur & other nearing borders.
➢ International destinations are again a big option on large deals as the Port is also at
favorable distance.
3. CENTRAL INDUSTRIAL SUPPORT
The part & parcel of area development plan EENT will invite support, services & manage
strategic operations of Procurement & Logistics.
(3.1)
RAW MATERIAL & STORAGE
➢ The set up will have central Storage and the support function for supply on daily basis,
master storage will be developed within the facility area, this is possible as we would
have mass procurement, measurement of consumption of raw material.
➢ Vendors will be given dedicated supply points for cutting down the supply chain & time.
➢ Mainly Storage will be for Fly Ash, Gypsum, Sand, Lime and standards required to store
& transport industrial waste. For mass Fly ash storage concrete or dome cylinder.
➢ With Thermal plant within current radius of 80 Kms & upcoming plant around 15 Kms,
the major component of brick has easy availability.
Storage Facility
STORAGE SINGLE UNIT PER
YEAR
100 UNIT
MONTHLY
100 UNIT YEARLY 7 DAYS FOR 100
UNITS
FLY ASH 7560 Tonnes 63000 Tonnes 756000 Tonnes 17640 Tonnes
SAND 1620 Tonnes 13500 Tonnes 162000 Tonnes 3780 Tonnes
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GYPSUM 1080 Tonnes 9000 Tonnes 108000 Tonnes 2520 Tonnes
LIME 540 Tonnes 450 Tonnes 54000 Tonnes 1260 Tonnes
➢ Total Consumption on overall production has to be computed between, Main Storage---
---Weekly Supply--------> Master Supply with the area --------Daily Supply----------------
Single unit mini storage.
➢ The quantity suggests having smooth supply chain which will aim 2 principles for storage
facilities wherein (I) Single Unit Should have surplus for a minimum of 2 weeks Reserves
with Daily or refilling after every 48 Hrs.
➢ The third division is of having main focus on Gypsum, Sand & Lime as Fly ash is fastest to
procure.
➢
(3.2)
CENTRAL LOGISTIC MANAGEMENT
RAW MATERIAL
TRANSPORTATIO
N
TOTAL KMS
FROM
SOURCE TO
STORAGE
SINGLE UNIT
PER YEAR
TRUCKS
REQUIRED
100 UNIT
MONTHLY
TRUCKS
REQUIRED
100 UNIT
YEARLY
TRUCKS
REQUIRED
7 DAYS FOR
100 UNITS
TRUCKS
REQUIRED
FLY ASH 80 KMS 756 Trucks 6300 Trucks 75600 Trucks 1764 Trucks
SAND 10 KMS 162 Trucks 1350 Trucks 16200 Trucks 378 Trucks
GYPSUM 400 108 Trucks 900 Trucks 10800 Trucks 252 Trucks
LIME 54 Trucks 45 Trucks 5400 Trucks 126 Trucks
➢ The above calculations are based on 10 Tons storage standard transportation.
➢ Total Material to be Supplied for 1 Year for 100 Units – 1080000 Tonnes
➢ Total Trucks Required – 108000 per Year for 100 Units
LOGISTICS REQUIRED FOR SUPPLY OF BRICKS
TOTAL BRICK
PRODUCTION
TOTAL BRICKS
100 UNITS
TOTAL WEIGHT TRUCK
10 TONNES
RAILWAY RACK
2600 TONNES
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100 UNITS CAPACITY
WEEKLY 8400000 BRICKS 25200 TONNES 2520
TRUCKS
1 RACK
MONTHLY 30000000 BRICKS 270000 TONNES 27000
TRUCKS
103 RACK
YEARLY 360000000 BRICKS 1080000 TONNES 108000
TRUCKS
415 RACK
*The calculations output transportation is calculated on actual weight which will have
variation 10-+ on actual.
(3.3)
MAINTENANCE
EENT will centrally manage the maintenance system which will be divided in wings.
(a) The Unit production will be under yearly maintenance contract where in regular
servicing, a team of Mechanical, Electrical & Civil Engineers will be supporting
production on 24/7.
(b) Breakage & machine faults will be taken care of in emergency basis, the annual contract
along with specific services will be charged a fee yearly. Added the team of engineers
will work closely with training department & single unit supervisors to ensure correct
handling of machine.
(c) Standard Machine for all units will be on Warranty/Guarantee & under insurance to
streamline maintenance and save added costs to unit owners.
(d) EENT will have a Vendor management department which will handle required outside
support for maintenance for equipment like Generator Ect.
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(3.4)
TRAINING & TECHNICAL SUPPORT
Training & technical support will be prime focus of EENT, the material & practical training will
be serviced with structured system.
(a) In primary start up time EENT, will focus on post installation of the plant training & on
job support for (30 Days) & will upgrade the production levels.
(b) Post production time to time new staff & up gradation training throughout. Focus on
special training to Skilled, Un-skilled labor & supervisor in accordance to role & work
efficiency.
(c) Technical team will also keep upgrading the production standards on new best practices
to develop better quality & quantity across all units.
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(3.5)
INDUSTRIAL SYNERGIES
With vast project reach EENT, proposes to develop all round synergies across industry building
partnerships which add value to the system & selective functions.
(a) Proposed banking institution with allotment of operations within Institution, with huge
business, payroll management & other daily transactions multiple bank policy will be
reviewed to shortlist the best suited terms for production units & EENT.
(b) Proposed project of Inviting partners weather in form of Investors or power
management system for production
(c) With a consumption of 756000 Litres per 100 units per year EENT can allot Diesel supply
unit within the production support zone.
EENT POST INSTALATION
30 DAYS ON
PRODUCTION TRAINING
& TECHNICAL SUPPORT
POST
PRODUCTION
TECHNICAL & NEW
STAFF TRAINING,
UPGRADATION
TECHNICAL
SUPPORT
CONTINUOUS
UPGRADES WITH
INCLUDING IN HOUSE
TECHNICAL TEAM &
R&D FACILITY WITH
THE ZONE
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(d) Basic area will be allotted to other labor friendly services with common medical aid,
labor based services, canteen services Ect.
4. FINANCE
EENT will be extending support for overall project from financial perspective. EENT registers
the 250 Acres acquired land in accordance to the project & Industrial guidelines.
(a) The overall project finance will be divided in yearly growth plan dividing major funding
in initial year to build the entire area and further increase production capability yearly.
(b) EENT will fund its growth with yearly net profit & will calculate the differential to
allocate further investment in ratio of returns annually.
(c) The calculations on costing for overall project are divided into –
➢ Developed land along with primary year production set up
EENT
INDUSTRIAL
SYNERGIES
POWER
MANAGEMENT
SYSTEM,
FUNDS/TECHN
OLOGY
DIESEL SUPPLY
& OTHER
ELECTRIC
ALLIED
SERVICES
MEDICAL,
CANTEEN &
OTHER LABOR
SERVICES
BANK ING
SERVICES
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➢ Unit development (Shed, Machinery, Equipment Ect)
➢ Raw material expense & operating costs for 6 months
(d) EENT will have funding procedures regulated for all units on similar terms & conditions,
the units will have to follow the target projections based on what loan returns will be
defined.
➢ The funding will be at overall project level & production capibility, the funding option for
this project is wide All India Financial institutions, These include IFCIP ICICI, and IDBI, the
three oldest general term-lending institutions (ICICI and IDBI have been transformed
into banks in recent years), institutions like Exim Bank, IL&FS, Power Finance
Corporation, IDFC, and SIDBI, and insurance companies (tIC and GIC) with marginal
exposure to term-lending. State Level Institutions, Industrial Development Corporation
(SIDC) and a State Financial Corporation (SFC) which is refinanced by IDBI.
➢ Private Banks, Non- banking financial corporation & Private funding firms.
➢ The interest terms will fall between 12.75% to 16 % in accordance to the current 2013
market standards of Banks, NBFC, financial investors & private funding sources.
5. PROJECT ESTIMATION
The estimation for all assumptions has been calculated on ground pricing with December 2013
market rates.
LAND AND BUILDING
( Amtt. In Rs.)
Area Rate
(in acres)
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A LAND AND DEVELOPMENT
LAND 250 800000 200,000,000
Land Development 250 40000 10,000,000
SUB TOTAL 210,000,000
B TECHNICAL CIVIL WORK
Factory Building & shed 25 4840000 121,000,000
SUB TOTAL 121,000,000
Esclation Cost 5% 16,550,000
Total A + B = 250.00 347,550,000
PLANT & MACHINERY
Sl. Particulars Qty Rate Amount
No, Nos. in Rs.
1 Brick smith machine 100 1,200,000 120,000,000
2 wooden Plates 40000 400 16,000,000
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3 Generator 25 KVA 100 500,000 50,000,000
Add : Tax on machine 5% 6,000,000
Transportation 3,000,000
SUB TOTAL 195,000,000
B office Equipments
Computers & Softwares 100 50000 5,000,000
SUB TOTAL 5,000,000
C office Furniture
Office Equipment, Furniture plus
Other Equipment & Accessories
LS 2,000,000
TOTAL A+B+C 202,000,000
Pre Operative expenses 3,000,000
UTILITIES Monthly Yearly
Sl. Particulars Qty Rate Amount Amount
No, Ltrs in Rs. in Rs.
1 Diesal 480000 52 24,960,000 299,520,000
2 Water charges LS
2,000,000
24,000,000
Total
26,960,000
323,520,000
Annual Charges
Year Capacity Amt Amt
Utilisation (monthly). (Annual in lacs)
I 80% 21,968,000 2,636.16
II 80% 21,968,000 2,636.16
III 90% 24,464,000 2,935.68
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IV 90% 24,464,000 2,935.68
V 90% 24,464,000 2,935.68
MAN POWER REQUIRMENTS IN THREE SHIFT OPERATION
Sl. Designation Number Rate Salary
No. (Rs./Month)
A. ADMINISTRATION :
General Manager 50 28,000 1,400,000
C.A. 25 25,000 625,000
Accountants 100 15,000 1,500,000
Office Attender 200 8,000 1,600,000
Legal consultant 10 20,000 200,000
SUB TOTAL 385 5,325,000
Including Fringe Benefits 10% 5,857,500
B. PRODUCTION :
Chemist 50 15,000 750,000
Supervisor 200 15,000 3,000,000
Machine Operator 200 10,000 2,000,000
Skilled Workers 200 10,000 2,000,000
Unskilled Workers 3000 8,000 24,000,000
3,650 31,750,000
Benefits 10% Rs. 3,175,000
Total Varaiable Wages 34,925,000
GRAND TOTAL 40,782,500
Total Annual Salary Fixed 70,290,000
Total Annual Wages-Variable 419,100,000
Total Annual Salary Expenses 489,390,000
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Year Capacity
Utilisation
Rs. in lakhs With increase
of 10% p.a.
I 80% 405,570,000 405,570,000
II 80% 405,570,000 446,127,000
III 90% 405,570,000 446,127,000
IV 90% 426,525,000 469,177,500
V 90% 426,525,000 469,177,500
Note:- An approx increase in Slary & wages of 10% p.a. has been considered in above
calculation.
CONSUMABLE STORES
Sl.No. Particulars Amount
1 Grease and
Lubricants 1,000,000
2 Stores and Parts
1,000,000
Total
2,000,000
Year Capacity Amount
Utilisation (In lacs)
I 80% 16.00
II 80% 16.00
III 90% 18.00
IV 90% 18.00
V 90% 18.00
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OTHER EXPENSES
Printing and Stationery 12,000,000
Insurance Charges 1,800,000
Miscellaneous Expenses 24,000,000
Advertisement and Sales Expenses 180,000,000
Transportation 2,000,000
Total 219,800,000
Yr 10% increment
1 2,198 2,198
2 219,800,000 2417.8
3 219,800,000 2659.58
4 219,800,000 2925.54
5 219,800,000 3218.09
Mixture of Raw Material
Material %age Rate/kg Cost of per Brick of 3 Kg
Fly Ash 70.0% 0.20 0.42
Cement 0.0% 6.50 0
Coarse Sand 15.0% 0.40 0.18
Lime Vergin 5.0% 2.50 0.375
Gypsum 10.0% 3.00 0.9
Total 100.0% 1.875
INSTALLED ANNUAL CAPACITY
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Year Item Qty Capacity Actual Rate Annual
expenditure
Utilisatio
n
Production Rs.
Ps.
I Raw
Material
83520000
0
Nos 80% 66816000
0
Nos 1.88
1,252,800,00
0
II Raw
Material
83520000
0
Nos 80% 66816000
0
Nos 1.88
1,252,800,00
0
III Raw
Material
83520000
0
Nos 90% 75168000
0
Nos 1.88
1,409,400,00
0
IV Raw
Material
83520000
0
Nos 90% 75168000
0
Nos 1.88
1,409,400,00
0
V Raw
Material
83520000
0
Nos 90% 75168000
0
Nos 1.88
1,409,400,00
0
PHASED REVENUE PROGRAMME
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INSTALLED ANNUAL
CAPACITY
Yea
r
Item Qty Capacity
Actual
Rate Annual
Revenue
Utilisatio
n
Production Rs.
Ps.
Realisation
I Bricks
835,200,00
0
Nos 80% 66816000
0
No
s
4.25
2,839,680,00
0
II Bricks 835200000 Nos 80% 66816000
0
No
s
4.25
2,839,680,00
0
III Bricks 835200000 Nos 90% 75168000
0
No
s
4.25
3,194,640,00
0
IV Bricks 835200000 Nos 90% 75168000
0
No
s
4.25
3,194,640,00
0
V Bricks 835200000 Nos 90% 75168000
0
No
s
4.25
3,194,640,00
0
PARTICULARS Requirments 1st year 2nd year
3rd
year
4th
year
5th
year
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in days
Sundry Debtors 30 2366.40 2366.40 2662.20 2662.20 2662.20
Power 60 439.36 439.36 489.28 489.28 489.28
Salary and wages 30 337.98 371.77 371.77 390.98 390.98
Consumable Stores 30 1.33 1.33 1.50 1.50 1.50
Repair and Maintenance 15 2198 2418 2660 2926 3218
Other Administrative
Expenses 60 2.00 2.40 2.88 3.46 4.15
Contingency 10.00 10.00 10.00 10.00 10.00
Total 5355.07 5609.07 6197.21 6482.96 6776.20
PROJECT COST AND SOURCE OF FINANCE
(Amtt. In Rs. )
COST:
Land including Developments 210,000,000
Technical Civil Work for Factory Building 121,000,000
Plant & Machinery 202,000,000
Preliminary And Pre-operative Expenses 3,000,000
Operating
Capital
535,506,833
Total 1,071,506,833
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SOURCES :
SPV Contribution 1,500
Bank Loan 9,215
Total 10,715
DEPRECIATION - WRITTEN DOWN VALUE METHOD
Particulars 1st year 2nd year 3rd year 4th year 5th year
Land
Building and Civilwork:
Opening Balance 121000000 114950000 109202500 103742375 98555256
Less: Depreciation
@
5% 6050000 5747500 5460125 5187119 4927763
Closing Balance 114950000 109202500 103742375 98555256 93627493
Machinery and Equipment
Opening Balance 197000000 177300000 159570000 143613000 129251700
Less: Depreciation
@
10% 19700000 17730000 15957000 14361300 12925170
Closing Balance 177300000 159570000 143613000 129251700 116326530
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computers & Softwares
Opening Balance 5000000 4000000 3200000 2560000 2048000
Less: Depreciation
@
40% 1000000 800000 640000 512000 409600
Closing Balance 4000000 3200000 2560000 2048000 1638400
Total Depreciation 26750000 24277500 22057125 20060419 18262533
Depreciated value 296250000 271972500 249915375 229854956 211592423
INTEREST AND REPAYMENT ON TERM LOANS
0.00
A Name of Institution-Bank ………………………….. BANK
B Term Borrowing Amount 9215.07 Lacs
C Repayment Term (Years) 5 Years
D Repayment Instalments 20.00 Instalments
E Repayment Commencement Year - 1; 1st Qtr.
F Rate of Interest(General) 12.75% p.a.
F Rate of Interest(Initial) 0.00% p.a.
G Apply Gen. Int. Rate from Year 1 Quarter :: 1
H Interest Calculation Quarterly
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Operating
Year
Period
Ended
Repayment Outstanding Interest Outstanding at
the End
Year wise
Principal
Repayment
Quarter
Ended
1-2 1.00 0.00 9215.07 293.73
2.00 0.00 9215.07 293.73
3.00 737.21 8477.86 270.23
4.00 737.21 7740.66 270.23
TOTAL : 1474.41 1127.92 7740.66 16.00%
2-3 1.00 414.68 7325.98 246.73
2.00 414.68 6911.30 233.52
3.00 414.68 6496.62 220.30
4.00 414.68 6081.95 207.08
TOTAL : 1658.71 907.63 6081.95 18.00%
3-4 1.00 506.83 5575.12 193.86
2.00 506.83 5068.29 177.71
3.00 506.83 4561.46 161.55
4.00 506.83 4054.63 145.40
TOTAL : 2027.32 678.52 4054.63 22.00%
4-5 1.00 506.83 3547.80 129.24
2.00 506.83 3040.97 113.09
3.00 506.83 2534.14 96.93
4.00 506.83 2027.32 80.78
TOTAL : 2027.32 420.03 2027.32 22.00%
5-6 1.00 506.83 1520.49 64.62
2.00 506.83 1013.66 48.47
3.00 506.83 506.83 32.31
4.00 506.83 0.00 16.16
TOTAL : 2027.32 161.55 0.00 22.00%
Total
Loan 9,215.07 3,295.65
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amount
Note : Repayment is considered as being made at the end of the period
PROJECTED BALANCE SHEET
(Rs. in lakhs)
Particulars Zero Date Ist Year 2nd Year 3rd Year 4th Year 5th Year
A. Fixed Assets :
Gross Block 5330.00 5330.00 5062.50 4819.73 4599.15 4398.55
Less : Depreciation 0 267.50 242.78 220.57 200.60 182.63
Net Block A 5330.00 5062.50 4819.73 4599.15 4398.55 4215.92
B Current Assets :
1.Working Cap. 0 5355.07 5609.07 6197.21 6482.96 6776.20
2. Cash and Bank
Surplus
5355.07 2633.80 4540.11 6888.37 9366.03 11804.23
Total Current
Assets
5355.07 7988.87 10149.17 13085.58 15848.99 18580.43
C Misc.Assets
Preliminary Exp. 30 24.00 18.00 12.00 6.00 0.00
D. Total Assets(D = A +
B+ C)
10715.07 13075.37 14986.90 17696.73 20253.54 22796.35
E. Capital 1500.00 1500.00 1500.00 1500.00 1500.00 1500.00
F. Bank Loan 9215.07 7740.66 6081.95 4054.63 2027.32 0.00
G. Accumulated Profits 0 3834.72 7404.95 12142.10 16726.22 21296.35
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H. Total Liability 10715.07 13075.37 14986.90 17696.73 20253.54 22796.35
ROI 29% 24% 27% 23% 20%
CASH FLOW STATEMENT
Particulars Constructio
n
Period Ist Year 2nd
Year
3rd
Year
4th Year 5th Year
A. Source Funds :
1. Opening Balance 0.00 2633.80 4540.11 6888.37 9366.03
2. Cash Accurals during
Year
(Net Profit after
Tax)
0 3834.72 3570.24 4737.15 4584.12 4570.13
3. Increase in capital 1500.00 0.00 0.00 0.00 0.00 0.00
4. Depreciation 267.50 242.78 220.57 200.60 182.63
5. Bank Loan 9215.07 0.00 0.00 0.00 0.00 0.00
6.Preliminiray Exp.
W/off
6.00 6.00 6.00 6.00 6.00
Total Sources 10715.07 4108.22 6452.82 9503.83 11679.09 14124.79
B. Disposition of
Funds :
1. Preliminary and Pre- 30.00 0.00 0.00 0.00 0.00 0.00
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operative Expenses
2. Increase in fixed
assets
5330.00 0.00 0.00 0.00 0.00 0.00
3. Loan Payment 1474.41 1658.71 2027.32 2027.32 2027.32
4. Increase in
Operating Capital
0.00 0.00 254.00 588.15 285.74 293.25
Total Disposition 5360.00 1474.41 1912.71 2615.46 2313.06 2320.56
C. Net Surplus (A -B) 0.00 2633.80 4540.11 6888.37 9366.03 11804.23
6. MARKET DEMAND ANALYSIS
TOP BRANDS WITH LARGE REQUIREMENT OF FLY ASH PRODUCTS
3F Group A2Z Action Adani
Aditya Birla Adventz Agrigold Alchemist
Alcon Ambuja Ansal Apeejay
Ashok Piramal Bafna Bajaj Bharti
Binani Chettinad Chitale Chokhani
Chowgule DLF DS Empire
ERA Escorts Essar Essel Group
Express World Future GMR Godrej
Hero HNG IL&FS Indage
IVRCL Jaypee Jindal Kalpataru
Karvy Kohinoor L&T Lanco
Liberty M2K Mahindra Mayar
MGF Murugappa Group Muthoot Natvar Parikh
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Navayuga NSL OM Pailan
Punj Lloyd Raheja Ram Ratna Ramky
Reliance Ruchi Ruia S R Jindal
Sahara Sai Prasad Saint-Gobain Sandesara
Sanghi Group Semco Shrachi Shriram
CITY WISE RESIDENTIAL & COMMERCIAL CONSTRUCTION COMPANIES
City No of Cos
Mumbai 189
Bangalore / Bengaluru 154
Pune 141
Hyderabad 68
Chennai 126
New Delhi 168
DELHI NCR AVERAGE BRICK & BLOCK ORDERS WHICH CAN BE AQUIRED
➢ L&T – Has projects across NCR where in the average demand we can target is between
20 – 30 Cr. bricks per year.
➢ DLF – Has projects across NCR with main focus towards Gurgaon – Jaipur belt, EENT can
target an order of a minimum of 10 Cr Bricks/Blocks average per year.
➢ Jaypee – Major projects in Noida, UP area, can estimate 5 Cr Bricks per year.
➢ Amrapali Group – Major projects in Noida & Gaziabad, Merrut Strip, we can have an
average target of 20 to 30 Cr bricks yearly
➢ Supreme Infratech – Major projects across NCR & major Government projects, we can
aim 20 – 30 Cr Bricks yearly.
All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com
This is on ground study of actual orders in the market with an average rate ranging between Rs
4.65 to Rs 4.90 per brick. Further to this we can achieve 60 to 100 Cr brick order over a period
of 3- 6 months of marketing on ground.
THANK YOU
EENT GREEN PROJECT TEAM
The project was developed for the world’s first structured Fly Ash Industrial area & Research Centre in India.
All the financial calculations & quotations are in accordance to FY-2014-15.
All Rights reserved -Arunesh Chand Mankotia
aarunesh@gmail.com

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Strategic business proposal eent - green brick project - arunesh chand mankotia

  • 1. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com EENT STRATEGIC BUSINESS PROPOSAL The project was developed for the worlds first structured Fly Ash Industrial area & Research Centre in India. All the financial calculations & quotations are in accordance to FY-2014-15. All Rights reserved -Arunesh Chand Mankotia aarunesh@gmail.com
  • 2. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com CONTENT 1. INTRODUCTION (1.1) EENT (1.2) THE END OF TRADITIONAL RED BRICK INDUSTRY (1.3) FLY ASH BRICKS (1.4) FLY ASH BRICK INDUSTRY (1.5) FLY ASH TECHNICAL & PRODUCTION SPECIFICATION 2. EENT PROPOSED PROJECT OVERVIEW (2.1) INFRASTUCTURE (2.2) MACHINERY (2.3) RAW MATERIAL (2.4) POWER SUPPORT (2.5) ADMINISTRATION (2.6) SALES & MARKETING 3. CENTRAL INDUSTRIAL SUPPORT (3.1) RAW MATERIAL & STORAGE (3.2) CENTRAL LOGISTIC MANAGEMENT (3.3) MAINTENANCE
  • 3. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com (3.4) TRAINING & TECHNICAL SUPPORT (3.5) INDUSTRIAL & UNIT LEVEL SYNERGIES 4. FINANCE 5. PROJECT ESTIMATION 6. MARKET DEMAND ANALYSIS
  • 4. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 1. INTRODUCTION The aim of this proposal is to present futuristic modernization based on following - KEY BUSINESS OPPORTUNITY INDICATORS (A) Modernization in traditional Red brick Industry with transforming them to Green bricks demand. (B) Acting before its late as Red bricks are on extinction. (C) Developing one brand with mass production and mass consumption at low costs. (D) Strategic Green brick enabling competitive project to capture markets across major construction hubs. (E) Development of an Industrial Synergy making it self sufficient zone with internal structure creating cost effective expense V/S profits. (F) Maintaining Industrial social responsibility with modernizing Non-eco friendly production ways to Green technology, consuming Fly Ash & minimize Ecology Damage. The concept involves in developing the identified area to Green Brick Industrial set up with common area of operations, central production technology along with in-house raw material, logistic, Power management, Sales & Marketing & other support services. The core strategy is to build a hub for supply to all major projects across national & international demand. The core forte of the project is in continuous increase in production which enables us to capture market with centralized approach.
  • 5. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 1.1 EENT. The Organization EENT Mission To Revolutionise the Green building material industry with transitioning the traditional red clay brick to Green brick with one brand. EENT Vision Complete brick Industry modernization with strategic approach on continuous excellence & growth. EENT is a futuristic movement aiming to restructure & develop green building products. Our strength is one brand with vast reach. We also aim to specialize and develop Regional Industrial park streamlining the operations with centralized manufacturing zone making us one stop shop for market. EENT is planning the proposed project technology widely in accordance to standards set by Technology Mission, Ministry of Science & Technology, Building Materials & Technology Promotion Council, Ministry of Urban Development, UNIDO, ESCAP, NTPC, HUDCO etc and various parties from India and abroad have approached to procure turn-key plants. Proposed Quality Policy for Production With centralised quality policy for production’ high quality is ensured, Certification and Product manufacturing standards. Total Quality through the entire product manufacturing and delivery cycle will be achieved by following the compliance policy. 1. Compliance to IS: 12894–2002 for production of Fly Ash bricks. 2. Compliance to ISO 9001 and 14001.
  • 6. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 1.2 THE END OF TRADITIONAL RED BRICK INDUSTRY Central Pollution Control Board (CPCB) has recognized the brick production industry as a highly resource and energy intensive and polluting industry owing to prevalence of obsolete production technologies. While, the clusters are the source of local air pollution affecting local population, agriculture and vegetation; at a global scale they also contribute to climate change. The brick industry competes for resources with other sectors, which poses a significant challenge to the sector. Coal is one such resource that is required for the power, steel and other crucial sectors. Also, top soil or land which could be used for agriculture. The traditional kiln unit itself occupies considerable land area and is subjected to high temperature making it unfit for agricultural activities (after the site is abandoned). The fast depletion of arable land thus caused due to brick making is a matter of concern to India regarding food security. With an average consumption of 18 tonnes of coal per 100,000 bricks, the brick sector consumes about 24 million tonnes of coal per year which is about 8 % of the total coal consumption of the country (third largest consumer after power and steel sector). In addition, it also consumes several million tonnes of biomass fuels. The share of energy in total cost of brick production is 35-50 %. The large coal consumption of the brick industry is the cause of significant air pollution in terms of carbon dioxide (CO2), carbon monoxide (CO), sulphur dioxide (SO2), nitrogen oxides (NOx) and suspended particulate matter (SPM). The large amounts of coal used for brick firing also leave behind bottom ash as residue. The air pollution and bottom ash generated cause considerable health problems, especially related to respiratory health, while also causing damage to property and crops. The Supreme Court of India issued a directive for discontinuing the movable chimney kilns and for all brick kilns to conform to new environmental norms. While this signalled a move in the right direction, due to lax monitoring mechanisms such kilns continue to function and flout environmental regulations. Additionally, while kilns with higher production levels and capital
  • 7. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com have the option to changeover to fixed chimney type BTKs, the small and medium scale brick entrepreneurs are confronted with environmental Regulation without having financially viable options to switch and thus continue to run polluting kilns. Socio-Economic Issues The workers in the brick industry are subjected to extreme working conditions and poor remuneration. Currently in India, brick manufacturing is a labour-intensive sector, with crude techniques causing considerable worker drudgery. They are also exposed to high concentrations of Respirable Suspended Particulate Matter (RSPM), during monitoring and regulating the fire, as the furnace chamber is covered with ash (ash acts as insulator). As well as during the manual mixing of fly ash and clay and due to the open dumping and storage of fly ash. Transportation of green and red bricks is done by a head load of 9 to 12 kgs causing health problems, especially in women. Even though the brick workers are exposed to these occupational hazards, coverage under any sort of insurance or medical facilities is virtually unheard of. In the brick sector, labour is brought in through a contractor (from distant places). Since they are not on the payrolls of the kiln owner, they are not covered under the current labour laws, e.g. Minimum Wages Act. The work force is paid on basis of quantum of work and against completion of certain tasks such as moldings of 1000 bricks, transportation of 1000 bricks etc. The seasonal nature of brick production generates employment for a limited period of six - seven months in a year. Majority of the workforce has no option, but to engage as labourers (generally as agricultural labourers) for the rest of the year. The nature of the work requires skilled labour especially for molding and firing. There is large scale migration towards the major brick production clusters every season due to this. These tasks are traditionally handed down from father to son in the communities. The last few years have seen a labour shortage as the newer generation does not want to be associated with the brick sector any longer. A phenomenon observed in certain clusters due to this shortage is the hoodwinking of entrepreneurs by labour by promising their services to multiple owners, taking advances and not turning up. Labour rates have also gone up driving down margins for kiln owners.
  • 8. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 1.3 FLY ASH BRICKS Pulverized ash brick (PAB) technology is a process of converting industrial waste materials into quality building materials. At present, the technology is well established in converting thermal power plant waste into quality bricks. PAB technology uses dry ash (fly ash collected from ESP or silos of thermal power plants); filler materials (usually coarse sand or stone crusher dust); and additives (lime, gypsum or cement). The strength of the bricks can be engineered by varying compositions. Equipment used can be manual or mechanized. Mechanized machines deploy hydraulic compaction to produce a variety of bricks and can be operated through electric or diesel power. Pulverized coal ash (PCA) is one of the major residues generated during the combustion of coal in thermal power plants. Though PCA is a waste product for the power sector, it's used as a raw material, primarily, in construction. PCA is generally classified into three types depending upon its particle size and zone of collection. ‘FLY ASH’ is the extremely fine ash ‘flying’ along with flue gases is trapped in electro-static precipitators (ESP) and is collected. The relatively coarser ash generated at the bottom of the boilers is mixed with water, made into slurry and pumped into fill sites called ‘ash ponds’. This ash forms the bulk of the ash generated and is termed as ‘POND ASH’. Depending upon the boiler design and efficiency, the ratio of fly ash to pond ash varies between 70:30 and 80:20. In some older and relatively inefficient thermal power plants, a coarser variety of ash is generated called ‘BOTTOM ASH’. This has appreciable carbon content but cannot be collected separately. This is also mixed with pond ash and pumped to ash fill sites.
  • 9. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 1.4 FLY ASH BRICK INDUSTRY The construction industry contributes to about 10 % of the Gross Domestic Product (GDP), registering an annual growth of about 9 %. Clay fired bricks form the backbone of the construction industry which is valued at approximately US$ 70.8 billion. The brick sector in India, although unorganized, is tremendous in size and spread. India is the second largest brick producer (China dominates with 54 % share) in the world. It is continuously expanding on account of a rapid increase in demand for bricks in infrastructure and housing industries. In order to meet this demand, over 150,000 brick units provide direct employment to more than 8 million workers. During the Ninth Five-year Plan period (1997-2002), the annual demand of 170 million bricks per year was estimated to be generating revenues of over US$ 4.8 billion. GLOBAL BRICK CAPIBILITY INDIAN REGIONAL BRICK CAPIBILITY
  • 10. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com According to the report published by the census in March, 2011, the total population of the country was 1,210,193,422. A total of 181 billion people increased from the previous census of 2001. Presently mostly populated states of India are ➢ Uttar Pradesh, ➢ Bihar, ➢ Maharashtra, ➢ West Bengal, ➢ Tamil Nadu and Madhya Pradesh. BIHAR & WEST BENGAL BIHAR needs over 7500 million bricks over the next five years just to meet the rural housing gap of 1.1 million dwellings per year. Potential savings of 2.8 million tonnes of CO2e are
  • 11. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com possible while creating livelihoods for 0.35 million people by introducing cleaner production systems. BIHAR Industrial incentive policy (2011) Bricks units are not eligible for subsidy except for mechanized units engaged in manufacturing refractory bricks and bricks from fly ash, red earth, raw industrial waste material which can qualify for incentives. The older Industries Incentive Policy, 2006 of Bihar excluded all brick manufacturing units from any incentives. BIHAR state government has mooted an incentive policy to encourage the brick kiln owners to produce bricks by using fly ash to prevent degradation of environment and infertility of land in Bihar. The greater use of coal in production of bricks caused pollution and degrade environment, besides damaging underground soil due to heat at and around brick kiln units, he said. Countries like China has banned brick production at coal-based units as a measure to protect environment and encourage use of fly ash as an alternative raw material, The fly ash will be available in abundance near the thermal power plants in the state in time to come and the brick kiln owners will be encouraged to use raw materials for production of bricks. The state government has developed policies also because Bihar has high Fly Ash because if major thermal plant availability & sand for production of bricks as the natural material was available in large quantity at the river beds in Bihar. The state government will prepare a new sand policy for use and marketing of the raw material for revenue. WEST BENGAL, The current yearly production of fly ash based bricks is 10 crores approx. The Central and State Governments are greatly concerned about top soil erosion for the production of massive quantities of clay bricks for enormous housing needs. The Ministry of Power, Government of India, issued circulars to all concerned department and organizations to promote the use of Fly-Ash in the production of building materials. In West Bengal, presently has 65 major, fly ash based brick units are running. There are more 16 units up coming in 2013. With a single machine 20,000 bricks making are possible in two shifts/ day. WEST BENGAL coastal area salinity level is very high. Mostly Fly Ash based bricks are salinity free bricks. With the support of Govt, if supply of bricks in those areas may done in West Bengal then the building strengths of those areas will increase and brick will also get the
  • 12. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com popularity. BIHAR, is capable of capturing this market as cost of production other supporting production capability is high. West Bengal Pollution Control Board had submitted a project proposal on “Capacity Building for Efficient Utilization of Coal based Thermal Power Plants ash in the State of West Bengal” to the Fly Ash Unit, Department of Science & Technology, and Government of India. Objective of this project is to transfer the Knowledge for effective utilization of Fly Ash in Constructions among the target groups. Ministry of Rural Development through Indira Awas Yojana(IAY) undertake the project of housing for rural poor with Centrally sponsored scheme where the cost shared between the Centre and States on a 75:25 basis. In this kind of schemes or Yojana WEST BENGAL & BIHAR state Govt. may use Fly Ash based bricks for housing to reduce the cost. FLY ASH PROJECT SCALIBILITY India generated 145,000 MW of power in 2008. 63% of it was from coal-based thermal power plants. During generation of the above, approximately 150 million tonne of pulverized ash was generated in 2008 alone. In India, low-ash high-grade coal is reserved for the metallurgical industry. Thermal power plants, therefore, are compelled to use high-ash low- grade coal with ash content that is often as high as 40% or more. This is the major source of generation of vast amounts of PCA. As the power requirement goes up in coming years and more power plants are built, the amount of PCA generated will increase and create more problems for safe disposal. It is estimated that by 2012, India will generate around 175 million Tonnes of PCA every year. MINISTRY NOTIFICATION The Ministry of Environment and Forests (through its notification published in the Gazette of India, Part II, Section 3, sub section (ii), vide S.O. 763(E) dated 14th September, 1999) issued
  • 13. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com directives for proper utilization of fly ash discharged from coal or lignite-based thermal power plants. The importance for restricting the excavation of top soil for manufacture of bricks and promoting the utilization of fly ash in the manufacture of building materials and in construction activity was recognized. It was notified that within a radius of 100 km from a coal or lignite-based thermal power plant, all brick making units must compulsorily utilize 25% of fly ash (by weight) This notification was supported by the High Court of Delhi in its order dated 25th August, 1999 in Centre for Public Interest Litigation, Delhi v/s Union of India (CWP No. 2145/99). The highlights of the notification was 1. Use of fly ash, bottom ash or pond ash in the manufacture of bricks and other construction activities. a) Within a radius of 100 km from coal or lignite based thermal power plants, no person shall manufacture clay bricks, tiles or blocks (for use in construction activities) without mixing at least 25% of ash with soil on weight basis. b) The authority for ensuring the use of specified quantity of ash shall be the concerned Regional Officer of the State Pollution Control Board. c) In case of non-compliance, the authority (in addition to cancellation of consent order issued to establish the brick kiln) shall move the district administration for cancellation of the mining lease. To enable the authority to verify the actual use of ash, the thermal power plant shall maintain monthly records of ash made available to each brick kiln. 2. Availability of fly ash for brick making a) Every thermal power plant shall make available ash, for at least ten years without any payment or any other consideration for the purpose of manufacturing ash-based products. b) Central and State Government Agencies, State Electricity Boards, NTPC and the management of the thermal power plants shall facilitate in making available land, electricity and water for manufacturing activities and also provide access to the ash
  • 14. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com lifting area. This will promote and encourage setting up of ash-based production units proximate to the area where ash is generated by the power plant. 3. Specifications for use of ash based products a) Every construction agency engaged in the construction of buildings within a radius of 100 km from thermal power plants shall use fly ash bricks in construction projects. It shall be the responsibility of the construction agencies (either undertaking the construction or approving the design or both) to ensure compliance. Concluding the study snapshot If Fly Ash bricks can replace 50% of clay bricks then it will reduce emission of green house gas by 435,000 tons each year. Fly Ash based Bricks industries needs fragmented market that are serviced by plants located in the local area. The present utilization of Fly Ash in the country is nominal as compared to other advanced countries. Continuous effort is needed to increase the utilization of the Fly Ash in our country. There is a necessity in future for all Thermal Power Stations to utilize as much quantity of ash as possible to reduce the disposal problems. Bricks consumption has recorded a three- fold increase in last decade mainly due to step increase in demand from the housing segment Infrastructure and industrial construction from the other major consumer of the brick industry. (1.5) FLY ASH TECHNICAL & PRODUCTION SPECIFICATION TECHNICAL SPECIFICATION Sl. No. Items Conventional clay burnt bricks Fly Ash based bricks
  • 15. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 1. Dimension in mm(LXWXH) 250mmX125mmX75mm 190mmX90mmX90mm 230mmX110mmX75 2. Colour Red Grey Grey 3. Basic Ingredient earth or clay fly ash fly ash 4. Density (gm/cc) 1.60-1.70 1.80-1.90 1.80-1.90 5. Dry weight(in kgs) 3.75-4.00 2.80-2.90 3.3- 3.5 6. Common building bricks compressive strength (kg/cm2) 50-65 70-90 75-100 7. Water absorption (in %) 15-25 10-15 10-15 8. Breakage 5-7 1/2 percent Less than 1% Less than 1% 9. Efflorescence present negligible negligible 10. Eco-friendly NO YES YES 11. Mortar saving: During laying During plastering N.A N.A. 10-15% 25-30% 10-15% 25-30%
  • 16. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 12. Carpet area savings per % rmt N.A. N.A. 6.8m2 2.80m2 13. Brick requirement per % sqm Per % cum 4951 38,900 5065 50,000 4951 40,600 14. Labour Cost 20 – 30% 15 – 20% 15 – 20% 15. Quality Control Less possible 100% 100% 16. Outside plastering must May be avoided, ruled pointing may be applied May be avoided, ruled pointing may be applied 17. Water treatment: Dipping in water before use prior brick work Labour cost involved(24 hours must) Labour cost nil Labour cost nil 18. Whether qualifies for CMD in terms of Kyoto Protocol NO YES YES FLY ASH BRICK PRODUCTION PROCESS FLOW
  • 17. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Production Process Checks Centrally: ➢ Constant monitoring of moisture content in the mix. ➢ Observation of texture, dimension and height. ➢ Evaluation of curing time. ➢ Routine plant checks as per manual. ➢ Regular maintenance with qualified technicians. (1.6) FLY ASH BRICKS ADVANTAGES & COMPARISION
  • 18. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com ADVANTAGES ➢ Environment Friendly: GREEN brick uses unfired Fly Ash technology hence the CO2 emissions in the manufacturing process are limited & helps in conservation of precious top-soil. ➢ High Compressive Strength: Bricks composition, ensure that we achieve compressive strengths of 75-100 kg/sq.cm and above, which is 2-3 times the products in the market. ➢ Excellent Thermal Insulation: The buildings using fly ash bricks are cool in summers and warm in winters. The high insulating property, with low embodied energy, of our products reduces the energy consumption of the buildings significantly by as much as 40-50%. ➢ Excellent Sound Insulation: Fly ash bricks are sound absorbent and restrict sound transmission keeping the interiors very pleasant and quiet. ➢ Fire Resistance: Fire resistance of fly ash bricks is very high as these bricks are composed of fly ash as its major constituents, which is the un-burnt residue of the coal fired in a thermal power plant. ➢ Nil Efflorescence: Fly ash bricks resist salt and other sulphates attack, ensuring no efflorescence in the structure. ➢ More than 75% (by weight) post-industrial recycled materials are used in the manufacture of bricks. Fly-ash is a thermal power plant waste product and the Lime used in our bricks is also considered an industrial waste. COMPARISION .No Properties Puzzolana Flyash Bricks Conventional Clay Bricks 1 Basic Raw Material Pozzolan – Flyash Clay 2 Size & Quality Uniform ( Factory made) Uneven 3 Number of Joints in construction Less (uniform size) More (uneven size) 4 Mortar requirement Less More 5 Platering Less More 6 Direct Gypsum Plaster Possible Not Viable 7 Compressive strength More Less 8 Standards IS:12894 – 2002 IS:3495(Pt.I)1976 2. EENT PROPOSED PROJECT OVERVIEW
  • 19. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Our core focus is to modernize the Brick industry with developing a team of traditional brick producers and create a brand which aims in developing industry, market & regional growth. EENT as a facilitator, coordinator & developer will evolve its strengths to have mass production with cost & quality effective support system. The demand is high and the current market & EENT market reach assures mass order which aims mass production, our reason to initiate this project is based on the principle of supporting the production, the key features are – EENT role will focus on specific functions divided in three stages Responsibilities EENT & Individual Manufacturers. START UP OPERATIONS OF GREEN BRICKS, TRAINING, IMPLIMENTATI ON & PRODUCTION MANAGE OVERALL PRODUCTION, OPERATIONS, & COST EFFECTIVE MEASURES FOCUS ON POST START UP DEVELOPMENT AROUND THE CONCEPT EENT FACILITATES DEVELOPMENT OF LAND, PRODUCTION AND PROJECT FINANCING PLAN, SUPPORT FOR RAW MATERIAL, LOGISTIC, ADMINISTRATIVE, MARKETING & TECHNICAL SUPPORT MANAGE PROCUREMENT, R&D, CONTINUOUS DEVELOPMENT, LABOR & OTHER AREA OF POLICIES & REFORMS THE UNITS UNDERTAKE PRE & POSTPRODUCTION SOP,S & START ON TARGET PRODUCTION THE MANUFACTURER WILL MAINTAIN MAX PRODUCTION TARGETS WITH EQUAL STANDARDS OF QUALITY IN ACCORDENCE TO THE NORMS DEVELOP MARKETING CHANNEL & CAPTURE ALL MAJOR PROJECTS GOVERMENT/PRIVA
  • 20. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 2.1 INFRASTUCTURE EENT propose to develop 250 Acres (11250000 SFT) of land at acquired coordinates into Fly Ash Brick production zone. This development will be into two stages (a) In the primary stage overall land development will be primary focus this would include – ➢ 250 Acres demarcated leveled land with defined boundary & commercial norms in accordance to the Bihar State Land Act. ➢ Structured Road connecting the internal layout within boundaries built for production & non production area. ➢ To start with CENTRAL production units with dedicated area of 50 Acre Area in first phase, with internal road, water pipeline fittings, power point connection & carpet area leveled to standards required for Fly Ash production area. ➢ 150 Acres of continuous development & 50 Acres, land dedicated to Raw Material Storage, Central & Support function along with allotted Land for future development. (b) Non production Area which is dedicated to support & Administrative and other development activities. ➢ The 200 Acres of area will be analyzed in accordance to the stage wise structural & on ground developments and the utilization aim is to create 360* support with cost effective institutions around. ➢ Raw material storage will be a central effort where in EENT, will have in house mass storage facility which will support in production efficiency along with cost margins increase since transport cuts down & large scale procurement EENT, can assure competitive price for production. ➢ Other allied facilities will be developed around the production minimizing the production burden & productivity.
  • 21. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com MASTER LAYOUT DUMMY MAP (Not on scale) (Production Area) Administrative & Support Zone Central Storage Area EENT FLY ASH PROJECT PROPOSED LAND Total 250 Acres Developmental Land for Future Project Growth FUTURE GROWTH Total Area – 250 Acres Total FUTURE Production Area -150 Acres PHASE 1 – 50 ACRES PRODUCTION AREA Total Area for Non production wing – 50 Acres *MASTER LAY OUT IS IMAGINATIVE ONLY FOR CONCEPT UNDERSTANDING STAGE (I) DEVELOPMENT KEY FEATURES ➢ Developed Roads connecting the internal infrastructure & multiple entries & exists in accordance to convenience of transport. ➢ Defined Boundaries for all internal structure along with outer wall. ➢ 50 Acres of phase 1 production area developed. ➢ Water connections for all structures fitted, pipelines, reservoir, tanks. ➢ Power lines in accordance to the basic lighting & other appliances, ready further to be connected to single line generator systems.
  • 22. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com SINGLE UNIT Single unit operations will be contained with all operational facilities required – ➢ Land Built up area in accordance to the Machine, with specific pits for sub parts and both cemented & dry floor within the facility. ➢ Shed for the machinery & equipments along with separate input & output existence. ➢ Central Storage of Fly Ash, in accordance to the eco norms the ash should not mix with the air therefore compound where in fly ash will be kept safe & wet. ➢ CENTRAL Storage for Sand, Lime & Gypsum. ➢ Administrative Office will be central ➢ Worker Shed ➢ Generator & Power will be central ➢ Mics Shed for tools, equipment ect. 2.2 MACHINERY The Standard machines after analysis of multiple manufacturers the standard brick production unit in accordance to the Area, costing & production is 100 brick production plant with following technical specifications & parts – ➢ Standard block (230mmx110mmx75mm) making automatic mechanism (4 blocks per cycle) ➢ Automatic sliding mould filling hopper assembly ➢ Electronically operated hydraulic power-pack driven by 5HP, 3 phase induction motor, hydraulic oil ➢ Mix feeding conveyor powered by 3HP, 3 phase geared induction motor with input & output hoppers ➢ 2 separate pan mixer of capacity 300 kgs powered by 7.5 HP, 3 phase induction geared motor
  • 23. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com ➢ 1 part hydraulic brick shifting pallet truck ➢ 4 wheel barrows Machinery Technical Specifications Machine type Automatic Electrical power connection 23HP, 3 Phase(2 pan mixer-7.5HP,Conveyor-3 HP, MX-5HP) Rated production capacity 1000 blocks per hour No. of Bricks per stroke 4 bricks( 230x110x75mm) Weight(approx.) 610kgs Machine Process Automatic system Materials mixing Automatic in pan mixer ADDITIONAL EQUIPMENT ITEM Quantity Specification Wooden Pallets 300 Brick placement material Helmets 10 2 Skilled + 8 Unskilled Labor Industrial Gloves 8 8 Unskilled Labor Transferring of mix Conveyor Feeding of mix automatic Block formation and ejection Automatic controlled electro hydraulic system Bloke transfer Pallets on hydraulic truck Manpower 8 Total area required 950mseq Semi covered 90-110mseq
  • 24. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com MACHINE LAYOUT MAP
  • 25. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 2.3 RAW MATERIAL The Raw materials are the most important aspects of brick quality & strength makes the product sellable, in accordance to the basic availability Fly Ash is mixed with gypsum, lime, sand & lastly Construction cement in some special case as it increases the costs. Mixing Formula (a) Fly Ash (70%) + Sand (15%) + Gypsum (10%) + Lime (5%) (b) Fly Ash (70%) + Sand (20%) + Gypsum (10%) NOTE: The configuration is designed tailor made in accordance to physical properties of all the material like strength ECT, the overall average deviation in the mixture component is 5 to 10 %. Single Brick Analysis ➢ Standard brick size - 230x110x70 mm ➢ Standard weight – 3 Kgs ➢ Single brick weight division – Fly Ash (2.1 KGS) + Sand (0.45 KGS) + Gypsum (.30 kgs) + Lime (0.15 Kgs). Raw material production analysis RAW MATERIAL PER HOUR (1000 Bricks) PER DAY (20 HRS) PER MONTH (29 Days) PER YEAR (29*12 = 348 Days) FLY ASH 2100 Kgs 42000 Kgs 121800 Kgs 1461600 Kgs
  • 26. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com SAND 450 Kgs 9000 Kgs 261000 Kgs 3132000 Kgs GYPSUM 300 6000 Kgs 174000 Kgs 2088000 Kgs SAND 150 Kgs 3000 Kgs 87000 Kgs 1044000 Kgs Total KGS Total Bricks 3000 KGS 1000 Bricks 60000 Kgs 20000 Bricks 643800 Kgs 580000 Bricks 7725600 Kgs 6960000 Bricks 2.4 POWER SUPPORT The power is lifeline to this unit as being eco friendly no smoke production primary concern & area of continuous up gradation. The entire Power management is divided into need base analysis. (a) Stage (I). The Immediate power consumption has been computed with overall expenditure & it is still economical to work on Diesel powered generator for single units for smooth & fast upward race to reach breakeven point to profits. (b) Stage (II). Will carry out detailed study & implementation where in primary targets are ➢ Subsidised power under green projects after we have completed one financial circle. ➢ Solar based projects with secondary project which EENT is already in talks with concerned authority. ➢ Private players will be brought in for power supply which is Stage (III). The idea is to have all possible sources over a period of time will be introduced in the operations and the cost effectiveness will be the key. Calculations FORMULA – 1.36 HP – 1 Kw. FORMULA – 25 HP Generator 0.746xHPXTime in hrs = unit. At full Load – 2.1 Ltr/per hour Consumption Power Diesel consumption
  • 27. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Single Unit 23 HP 25 KWA Generator At full load Per Day (20Hours) 224 Units (Approx) 42 Ltr Per month (29 Days) 6477 Units (Approx) 1218 Ltr Per Year (348 Days) 2253880 Units 14616 Ltr 100 Unit Consumption (25 HP 100 Units) LOAD Litres per Day Month Consumption Year Consumption 2500 HP Full 420 Ltr 12180 Ltr 146160 Ltr 2.5 ADMINISTRATION EENT will be managing administration of following divisions – ➢ Non production area with built up area, EENT monitored employees & property. ➢ Procurement operations ➢ Raw material storage facilities ➢ Other Institutions involved in the project coordination ➢ Other Vendors stationed inside the premises ➢ Management of Logistic, transport central arrangement ➢ Training, maintenance, technical support services ➢ Government Authorities common policies and compliance. 2.6 SALES & MARKETING Sales & Marketing will be a prime function of EENT, as a one brand approach to the market core focus is to target – ➢ Large scale projects as our production capacity of average 1200000 bricks per day from 100 units will bring huge difference.
  • 28. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com ➢ Market monopoly of quality as the procedures, machines & raw material is sourced on common ground which in current market is impossible. ➢ Target specific Government projects where in we can avail subsidies on supply. ➢ Competitive edge over other players as we have cheaper bricks with better quality at far places like Delhi with huge demand and fluctuating rates. ➢ Target market within Bihar, West Bengal is huge as soil excavation is on to its end in these areas. A big fact that West Bengal only produces 15 Cr Bricks average in on year whereas EENT yearly production would be approx 36 CR. ➢ Strong NCR region with demand from Delhi & 300 km radius has huge demand, Meerrut, Agra, Jaipur & other nearing borders. ➢ International destinations are again a big option on large deals as the Port is also at favorable distance. 3. CENTRAL INDUSTRIAL SUPPORT The part & parcel of area development plan EENT will invite support, services & manage strategic operations of Procurement & Logistics. (3.1) RAW MATERIAL & STORAGE ➢ The set up will have central Storage and the support function for supply on daily basis, master storage will be developed within the facility area, this is possible as we would have mass procurement, measurement of consumption of raw material. ➢ Vendors will be given dedicated supply points for cutting down the supply chain & time. ➢ Mainly Storage will be for Fly Ash, Gypsum, Sand, Lime and standards required to store & transport industrial waste. For mass Fly ash storage concrete or dome cylinder. ➢ With Thermal plant within current radius of 80 Kms & upcoming plant around 15 Kms, the major component of brick has easy availability. Storage Facility STORAGE SINGLE UNIT PER YEAR 100 UNIT MONTHLY 100 UNIT YEARLY 7 DAYS FOR 100 UNITS FLY ASH 7560 Tonnes 63000 Tonnes 756000 Tonnes 17640 Tonnes SAND 1620 Tonnes 13500 Tonnes 162000 Tonnes 3780 Tonnes
  • 29. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com GYPSUM 1080 Tonnes 9000 Tonnes 108000 Tonnes 2520 Tonnes LIME 540 Tonnes 450 Tonnes 54000 Tonnes 1260 Tonnes ➢ Total Consumption on overall production has to be computed between, Main Storage--- ---Weekly Supply--------> Master Supply with the area --------Daily Supply---------------- Single unit mini storage. ➢ The quantity suggests having smooth supply chain which will aim 2 principles for storage facilities wherein (I) Single Unit Should have surplus for a minimum of 2 weeks Reserves with Daily or refilling after every 48 Hrs. ➢ The third division is of having main focus on Gypsum, Sand & Lime as Fly ash is fastest to procure. ➢ (3.2) CENTRAL LOGISTIC MANAGEMENT RAW MATERIAL TRANSPORTATIO N TOTAL KMS FROM SOURCE TO STORAGE SINGLE UNIT PER YEAR TRUCKS REQUIRED 100 UNIT MONTHLY TRUCKS REQUIRED 100 UNIT YEARLY TRUCKS REQUIRED 7 DAYS FOR 100 UNITS TRUCKS REQUIRED FLY ASH 80 KMS 756 Trucks 6300 Trucks 75600 Trucks 1764 Trucks SAND 10 KMS 162 Trucks 1350 Trucks 16200 Trucks 378 Trucks GYPSUM 400 108 Trucks 900 Trucks 10800 Trucks 252 Trucks LIME 54 Trucks 45 Trucks 5400 Trucks 126 Trucks ➢ The above calculations are based on 10 Tons storage standard transportation. ➢ Total Material to be Supplied for 1 Year for 100 Units – 1080000 Tonnes ➢ Total Trucks Required – 108000 per Year for 100 Units LOGISTICS REQUIRED FOR SUPPLY OF BRICKS TOTAL BRICK PRODUCTION TOTAL BRICKS 100 UNITS TOTAL WEIGHT TRUCK 10 TONNES RAILWAY RACK 2600 TONNES
  • 30. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 100 UNITS CAPACITY WEEKLY 8400000 BRICKS 25200 TONNES 2520 TRUCKS 1 RACK MONTHLY 30000000 BRICKS 270000 TONNES 27000 TRUCKS 103 RACK YEARLY 360000000 BRICKS 1080000 TONNES 108000 TRUCKS 415 RACK *The calculations output transportation is calculated on actual weight which will have variation 10-+ on actual. (3.3) MAINTENANCE EENT will centrally manage the maintenance system which will be divided in wings. (a) The Unit production will be under yearly maintenance contract where in regular servicing, a team of Mechanical, Electrical & Civil Engineers will be supporting production on 24/7. (b) Breakage & machine faults will be taken care of in emergency basis, the annual contract along with specific services will be charged a fee yearly. Added the team of engineers will work closely with training department & single unit supervisors to ensure correct handling of machine. (c) Standard Machine for all units will be on Warranty/Guarantee & under insurance to streamline maintenance and save added costs to unit owners. (d) EENT will have a Vendor management department which will handle required outside support for maintenance for equipment like Generator Ect.
  • 31. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com (3.4) TRAINING & TECHNICAL SUPPORT Training & technical support will be prime focus of EENT, the material & practical training will be serviced with structured system. (a) In primary start up time EENT, will focus on post installation of the plant training & on job support for (30 Days) & will upgrade the production levels. (b) Post production time to time new staff & up gradation training throughout. Focus on special training to Skilled, Un-skilled labor & supervisor in accordance to role & work efficiency. (c) Technical team will also keep upgrading the production standards on new best practices to develop better quality & quantity across all units.
  • 32. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com (3.5) INDUSTRIAL SYNERGIES With vast project reach EENT, proposes to develop all round synergies across industry building partnerships which add value to the system & selective functions. (a) Proposed banking institution with allotment of operations within Institution, with huge business, payroll management & other daily transactions multiple bank policy will be reviewed to shortlist the best suited terms for production units & EENT. (b) Proposed project of Inviting partners weather in form of Investors or power management system for production (c) With a consumption of 756000 Litres per 100 units per year EENT can allot Diesel supply unit within the production support zone. EENT POST INSTALATION 30 DAYS ON PRODUCTION TRAINING & TECHNICAL SUPPORT POST PRODUCTION TECHNICAL & NEW STAFF TRAINING, UPGRADATION TECHNICAL SUPPORT CONTINUOUS UPGRADES WITH INCLUDING IN HOUSE TECHNICAL TEAM & R&D FACILITY WITH THE ZONE
  • 33. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com (d) Basic area will be allotted to other labor friendly services with common medical aid, labor based services, canteen services Ect. 4. FINANCE EENT will be extending support for overall project from financial perspective. EENT registers the 250 Acres acquired land in accordance to the project & Industrial guidelines. (a) The overall project finance will be divided in yearly growth plan dividing major funding in initial year to build the entire area and further increase production capability yearly. (b) EENT will fund its growth with yearly net profit & will calculate the differential to allocate further investment in ratio of returns annually. (c) The calculations on costing for overall project are divided into – ➢ Developed land along with primary year production set up EENT INDUSTRIAL SYNERGIES POWER MANAGEMENT SYSTEM, FUNDS/TECHN OLOGY DIESEL SUPPLY & OTHER ELECTRIC ALLIED SERVICES MEDICAL, CANTEEN & OTHER LABOR SERVICES BANK ING SERVICES
  • 34. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com ➢ Unit development (Shed, Machinery, Equipment Ect) ➢ Raw material expense & operating costs for 6 months (d) EENT will have funding procedures regulated for all units on similar terms & conditions, the units will have to follow the target projections based on what loan returns will be defined. ➢ The funding will be at overall project level & production capibility, the funding option for this project is wide All India Financial institutions, These include IFCIP ICICI, and IDBI, the three oldest general term-lending institutions (ICICI and IDBI have been transformed into banks in recent years), institutions like Exim Bank, IL&FS, Power Finance Corporation, IDFC, and SIDBI, and insurance companies (tIC and GIC) with marginal exposure to term-lending. State Level Institutions, Industrial Development Corporation (SIDC) and a State Financial Corporation (SFC) which is refinanced by IDBI. ➢ Private Banks, Non- banking financial corporation & Private funding firms. ➢ The interest terms will fall between 12.75% to 16 % in accordance to the current 2013 market standards of Banks, NBFC, financial investors & private funding sources. 5. PROJECT ESTIMATION The estimation for all assumptions has been calculated on ground pricing with December 2013 market rates. LAND AND BUILDING ( Amtt. In Rs.) Area Rate (in acres)
  • 35. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com A LAND AND DEVELOPMENT LAND 250 800000 200,000,000 Land Development 250 40000 10,000,000 SUB TOTAL 210,000,000 B TECHNICAL CIVIL WORK Factory Building & shed 25 4840000 121,000,000 SUB TOTAL 121,000,000 Esclation Cost 5% 16,550,000 Total A + B = 250.00 347,550,000 PLANT & MACHINERY Sl. Particulars Qty Rate Amount No, Nos. in Rs. 1 Brick smith machine 100 1,200,000 120,000,000 2 wooden Plates 40000 400 16,000,000
  • 36. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com 3 Generator 25 KVA 100 500,000 50,000,000 Add : Tax on machine 5% 6,000,000 Transportation 3,000,000 SUB TOTAL 195,000,000 B office Equipments Computers & Softwares 100 50000 5,000,000 SUB TOTAL 5,000,000 C office Furniture Office Equipment, Furniture plus Other Equipment & Accessories LS 2,000,000 TOTAL A+B+C 202,000,000 Pre Operative expenses 3,000,000 UTILITIES Monthly Yearly Sl. Particulars Qty Rate Amount Amount No, Ltrs in Rs. in Rs. 1 Diesal 480000 52 24,960,000 299,520,000 2 Water charges LS 2,000,000 24,000,000 Total 26,960,000 323,520,000 Annual Charges Year Capacity Amt Amt Utilisation (monthly). (Annual in lacs) I 80% 21,968,000 2,636.16 II 80% 21,968,000 2,636.16 III 90% 24,464,000 2,935.68
  • 37. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com IV 90% 24,464,000 2,935.68 V 90% 24,464,000 2,935.68 MAN POWER REQUIRMENTS IN THREE SHIFT OPERATION Sl. Designation Number Rate Salary No. (Rs./Month) A. ADMINISTRATION : General Manager 50 28,000 1,400,000 C.A. 25 25,000 625,000 Accountants 100 15,000 1,500,000 Office Attender 200 8,000 1,600,000 Legal consultant 10 20,000 200,000 SUB TOTAL 385 5,325,000 Including Fringe Benefits 10% 5,857,500 B. PRODUCTION : Chemist 50 15,000 750,000 Supervisor 200 15,000 3,000,000 Machine Operator 200 10,000 2,000,000 Skilled Workers 200 10,000 2,000,000 Unskilled Workers 3000 8,000 24,000,000 3,650 31,750,000 Benefits 10% Rs. 3,175,000 Total Varaiable Wages 34,925,000 GRAND TOTAL 40,782,500 Total Annual Salary Fixed 70,290,000 Total Annual Wages-Variable 419,100,000 Total Annual Salary Expenses 489,390,000
  • 38. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Year Capacity Utilisation Rs. in lakhs With increase of 10% p.a. I 80% 405,570,000 405,570,000 II 80% 405,570,000 446,127,000 III 90% 405,570,000 446,127,000 IV 90% 426,525,000 469,177,500 V 90% 426,525,000 469,177,500 Note:- An approx increase in Slary & wages of 10% p.a. has been considered in above calculation. CONSUMABLE STORES Sl.No. Particulars Amount 1 Grease and Lubricants 1,000,000 2 Stores and Parts 1,000,000 Total 2,000,000 Year Capacity Amount Utilisation (In lacs) I 80% 16.00 II 80% 16.00 III 90% 18.00 IV 90% 18.00 V 90% 18.00
  • 39. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com OTHER EXPENSES Printing and Stationery 12,000,000 Insurance Charges 1,800,000 Miscellaneous Expenses 24,000,000 Advertisement and Sales Expenses 180,000,000 Transportation 2,000,000 Total 219,800,000 Yr 10% increment 1 2,198 2,198 2 219,800,000 2417.8 3 219,800,000 2659.58 4 219,800,000 2925.54 5 219,800,000 3218.09 Mixture of Raw Material Material %age Rate/kg Cost of per Brick of 3 Kg Fly Ash 70.0% 0.20 0.42 Cement 0.0% 6.50 0 Coarse Sand 15.0% 0.40 0.18 Lime Vergin 5.0% 2.50 0.375 Gypsum 10.0% 3.00 0.9 Total 100.0% 1.875 INSTALLED ANNUAL CAPACITY
  • 40. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Year Item Qty Capacity Actual Rate Annual expenditure Utilisatio n Production Rs. Ps. I Raw Material 83520000 0 Nos 80% 66816000 0 Nos 1.88 1,252,800,00 0 II Raw Material 83520000 0 Nos 80% 66816000 0 Nos 1.88 1,252,800,00 0 III Raw Material 83520000 0 Nos 90% 75168000 0 Nos 1.88 1,409,400,00 0 IV Raw Material 83520000 0 Nos 90% 75168000 0 Nos 1.88 1,409,400,00 0 V Raw Material 83520000 0 Nos 90% 75168000 0 Nos 1.88 1,409,400,00 0 PHASED REVENUE PROGRAMME
  • 41. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com INSTALLED ANNUAL CAPACITY Yea r Item Qty Capacity Actual Rate Annual Revenue Utilisatio n Production Rs. Ps. Realisation I Bricks 835,200,00 0 Nos 80% 66816000 0 No s 4.25 2,839,680,00 0 II Bricks 835200000 Nos 80% 66816000 0 No s 4.25 2,839,680,00 0 III Bricks 835200000 Nos 90% 75168000 0 No s 4.25 3,194,640,00 0 IV Bricks 835200000 Nos 90% 75168000 0 No s 4.25 3,194,640,00 0 V Bricks 835200000 Nos 90% 75168000 0 No s 4.25 3,194,640,00 0 PARTICULARS Requirments 1st year 2nd year 3rd year 4th year 5th year
  • 42. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com in days Sundry Debtors 30 2366.40 2366.40 2662.20 2662.20 2662.20 Power 60 439.36 439.36 489.28 489.28 489.28 Salary and wages 30 337.98 371.77 371.77 390.98 390.98 Consumable Stores 30 1.33 1.33 1.50 1.50 1.50 Repair and Maintenance 15 2198 2418 2660 2926 3218 Other Administrative Expenses 60 2.00 2.40 2.88 3.46 4.15 Contingency 10.00 10.00 10.00 10.00 10.00 Total 5355.07 5609.07 6197.21 6482.96 6776.20 PROJECT COST AND SOURCE OF FINANCE (Amtt. In Rs. ) COST: Land including Developments 210,000,000 Technical Civil Work for Factory Building 121,000,000 Plant & Machinery 202,000,000 Preliminary And Pre-operative Expenses 3,000,000 Operating Capital 535,506,833 Total 1,071,506,833
  • 43. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com SOURCES : SPV Contribution 1,500 Bank Loan 9,215 Total 10,715 DEPRECIATION - WRITTEN DOWN VALUE METHOD Particulars 1st year 2nd year 3rd year 4th year 5th year Land Building and Civilwork: Opening Balance 121000000 114950000 109202500 103742375 98555256 Less: Depreciation @ 5% 6050000 5747500 5460125 5187119 4927763 Closing Balance 114950000 109202500 103742375 98555256 93627493 Machinery and Equipment Opening Balance 197000000 177300000 159570000 143613000 129251700 Less: Depreciation @ 10% 19700000 17730000 15957000 14361300 12925170 Closing Balance 177300000 159570000 143613000 129251700 116326530
  • 44. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com computers & Softwares Opening Balance 5000000 4000000 3200000 2560000 2048000 Less: Depreciation @ 40% 1000000 800000 640000 512000 409600 Closing Balance 4000000 3200000 2560000 2048000 1638400 Total Depreciation 26750000 24277500 22057125 20060419 18262533 Depreciated value 296250000 271972500 249915375 229854956 211592423 INTEREST AND REPAYMENT ON TERM LOANS 0.00 A Name of Institution-Bank ………………………….. BANK B Term Borrowing Amount 9215.07 Lacs C Repayment Term (Years) 5 Years D Repayment Instalments 20.00 Instalments E Repayment Commencement Year - 1; 1st Qtr. F Rate of Interest(General) 12.75% p.a. F Rate of Interest(Initial) 0.00% p.a. G Apply Gen. Int. Rate from Year 1 Quarter :: 1 H Interest Calculation Quarterly
  • 45. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Operating Year Period Ended Repayment Outstanding Interest Outstanding at the End Year wise Principal Repayment Quarter Ended 1-2 1.00 0.00 9215.07 293.73 2.00 0.00 9215.07 293.73 3.00 737.21 8477.86 270.23 4.00 737.21 7740.66 270.23 TOTAL : 1474.41 1127.92 7740.66 16.00% 2-3 1.00 414.68 7325.98 246.73 2.00 414.68 6911.30 233.52 3.00 414.68 6496.62 220.30 4.00 414.68 6081.95 207.08 TOTAL : 1658.71 907.63 6081.95 18.00% 3-4 1.00 506.83 5575.12 193.86 2.00 506.83 5068.29 177.71 3.00 506.83 4561.46 161.55 4.00 506.83 4054.63 145.40 TOTAL : 2027.32 678.52 4054.63 22.00% 4-5 1.00 506.83 3547.80 129.24 2.00 506.83 3040.97 113.09 3.00 506.83 2534.14 96.93 4.00 506.83 2027.32 80.78 TOTAL : 2027.32 420.03 2027.32 22.00% 5-6 1.00 506.83 1520.49 64.62 2.00 506.83 1013.66 48.47 3.00 506.83 506.83 32.31 4.00 506.83 0.00 16.16 TOTAL : 2027.32 161.55 0.00 22.00% Total Loan 9,215.07 3,295.65
  • 46. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com amount Note : Repayment is considered as being made at the end of the period PROJECTED BALANCE SHEET (Rs. in lakhs) Particulars Zero Date Ist Year 2nd Year 3rd Year 4th Year 5th Year A. Fixed Assets : Gross Block 5330.00 5330.00 5062.50 4819.73 4599.15 4398.55 Less : Depreciation 0 267.50 242.78 220.57 200.60 182.63 Net Block A 5330.00 5062.50 4819.73 4599.15 4398.55 4215.92 B Current Assets : 1.Working Cap. 0 5355.07 5609.07 6197.21 6482.96 6776.20 2. Cash and Bank Surplus 5355.07 2633.80 4540.11 6888.37 9366.03 11804.23 Total Current Assets 5355.07 7988.87 10149.17 13085.58 15848.99 18580.43 C Misc.Assets Preliminary Exp. 30 24.00 18.00 12.00 6.00 0.00 D. Total Assets(D = A + B+ C) 10715.07 13075.37 14986.90 17696.73 20253.54 22796.35 E. Capital 1500.00 1500.00 1500.00 1500.00 1500.00 1500.00 F. Bank Loan 9215.07 7740.66 6081.95 4054.63 2027.32 0.00 G. Accumulated Profits 0 3834.72 7404.95 12142.10 16726.22 21296.35
  • 47. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com H. Total Liability 10715.07 13075.37 14986.90 17696.73 20253.54 22796.35 ROI 29% 24% 27% 23% 20% CASH FLOW STATEMENT Particulars Constructio n Period Ist Year 2nd Year 3rd Year 4th Year 5th Year A. Source Funds : 1. Opening Balance 0.00 2633.80 4540.11 6888.37 9366.03 2. Cash Accurals during Year (Net Profit after Tax) 0 3834.72 3570.24 4737.15 4584.12 4570.13 3. Increase in capital 1500.00 0.00 0.00 0.00 0.00 0.00 4. Depreciation 267.50 242.78 220.57 200.60 182.63 5. Bank Loan 9215.07 0.00 0.00 0.00 0.00 0.00 6.Preliminiray Exp. W/off 6.00 6.00 6.00 6.00 6.00 Total Sources 10715.07 4108.22 6452.82 9503.83 11679.09 14124.79 B. Disposition of Funds : 1. Preliminary and Pre- 30.00 0.00 0.00 0.00 0.00 0.00
  • 48. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com operative Expenses 2. Increase in fixed assets 5330.00 0.00 0.00 0.00 0.00 0.00 3. Loan Payment 1474.41 1658.71 2027.32 2027.32 2027.32 4. Increase in Operating Capital 0.00 0.00 254.00 588.15 285.74 293.25 Total Disposition 5360.00 1474.41 1912.71 2615.46 2313.06 2320.56 C. Net Surplus (A -B) 0.00 2633.80 4540.11 6888.37 9366.03 11804.23 6. MARKET DEMAND ANALYSIS TOP BRANDS WITH LARGE REQUIREMENT OF FLY ASH PRODUCTS 3F Group A2Z Action Adani Aditya Birla Adventz Agrigold Alchemist Alcon Ambuja Ansal Apeejay Ashok Piramal Bafna Bajaj Bharti Binani Chettinad Chitale Chokhani Chowgule DLF DS Empire ERA Escorts Essar Essel Group Express World Future GMR Godrej Hero HNG IL&FS Indage IVRCL Jaypee Jindal Kalpataru Karvy Kohinoor L&T Lanco Liberty M2K Mahindra Mayar MGF Murugappa Group Muthoot Natvar Parikh
  • 49. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com Navayuga NSL OM Pailan Punj Lloyd Raheja Ram Ratna Ramky Reliance Ruchi Ruia S R Jindal Sahara Sai Prasad Saint-Gobain Sandesara Sanghi Group Semco Shrachi Shriram CITY WISE RESIDENTIAL & COMMERCIAL CONSTRUCTION COMPANIES City No of Cos Mumbai 189 Bangalore / Bengaluru 154 Pune 141 Hyderabad 68 Chennai 126 New Delhi 168 DELHI NCR AVERAGE BRICK & BLOCK ORDERS WHICH CAN BE AQUIRED ➢ L&T – Has projects across NCR where in the average demand we can target is between 20 – 30 Cr. bricks per year. ➢ DLF – Has projects across NCR with main focus towards Gurgaon – Jaipur belt, EENT can target an order of a minimum of 10 Cr Bricks/Blocks average per year. ➢ Jaypee – Major projects in Noida, UP area, can estimate 5 Cr Bricks per year. ➢ Amrapali Group – Major projects in Noida & Gaziabad, Merrut Strip, we can have an average target of 20 to 30 Cr bricks yearly ➢ Supreme Infratech – Major projects across NCR & major Government projects, we can aim 20 – 30 Cr Bricks yearly.
  • 50. All Rights reserved -Arunesh Chand Mankotia - aarunesh@gmail.com This is on ground study of actual orders in the market with an average rate ranging between Rs 4.65 to Rs 4.90 per brick. Further to this we can achieve 60 to 100 Cr brick order over a period of 3- 6 months of marketing on ground. THANK YOU EENT GREEN PROJECT TEAM The project was developed for the world’s first structured Fly Ash Industrial area & Research Centre in India. All the financial calculations & quotations are in accordance to FY-2014-15. All Rights reserved -Arunesh Chand Mankotia aarunesh@gmail.com